Shein Is Back In India

February 03, 2025 • Reading Time: 5 minutes

Hello,
In case you missed this: The Union Budget 2025 brings tax relief with income up to ₹12 lakh now tax-free. But investors aren’t happy, as the 9% YoY increase for FY26 fell short of expectations leading to flat results on Saturday’s Special trading session. Reliance Retail has reintroduced Shein to India after its 2020 app ban. Servify is set to file its DRHP for a $500 million IPO by August. Meanwhile, NODWIN Gaming has acquired StarLadder for $5.5 million.

As of 01/02/25

  • Indian markets closed flat in the special Budget Day session on February 1, as investors reacted negatively to the Union Budget 2025 capex numbers. The announced 9% YoY increase for FY26 fell short of market expectations, with economists anticipating a higher allocation amid a slowing economy.

  • Urban demand has been shrinking in recent quarters due to rising food inflation and wage declines, impacting FMCG, auto, and consumer durable companies. However, the income tax cut provided a strong boost to these sectors.

Nifty 50

(0.11%)

23,482.15

BSE Sensex

0.01%

77,505.96

Nifty Bank

(0.16%)

49,506.95

Nifty IT

(1.48%)

42,030.30

Nifty Vix

(18.49%)

14.18

10 yr Bond

0.30%

6.690

USD>INR

1bps

86.536

Here are the key highlights from Budget 2025:

  • New Tax Regime: Finance Minister Nirmala Sitharaman introduced revised tax rates, with income up to ₹12 lakh attracting zero tax under the new regime.

  • Capex: Capital expenditure for FY2025-26 is pegged at ₹11.21 lakh crore, a slight increase from the ₹11.11 lakh crore allocation in FY2024-25.

  • Job Scheme: The government plans to generate 22 lakh jobs through a new scheme aimed at boosting India’s footwear and leather sector, improving productivity, quality, and competitiveness.

  • UDAN Scheme: A revamped version of the UDAN Scheme will connect 120 new destinations and cater to 4 crore passengers over the next decade, further strengthening regional connectivity.

With the focus on tax relief and infrastructure, it's clear that the government is laying the groundwork for economic growth and job creation.

  • Reliance Retail has brought Shein back to India after its 2020 app ban. (BS)

  • India's insurance market is set for a major overhaul with the approval of 100% FDI. (YS)

  • Servify plans to file its DRHP for a ₹4,328 crore ($500Mn) IPO by August. (Inc42)

  • Captain Fresh raised ₹250 crore ($28Mn) in a pre-IPO round. (YS)

  • WeWork India files DRHP with SEBI for IPO. (Mint)

  • Dr Agarwal's Health Care IPO saw a 1.55x subscription on day 3. (MC)

There are no mainboard IPOs this week.

M&A / Investments

  • Three firms divested a 6.8% stake in Onesource Specialty Pharma for ₹1,202 crore ($138Mn). (BS)

  • NODWIN Gaming acquires StarLadder for ₹47 crore ($5.5Mn). (YS)

  • Amazon sold Quess Corp shares for ₹46 crore ($5.3Mn). (BS)

  • Indus Way Emerging Market Fund led Scentials' ₹34.6 crore ($4Mn) round. (EN)

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