Zomato, Swiggy Shares Slip 3% Amid Quick Commerce Competition

Zomato, Swiggy Shares Slip 3% as Quick Commerce Rivalry Intensifies

Shares Decline Amid Competition Concerns

Shares of quick commerce players Swiggy and Zomato extended their losses, dropping another 3% on January 22, as concerns grow over intensifying competition in the sector. These concerns gained momentum following Zomato's sharp profit decline in Q3, driven by its aggressive dark store expansion plan for its quick commerce business, Blinkit. This development has dampened spirits in the food-delivery and quick commerce sector, where Zomato and Swiggy largely hold a duopoly in terms of market share.

Zomato's Aggressive Expansion

Zomato's decision to aggressively expand its store network for Blinkit led to increased investment costs, which inflated losses in the quick commerce vertical and squeezed the company's overall net profit in Q3. While several brokerages commended Zomato's expansion efforts, Jefferies also noted that it may prompt competitors to follow suit, leading to a potential increase in competition.

Stock Performance

Amid these concerns, Zomato's shares have dropped 17% in three consecutive sessions, while Swiggy's shares have lost 11% in two days. The recent downturn in Swiggy's shares has taken the stock close to its listing price. Swiggy had listed with a 7.69% premium at ₹420 per share on the NSE on November 13. The stock initially surged by 32% to ₹617 per share before experiencing the recent decline.

As of today's session, shares of Swiggy hit an intraday low of ₹424.65, while those of Zomato slipped to ₹203.85.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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Reliance Capital Pursues Delisting Post IndusInd Bid

Reliance Capital Pursues Delisting of Shares After IndusInd Bid

Delisting Process Initiated

Reliance Capital, facing significant debt, has initiated the process to delist its shares from stock exchanges. The company has filed applications with the BSE and NSE for the delisting of its equity shares, following approval from the monitoring committee. Additionally, it has sought to delist its non-convertible debentures from the BSE, as stated in a regulatory filing.

IndusInd International Holdings Ltd (IIHL) Bid

Mauritius-based IndusInd International Holdings Ltd (IIHL) emerged as the successful bidder for Reliance Capital's resolution, offering ₹9,650 crore. Subsequently, IIHL contributed an additional ₹200 crore to improve the company's solvency beyond the initial bid amount. The National Company Law Tribunal (NCLT) in Mumbai approved IIHL's resolution plan on February 27, 2024. The deadline for completing the transaction was extended to January 31, 2025.

Background and Regulatory Intervention

Reliance Capital is registered with the Reserve Bank of India (RBI) as a core investment company. It oversees several entities such as Reliance Nippon Life Insurance, Reliance General Insurance, Reliance Money, Reliance Securities, Reliance Asset Reconstruction, and Reliance Commercial Finance. In November 2021, the RBI intervened due to governance issues and payment defaults by the Anil Dhirubhai Ambani Group company. The central bank replaced Reliance Capital's board and appointed Nageswara Rao Y as the administrator. In February 2022, he invited bids to take over the company.

Strategic Measures for Resolution

These steps taken by Reliance Capital are part of its ongoing efforts to resolve its financial difficulties through strategic measures. By delisting its shares and engaging with potential investors like IIHL, the company aims to stabilize its operations and address its debt obligations effectively.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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Stock Market Live: Sensex Gains 320 Pts, Nifty50 Above 23,000; Wipro Up

Stock Market Live Updates: Sensex Rallies 320 Points, Nifty50 Above 23,000; Wipro Gains 2%

Positive Market Opening

The stock markets opened on a positive note today, with strong early gains across key indices. The Sensex surged by 287 points, reaching 76,125, reflecting investor optimism. Similarly, the Nifty 50 followed suit, rising by 65.55 points, or 0.28%, and opening at 23,090.20.

GIFT Nifty and Market Sentiment

The GIFT Nifty is setting a hopeful tone for India's broader indices, showing a gain of 0.05% in early trade. As of 8:30 am, GIFT Nifty futures were hovering around 23,161, signaling optimism for the market open. This follows a challenging session on Tuesday, when the Sensex tumbled by 1.60%, shedding 1,235 points to close at 75,838.36, and the Nifty dropped by 1.37%, sliding 320.1 points to end at 23,024.65. Weak corporate earnings and uncertainty around potential trade policies under President Trump had previously weighed heavily on investor sentiment.

UCO Bank Q3 Result

For the quarter ending December 31, 2024, UCO Bank reported Net Interest Income (NII) of ₹2,378 crore, a 19.62% year-on-year growth over ₹1,988 crore in Q3FY24. NII increased 17.21% year-on-year to ₹6,932 crore for the nine months ending in December 2024, compared to ₹5,914 crore for the same period in 2023. The Net Interest Margin (NIM) was 3.17% for the quarter ending December 31, 2024, compared to 2.84% for the same period the year before. The NIM was 3.12% for the nine months ending December 2024, compared to 2.88% for the nine months ending December 2023.

