Govt. Approves New Unified Pension Scheme (UPS)

• The Indian stock market experienced strong gains on Monday, August 26, with both the Nifty 50 and the Sensex advancing by nearly 1 percent.

• This rise was driven by investor optimism following US Fed Chair Jerome Powell's Jackson Hole speech last Friday, where he hinted at an imminent policy adjustment. The market's upward movement reflected positive global sentiment, with a September rate cut now appearing highly likely.

• The rupee ended flat, failing to gain from the rise in other Asian currencies.

Emcure Pharmaceuticals +1.93%

• Shares rose by X percent after the Namita Thapar-backed drugmaker received its first 'buy' rating since its market debut over a month ago. Global brokerage Jefferies has set a price target of Rs 1,600, suggesting a potential 15 percent upside from Friday's closing price.

Transport Corporation of India (3.81%)

• Shares of Transport Corporation dropped by over 6 percent due to profit booking after reaching an all-time high on Thursday, which followed the company's announcement of its first-ever buyback proposal.

• The board of directors of this industry-specific logistics solutions company met on August 24 to consider a buyback of its equity shares and approved a buyback of up to Rs 159 crore.

• Although the company has never issued bonus shares or split its stock, it has consistently paid dividends to its shareholders.

• Nomura attributes the decline in banks' loan-to-deposit ratios to reduced money creation by the RBI and a significant rise in bank profits. (ET)

• Credit growth for small finance banks is expected to slow to 26% this fiscal year. (ET)

• India's push for green energy through wind power is severely impacting desert herders. (ET)

• Premium consumer electronics sales are growing faster online than in stores. (ET)

• Pharma companies seek more time to implement revised manufacturing norms. (ET)

• Life insurers are fiercely competing for annuity market share. (ET)

• ICMR's regional centre has developed TB testing technology that enables tests at Rs 35. (ET)

• The digitization of land records is expected to boost investments in residential projects. (ET)

• RBI has unveiled the Unified Lending Interface (ULI), a new initiative aimed at transforming credit access. (YS)

🚨Unified Pension Scheme (UPS) Approved

Policy Shift: The Union Cabinet has approved the Unified Pension Scheme (UPS), offering a new retirement option for government employees.

Key Differences: Unlike the National Pension System (NPS), which depended on market performance, the UPS guarantees 50% of the last drawn salary as a pension, along with a minimum pension of ₹10,000 per month. 💰

Hybrid Approach: The UPS blends the assured benefits of the Old Pension Scheme (OPS) with the contributory model of the NPS, ensuring both security and contribution-based funding. 📊

Impact: Starting April 1, 2025, over 23 lakh employees can choose to switch to the UPS, with the first-year cost to the exchequer expected to be Rs 800 crore. This move is set to provide greater financial stability to government retirees.

• Premier Energies has raised over Rs 846 crore ($100Mn) through its anchor book ahead of its IPO, which is set to open today. (MC)

• Interarch Building Products made its market debut with its stock trading at a 44% premium over the IPO price. (MC)

This week’s mainboard IPO schedule

• Premier Energies

  • Offering Period: 27 August - 29 August, 2024

  • Listing Date: 03 September, 2024

  • Issue Price: 427 - 450

  • Lot Size: 33

• ECOS Mobility & Hospitality

  • Offering Period: 28 August - 30 August, 2024

  • Listing Date: 04 September, 2024

  • Issue Price: 318 - 334

  • Lot Size: 44

• Baazar Style

  • Offering Period: 30 August - 03 September, 2024

  • Listing Date: 06 September, 2024

  • Issue Price: 370 - 389

  • Lot Size: 38

M&A / Investments

• Medi Assist will fully acquire Paramount Health in a Rs 400 crore ($47.7Mn) deal. (BS)

• ICICI Bank is inviting bids to sell its Rs 234 crore ($28Mn) exposure in John Energy. (BS)

• Om Logistics has acquired ICD Bawal for Rs 110 crore ($13.1Mn). (YS)

Debt

• Bank of Baroda raised Rs 5,000 crore ($596Mn) via 10-year infra bonds at 7.3%. (BS)

• UltraTech Cement has raised Rs 4,190 crore ($500Mn) through sustainability-linked loans. (BS)

VC/Funds

• The National Quantum Mission is set to soon provide grants to 15 startups. (ET)