Capital Infra Trust Raises Rs 2,363 Crore Through Debt Securities to Optimize Capital Structure

Capital Infra Trust Raises Rs 2,363 Crore Through Debt Securities

The infrastructure investment trust sector witnessed a significant development as Capital Infra Trust announced raising an impressive Rs 2,363 crore through debt securities. This strategic financial move aims to strengthen the trust's financial position and optimize its capital structure.

Strategic Debt Issuance Details

Capital Infra Trust, an infrastructure investment trust established in September 2023, has successfully completed two major debt issuances:

• Allotment of 1,16,300 senior secured redeemable, non-convertible debt securities (NCDs), each with a face value of Rs 1,00,000
• Total value of first issuance: Rs 1,163 crore (completed on March 4, 2025)
• Securities rated 'AAA stable' by CRISIL
• Named 7.60 per cent CIT 2038, with maturity date of January 29, 2038

In a parallel development, the trust also announced the allotment of 1,20,000 secured listed redeemable non-convertible debt securities on a private placement basis. These NCDs, also carrying a face value of Rs 1,00,000 each, contributed an additional Rs 1,200 crore to the total funds raised.

Key Financial Institutions Backing the Trust

The trust has garnered significant support from leading financial institutions:

• HDFC Bank and IndusInd Bank have subscribed to the first NCD issuance
• India Infrastructure Finance Company Limited (IIFCL) and ICICI Bank fully subscribed to the second issuance

This widespread institutional backing demonstrates strong market confidence in Capital Infra Trust's business model and growth trajectory.

Strategic Utilization of Funds

The funds raised through these debt issuances will serve multiple strategic purposes:

• Refinancing high-cost debt instruments of project SPVs
• Optimizing interest rates on existing loans
• Enhancing investor yields
• Supporting long-term growth initiatives

Manish Satnaliwala, CEO of Capital Infra Trust, expressed optimism about the successful debt raising, stating: "The successful allotment of both the Series of NCDs marks a pivotal moment for us, demonstrating the investment community's trust in our robust financial strategy and growth potential. This move will help in building new benchmarks, enhance returns, and ensure long-term sustainability."

First Distribution Announced

In another positive development for investors, Capital Infra Trust declared its first distribution of Rs 12.71 per unit as Return on Capital on February 27. This distribution comprises:

• Rs 0.11 per unit as interest
• Rs 11.22 per unit as taxable dividend
• Rs 1.38 per unit as exempt dividend

This interim distribution is applicable to eligible unitholders for part period of the third quarter of the current fiscal year.

About Capital Infra Trust

Capital Infra Trust InvIT is sponsored by Gawar Construction Limited, a company with extensive experience in constructing road and highway projects across 19 states in India. The trust focuses on investments in infrastructure projects, primarily NHAI road projects, through acquisitions from sponsors and third parties.

Established in September 2023, the InvIT operates under SEBI InvIT Regulations and is positioned to engage in various infrastructure investment activities. The sponsoring company has built a strong reputation through its work with various government bodies, including the NHAI, MoRTH, MMRDA, and CPWD.

This strategic debt raising positions Capital Infra Trust to optimize its capital structure while continuing to invest in high-quality infrastructure assets across India.

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.

Read More

Roshni Nadar Malhotra Becomes India's Third-Richest Individual After Major HCL Stake Transfer

Roshni Nadar Malhotra Set to Become India's Third-Richest Individual Following Massive Stake Transfer from Father

In a significant wealth succession move that reshapes India's billionaire rankings, Roshni Nadar Malhotra is poised to become the third-richest person in India following a substantial stake transfer from her father, HCL Group founder Shiv Nadar. The transfer, formalized through gift deeds on March 6, 2025, represents a pivotal moment in one of India's most prominent family business transitions.

Strategic Succession Through Major Stake Transfer

The succession plan involves Shiv Nadar transferring his 47% stake in two key holding entities—HCL Corporation Private Limited and Vama Sundari Investments (Delhi) Private Limited—to his daughter. This strategic move firmly establishes Malhotra as the largest shareholder in these critical investment vehicles that control the HCL business empire.

The significance of this transfer extends beyond mere wealth redistribution, as it provides Malhotra with majority control over two flagship companies:

• HCLTech: One of India's premier IT services organizations
• HCL Infosystems: A key technology solutions provider

Through this transfer, Malhotra gains effective voting rights over Vama Delhi's 12.94% stake and HCL Corp's substantial 49.94% stake in HCL Infosystems. Perhaps most significantly, she now influences Vama Sundari Investment's 44.71% stake in HCLTech, which is valued at an impressive Rs 186,782 crore.

