Bharti Global Acquires 24.5% Stake in BT Group for $4 Billion

• Markets ended Monday's session nearly unchanged amid mixed global signals.

• In the afternoon, both indices recovered their earlier losses and continued to climb, supported by positive trends in global markets and fresh foreign investments.

• The indices had initially declined as investors were cautious about the potential fallout from a US short-seller Hindenburg Research report concerning the SEBI chairman and her spouse's undisclosed ties to offshore funds in Bermuda and Mauritius.

Ola Electric Ltd +20.00%

• Shares of the newly listed company hit the 20 percent upper circuit, extending their gains for a second consecutive session. This comes after a similar 20 percent rally on its market debut on August 9.

• The Bhavish Aggarwal-led company is set to announce its Q1 results on August 14, with Ola Electric Mobility holding its first board meeting since listing.

Bharat Dynamics Ltd (6.14%)

• Shares dropped over 6 percent after the company's fiscal first quarter net profit plunged 83% year-on-year to Rs 7.2 crore.

• Net sales fell 36.5% YoY to Rs 188 crore, affected by supply chain disruptions due to the ongoing Russia-Ukraine war and conflicts in the Middle East.

• The company reported an EBITDA loss of Rs 52.3 crore in Q1FY25, deeper than the Rs 32.6 crore loss in the same quarter last year.

• The government will not interfere in the Hindenburg-SEBI row, describing the report as 'malicious' and intended to undermine Indian markets. (ET)

• The rupee fell to a record closing low, following a decline in Asian currencies. (RT)

• India's steelmakers' body advocates for an export tariff on low-grade iron ore and pellets. (ET)

• Uttar Pradesh supports a hybrid tax waiver, benefiting Toyota while disadvantaging Tata. (ET)

• The lab-grown diamond industry is grappling with issues of overcapacity and high levels of imports. (FE)

• The SEBI chief and her husband have dismissed Hindenburg Research's allegations as baseless and false. (BS)

• With the onset of the monsoon, demand for anti-infective and respiratory drugs has surged. (ET)

• India's July retail inflation eased to a five-year low of 3.54% year-on-year. (RT)

Bharti Global Acquires 24.5% Stake in BT Group for $4 Billion

• Strategic Acquisition: Bharti Global is acquiring a 24.5% stake in BT Group for $4 billion, beginning with a 9.99% purchase from Altice UK. This move positions Bharti as a significant player in the UK’s telecom market, expanding its global footprint.

• Enhancing India-UK Synergies: The investment aligns with Prime Minister Modi’s vision to strengthen India-UK ties, particularly in AI, 5G R&D, and engineering. It reflects the growing importance of technological collaboration between the two nations.

• Global Tech Investment Strategy: Sunil Bharti Mittal highlighted the longstanding relationship with BT, emphasizing this acquisition as a strategic milestone in Bharti’s global tech investment journey, further cementing its role in the telecom sector.

• BT Group’s Strategic Vision: BT Group’s CEO, Allison Kirkby, views Bharti’s investment as a strong vote of confidence in BT’s strategy, particularly in home broadband services, as the company continues to navigate a competitive market landscape.

• Godrej Industries plans to raise up to Rs 3,000 crore ($357Mn). (BS)

• The Saraswati Saree Depot IPO saw strong demand on its first day, with subscriptions at 4.37 times. (MC)

• FirstCry shares are expected to list with a double-digit premium over the issue price today. (MC)

• Analysts expect a strong listing premium for the Unicommerce Esolutions IPO today. (MC)

This week’s mainboard IPO schedule

• Saraswati Saree Depot (RHP)

  • Offering Period: 12 August - 14 August, 2024

  • Listing Date: 20 August, 2024

  • Issue Price: 152-160

  • Lot Size: 90

M&A / Investments

• Bharti Enterprises is set to acquire a 24.5% stake for Rs 33,000 crore ($4Bn) in the UK’s BT Group. (Mint)

• CreditAccess Grameen is up for sale, with its Dutch owner seeking a Rs 22,666 crore ($2.7Bn) valuation. (BS)

• JSW Steel to invest Rs 1,007 crore ($120Mn) in an Australian miner for raw material security. (BS)

• Pakka Limited has secured Rs 244.7 crore ($29.1Mn) in funding to expand its production capabilities. (YS)

• Sonata Finance is set to merge with BSS Microfinance. (BS)

• Jai Kisan has acquired a majority stake in Kushal Finnovation. (EN)

• KKR has dropped its plans to sell the school chain Lighthouse Learning. (ET)

Debt

• Union Bank invites EOIs to sell Rs 2,316 crore ($275Mn) in NPAs across 45 accounts. (BS)

• Muthoot Microfin is in talks with European investors to raise Rs 419 crore ($50Mn). (ET)

VC/Funds

• Quest Investment Advisors plans to raise Rs 700 crore with the launch of an AIF. (BS)