- Bit by Bit
- Posts
- Bit by Bit 30th Oct || IPOs || Rethinking Worksheets || Apple India FY23 Revenue
Bit by Bit 30th Oct || IPOs || Rethinking Worksheets || Apple India FY23 Revenue
Greeting IMTians! Your favorite newsletter, “Bit by Bit”, is back - A fun and exciting way for B-school students to get the most interesting and relevant news daily right at their fingertips.
Here are:
"5 amazing stories in 5 minutes to make you future ready"
Happy reading!
MARKET UPDATE
BSE SENSEX : ₹63,782.80 (+1.00%)
NIFTY 50 : ₹19,047.25 (+1.01%)
NIFTY BANK : ₹42,782.00 (+1.19%)
USD/INR : ₹83.3075 (-0.02%)
GOLD MCX : ₹61,260.00 (+0.51%)
BRENTOIL : $90.27 (+2.66%)
FII Net Cashflow : - ₹1,500.13
DII Net Cashflow : + ₹313.69
BFSI
Key Facts:
The first week of November 2023 is packed with new listings and initial public offering (IPO) issues, that are available for subscription in the primary market.
Cello World Limited and Honasa Consumer Limited are the two mainboard IPOs that are opening for subscription this week, aiming to raise a total of ₹3,601 crore of funds.
Honasa Consumer Limited is a digital-first consumer brand that offers personal care and wellness products under the brand name 'Mamaearth'. The company claims to have over 2.5 million customers and more than 120 products across categories like hair care, skin care, baby care, etc.
Apart from these two mainboard IPOs, there are also five SME IPOs that are opening for subscription this week, namely Transteel Seating Technologies Limited, Vrundavan Plantation Limited, Mish Designs Limited, SAR Televenture Limited and Baba Food Processing Limited.
The Story:
Next week in the Indian primary market, there's a significant buzz with a total of seven companies opening for subscription and one getting listed. These initial public offerings (IPOs) are contributing to the ongoing momentum in India's IPO market, which has witnessed remarkable growth in recent years. Among the notable IPOs, Cello World Limited is set to open for subscription from October 30 to November 1, with a price band of ₹617 to ₹648 per share. This IPO is primarily an offer for sale, aiming to raise ₹1,900.00 crore. Honasa Consumer Limited's IPO opens from October 31 to November 2, with a price band of ₹308 to ₹324 per share, and it comprises a fresh issue and an offer for sale, targeting ₹1,701.00 crore in funds. Additionally, several SME IPOs, including Transteel Seating Technologies, Vrundavan Plantation, Mish Designs, SAR Televenture, and Baba Food Processing, will be open for subscription during the week. This collective IPO activity signifies the growing potential and investor interest in India's dynamic IPO market.
AUTOMOBILE
Key Facts:
Government addresses urban mobility challenges at the 16th Urban Mobility India Conference.
Union Minister Hardeep Singh Puri highlights the need for more buses, especially in smaller cities.
Manoj Joshi, Secretary of the Ministry of Housing and Urban Affairs, discusses the launch of 10,000 e-buses in 169 cities.
The Story:
The Indian government is taking significant steps to tackle urban mobility challenges by expanding the e-Bus network across the country. Speaking at the 16th Urban Mobility India Conference and Exhibition, Union Minister for Housing and Urban Affairs, Hardeep Singh Puri, emphasized the need for enhanced public transportation infrastructure.
In his address, Puri highlighted the inadequacy of private players in the unorganized sector, particularly in smaller cities, to meet the rising demand for public transport. He noted that the organized sector currently operates around 40,000 buses within cities, which falls significantly short of the required 1.2-1.5 lakh buses to cater to the growing urban population.
Manoj Joshi, the Secretary of the Ministry of Housing and Urban Affairs (MoUHA), provided further insights into the government's plans. He revealed that 10,000 e-buses are set to be launched under the PM-e-Bus Sewa initiative, spanning 169 cities. Additionally, the state governments have shown commitment by placing orders for 5,000 e-buses and serving as guarantors for these orders. This proactive approach underscores the government's commitment to sustainable, eco-friendly transportation solutions, especially in smaller urban areas that may have been overlooked in the past.
