NewsletterIPOs surge, ITC's decent Q4, and Garden Reach cruises ahead.
š Morning, folks!
Markets ran out of steam on Thursday. Both the Sensex and Nifty slipped nearly 1%, dragged down by FMCG and IT stocks. Out of the Nifty 50, 41 names ended in the red.
š” Spotlight: DRHPs are heating up, even if the markets arenāt.
Indiaās IPO pipeline is buzzing. Between January and May 2025, 85 companies filed draft red herring prospectuses (DRHPs), the highest in over a decade for this period.
Names like Tata Capital, Urban Company, and Canara Robeco AMC are gearing up for market debuts. Despite short-term volatility, the long-term play is clear: investor appetite is very much alive, and India Inc. is looking to capitalise.
1 Big Thing: Reliance Defence goes big on ammo šŖ
Reliance Defence has signed a major partnership with German defence giant Rheinmetall AG to locally manufacture ammunition in Ratnagiri, Maharashtra.
Rheinmetall is a Germany-based defence and automotive technology conglomerate, known globally for its expertise in weapons, munitions, and military systems.
The deets: under the deal, Reliance will supply explosives and propellants for medium and large caliber ammunition. A new greenfield facility, called the Dhirubhai Ambani Defence City (DADC), will be set up in the Watad industrial area, with capacity to produce:
- 200,000 artillery shells
- 10,000 tonnes of explosives
- 2,000 tonnes of propellants annually
It will be one of the largest defence manufacturing hubs in South Asia, the company said.
Why it matters: this is Reliance Defenceās third global tie-up, after previous partnerships with Dassault Aviation and Thales Group. In all, this is another massive boost to Indiaās domestic defence production ambitions.
2. Bajaj takes the KTM wheel šļø
Bajaj Auto is set to take majority control of KTM by investing ā¹7,765 crore through its global arm. It also plans to take over PBAG, KTMās parent company, pending regulatory approval in Austria.
Currently, Bajaj indirectly owns 37.5% of KTM but is now on track to become the majority owner.
Why it matters: KTM is under financial stress and undergoing a court-approved debt restructuring. Bajajās timely investment is critical, as KTM must settle 30% of creditor claims by May 23 to avoid insolvency.
The deal not only stabilises KTM but also expands Bajajās global footprint in the premium motorcycle marketāa space itās been eyeing for deeper expansion.
Zoom out: KTMās global sales, 2.7 lakh units annually across Europe and the USāwill now reflect in Bajajās consolidated numbers, giving it a wider topline boost and stronger export muscle.
3. Sensex makes space for Trent and BEL š
Two new names are making their way into the big leagues. Tata-owned Trent and defence major BEL will join the BSE Sensex on June 23, 2025, replacing Nestle India and IndusInd Bank as part of the latest index reshuffle by Asia Index Pvt Ltd.
The deets: index rejigs arenāt just cosmetic, they move serious money. Passive funds, ETFs, and mutual funds that track the Sensex must realign their portfolios, which often triggers major capital flows.
- Trent could see inflows of $278 million (ā¹2,400 crore), about 2.5x its average daily volume.
- BEL is expected to receive $275 million, or 3.1x its ADV. The stock is up 37% in the last six months, riding the defence wave.
Meanwhile, the exits:
- Nestle India may face outflows of $210 million, or 7.7x its ADV.
- IndusInd Bank, hit by internal fraud and a net loss of ā¹2,329 crore, could see $135 million in outflows. The stock is down over 40% in a year.
Zoom out: these shuffles reflect more than just numbersāthey signal where investor confidence is headed.
4. IndusIndās crashed out Q4 š¦
IndusInd Bank posted its worst-ever quarterly loss, but the stock held its nerve after an early dip.
The deets: the troubled private lender swung into deep red, reporting a massive ā¹2,329 crore loss in Q4, its first big earnings update since internal audits and boardroom churn made headlines.
By the numbers:
- Net loss: ā¹2,329 crore (vs profit of ā¹2,349 crore last year)
- Net Interest Income (NII): ā¹3,048.3 crore
The why: this quarter was less about banking and more about cleaning up a mess. IndusIndās board flagged suspected fraud, possibly involving senior employees in accounting and financial reporting.
Zoom out: IndusInd isnāt the first Indian bank to face governance heat but the timing is rough. With the RBI tightening oversight and markets staying cautious, trust is everything. For now, investors will be watching how the bank handles investigations, rebuilds its top team, and restores credibility.
While we are on earnings,
ITCās Q4 was a bit of a magic trick as profits went up on paper, but only because of an accounting tailwind from its hotel business demerger.
Beneath that shiny number, core operations told a more balanced story.
By the Numbers:
- Net Profit: ā¹19,807 crore, boosted by a one-time gain of ā¹15,145 crore from the ITC Hotels demerger.
- Adjusted Profit (real operations): ā¹4,662 crore, down from ā¹5,190 crore YoY.
- Revenue: ā¹20,376 crore, up 10% from ā¹18,561 crore YoY.
Cigarettes continued to be ITCās cash cow, contributing ā¹9,228 crore to revenue which is about 45% of total operating revenue.
Why it matters: while headline profit got a boost from the hotel spin-off, ITCās core verticals including cigarettes, FMCG, and agri held up well.
5. Stocks that kept us interested š
1. Garden Reach steers into Navy deal š¢
Garden Reach Shipbuilders jumped 11% after emerging as the lowest bidder for a ā¹25,000 crore Indian Navy contract.
The deets: the project is to build the Navyās Next Generation Corvettes (NGCs) which are fast, agile warships built for modern maritime warfare.
The total project is valued at ā¹40,000 crore, to be split between two shipyards.
Zoom out: this comes as defence stocks rally post Operation Sindoor, where India flexed its military muscle.
Garden Reach stock is up 50% in the past month, now trading just shy of its 52-week high.
2. NTPC Greenās battery power play š
NTPC Green jumped over 5% after bagging a battery storage project worth 80 MW/320 MWh in Kerala, emerging as the top bidder in NHPCās latest reverse auction. .
The deets: the company has won two big battery storage projects, basically, giant power banks that can store electricity and release it when needed, like during power cuts or peak hours.
320 MWh can power around 1.2 lakh homes for 4 hours, just enough to handle an evening power surge or a grid failure.
Zoom out: this is part of Indiaās bigger battery energy storage push. As the country adds more solar and wind power, battery systems are needed to store energy and release it on demand, keeping the grid stable.
What else are we snackinā šæ
āæ Crypto climb: Bitcoin crossed $110,000 for the first time, riding a wave of optimism as a US stablecoin bill advances, fueling hopes for clearer crypto regulations.
š Biz buzz: Indiaās Composite PMI for May jumped to a 13-month high of 61.2, up from 59.7 in April.
āļø Solar switch on: Reliance Industries is set to launch its solar photovoltaic modules factory this year.
šļø Shifting gears: Honda is expanding its Gujarat plant with a new line to boost capacity by 6.5 lakh units, making it the companyās largest two-wheeler plant worldwide by 2027.
And thatās a wrap. Pour yourself an extra one this weekend.
Weāll be back like clockwork on Monday!
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