Global Market Performance

• US Markets: Wall Street closed on a positive note on Tuesday as investors welcomed President Trump. The Dow Jones Industrial Average (DJIA) led the gains, rising 537.98 points (+1.24%) to close at 44,025.81, while the S&P 500 added 52.58 points (+0.88%) to settle at 6,049.24. The NASDAQ Composite also advanced, gaining 126.58 points (+0.64%) to finish at 19,756.78.
• Asian Markets: Asian markets showed a mixed performance in early trading. Japan’s Nikkei 225 led the gains, rising by 576.73 points (+1.48%) to close at 39,604.71. South Korea’s KOSPI and Australia’s ASX 200 also edged higher, gaining 18.73 points (+0.74%) and 28.7 points (+0.34%), respectively. In contrast, Chinese markets struggled, with the Shanghai Composite dropping 30.18 points (-0.93%) to 3,212.45, and the Shenzhen Component falling 96.6 points (-0.94%) to 10,209.09. Hong Kong's Hang Seng Index (HSI) saw the steepest decline, losing 272.04 points (-1.35%) to finish at 19,834.51.

Previous Day's Market Decline

On January 21, the Indian stock market witnessed a significant sell-off, closing with notable losses across key indices. The benchmark Sensex plummeted by 1,235.08 points, or 1.60%, to settle at 75,838.36. The Nifty 50 also experienced a substantial decline, shedding 299.45 points, or 1.28%, to close at 23,045.30. The downturn was attributed to weak corporate earnings, global market uncertainties, and investor concerns over domestic and international economic policies.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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Trump Announces $500 Billion AI Investment with Oracle, SoftBank, OpenAI

President Donald Trump Announces $500 Billion AI Initiative

New AI Investment

US President Donald Trump has announced a $500 billion investment in AI infrastructure through a new company called Stargate, which is being created in partnership with Oracle, SoftBank, and OpenAI. This venture will involve the construction of new data centers to enhance computing power and will be open to other investors.

Partners and Initial Data Centers

The three companies plan to contribute funds to the venture, which will begin with 10 data centers already under construction in Texas. At a White House news conference, Trump announced the formation of Stargate along with Oracle Chief Technology Officer Larry Ellison, Softbank CEO Masayoshi Son, and OpenAI CEO Sam Altman.

Job Creation and National Priority

Trump stated that Stargate will invest at least $500 billion in AI infrastructure in the United States, creating over 100,000 American jobs almost immediately. He emphasized the importance of keeping technology development in the country, citing China and other countries as competitors. He added that Stargate will build the physical and virtual infrastructure to power the next generation of advancements in AI and will include the construction of massive data centers and physical campuses.

Comments from Partners

Oracle's Larry Ellison acknowledged that this initiative would not have been possible without Trump. He said that they have been working with OpenAI and Softbank for a while, and that the data centers, each being half a million square feet, are under construction, with the first location in Texas. He described some of the applications as being able to improve electronic health records and allow doctors to better understand the condition of their patients. SoftBank CEO Masayoshi Son said that his company would immediately start deploying $100 billion, with the goal of making US$500 billion within the next four years, describing this project as the most important of this era. OpenAI CEO Sam Altman stated that the project is exciting, and he is happy it will be developed in the United States.

New Investments

Trump said that he has already secured nearly $3 trillion of new investments in the United States before the end of his first full business day in the White House, and that this figure could reach $6 trillion or $7 trillion by the end of the week. He also noted that tremendous amounts of money are coming in for many things other than even AI, though AI seems to be very popular.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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ICICI Prudential Life Q3 FY25 Results: Net Profit Surges 43% to Rs 326 Crore | Insurance Sector Growth

ICICI Prudential Life Reports Impressive 43% Jump in Q3 Profits, Surpassing Market Expectations

In a significant development for the insurance sector, ICICI Prudential Life Insurance has announced outstanding financial results for the third quarter of FY 2024-25, with net profits soaring to Rs 326 crore, marking a substantial 43% increase from the previous year's Rs 227.47 crore.

Key Financial Highlights

The company's performance notably exceeded market projections, which had anticipated a more modest 13.52% increase to Rs 257.7 crore. The insurer demonstrated robust growth in its net premium income, which reached Rs 12,261.37 crore, representing a significant 24% increase from Rs 9,929 crore in the corresponding quarter of the previous year.

Strengthened Financial Position

The company's financial stability has shown marked improvement, with the solvency ratio strengthening to 211.8% from 196.5% year-over-year. This enhancement in the solvency ratio indicates the company's strong capability to meet its long-term financial obligations.