The expansion of the e-Bus network reflects the government's determination to address urban mobility challenges and promote green and efficient public transportation.
TECH
Key Facts:
Infosys co-founder Narayan Murthy has sparked debate with his suggestion that young Indians should put in at least 70 hours of work per week.
Murthy urged Indian youth to adopt beneficial Western practices such as discipline and a strong work ethic.
He also highlighted the need for a more efficient Indian government and urged India to learn from the successful strategies.
The Story:
Co-founder of Infosys Narayana Murthy has recently sparked controversy by urging young Indians to commit to working seventy hours a week. He made these comments at an event where he emphasized the value of diligence and claimed that such lengthy work hours were necessary for Indian youngsters to become globally competitive. Murthy emphasized the robust work cultures found in nations such as China and the United States, proposing that young Indians ought to aspire to similar norms by putting in long hours at the office.
Still, his remarks elicited a range of responses. Some people agreed with him, seeing hard labour as an essential component of success, but others expressed worries about burnout, mental health, and work-life balance. Extended work hours, according to critics, may not always translate into increased creativity or productivity. The topic of systemic changes in work ethics was also discussed, with an emphasis on the value of technical developments and efficient work methods rather than just hours worked.
Murthy's counsel has rekindled talks about work ethics and productivity, bringing up issues like striking a balance between personal and professional life, workplace efficiency, and the value of individual wellbeing. The differing answers are indicative of the current conversation about work culture and highlight the need to reconsider the conventional wisdom that says success in an ever- changing professional environment is solely determined by putting in long hours.
ECONOMY
Key Facts:
Limited Liability Partnerships (LLPs) required to maintain a register of partners with details of their beneficial interests
The move is aimed at improving transparency in the way LLPs operate in the country
The contributions must indicate their tangible, intangible, movable, immovable or other benefit to the LLP
The Story:
The government has made the disclosure rules tougher for limited liability partnerships (LLPs), which will now be required to maintain a register of partners with details of their beneficial interests and both tangible and intangible contributions. According to the Limited Liability Partnership (Third Amendment) Rules, 2023, notified by the Ministry of Corporate Affairs (MCA), even upcoming LLPs have to maintain such a register, at their registered offices, within 30 days of incorporation. The new rules came into force on October 28.
The move, aimed at improving transparency in the way LLPs operate in the country, comes just when a record number of companies and such partnership firms are getting incorporated this fiscal year.
The rules say the register of partners must have details of the amount and nature of their contributions, apart from basic professional and personal details, including office address, email ID and permanent account number. The contributions must indicate their tangible, intangible, movable, immovable or other benefit to the limited liability partnership, including money, promissory notes, other agreements to contribute cash or property, and contracts for services performed or to be performed, with monetary value and any other interest, if any. Every LLP has to specify a partner who will be responsible for the furnishing of information about beneficial interests to the Registrar of Companies or other authorised offices.
Anything Interesting
Key Facts:
Apple's India business witnessed a notable 48% surge in sales, nearing the ₹50,000 crore revenue milestone in the 2022-23 fiscal year.
The company's significant 76% increase in net profit was attributed to a higher share of new generation device sales with improved margins and reduced component costs.
Despite Apple's underdeveloped services business in India, experts anticipate sustained growth, highlighting the brand's strong position in the premium segment and the increasing availability of consumer financing.
The Story:
Apple's India business recorded a remarkable 48% sales growth, nearing ₹50,000 crore in revenue in the 2022-23 fiscal year. The net profit also surged by 76% to ₹2,229 crore, marking the fastest growth in five years. Analysts attribute this success to increased sales of new generation devices with better margins and reduced component costs. Despite no specific reasons provided in regulatory filings and an unanswered email inquiry, experts commend Apple's financial prudence and foresee significant growth potential. With a strong position in the premium segment and the rise of consumer financing, the surge in Apple's business in India is expected to continue. While iPhones dominate current sales, other revenue streams like services are predicted to gain traction in the near future, although the services business in India remains relatively underdeveloped, contributing only 5.4% to Apple's revenue compared to the global average of 30%.