Reshaping India's Wealth Hierarchy

The stake transfer dramatically alters India's billionaire landscape. According to Bloomberg Billionaires data, the wealth redistribution positions Malhotra to become India's third-wealthiest individual, following only Mukesh Ambani and Gautam Adani. The current wealth hierarchy stands as:

• Mukesh Ambani: $88.1 billion
• Gautam Adani: $68.9 billion
• Shiv Nadar: $35.9 billion (before the transfer)

With this succession move, Shiv Nadar will naturally move down in the rankings after transferring a significant portion of his holdings to his daughter, cementing Malhotra's position among India's business elite.

Regulatory Approval and Family Succession

The transition has received official regulatory blessing. In November 2024, the Securities and Exchange Board of India (SEBI) granted Malhotra an exemption from making a mandatory open offer for her planned indirect acquisition of shares and voting rights in HCLTech.

This exemption was provided on the grounds that the share transfer represents a non-commercial transaction between immediate family members and adheres to inter-transfer norms under takeover regulations. The regulatory green light eliminated the requirement for an otherwise mandatory open offer to minority shareholders.

Among IT firms listed on the BSE, Vama Delhi's promoter stake now ranks as the second-highest by value. It also holds the ninth position among the Top 30 midcap firms by market capitalization, underscoring the significant scale of this wealth transfer.

Leadership Continuity

This wealth succession formalizes a leadership transition that has been underway for several years. Malhotra has served as the chairperson of HCLTech since 2020, taking over from her father in a planned succession. Her educational background includes a degree from Northwestern University and an MBA from the prestigious Kellogg School of Management, credentials that have prepared her for steering the company's strategic direction.

Over the past four years, Malhotra has been actively involved in shaping HCLTech's business strategy and corporate governance, making this financial succession a natural extension of her increasing leadership role within the family business.

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.

Read More

Swiggy Introduces 'Fasting Mode' Feature to Pause Food Notifications During Religious Observances

Swiggy Launches Innovative 'Fasting Mode' Feature To Pause Food Notifications During Religious Observances

In a thoughtful move catering to its diverse user base, food delivery giant Swiggy has introduced a new feature called 'Fasting Mode' that allows users to temporarily pause food-related notifications during periods of religious fasting. The feature, which rolled out on Monday, March 10, 2025, initially supports Ramazan observances but will expand to accommodate other fasting traditions throughout the year.

How Swiggy's Fasting Mode Works

The newly launched feature provides users with a simple mechanism to manage their app experience during fasting periods without completely disabling the application. According to Swiggy's announcement, the feature ensures that potentially tempting food notifications are suspended during fasting hours while keeping the app fully functional for when users are ready to order.

The implementation demonstrates careful consideration of user needs during religious observances:

• Users can easily toggle the Fasting Mode on or off directly from the Swiggy app at any time
• Once activated during Ramazan, food notifications are automatically paused between Suhoor (pre-dawn meal) and 4 PM
• Notifications resume automatically after fasting hours without requiring manual reactivation
• The feature will be available year-round to support various religious and cultural fasting traditions

Expanding Support for Cultural Diversity

While the initial rollout focuses on supporting Ramazan observers, Swiggy has confirmed that the Fasting Mode feature will also be available for other fasting periods such as Navaratri. This expansion demonstrates the company's commitment to accommodating diverse cultural and religious practices across its user base.

The feature represents a growing trend among technology platforms to provide more culturally sensitive and personalized user experiences. By acknowledging the importance of religious observances in users' daily lives, Swiggy enhances its ability to serve India's diverse population more effectively.

Strategic Business Developments

This user experience enhancement comes amid other significant business developments at Swiggy. In February 2025, the company's board approved a substantial Rs 1,000 crore investment in its wholly owned subsidiary, Scootsy Logistics Pvt., to support business expansion initiatives.

The approved investment will be deployed in multiple tranches through a rights issue subscription, with funds allocated toward working capital and other capital expenditures as part of the company's broader growth strategy.

Market Performance

Despite the positive developments in user experience and business expansion, Swiggy's stock has faced challenges in the market. Shares closed at Rs 359.65 on the NSE on Monday, representing a modest 0.36% decline compared to a 0.41% fall in the benchmark Nifty index. Over the longer term, the stock has experienced a more significant 21.13% decline over the past 12 months.

The introduction of features like Fasting Mode represents Swiggy's efforts to enhance user engagement and brand loyalty amid competitive pressures in the food delivery sector. By addressing specific user needs through thoughtful feature development, the company aims to strengthen its market position and potentially improve financial performance in the coming quarters.

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.

