📈 Swiggy IPO is here

PLUS: Bhartia Family and Goldman Sachs eye 40% stake in Hindustan Coca-Cola

Author

Ruchirr Sharma
November 14, 2024

Good morning. Pete Hegseth, America's newly nominated Secretary of Defence, is a Fox News host and army veteran with no government experience (a minor technicality as he is more importantly “tough, smart and a true believer in America First”).

If you were nervous about a career pivot, look no further for inspiration.

- Ruchirr Sharma & Shatakshi Sharmaa  

TABLE OF CONTENTS

  • 📈 Swiggy IPO: A catalyst for India’s New-Age economy

  • 🍾 Bhartia Family and Goldman Sachs eye 40% stake in Hindustan Coca-Cola

  • 🗞️ Bite-sized summaries

    • 🌇 Air pollution at its worst

    • ☮️ J&K updates

    • 💾 AI demand is high

  • 🧑‍🍳 What else is cookin’?

  • 🍿 Entertainment, Entertainment, Entertainment

MARKETS

🇮🇳 India

indicates per gram rate in Delhi | Data as of market close 13/11/2024

  • Indian markets declined. All sectoral indices ended in red except IT and Realty. Foreign fund outflows and disappointing earnings continued to weigh on sentiment.

🌍️ International

Data as of market close 12/11/2024

Data as of market close 13/11/2024

  • Wall Street edged higher on Wednesday after October's consumer price index data aligned with expectations, maintaining the Federal Reserve's trajectory for potential interest rate cuts in December. Investors are now anticipating a 70% likelihood of a 25-basis point rate cut at the Fed's December meeting

IPO ACTIVITY

Swiggy’s public debut marks more than just another IPO; it's a testament to the transformative journey of India's tech-driven companies.

When Accel first invested in Swiggy’s seed round in 2015, few could have predicted its evolution into a household name handling over two million daily orders.

From consumer-focused innovations like delivery tracking to the inception of cloud kitchens and ultra-fast grocery delivery, Swiggy has redefined convenience. Sriharsha Majety’s leadership, highlighted by resilience through challenges such as the pandemic, built Swiggy into a lifeline for millions, supplying essential goods emphasising safety.

This IPO continues the strong trend of tech IPOs in India, which has showcased the startup ecosystem's resilience despite market volatility.

  • For instance, 2024 has witnessed a record-breaking Rs 14,570 Cr. in funds raised via public listings as of September, with a slew of new-age companies — including Ola Electric, FirstCry, and Awfis — making their stock market debut.

  • Swiggy’s IPO opened at Rs 421 and ended Day 1 at Rs 455.95, signalling investor confidence and sparking comparisons with Zomato’s volatile performance since its 2021 IPO.

Overall: The journey of Indian startups like Swiggy reflects a growing maturity in the tech ecosystem. While public listings bring scrutiny and new responsibilities, companies are navigating these demands with resilience.

These IPOs underscore a long-term commitment to shaping the future of India’s digital economy, as these businesses continue to learn, innovate, and expand their footprint in global markets.

Read more: Economic Times

MERGERS AND ACQUISITIONS

In an ambitious partnership, the Bhartia family, owners of the Jubilant Group, and Goldman Sachs are in advanced negotiations to co-invest in a 40% stake in Hindustan Coca-Cola Beverages (HCCB), Coca-Cola's bottling arm in India.

Here’s the breakdown:

  • The deal, estimated between Rs 3,000-3,500 Cr. each from both parties, is structured as an SPV investment backed by convertible preference shares, a method aimed at maximising returns in anticipation of HCCB’s planned IPO within 2-3 years.

  • Goldman Sachs is seeking a 20% capped IRR for downside protection, positioning its returns between secured lenders and the Bhartia family’s equity.

This move aligns with Coca-Cola India’s shift toward an asset-light model, following PepsiCo's lead, which handed its bottling operations to Varun Beverages — a transition that yielded substantial market gains.

For HCCB, the strategy helps prepare for its IPO, laying a foundation for strong market valuation. The company’s recent 247% net profit surge and ambitious $1.5B expansion into Gujarat and Madhya Pradesh reinforce this potential.

Overall: The Bhartia family’s financing approach balances equity and strategic debt, securing funding from mutual funds for low-cost leverage rather than traditional bank loans.

Their commitment reflects a long-term investment vision, positioning HCCB to leverage India’s growing beverage market while balancing capital efficiency and growth.

As this partnership matures, it underscores India’s appeal as a thriving market for multinational consumer brands and growth-oriented investment firms alike.

GENERAL OVERVIEW

🗞️ Bite-sized summaries

🌇 Air pollution at its worst - Delhi overtook Lahore as the world's most polluted city, recording an air quality index (AQI) of 418, classified as 'severe.' The city's pollution was worsened by low wind speeds, high humidity, and falling temperatures, leading to thick smog that caused flight diversions and visibility issues. PM2.5 levels in Delhi were over 120 times the World Health Organization’s recommended limit. This annual winter smog, worsened by emissions, dust, and crop burning, has led to dense fog in northwest India, expected to last several days. Pakistan’s Punjab province faces similar conditions, prompting school closures and restricted outdoor activities.

☮️ J&K updates - Terror incidents in Jammu and Kashmir have dropped by over 70% since 2019, according to the Union Home Ministry. Civilian casualties from these incidents also fell significantly, from 50 deaths in 2019 to five in 2023. Despite ongoing threats from groups like Lashkar-e-Taiba and Jaish-e-Mohammad, security measures have reduced both terrorist attacks and casualties among security forces. Efforts to curb infiltration have succeeded, with only three infiltration attempts in 2024 compared to 141 in 2019. Additionally, the ministry outlined initiatives in cybercrime prevention, narcotics control, and internal security to achieve a "safe, harmonious, and prosperous" India by 2047.

💾 AI demand is high - Qualcomm CEO Cristiano Amon stated that the rise in AI-driven smartphone demand won’t lead to a semiconductor shortage like that during the pandemic. Speaking at the Web Summit, he credited global investments in production capacity for creating a balanced supply chain. Governments worldwide, including Japan’s recent $65 billion support pledge, are investing in semiconductor production to secure this essential industry. Qualcomm, projecting robust sales for the current quarter, expects continued demand as users seek advanced smartphones with AI features. Amon emphasized that as consumers look to upgrade, the appeal of AI capabilities will further boost demand.

HEADLINES

🧑‍🍳 What else is cookin’?

What’s happening in India (and around the world 🌍️)

CULTURE

🍿 Entertainment, Entertainment, Entertainment

Source: People

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