$5B Merger Shakes Up India’s Healthcare Market

• After a sharp decline of around 1.5% the previous day, Indian stock market indices Sensex and Nifty 50 surged nearly 1% intraday on Friday, November 29.

• The recent market downturn is primarily attributed to FII selling, which experts find puzzling following a brief buying spree. Additional challenges include geopolitical tensions, weak corporate earnings, and uncertainty over the US interest rate outlook.

Divi’s Laboratories +3.89%

• Shares rose 4% after Citi reaffirmed its bullish stance, naming the stock its top pick in the Indian pharma sector due to the drugmaker's growing contrast media pipeline.

• The brokerage maintained its 'buy' rating with a price target of Rs 6,850, suggesting a 15% upside from Thursday's close.

CreditAccess Grameen (8.45%)

• Shares dropped 8.5% after Goldman Sachs downgraded the microfinance player to 'Sell' from 'Buy,' citing an uncertain earnings outlook.

• The brokerage reduced its target price to Rs 564 from Rs 1,426, indicating a 42% downside from the previous session's close.

• India's GDP growth slowed to 5.4% in July-September due to weak consumption. (ET)

• Analysts revise down India's growth forecast following the shock slowdown. (ET)

• Central government capex is expected to rise 25% YoY in H2 FY25, according to Jefferies. (ET)

• RBI aims to boost banks' adoption of its AI fraud detection platform. (Inc42)

• Flipkart to expand its quick commerce offering to additional cities. (Inc42)

• Govt to expand EV manufacturing incentives following Tesla's disappointment. (BS)

• Life insurance employees' body calls for the withdrawal of GST on premiums. (ET)

• Banks report a 50.4% rise in gold loan demand due to financial distress. (ET)

• NBFC growth to remain under pressure from slower loan disbursements and tighter regulations. (ET)

• Zomato raised Rs 8,456 crore ($1Bn) via QIP from domestic mutual funds. (YS)

• German car-parts maker Mahle plans a Rs 3,382 crore ($400Mn) IPO for its Indian unit. (MC)

• Suraksha Diagnostic IPO subscribed 11% on day 1, with no QIB bids. (MC)

• Enviro Infra shares jump 40% in debut trade. (MC)

This week’s mainboard IPO schedule

• Suraksha Diagnostic

  • Offering Period: 29 November - 03 December, 2024

  • Listing Date: 06 December, 2024

  • Issue Price: 420-441

  • Lot Size: 34

• Property Share REIT

  • Offering Period: 02 December - 04 December, 2024

  • Listing Date: 09 December, 2024

  • Issue Price: 10,00,000 (not a typo😅)

  • Lot Size: 10,50,000 (not a typo😅)

M&A / Investments

• Aster DM merges with CARE Hospitals in a Rs 43,000 crore ($5Bn) deal, joining India’s top three healthcare players. (BS)

• Cipla promoters may sell a 1.72% stake worth Rs 2,000 crore ($236Mn) through a block deal. (BS)

• OVL completes Rs 507 crore ($60Mn) acquisition of Equior's stake in Azerbaijan oilfield. (ET)

• Nazara's subsidiary, NODWIN Gaming, has acquired Trinity Gaming for Rs 24 crore ($2.83Mn). (YS)

• IndiaMART to increase its stake in Mobisy with a Rs 14.3 crore (1.69Mn) investment. (YS)

• Hinduja Tech completes the acquisition of TECOSIM Group. (ET)

Debt

• Hinduja Leyland Finance plans to raise Rs 2,536-4,228 crore ($300-500Mn) via debut dollar bonds. (BS)

• CreditAccess Grameen raised Rs 222 crore ($25Mn) from DEG and Rs 170 Cr from Citi. (YS)

VC

• Sequoia Capital plans India comeback with an investment in Vance. (Inc42)