Newsletter
Reliance plans split, pharma acquisition, and Spicejet is back in action.
š Morning, folks!
Markets started Monday on a high but couldnāt hold the gains.
Sensex and Nifty closed down 0.2% as financials lost steam, with Kotak Mahindra Bank and Bajaj Finance dragging the indices lower.
On the brighter side, auto stocks revved up after fresh monthly sales data, with Hero MotoCorp and Maruti among the top gainers.
Meanwhile, Nykaa slipped 4% amid block deal buzz, as promoters reportedly offloaded over 2% equity.
š” Spotlight: Juneās data was a mixed bag.
GST collections grew just 6.1%, the slowest pace in four years. Industrial production slowed too, with IIP growth at 1.8% vs. 5.7% last year.
But not everything was downbeat.
Manufacturing PMI hit a 14-month high, and UPI volumes stayed solid at over ā¹24 lakh crore, even if growth is cooling off.
Auto sales were all over the place, Maruti and Bajaj Auto dropped double digits, while M&M SUVs and TVS two-wheelers posted strong gains.
The bright spot though was Agriculture.
With monsoon rainfall 9% above normal, farm output and rural demand could be in for a healthy boost this quarter.
1 Big Thing: Reliance splits to scale bigger šļø
Mukesh Ambani is carving out all of Relianceās consumer brands into a new arm ahead of a mega IPO push for the retail business.
The deets: the company will shift its entire portfolio of brands spanning fashion, food, beverages, and personal care into a freshly minted entity called New Reliance Consumer Products Ltd. (RCPL).
This move will separate businesses that need specialized focus and different skill sets from the main retail operation. RCPL will handle everything from manufacturing and distribution to sales and marketing, plus investments in subsidiaries and JVs.
Why this move: by ring-fencing consumer brands, Reliance can attract a distinct set of investors who prefer fast-moving consumer goods over retail infrastructure.
Zoom out: Relianceās consumer playbook has quietly scaled up. Campa Cola, relaunched just two years ago, now holds double-digit market share in key regions. The beauty chain Tira stocks everyone from Smashbox to Sulwhasoo, tapping into Indiaās booming premium beauty market.
While we are on IPOs,
Meesho has filed confidential IPO papers with SEBI to raise ā¹4,250 crore in fresh funding.
The deets: the SoftBank-backed e-commerce platform recently moved its domicile from the US to India, joining a growing pack of startups like Zepto and PhonePe eyeing local listings.
The IPO is expected to test investor appetite as valuations cool from the platformās $5 billion peak to $3.9 billion today.
2. Alembic buys Utility Therapeutics for $12M š
Alembic Pharmaceuticals is stepping up its U.S. game, acquiring Utility Therapeutics for $12 million to bolster its specialty pipeline in urinary tract infection (UTI) treatments.
The deets:
Alembicās U.S. arm is picking up Utilityās two key assets-
- Pivya, an FDA-approved drug for uncomplicated UTIs in the U.S.
- MEC, an under-development therapy for complicated UTIs.
The deal includes a cash payment plus a share of future profits, with payouts staggered over time based on regulatory and sales milestones.
Why it matters: Alembic Pharma has had minimal turnover in the U.S. in the past three years. This acquisition gives it a ready-made FDA-approved product to start commercial sales quickly and an in-development asset to fuel future growth.
With UTIs being one of the most common bacterial infections in the U.S., the market is large and underserved, especially as antibiotic resistance grows. Pivya provides an immediate entry point, while MEC offers upside if approved.
3. India signs off on ā¹1.05 lakh crore in defence buys š§
Indiaās Defence Acquisition Council (DAC) has cleared a massive ā¹1.05 trillion worth of defence procurement, all under the Buy (Indian-IDDM) category to boost local production.
The package includes:
- Surface-to-Air Missiles & Electronic Warfare Systems
- Armoured Recovery Vehicles
- A Tri-Service Inventory Management Platform
- Moored Mines, Countermeasure Vessels & Autonomous Submersibles
Why it matters: this is one of the largest indigenous defence commitments to date, and part of Indiaās long-term bet on military self-reliance. The government wants to shift procurement pipelines inward, cutting foreign dependence and growing domestic defence manufacturing into a $100B industry.
The Navy, in particular, will benefit from tech that protects both military and merchant fleets, a growing concern in the current geopolitical climate.
4. Stocks that kept us interested š
1. SpiceJet engines back in action āļø
SpiceJet shares edged up 1% after the airline received the first batch of overhauled engines as part of its fleet revival plan.
Overhauled engines are old engines taken apart, cleaned, repaired, and rebuilt so they work like new again.
In total, 17 engines were sent for overhaul including six LEAP-1Bs to Houston, seven Q400 engines to Singapore, and four engines dispatched to Carlyle Aviation to help bring grounded Boeing 737 NGs back into service.
The why: the company is working through a structured fleet revival, aiming to ramp up capacity and reliability after years of operational and financial strain. As proof of progress, it also ungrounded another Boeing 737 NG, which rejoined active duty in June.
Ungrounded another Boeing 737 NG means SpiceJet fixed and approved a plane that was sitting unused so it can fly again.
2. Arkade buys Filmistan for ā¹183 crore š¬
Arkade Developers rose 4% after announcing plans to acquire Filmistan and turn it into a wholly-owned subsidiary.
The deal doesnāt need any regulatory nod and will close within a month.
Filmistan, known for producing and distributing films, has a modest footprint with a net worth of ā¹5.5 lakh and a turnover of ā¹18.8 lakh as of March 2024.
The why: though Filmistan is a film company, Arkade clarified the acquisition is aimed at facilitating smoother expansion in real estate, likely by unlocking land or assets held by the entity.
Arkade is already a real estate developer & they build residential and commercial projects, mainly in Mumbai. Filmistan owns valuable land or property assets, which Arkade can redevelop or use for new projects.
What else are we snackinā šæ
šµ Royalty boom: Indiaās IPRS raked in over ā¹700 crore in royalties in FY25, as streaming surged.
š„ Job cuts: Microsoft will cut about 9,000 jobs, impacting under 4% of its global workforce across teams and regions.
šļø Network nation: Indian-origin entrepreneur Balaji Srinivasan has bought a private island near Singapore to build a āNetwork Stateā which is a digital-first hub for techies and founders.
š Broker badge: Mobikwik Securities Broking got SEBI approval to operate as a stock broker, clearing the way to handle equity trades and settlements.
And thatās a wrap. Pour yourself an extra one this weekend.
Weāll be back like clockwork on Monday!
And if youād like to place your brand on this newsletter, let us know.
Hit that š if you liked this issue.
