Notice Board

Flurry of IPOs After Diwali

Indian IPOs are likely to see a flurry of activity post-Diwali with some big-ticket IPOs lined up. The list includes marquee names like Groww, Lenskart, Meesho, Pine Labs, Fractal Analytics and Physicswallah. Put together, these companies will raise close to $4.5 billion via share sale. The success of Urban Company showed that there is still appetite for new age companies, if well packaged and priced attractively. Recent IPOs are seeing a separation of the wheat from the chaff.

India–EFTA Trade Agreement Comes Into Force

From October, India’s trade agreement with the European Free Trade Association (EFTA) comes into force. It carries a unique $100 billion investment commitment over 15 years. EFTA comprises Switzerland, Norway, Iceland and Liechtenstein. Apart from Swiss watches, chocolates and clocks, EFTA brings expertise in machinery, medical equipment, and energy. India currently runs a trade deficit of $20.47 billion with EFTA.

Fiscal Deficit Update

Fiscal deficit as of the end of August 2025 stood at ₹5.98 trillion, 38.1% of the annual target. It is higher yoy as the government has spent aggressively on capex and defence. Net taxes have contracted by -7.3% with pressure on direct and indirect taxes. The 4.4% full year fiscal deficit target should still be respected, with higher disinvestment revenues expected in FY26. The Centre has already cut its second half borrowing target.

Tata Capital Sets IPO Price Band

Tata Capital fixed a price band of ₹310–326 per share for its IPO, opening October 06, 2025. This is nearly 55% below the prevailing unlisted market price of ₹735-765 and lower than the last rights issue in July priced at ₹343 per share. Most brokers have a buy recommendation with 30%–40% upside. Tata Capital has a loan book of ₹2.33 trillion. Competitors like Bajaj Finance have aggressively churned their loan book for higher revenues.

Retail Auto Sales Decline

Retail auto sales slipped by -13.28% in September compared to last year. Registrations fell to 1.51 million units from 1.75 million units. The first three weeks of September saw deferred purchases as buyers awaited festive discounts. Relief on GST and late festive surge supported sales, cushioning the fall.

Tata Motors Demerger & JLR Concerns

As Tata Motors demerger becomes effective on October 1, analysts focus on Jaguar Land Rover (JLR). While GST rate cuts may aid Indian PV and CV sales, JLR faces demand challenges in Europe, China, and the US. Production is only just resuming after cyberattacks. Domestic PV business looks strong, but JLR’s revival remains critical.

TotalEnergies Plans India Exit

TotalEnergies of France plans to sell all renewable holdings outside the US, Brazil and Europe, including its India JV with Adani Group and its stake in Adani Green. India accounted for 25% of its operational renewable portfolio. While its stake in the Adani JV has appreciated four-fold, the company plans to cut capex sharply and exit to save $7.5 billion annually amid weak crude prices.

US Visa Fee Hike: Limited IT Impact

With the US hiking visa fees for foreign workers to $100,000 on new H-1B visas, CRISIL expects limited impact on Indian IT companies’ margins—just 10–20 bps. Large IT companies had already increased local hiring and offshoring. Visa costs formed just 0.03% of overall costs compared to 55% staff costs. The higher fees will likely be offset by fewer visas being issued.