SEBI’s Mutual Fund Lite: Lower Costs, Bigger Opportunities

• After hitting new record highs in early trading, the domestic benchmark indices lost momentum by the end of the session as investors booked profits at higher levels, resulting in minor declines.

• Despite this, both indices have managed to achieve new record highs for six consecutive sessions.

• The strong performance was driven by a rally in metals and financial stocks, which attracted significant buying interest due to improving global and domestic conditions.

SVJN +5.40%

• Shares rose over 5% after the company signed two MoUs with the Government of Maharashtra for developing Pumped Storage Projects (PSPs) and Floating Solar Projects (FSPs) in the state. The first MoU, signed with the Department of Water Resources, involves developing five PSPs with a total capacity of 8,100 MW.

Union Bank of India (3.79%)

• Shares dropped 4% as around 7% of the workforce, mainly customer service associates and office assistants, went on strike.

• The unions highlighted key concerns, including staffing shortages, recruitment practices, work-life balance, and transfer policies.

• RBI is expected to keep the repo rate at 6.50% in October and reduce it by 25 bps in December, per a Reuters poll. (RT)

• Blinkit leads over Instamart in the quick-commerce race across all key metrics. (FE)

• PLI firms will have easier access to government tenders. (FE)

• SEBI releases operating guidelines for Foreign Venture Capital Investors. (YS)

• NPCI to develop a UPI-like payments platform in Trinidad & Tobago. (TH)

• UBS is in talks to form a minority-owned wealth joint venture in India, sources say. (ET)

SEBI's Mutual Fund Lite: Unlocking Growth in Passive Investing

• SEBI is set to introduce Mutual Fund Lite (MF Lite), a new asset class aimed at bridging the gap between mutual funds and portfolio management services.

• The MF Lite framework will lower entry barriers, allowing smaller AMCs to operate with reduced costs, potentially lowering the minimum net worth requirement to Rs 35 crore.

• Fund houses can separate passive and active fund management under this new structure, focusing on scaling passive AUM while minimizing compliance costs.

• A proposed minimum ticket size of Rs 10 lakh aims to attract investors with Rs10-50 lakh in investable assets, offering a regulated alternative to unregistered PMS providers.

• Investors will gain access to diverse strategies, including derivatives, with systematic investment plans (SIPs), encouraging investment in passive funds and boosting transparency.

• Kumar Arch Tech has filed draft papers with SEBI to raise Rs 740 crore ($88.4Mn) through an IPO and. (MC)

• Solarworld Energy Solutions plans to raise Rs 600 crore ($71.7Mn) via an IPO. (MC)

• Property Share Investment Trust has filed draft papers to launch a Rs 353 crore ($42.4Mn) SM-REIT public issue. (MC)

• Dr. Agarwals Healthcare, backed by Temasek has filed IPO papers, for a fresh issue of Rs 300 crore ($35.8Mn). (MC)

• Amanta Healthcare has filed papers with SEBI to raise funds through an IPO. (MC)

• KRN Heat Exchanger's IPO was subscribed 214.42 times on its final day. (MC)

• Diffusion Engineers' IPO was subscribed 27 times on the second day. (MC)

• Manba Finance is expected to list at a 50% premium over its IPO price today. (MC)

This week’s mainboard IPO schedule

• Diffusion Engineers

  • Offering Period: 26 September- 30 September, 2024

  • Listing Date: 04 October, 2024

  • Issue Price: 159-168

  • Lot Size: 88

M&A / Investments

• Tata Sons plans to acquire a 13% stake in Tata AutoComp for Rs 2,122 crore ($253Mn). (BS)

• Promoters of Sterling Wilson Renewable Energy have sold a 7.14% stake for Rs 1,040 crore ($124Mn). (BS)

• Authum and Mahi Kela are set to acquire a 46.85% stake in Prataap Snacks for Rs 846.6 crore ($101Mn). (BS)

• Gaming platform Loco sells majority stake to UAE’s Redwood for Rs 544 crore ($65Mn). (TC)

• Vedantu acquires a majority stake in Pedagogy. (EN)

• WeWork Inc.'s plans to exit India are on hold due to a valuation dispute, despite receiving CCI approval. (BS)

• TIGA Investments receives CCI approval to acquire a stake in Dream11. (YS)

Debt

• SP Group plans to issue new bonds worth Rs 2,118 crore ($253.5Mn). (BS)

• HDFC Life plans to raise Rs 1,500 crore ($179Mn) through non-convertible debentures (NCDs). (ET)

• Curefoods secures nearly Rs 83 crore ($10Mn) in debt from Binny and Jitender Kumar Bansal. (EN)

• Vedantu raised Rs 19.25 crore ($2.3 million) in debt from Stride Ventures. (EN)

VC/Funds

• SCOPE launches Rs 418 crore ($50Mn) VC fund for fintech and gaming startups. (ET)

• Suresh Sambandam launches MudhalVC to fund idea-stage startups in Tamil Nadu. (YS)