IPO Train Don't Stop💰
Rupee struggles, Nvidia runs, and Swiggy goes public.
Sup gang, 👋
Trump is back as the 47th President of the United States! With over 300 electoral votes, the victory was as decisive as they come.
Back home, market bulls went on a rampage. Sensex closed up 1.13% at 80,378, and the Nifty50 jumped 1.12% to 24,484. The new Trump is expected to be small business friendly, and a net positive to the economic expansion.
Let's hit it! 🚀
1 Big Thing: Mota Bhai’s IPO Dreams 💰
Mukesh Ambani will take Jio public in 2025, which analysts are valuing at a jaw-dropping $100 billion. Meanwhile, IPO of Reliance’s Retail business is taking a backseat for now, as the company irons out a few operational wrinkles.
Context:
Back in 2019 Ambani hinted that Reliance Jio and Reliance Retail would "move towards" a listing within five years.
Jio has since become India's top telecom player with 479 million subscribers, achieving a stable business and revenue stream.
Reliance aims for the Jio IPO to be India's biggest ever, potentially overtaking Hyundai India's $3.3 billion IPO this year.
One snag though: Reliance Retail hit a rough patch recently, posting its first quarterly sales drop in three years, taking a hit as the industry adapts to changing dynamics put forth by the quick commerce revolution.
The bottom line: Telecom infrastructure is the backbone of India’s growing digital economy, but the theme hasn’t worked out to be the best investment over the past decade. Markets however have higher expectations from Jio, particularly given the company’s tact and dominance thus far.
While We’re on IPOs 🤝
India’s No.2 food-delivery player, Swiggy, opened doors for its $1.4B IPO today.
Swiggy will raise ~₹11,300 crore, with shares priced between ₹371 and ₹390 each.
That puts the company’s valuation north of $11.3 billion.
Funds will be invested in Swiggy's subsidiary, Scootsy, to enhance technology infrastructure and boost brand marketing.
And of course, quick commerce.
Nvidia becomes world’s most valuable company 🤖
Nvidia overtook Apple to become the world’s biggest company with a $3.43 trillion market cap.
Ever since Chat GPT launched, demand for Nvidia’s AI servers is through the roof — with the company selling over $80 billion worth of chips to data centers over the last 12 months.
There’s more: Nvidia’s newest generation of Blackwell chips are expected to hit the markets starting 2025, prompting another refresh by the company’s cash rich customers. Also, Q3 earnings showed almost all Big Tech giants continue to take spending up.
Coming up: with Q3 earnings, Nvidia is expected to sell $32.5 billion worth of chips for the 3 months of July to September.
Bottom Line: analysts say we are still in the early stages of Generative AI. As the market expands beyond data centers, a wide array of companies are expected to participate and benefit.
Who raised the dough? 💸
AI! AI!
Neysa has raised $20 million (around Rs 166 crore) in a funding round led by Matrix Partners India and a few others.
Neysa makes AI more accessible for all businesses, by allowing to train proprietary models. Plans are to roll out its services by Q3 2024.
The money will go towards expanding its AI cloud platform and observability services for businesses in India and beyond.
What else are we snackin’ 🍿
📉 Rupee under pressure: Donald’s return is boosting the dollar, and Rupee hits a record low of 84.23. Foreign fund outflows aren’t helping either.
💳 Cred's insurance play: Cred is now moving into motor insurance, leveraging its Garage platform to offer users discounts based on their credit scores.
💍 Marriage madness: Indian weddings are set to generate ₹6 lakh crore in business this season, with an estimated 48 lakh weddings taking place in November and December.
That’s a wrap for today! Don’t let the weekday blues get to you. We’ll be back tomorrow, like clockwork!
If you enjoyed today’s issue, hit that 💚
