UniBlurb #14

Good morning! and welcome to the fourteenth edition of UniBlurb - Your Weekly Dose of Management. Today, we will be going over:

#FIIs Disinvesting in India
#Hinduja Group acquires Reliance Capital
#L&T to forego Hyderabad metro project
#Internships, Competitions & Events

MONDAY MOTIVATION

OUR TWO CENTS
Market Turbulence: FPIs Exit, DIIs Hold Steady Amid Election Uncertainty

In the bustling world of Indian equities, a recent whirlwind has seen foreign investors retracting a hefty ₹17,000 crore in just the first ten days of May. The catalyst? The impending elections and the haze of uncertainty they bring. This figure towers over April's ₹8,700 crore, spurred by tax treaty revisions with Mauritius and a steady climb in US bond yields.

The investment landscape is ever shifting, with Foreign Portfolio Investors (FPIs) previously planting ₹35,098 crore in March and ₹1,539 crore in February. Yet, as the election looms, a net outflow is evident, with ₹17,083 crore exiting equities by May 10. It's a strategic retreat, as investors await the electoral verdict before diving back into the market fray.

Amidst this exodus, domestic institutional investors (DIIs) have held the fort, consistently buying and offsetting the FPIs' sell-off with ₹19,410 crore in purchases. It's a fascinating contrast: FPIs in a cautious withdrawal and DIIs in an opportunistic advance, each maneuvering through the ebb and flow of market dynamics and political tides. The outcome of this financial chess game? Only time will tell.

OUR TWO CENTS
Navigating Regulatory Waters: How IIHL’s Strategic Moves Led to Reliance Capital Acquisition Approval

In a remarkable move, the Hinduja-led consortium has received the green light from the Insurance Regulatory and Development Authority of India (Irdai) for the acquisition of Reliance Capital's insurance companies. This approval, contingent upon regulatory, statutory, and judicial compliances, marks a significant milestone for IndusInd International Holdings Limited (IIHL).

The acquisition's complexity stems from adhering to the foreign direct investment ceiling of 74% for the insurance sector. IIHL ingeniously restructured the consortium, introducing four India-based entities, with Cyqure India taking the lead as the holding company.

IIHL's pursuit of Reliance Capital is a testament to their vision of creating a robust financial ecosystem in India. With a closing target set for May 27th, 2024, by the National Company Law Tribunal, the Hinduja group stands poised to enhance their footprint in the Indian market, driving innovation and value for stakeholders.

OUR TWO CENTS
L&T’s Strategic Pivot: Exiting Hyderabad Metro Project by 2026

In the bustling city of Hyderabad, L&T has made a strategic decision to bid adieu to its metro project post-2026. The company, which holds a 90% stake with a 65-year concession, has observed a fascinating shift in commuter behavior. The introduction of the Mahalakshmi bus scheme by the Telangana government, offering free rides to women and transgenders on non-AC buses, has led to an unexpected gender distribution in public transport usage. Women are increasingly opting for buses, while men are gravitating towards railway wagons.

R Shankar Raman, L&T's director and CFO, noted that despite the unchanged number of buses, there's been a significant increase in female ridership. This change has rendered the metro's ridership "less interesting," with daily usage standing at 4.8 lakh passengers. The company is now looking to lighten the project's financial load, given the current ridership trends.

Looking ahead, L&T plans to negotiate a soft loan with the state government and monetize some of the real estate linked to the metro. As we approach the FY26-FY31 plan, this asset could attract investors, especially pension and global funds, due to its lengthy concession period. It's a reminder that even well-laid plans must adapt to the dynamic nature of public needs and government policies.

INDUSTRY CONNECT
Internship opportunities

1. Blinkit (Growth Intern)
   
   Blinkit's growth is not a team but a collection of folks who work across the organisation with one common understanding. You might work in a single function for over a year or wear multiple hats during the same tenure. You might lead teams or be an integral part of a team handling large priorities for the organisation.
   Apply Here!

2. Junglee Games (Finance Intern)
   
   As a Finance Intern, you will be responsible to apply your knowledge of finance to real-world financial modelling, analysis, and reporting with our experienced finance team. Their growth-oriented company is dedicated to providing you with valuable learning opportunities as you share your ideas and creativity with the team.
   Apply Here!

3. Fresh Prints (Operations Intern)
   
   As an intern with the Order Team, you’ll be working on a set of unique orders every day and each of those orders will pose a unique logistical challenge that’ll you’ll have to work through. You’ll be directly responsible for all the orders you’re handling and you’ll have a lot of autonomy and decision-making power.
   Apply Here!

EVENTS ON THE RISE
Best events and competitions in the upcoming week

1. The 4P Case Series: Season 2 (The4P)
   
   A challenge for Pre-MBA and MBA students to solve real-world problems through case studies, develop innovative solutions, and sharpen their critical thinking skills under the guidance of industry experts.
   Register Here!

2. Test Drive - Find Your Ideal Career (Masters' Union School of Business)
   
   Masters’ Union would like to introduce you to their latest initiative- Test Drive. Through this intensive 12-week program, high school students and undergraduate students can explore 12 new career paths with mentorship and guidance from top industry professionals. From strategy and design to finance and beyond, test drive your ideal career path!
   Register Here!

3. Business Brilliance (Post Graduate Government College, Chandigarh)
   
   Business Brilliance: Illuminating the Entrepreneurial Journey Season 2.0 is not your ordinary competition, it's a rallying call for visionaries, tinkerers, and inventors to push the boundaries of what's possible. Whether you're a seasoned entrepreneur, a tech enthusiast, or someone with a brilliant idea, Venture Vanguard is your chance to shine!
   Register Here!