Read More

NSDL Fast-Tracks Rs 3,000 Crore IPO Launch in April Amid Market Slowdown

NSDL Fast-Tracks Rs 3,000 Crore IPO Launch Amid Market Slowdown

While India's primary market has entered a sluggish phase in recent weeks, National Securities Depository Ltd (NSDL) is pushing ahead with its public listing plans. The country's premier securities depository is accelerating efforts to launch its Rs 3,000 crore initial public offering (IPO) as early as April 2025, navigating both regulatory timelines and challenging market conditions.

Key IPO Structure and Timeline

The NSDL public offering will be structured entirely as an offer for sale (OFS), allowing six existing shareholders to dilute their stakes. Notable participants in the OFS include the National Stock Exchange (NSE), which currently holds a 24% stake in NSDL, along with IDBI Bank and HDFC Bank.

While the depository secured in-principle approval for its IPO in September 2024 (valid until September 2025), company officials indicate they're working against tight deadlines. "Our dates are expiring next month. We are rushing against time to get things done fast," an NSDL representative disclosed to PTI.

According to market sources, the company is targeting an early April launch for the public issue, with the listing expected to take place within the same month. This accelerated timeline represents a determined push forward despite the broader market correction that has dampened primary market enthusiasm.

Regulatory Compliance Driving the Timeline

A significant factor behind NSDL's urgency is compliance with the Securities and Exchange Board of India's (SEBI) ownership norms for market infrastructure institutions. These regulations mandate diversified shareholding structures, requiring NSDL to adjust its ownership composition through the public offering.

The IPO represents a strategic move to align with regulatory frameworks while potentially unlocking shareholder value. As India's largest securities depository, NSDL plays a critical role in the nation's financial infrastructure, making its public listing a closely watched event in financial circles.

Strong Financial Performance

Despite the broader market slowdown, NSDL's financial fundamentals remain robust, potentially supporting investor interest in the upcoming offering. The company recently reported impressive financial results for Q3 FY25:

• Consolidated net profit: Rs 85.8 crore, representing a substantial 29.82% year-on-year increase
• Total income: Rs 391.21 crore, up 16.2% compared to the same period last year

These strong financial indicators suggest NSDL enters the public markets from a position of operational strength, which may help differentiate its offering in a cautious market environment.

Market Implications

The NSDL public offering stands among the most anticipated IPOs in India's financial services sector. Market participants are keenly observing how the company will navigate both regulatory requirements and prevailing market sentiment as it finalizes its listing preparations.

For retail investors, the IPO presents a potential opportunity to invest in a key market infrastructure institution with a dominant position in India's securities depository space. The company's established market presence and recent financial performance may attract interest despite the generally subdued IPO market conditions.

As NSDL works to finalize regulatory clearances in the coming weeks, investors will be watching closely for official confirmation of the IPO launch date and further details on pricing and allocation.

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.

Read More

India Imposes Five-Year Anti-Dumping Duty on Water Treatment Chemical from China and Japan

In a significant move to protect domestic manufacturers, India has imposed an anti-dumping duty of up to $986 per tonne on a key water treatment chemical imported from China and Japan. The duty will remain in effect for five years, according to a recent notification from the Finance Ministry.

Protective Measures for Domestic Industry

The chemical in question, 'Trichloro isocyanuric acid,' is widely used in water treatment processes. The anti-dumping duty comes after a thorough investigation determined that domestic producers have suffered "material injury" due to below-cost imports from these two Asian nations.

This protective measure follows recommendations from the Directorate General of Trade Remedies (DGTR), the specialized investigation arm of the Commerce Ministry tasked with examining dumping allegations. The DGTR's investigation concluded that the domestic industry required protection from unfairly priced imports that were harming local manufacturers.

Implementation and Duration

According to the official notification, "The anti-dumping duty imposed shall be levied for a period of five years [unless revoked, superseded or amended earlier]." This provides a stable timeframe for domestic manufacturers to adapt and strengthen their market position.

The process for implementing such duties involves multiple government agencies. While the DGTR conducts investigations and makes recommendations regarding alleged dumping practices, the Finance Ministry makes the final decision on whether to impose the duty. Typically, the Finance Ministry has three months from receiving the recommendation to make its determination.

Trade Implications

Both China and Japan are key trading partners for India, making this decision particularly significant in the broader context of regional trade relations. The implementation of anti-dumping duties must balance protecting domestic industries while maintaining healthy international trade relationships.

This action follows other recent trade remedy investigations, including a DGTR recommendation for anti-dumping duty on sodium cyanide imports and a trade ministry proposal for similar duties on Chinese aluminium foil imports. These measures collectively represent India's strategic approach to addressing trade imbalances while supporting domestic manufacturing.

