Nov 25: IPO Magnetism, Inflation Comfort Faces A Test

Indian cinema has lost one of its brightest stars. Dharmendra, our Dharam Paaji, has passed away at 89, leaving behind an era that can never be recreated. From Veeru’s water-tank warning to his effortless charm in Chupke Chupke, he defined what it meant to be a true hero. In one of his most recent reels he left behind a saying for all of us to live by “Badi ka ant hai kahin aas paas, naeki ka koi ant nahi - kitab naeki ki padh le bande, esse bada koi Granth nahi.” An era ends, but Dharmendra’s legend will stay forever.

Now, let’s get into the Dispatch! 🚀

Today’s reading time is 6 mins.

The Indian stock market fell for a second straight session on Monday due to profit booking amid mixed global cues. The Sensex dropped 331 points, and the Nifty lost 109 points, resulting in an investor loss of ₹7 lakh crore in two sessions.

A Market Too Hot To Ignore: India’s IPO market is in one of its strongest phases in years. A mix of record retail participation, aggressive mutual fund inflows, and resilient market confidence has created ideal conditions for companies looking to raise capital. But what makes this moment distinct is that the excitement isn’t limited to homegrown firms. Global multinationals are increasingly exploring the idea of listing their Indian subsidiaries, a trend that could reshape the country’s capital-market landscape.

Why MNCs Suddenly Want To List In India: The appeal is simple: valuation. Indian markets consistently award higher premiums to consumer, auto, and electronics businesses compared with their global peers. For multinational companies, India has become not just a strong operating market but also a lucrative financial market. Add to this the deep domestic liquidity with retail investors pouring in billions each month and listing in India becomes a strategic opportunity to unlock value that parent companies often don’t achieve in their home markets.

Hyundai, LG, & More Could Be The Beginning: Hyundai Motor India’s planned listing has set a template that other MNCs are closely watching. LG Electronics India is also preparing an IPO, signalling confidence in the country’s long-term consumption story. Market analysts believe more global companies with strong India businesses from FMCG to specialty manufacturing, may follow. For many, India is now a bigger growth engine than their home markets, making a local listing not just attractive, but inevitable.

But Not Without Risks: A booming market also brings challenges. With high valuations come questions about sustainability. Overcrowding in the IPO pipeline could lead to pricing pressure, investor fatigue, and a more selective capital-raising environment. MNCs must balance ambition with realistic valuations to avoid the fate of overhyped IPOs that eventually underperform.

A New Chapter For Indian Markets: If this trend continues, India could evolve into a global hub for multinational subsidiary listings, a validation of its economic momentum and market maturity. The next few quarters will decide whether this is a temporary wave or the start of a long-term shift in how global companies unlock value in India.

A Rare Moment Of Relief: For the first time in years, India finds itself in a genuine inflation sweet spot. Retail inflation hit an extraordinary low of around 0.25% in October, driven almost entirely by a sharp decline in food prices. Vegetables, cereals, and pulses - the usual culprits behind price spikes - turned deflationary, pulling the overall number down and offering long-awaited breathing room to households and policymakers alike.

Food Prices Calm, But Not The Whole Story: A big chunk of this comfort rests on a favourable base effect, not just real-time price cooling. Food inflation fell more than 5%, but core inflation - which strips out food and fuel - still sits at a steady 4.4%. That means underlying price pressures haven’t vanished; they’re merely overshadowed by the temporary collapse in food costs. The headline number looks pretty, but beneath it, the economy hasn’t fully loosened up.

The Rupee Problem: The bigger test comes from outside. The rupee has been slipping, and a weaker currency directly fuels imported inflation. India is heavily dependent on imports - crude oil, electronics, chemicals - and every notch of rupee depreciation raises the risk of cost-push inflation landing a few months down the line. Add to this a widening trade deficit, and the external-sector math starts looking uncomfortable.

Is A Rate Cut Coming? With inflation so low, the Reserve Bank of India technically has policy room to cut rates, but the central bank is unlikely to rush. The RBI would want clarity on the next GDP print, the rupee trajectory, global energy prices, and whether core inflation softens further. Cutting rates too soon could backfire if imported inflation suddenly picks up.

Comfortable, Not Carefree: India’s inflation story may look calm on the surface, but its foundations remain delicate. Sustained low food prices, stable global markets, and a firmer rupee are essential to keep this soft patch from evaporating. For now, India has a window of comfort, the challenge is ensuring it doesn’t close too quickly.

Adani Eyes Pilot-Training Firm: The Adani Group is reportedly in advanced talks to acquire Flight Simulation Technique Centre (FSTC), its entry point into the aviation training business. The deal would be done through its defence-aerospace arm via Horizon Aero Solutions. FSTC runs multiple simulator centres and flight academies across India. Adani sees rising demand for trained cockpit crew, driven by defence needs and commercial aviation growth. The acquisition would expand Adani’s aerospace footprint significantly.

Reliance’s ₹4.4 Lakh Crore Surge: Reliance Industries has surged over 26% in 2025, adding around ₹4.4 lakh crore to its market value. The rally is being fuelled by a revival in its oil-to-chemicals business, telecom tariff hikes, and strong retail momentum. Analysts further point to value-unlocking triggers, including a potential IPO for its telecom arm, Jio. This marks Reliance’s most powerful bull run since 2020.

Dr Reddy’s Wins EU Approval For Bone Drug: Dr. Reddy’s Laboratories has secured European Commission approval for AVT03, a biosimilar to the bone-strengthening drug denosumab (used in Prolia and Xgeva). The approval covers all EU member states and EEA countries like Iceland and Norway. The product is being developed in partnership with Alvotech, which will handle manufacturing. Dr. Reddy’s will commercialize the drug in Europe under the brand names Acvybra and Xbonzy.

Marriott Sees India Among Top 3 Markets: Marriott International expects India to become its third-largest market within the next two to three years as travel demand accelerates. The company plans aggressive expansion, driven by a strong domestic tourism boom and rising interest from global travelers. Marriott currently operates 161 hotels in India and has 69 more in the pipeline. The group sees India as one of its fastest-growing hospitality opportunities.

Swiggy’s Losses Rise On Quick-Commerce Push: Prosus has stated that Swiggy’s operating losses doubled in the first half of FY25, mainly due to heavy investments in Instamart. While revenue grew strongly, profitability took a hit as the platform pushed for faster deliveries and market share gains. Prosus also highlighted solid growth in Swiggy’s core food-delivery business. The company believes long-term gains justify the upfront spending.