Growth in Key Performance Metrics

The Annualised Premium Equivalent (APE) demonstrated impressive growth, rising by 27.2% year-on-year to reach Rs 6,905 crore in 9MFY25, up from Rs 5,430 crore in 9MFY24. This growth was supported by a 14.4% increase in policy issuance, reflecting strong customer confidence and market penetration.

Value Creation and Business Performance

The Value of New Business (VNB) showed positive momentum, increasing by 8.5% year-on-year to reach Rs 1,575 crore in 9M FY25, compared to Rs 1,451 crore in the previous year. The VNB margin stood at a healthy 22.8%, indicating efficient value creation from new business.

Diverse Product Portfolio

ICICI Prudential Life maintains a well-balanced product mix in its 9MFY25 APE contribution: - Linked products: 50.8% - Non-linked products: 17.5% - Protection plans: 16.9% - Annuities: 8.9% - Group funds: 6%

Customer Retention Success

The company's strong focus on customer satisfaction is reflected in its impressive 13th-month persistency rate of 89.8% in 9MFY25, demonstrating high customer loyalty and effective service delivery.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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Euro Pratik Files Draft Papers with Sebi for ₹730-Crore IPO

IPO Details

Euro Pratik, a key player in the decorative wall panel industry, has filed draft papers with the Securities and Exchange Board of India (Sebi) seeking approval for an Initial Public Offering (IPO) worth ₹730 crore. The IPO is entirely an Offer For Sale (OFS) by promoters and includes a subscription reservation for eligible employees, as per the Draft Red Herring Prospectus (DRHP) filed on Monday.

Company Overview

Euro Pratik is a prominent company in India’s decorative wall panel industry, holding nearly 16% market share by revenue in the organised segment, according to a Technopak Report. The company has developed a broad product range for both residential and commercial applications, sold primarily under its flagship brands "Euro Pratik" and "Gloirio".

Asset-Light Model and Manufacturing

The company operates on an asset-light model, outsourcing manufacturing to contract partners in South Korea, China, and the USA. During the six months ending September 2024, Euro Pratik collaborated with 26 contract manufacturers from these countries. In fiscal year 2024, Euro Pratik commenced exports to six countries, including Singapore, UAE, Australia, Bangladesh, Burkina Faso, and Nepal.

Business Expansion

Over the past three years, the company has scaled its operations through acquisitions, consolidating businesses, and diversifying its product offerings. Key acquisitions include Vougue Decor, Euro Pratik Laminate LLP, Millennium Decor, EuroPratik Intex LLP, and Euro Pratik USA, LLC, significantly enhancing its portfolio and geographic reach.

Brand Ambassadors and Financials

To support its marketing efforts, Euro Pratik has partnered with celebrities Hrithik Roshan and Kareena Kapoor Khan as brand ambassadors for its "Euro Pratik" and "Gloirio" brands, respectively. In fiscal year 2024, the company's consolidated revenue from operations stood at ₹222 crore, and Profit After Tax (PAT) was ₹63 crore.

Lead Managers and Listing

Axis Capital and DAM Capital Advisors are the book-running lead managers for the issue. The equity shares are proposed to be listed on the National Stock Exchange of India Ltd and BSE Ltd.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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GB Logistics Sets SME IPO Price Band at ₹95-102 Per Share

SME IPO Details

GB Logistics Commerce Ltd has announced the price band for its upcoming initial public offering (IPO) at ₹95-102 per equity share. The ₹25.07 crore IPO will open on January 24 and conclude on January 28. The company’s shares will be listed on the BSE SME platform, according to a statement released by the company on Tuesday.

IPO Structure and Size

Investors can bid for a minimum of 1,200 shares and in multiples thereof. The public issue is entirely a fresh issue of up to 24.57 lakh equity shares at a face value of ₹10 each. At the upper end of the price band, the company aims to raise up to ₹25.07 crore from the IPO.

Utilization of Proceeds

The net proceeds from the issue will be used for several purposes, including: repayment of debt, meeting working capital requirements, expenditure towards the purchase of truck chassis and truck bodies, and for general corporate purposes. Prashant N Lakhani, Managing Director of GB Logistics Commerce Ltd, said that this IPO will support plans to expand operations, increase market presence, and reinforce the company’s corporate identity.

About GB Logistics Commerce

GB Logistics Commerce operates in the logistics sector, providing a wide range of solutions such as regular full-truckload transportation, special handling, multi-level deliveries, and out-of-delivery-area shipments. In FY24, the company reported a consolidated revenue of ₹115.62 crore and a profit after tax of ₹4.86 crore. SKI Capital Services is the sole book-running lead manager, and Maashitla Securities Pvt Ltd is the registrar to the public issue.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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