Understanding Anti-Dumping Measures

Anti-dumping measures are trade remedies permitted under the World Trade Organization (WTO) framework. Countries initiate these investigations when there is evidence suggesting that imports from certain countries are priced below their normal value, causing harm to domestic industries.

It's important to note that anti-dumping duties are not designed to restrict imports or cause unjustified price increases. Rather, they aim to ensure fair trade practices and provide a level playing field for domestic manufacturers competing against imported goods.

Key Benefits of Anti-Dumping Duties

• Protection for domestic manufacturers against unfair foreign competition
• Preservation of employment in domestic manufacturing sectors
• Encouragement of fair pricing practices in international trade
• Support for domestic research and development capabilities
• Reduction of overdependence on imported essential chemicals

Industry Impact

The water treatment sector in India is expected to benefit from this decision, as domestic manufacturers of Trichloro isocyanuric acid will now be able to compete more effectively against imports. Water treatment facilities across the country rely on this chemical for disinfection and purification processes in both municipal and industrial applications.

For consumers and businesses using water treatment services, the impact on pricing will likely be minimal in the long term, as the measure is designed to correct unfair pricing rather than artificially inflate costs.

This protective measure aligns with India's broader economic strategy of strengthening domestic manufacturing capabilities across various sectors while ensuring compliance with international trade obligations.

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.

Read More

Hyundai's ₹31,526-Crore Related-Party Transactions Face Corporate Governance Scrutiny

Hyundai's ₹31,526-Crore Related-Party Transactions Receive Mixed Advisory Response

Hyundai Motor India Ltd. has come under scrutiny as its proposed related-party transactions worth over ₹31,500 crore face opposition from a prominent corporate governance advisory firm. These transactions, which require shareholder approval following the company's recent listing, highlight the complex supply chain relationships within the Hyundai group.

Corporate Governance Concerns

Stakeholders Empowerment Services (SES), a respected corporate governance research and advisory firm, has recommended that investors vote against the resolutions for related-party transactions with six out of seven entities. The only exception in their recommendation is for transactions with the parent company, Hyundai Motor Co.

This stance contrasts with another advisory firm, Investor Advisory Services, which has voted in favor of approving related-party transactions for all seven entities. This divergence in recommendations puts investors in a position where they must carefully evaluate the governance implications of these substantial transactions.

Scale and Scope of Related-Party Transactions

According to an exchange filing dated February 11, 2025, Hyundai Motor India is seeking approval for related-party transactions with seven entities, totaling ₹31,528 crore. These transactions encompass various activities including:

• Availing and rendering of services
• Purchase and sale of goods
• Purchase of fixed assets
• Other business-related transactions

Key Related Entities and Transaction Values

The filing details the specific entities and the maximum aggregate value of transactions with each:

• Mobis: Transactions not exceeding ₹12,525 crore
• Hyundai Motor Co: ₹4,607 crore
• Hyundai Transys Lear Automotive India: ₹2,556 crore
• Kia India: ₹5,824 crore
• HEC India LLP: ₹3,000 crore
• Hyundai Motor De Mexico S DE RL DE CV: ₹1,852 crore
• PT Hyundai Motor Manufacturing Indonesia: ₹1,164 crore

Supply Chain Dependencies

Analysis of Hyundai India's business operations reveals significant dependencies on related parties within its supply chain. According to multiple brokerage reports, Hyundai India sourced 37% of its parts and revenue in the first quarter of fiscal 2025 from related parties. This figure stood at 38% for the entire FY24.

Mobis India Ltd., which supplies after-sale parts and accessories to dealers, is particularly crucial to Hyundai's operations in India. In its Red Herring Prospectus (RHP), Hyundai Motor India acknowledged that any failure by Mobis to fulfill supply requirements could materially impact the after-sale services provided to customers.

Shareholder Vote Timeline

The company has initiated a postal ballot for these related-party transactions, with e-voting that began on February 12, 2025. Shareholders have until March 13, 2025, 5:00 p.m. IST to cast their votes on these resolutions.

Implications for Investors

These proposed transactions raise several considerations for current and potential investors:

• Corporate governance standards and transparency in related-party dealings
• Operational dependencies on group entities and associated risks
• Pricing mechanisms and fairness in inter-company transactions
• Potential impact on minority shareholder interests

The outcome of the shareholder vote will be closely watched as it may signal investor sentiment regarding Hyundai India's governance practices following its public listing. It also highlights the growing influence of corporate governance advisory firms in shaping investor decisions on critical matters.

As Hyundai continues to expand its presence in the Indian market and works toward its global electric vehicle goals, maintaining transparent and fair related-party transactions will be essential for building investor confidence and ensuring long-term sustainability.

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.

Read More