Desi Dispatch June 20

Good Morning India 🇮🇳

Mehul Choksi (name rings a bell?) - yes, one of two masterminds behind the 2018 PNB ₹13,500 crore scam - has just pulled the biggest Reverse UNO. He is suing India in a UK court for allegedly kidnapping him from Antigua. Yep, he wants justice… for himself. Remind us, is there a movie on this yet?

Now, let’s get into the dispatch! 🚀 

Today’s reading time is 5 mins

MARKETS 🔔🐂🐻

• The market turned “Red” spooked by rising geopolitical tensions, and US Fed’s decision to hold interest rates steady which dampened investor sentiment 

• Tata Consumer Products was a top gainer, with its share price increasing by 2.17%. While Umang Daries Limited and Varun Beverages Limited were the biggest losers tanking by 6.07% and 4.43% respectively.

Banking 🏦
India's Biggest IPO of 2025: HDB Financial

What’s happening?

HDB Financial Services, HDFC Bank's NBFC (non-banking financial company) arm, is launching India's largest IPO of 2025, aiming for a $1.5 billion (Rs 12,500 crore) raise. The price band is 700-740 rupees per share, targeting a $7.1 billion valuation. This marks the HDFC Group's first public float in seven years, following HDFC Asset Management in 2018, and has received market regulator approval.  

Key Highlights 

• HDFC Bank: Selling shares worth $1.15 billion (Rs 10,000 crore) from its 94% stake in HDB financial  

• HDB Financial Services: Issuing new shares worth Rs 2,500 crore to bolster its capital base for future growth and lending.  

• Good time for Investors: Potential opportunity in a large, well-established NBFC, especially with an HDFC Bank shareholder quota. 

Why is it a Big Deal?  

This IPO is significant for several reasons. Firstly, it's the largest IPO in India so far this year, testing investor appetite in a somewhat uncertain market. Secondly, it's a direct response to a 2022 RBI mandate requiring large NBFCs to be listed by September 2025, highlighting regulatory compliance.  

The Wider View 

The timing of this IPO is interesting as the global and Indian market face uncertainty due to rising geo-political tensions and the Middle East conflict. The overall slowdown in IPO value and number of issues in 2025 emphasises the importance of HDB's offering as a barometer for investor confidence and liquidity. Its performance will be closely monitored by experts and could be used as an indicator for future trends.  

Tech Marketplaces 📦🖥️
Amazon Levels Up — Big Money, Bigger Tech 

What Happened? 

Amazon announced it will invest over 20 billion rupees ($233 million) in India in 2025 to expand and modernise its operations infrastructure. This includes new fulfilment centres, upgraded delivery hubs, and technology enhancements for faster and safer deliveries. 

Why It Matters? 

• Nationwide Reach: The investment builds on Amazon’s prior goal of reaching all serviceable PIN codes across India. 

• Tech for Safety: Amazon will deploy tools to monitor unsafe delivery speeds and ensure fair route distribution among delivery associates. 

• Employee Focus: Part of the funds will support initiatives for the health and financial well-being of its logistics workforce. 

• Long-Term Commitment: In 2023, Amazon pledged to invest $26 billion in India by 2030. Its cloud arm, AWS, is investing $8.2 billion to expand digital infrastructure in the country. 

Amazon’s investment isn’t just about infrastructure; it’s a bet on India’s growing potential. 

Renewables ♻️☀️
$89 Billion Clean Energy Dream Still Waiting 

What Happened? 

India’s $89 billion clean industrial pipeline spanning 41 projects in green hydrogen, ammonia, and sustainable aviation fuel is stalling, with only one project getting financial go-ahead in 6 months. A new report by MPP and Industrial Transition Accelerator says alliances are pushing to decarbonize heavy industries, but financing remains the biggest hurdle. 

Why It Matters? 

• India has received just $13 billion in committed investment, far behind China’s $61 billion and the US’s $54 billion. 

• Mission Possible Partnership (the company that released the report) CEO Faustine Delasalle cited high capital costs and a weak market for clean commodities as key hurdles. 

• Globally, over $1.6 trillion worth of announced projects are stuck in limbo, with only 15 projects a year reaching final investment decision due to policy uncertainty and funding gaps. 

India’s clean energy dream looks powerful on paper, but without funding and clear policies, the road ahead seems rocky.  

BUSINESS INDIA
DHANDA HAI YEH!

• Motabhai Vs Giants: Reliance Consumer Products is investing ₹6,000-8,000 crore over 12-15 months, adding 10-12 plants to expand Campa beverages. ‘Campa’ and ‘Independence’ each surpassed ₹1,000 crore sales, with Campa achieving double-digit market share, challenging the giants Coca-Cola and PepsiCo. 

