💪 Adani Group Proposes Rivalling Gpay and PhonePe in Payments Market

Hello,
Indian benchmark indices ended lower on Tuesday due to cautious market sentiment amid the ongoing 2024 Lok Sabha elections. The Adani Group’s board approved a major QIP and also disclosed plans to enter India’s payments market.

Markets

• Indian benchmark indices traded quietly on Tuesday, weighed down by the cautious sentiment in the markets amid the ongoing 2024 Lok Sabha elections and the anticipation of inflation data from various countries.

• At close, the Sensex was at 75,170.45, down 220.05 points, or 0.29%. Similarly, the Nifty 50 was at 22,888.15, down 44.30 points, or 0.19%.

Notable Gainer & Loser
Source: Moneycontrol

Doms Industries Ltd (NSE: DOMS) +2.57%

• Shares of DOMS Industries closed 2.5 percent higher after rallying over 10 percent to hit an all-time high of Rs 2,035 per share intraday. The surge followed the stationery company's upbeat performance in the January-March quarter (Q4FY24). With today's increase, the stock is now up over 150 percent from its issue price of Rs 790 per share.

PB Fintech Ltd (NSE: POLICYBZR) (4.62%)

• Shares declined by 4.6 percent after a 1.2 percent stake in the company was traded in a Rs 677 crore block deal. Earlier reports indicated that Tencent Cloud Europe, which previously held a 6.26 percent stake in the company, was seeking to sell 1.2 percent equity to raise Rs 734 crore ($78.3Mn).

Yesterday’s Highlights

• International Trade and Defence Deals

  • India and France to begin negotiations this week for mega Rs 50,000 crore ($6Bn) deal for 26 Rafale Marine jets. (ET)

  • Reliance has inked a deal with Russia's Rosneft to buy oil using roubles. (ET)

• Government Initiatives and Policies

  • The Uttar Pradesh government aims to attract Rs 16,000 crore ($2Bn) in investments in the civil aviation sector. (BS)

  • The FAME 3 subsidy is expected to be rolled out soon with an outlay of Rs 10,000 crore ($1.2Bn), featuring support for hybrids but not electric cars. (ET)

• Corporate Developments and Investments

  • 360 One launches secondaries fund with a Rs 4000 crore ($480Mn) target-corpus. (BS)

  • Adani Group to enter UPI, digital payment, credit card business to compete with Google and Reliance. (Mint)

  • HDFC Bank and others have incurred a significant haircut, with over 96% reduction, in the Adani Goodhomes-Radius Estates deal. (Moneycontrol)

• Financial Markets and Banking

  • The RBI has introduced an app for purchasing and selling government securities and has also announced a fintech data repository. (YS)

  • Four European Union banks are seeking approval from the RBI for a new clearing model. (ET)

  • Credit costs are expected to rise if the RBI's proposed norms for projects under construction are implemented. (ET)

• Other

  • DCM Shriram has signed an agreement with the Institute of Chemical Technology (ICT) for research and development in the chemical industry. (Moneycontrol)

  • Infosys has collaborated with Germany's Commerzbank to revamp its trading ecosystem. (BS)

Featured Highlight
Sources: Mint, Business Standard

Adani Group's Proposed Expansion into India's Digital Payments Market: An Overview

• Adani Group Explores Digital Payments Market Entry: Adani Group is considering venturing into India's digital payments sector, planning to introduce a co-branded credit card in collaboration with banks. This move aims to tap into the projected significant growth of India's payments market.

• Focus on Consumer Businesses and Infrastructure Investment: With plans to invest Rs ~7 lakh crore ($84Bn) in infrastructure over the next decade, Adani Group emphasizes expanding its presence in consumer businesses. Despite previous controversies and allegations, the conglomerate aims to leverage its network of ports, airports, and power plants to drive growth.

• Competition with Established Players: Adani Group's entry into digital payments will position it against established players like Google Pay and PhonePe, which currently dominate the market. Negotiations are underway to offer online shopping services through India's ONDC platform, further intensifying competition in the e-commerce sector.

• Recovery and Expansion Amid Challenges: Despite facing allegations of fraud and market manipulation in the past, Adani Group has seen a positive trajectory, with four out of seven group companies surpassing pre-controversy levels. The conglomerate aims to expand its consumer-facing markets and regain investor trust, even amid ongoing scrutiny and investigations.

Too Long, Didn’t Read? (TLDR) Below is the shorter version ⬇️ 

• Adani Group, despite past controversies, is considering entry into India's digital payments market with plans for a co-branded credit card.

• The conglomerate aims to invest Rs ~7 lakh crore ($84Bn) in infrastructure over the next decade, focusing on consumer businesses to expand its presence.

• Competition in the digital payments sector includes established players like Google Pay and PhonePe, with Adani Group planning to leverage its existing network.

• Adani Group is also exploring offering online shopping services through India's ONDC platform via its consumer app, Adani One.

IPO / FPO / Issuances

There are no mainboard IPOs for the rest of the week but you can check out SME IPOs for this week here.

• Hindalco Industries-owned aluminium manufacturer Novelis is aiming for a Rs ~1.04 lakh crore ($12.6Bn) valuation in its upcoming US IPO. (BS)

• Hyundai Motor India has enlisted additional bankers for what could potentially be a record-breaking Rs ~20,000 crore ($2.5Bn) IPO. (Moneycontrol)

• The board of Adani Enterprises has approved a Rs 16,600 crore ($2Bn) fundraising through a Qualified Institutional Placement (QIP). (BS)

• LG Electronics India is planning an IPO and could potentially raise over Rs 4,160 crore ($500Mn). (Moneycontrol)

M&A / PE

• KITES Senior Care and Columbia Pacific Communities are poised to merge, creating one of India's largest senior living firms. (ET)

• LIC is considering entering the health insurance market and is looking at potential acquisitions. (ET)

• The Competition Commission of India (CCI) has approved ITC Hotel Ltd's demerger plan. (BS)

• ChrysCapital targets buyout deals in the pharmaceutical sector. (ET)

VC
Sources attached in company name