Handpicked updates about India’s business and the business of India
In September 2004 a 23-member Sri Lankan handball team mysteriously vanished during a sports exchange program in Germany — inspiring the award-winning comedy Machan. Now in a who-will-remember-this 22 years later moment, 22 people from Pakistan in football kits tried to land in Japan as the national team armed with forged NOCs and links to the national football federation. Unfortunately immigration officers figured out and the plot did not fly. Moral of the story: if your scam already has a movie, maybe don’t try to make a real-life sequel.
Now, let’s get into the Dispatch! 🚀
Today’s reading time is 6 mins.
Markets 🔔🐂🐻
As of the Indian market close on Sept 17th
The Indian stock market rallied for a second consecutive day on Wednesday, with the Nifty 50 closing at a three-month high. The surge was driven by renewed optimism from the ongoing India-US trade talks and growing expectations of a US Federal Reserve rate cut.
Corporate News
Jio IPO: India’s Biggest Listing or Pitfall?
Image credits: Mint
The Big Picture: Mukesh Ambani is preparing to test the waters of India’s capital markets with what could be the country’s largest-ever listing. Reliance Industries Ltd. (RIL) is set to bring Jio Platforms to the stock market in 2026, eyeing a valuation in the ₹11–12 lakh crore range. For investors, the central question is simple: will this IPO unlock hidden value in RIL’s digital arm, or will it saddle the parent with a classic holding company discount?
The Mechanics Of The IPO: New SEBI rules mean Reliance needs to offload only 2.5% equity at listing, keeping the IPO size manageable and allowing more time to raise public float. Analysts are divided: Citi sees minimal risk of a holding company discount, while BofA and BNP Paribas expect a 5–10% discount could affect Reliance’s valuation after Jio is listed.
The Investor Dilemma: Ambani highlighted at the AGM that early global investors in Jio could see exits at nearly double their initial commitments. The IPO is set against RIL’s broader strategy, including major partnerships with Google and Meta to drive AI and cloud growth. However, here lies the paradox: a Jio IPO would crystallise the true market value of RIL’s crown jewel, but it could also create a holding company discount for Reliance shareholders. Once Jio is independently listed, investors who want exposure to India’s largest telecom and digital services company may prefer to buy Jio shares directly rather than wade through Reliance’s sprawling conglomerate structure. This has long been a problem for diversified giants, citing complexity, limited transparency, and lower liquidity.
What The Analysts Are Saying
Citi is optimistic, arguing that the risk of a holding-company discount is overstated and that the IPO will be a major value-unlocking event. Citi pegs Jio’s enterprise value at around US$135 billion.
Bank of America Securities (BofA) expect a 5% discount could be applied to Reliance’s valuation post-listing.
BNP Paribas walks the middle line, acknowledging that the IPO will outline Jio’s worth but insists that, in India, holding companies almost always trade at significant discounts. BNP has factored a ~10% discount on RIL’s Jio stake into its estimates.
Stakes For Reliance: Jio contributes roughly 30% of RIL’s overall valuation. Any discount that creeps in could weigh heavily on the parent company’s market capitalization. At the same time, the IPO is critical for Ambani’s strategy of reducing debt and building a more transparent capital structure for the group.
Startups & Markets
Accel’s Golden Touch, From Facebook To Urban Company
Image credits: ET
A Blockbuster Debut: Urban Company, the home services marketplace that has become a household name in India’s gig economy, made a stellar stock market debut. Listed on the NSE at a 57.5% premium over its issue price of ₹103 per share, the IPO was a resounding success, signalling strong investor appetite for consumer-tech platforms. On listing day, the company’s market capitalization surged to nearly $3 billion, putting it firmly on the map as one of India’s most valuable internet businesses.
The Investor Who Struck Gold: But the spotlight wasn’t just on Urban Company’s founders or its business model, it also shone brightly on one of its earliest backers: Accel. The venture capital firm, already famed for betting on Facebook when it was a college project, has repeated its magic in India. Accel’s initial investment of around ₹14.3 crore in Urban Company has ballooned to ₹390 crore through the Offer for Sale (OFS) portion of the IPO. This eye-popping return illustrates the sheer power of patient capital. Importantly, Accel hasn’t exited completely; it still retains a stake in Urban Company, suggesting there could be more gains to come as the platform scales further in India and internationally.
A Playbook That Keeps Working: Accel’s investment success is not an isolated story. The firm has consistently identified transformative consumer internet and technology platforms early in their journeys. From Facebook in Silicon Valley to Flipkart and now Urban Company in India, Accel has built a track record of backing startups that reshape markets.
Business India: Dhanda Hai Yeh!
Image credits: FT
India’s Capex Push: India's Finance Ministry is actively seeking to increase its capital expenditure (capex) beyond the current ₹11.21 lakh crore outlay for fiscal year 2026. This initiative aims to boost demand and sustain infrastructure-led growth, with key sectors such as railways, Roads, Ports, and Shipbuilding continuing to be the primary drivers. In the first quarter of FY26, capital expenditure (capex) spending has already reached 25% of the targeted amount, and officials expect activity to accelerate after the monsoon season.
EU-India Partnership: The European Union and India are accelerating efforts to finalise a free trade agreement by the end of the year. The renewed push comes amid India's balancing act with its ties to the EU, China, and Russia, including increased purchases of Russian oil and recent joint military drills. Despite some friction over sanctions, the EU considers India a "rules-based partner" and a key ally, particularly as India is expected to become the world's third-largest economy by 2030.
Rolls-Royce In Bengaluru: Rolls-Royce has opened its largest global capability and innovation centre in Bengaluru, reinforcing the city's position as its key engineering hub outside the UK. According to Karnataka's Industries Minister M.B. Patil, the city's deep talent pool will support Rolls-Royce's global programs, strengthening the state's aerospace and defence sector.
Adani Ports Expansion Drive: Adani Ports & SEZ will invest ₹30,000 crore over the next two years, more than double its current annual plan, to expand Mundra, Dhamra, and Vizhinjam ports. With this, the company targets handling one billion tonnes of cargo annually by 2030, strengthening its dominance with a 27% national market share.