• Billion dollar plan: India's NaBFID (National Bank for Financing Infrastructure and Development) plans to debut overseas fundraising of up to $1 billion this fiscal year to diversify funding for infrastructure projects.  

• Palm Oil suffers from mehengai: Indian refiners cancelled 65,000 metric tons of July-September palm oil orders due to soaring Malaysian prices. This move, aiming to secure profits amid market volatility, impacts global trade as buyers prioritise gains over imports. 

• Urban Company’s Ache Din: The hyperlocal services startup Urban Company achieved profitability in FY25 with a net profit of ₹239.7 Cr, a significant turnaround from FY24's ₹92.7 Cr loss. Operating revenue jumped 38.2% to ₹1,144.4 Cr, showcasing strong financial growth. 

WORLD: BUSINESS AND GEOPOLITICS 🌍
KYA CHAL RAHA HAI?

• Pakistan inks $1B deal: Pakistan signs a five-year, $1 billion syndicated financing deal with key banks to bolster foreign reserves and support economic stability amid ongoing financial challenges. 

• Up in flames: In a major setback, the SpaceX Starship spacecraft exploded in flames on Wednesday in Texas. The explosion is thought to be the outcome of a nitrogen storage unit failure, putting another dent in Elon Musk’s ‘Mars’ dream.

• Kyiv mourns deadly strike: Flags flew at half-mast on Wednesday as Kyiv grieved 28 lives lost in Russia’s deadliest attack on the capital this year. According to President Volodymyr Zelenskiy, Russia sent 440 drones and fired 32 missiles during the overnight attack.

Iran-Israel war updates

• Early on Thursday, Iranian missiles hit a main hospital in South Israel, a high-rise apartment building in Tel Aviv and other places in central Israel, wounding at least 240, according to Israel’s health ministry. Meanwhile, Israel carried out strikes on Iran’s Arak heavy water reactor, attacking its nuclear program.

• European Ministers (Germany, France and Britain) are set to hold nuclear talks with Iranian officials, aiming to firmly guarantee that it will use its nuclear programme solely for civilian purposes, given the escalating Iran-Israel war.

Aur Batao: News from across India 📰

• Google flagging more than 500 million texts monthly: As cybercrime spikes, Google reports blocking over 500 million scam messages monthly in India. It is believed that cybercrime-related financial damages could reach Rs 20,000 crores in 2025. Scammers be working overtime.

• Assam gas leak enters day 7: A gas leak at an ONGC well in Sivasagar, Assam has displaced over 1,000 people. Control efforts ongoing, sparking safety concerns. 

• Canadian Intelligence admits to Khalistani activity: Canada’s intelligence agency CSIS formally acknowledged that Khalistani extremists are operating on Canadian soil to fund, promote, and plan violence in India. The report also mentioned that Canada must remain vigilant about continued foreign interference conducted by the Government of India.

    Air India Ahmedabad plane crash tragedy aftermath 

• Despite reports that India planned to send the black box recorders of the Air Indian plane that crashed in Ahmedabad to the US, the government is yet to make a decision on this matter. The damage has made it impossible to extract the flight recorder data in India.

• Air India to trim international operations of its widebody flights by 15% for the next few weeks. The airlines cited ongoing safety inspections and operational disruptions, in lieu of the horrific crash last week.

Sports and Entertainment

• Thug Life gets Green Signal: The Supreme Court on Thursday directed Karnataka to ensure the 'Thug Life' film's smooth release, asserting freedom of speech. The state pledged protection, preventing disruptions over sentiment-based protests. The movie had run into controversy after actor Kamal Hasan’s comments about Kannada language.

• Divya’s Perfect Square: Indian Women's Chess Grandmaster Divya Deshmukh stunned world No. 1 Hou Yifan by defeating her at the World Team Blitz Chess Championship. Divya's crucial victory in London secured her third medal, showcasing her rising talent. 

• Jemimah Retained: Indian women's cricketer Jemimah Rodrigues was retained by Brisbane Heat in the WBBL (Women’s Big Bash League) draft for the upcoming season. In total, 15 Indian players have registered themselves for the WBBL draft ahead of the 10^th season.

• FA’s Doping Charge: Ukrainian professional footballer and Chelsea winger, Mykhailo Mudryk, faces a potential four-year ban after the Football Association charged him with anti-doping rule violations following a failed drug test in December.  

• Indian junior Archers shine: At the Asia Cup Stage 2 in Iraq, the Indian junior archer team stormed into three team finals on Thursday. The Indian men's recurve team, seeded second, defeated fifth-seeded Bangladesh 5-1 in a one-sided semifinal.  

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