The Morning Context

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The SC's cancellation of JSW Steel's acquisition of Bhushan Power reinforces a key message: the integrity of the IBC process matters more than the outcome. Upholding the system ensures ... https://themorningcontext.com/business/sc-scrapped-bhushan-power-and-steel-deal-to-protect-ibc-not-undermine-it

Urban Company, valued at over $2 billion, is gearing up for an IPO with a target of raising Rs 1,900 crore, down from the initially rumored Rs 3,000 crore. Despite impressive execution, the firm face... https://themorningcontext.com/internet/urban-companys-growth-has-hit-indias-income-divide-reality

Samsung fights $601 million tax notice, points at Reliance Samsung says Reliance had been importing the same component without paying tariffs until 2017.

Samsung asked an Indian tax tribunal to rescind a $601 mn tax demand for allegedly misclassifying imports to avoid tariffs on a critical transmission part used in mobile towers, according to Reuters.

https://themorningcontext.com/internet/samsung-fights-601-million-tax-notice-points-at-reliance

Exits not enough, RBI wants IndusInd Bank to do more After the derivatives hedging fiasco triggered the resignations of top executives, indications are that the regulator expects the private lender’s board to do a thorough cleanup.

With top-level exits and an ongoing cleanup, what's next for IndusInd Bank? Will the RBI's pursuit of accountability lead to more departures, and how will this affect the bank's new leadership and financial... https://themorningcontext.com/business/exits-not-enough-rbi-wants-indusind-bank-to-do-more

Ather Energy’s IPO fully subscribed on final day of bidding With a 1.43x subscription, the electric two-wheeler maker’s debut on the bourses remained muted, as against rival Ola Electric’s IPO in August 2024.

Ather Energy's IPO saw a 1.43x subscription after three days, with 16% on the first day and 28% on the second. The price band was set between Rs 304 and Rs 321 per share.

Sethu Pradeep reports: https://themorningcontext.com/internet/ather-energys-ipo-fully-subscribed-on-final-day-of-bidding

Should Sarvam AI open-source its models after getting government support? The startup will reportedly receive support equivalent of Rs 220 crore to build an indigenous foundational large language model.

With ₹220 crore in government support, Sarvam AI is building India's first full-stack generative AI system—from foundational language models to the platforms powered by them.

Sethu Pr... https://themorningcontext.com/yesterday/should-sarvam-ai-open-source-its-models-after-getting-government-support

IndiGo’s Rahul Bhatia may have another winner—in hospitality The partnership between his InterGlobe Hotels and French multinational Accor poses a serious challenge to the leadership of Tata’s IHCL and American multinational Marriott in the hospitality business.

InterGlobe Hotels and Accor are raising the stakes in India's hospitality game.
By joining forces and investing in Treebo, they're aiming to take on Tata's IHCL and Marriott, with a combined portfoli... https://themorningcontext.com/business/indigos-rahul-bhatia-may-have-another-winnerin-hospitality

India’s growing AC divide Rising temperatures are fast turning ACs into a necessity. Yet, people who are the most vulnerable to the ravages of heat still cannot afford them.

As India battles temperatures soaring past 44°C, air conditioners are no longer just about comfort—they're becoming a survival tool. The AC boom shows who can afford to stay cool and who can't.

The story is free to read for the next 48... https://themorningcontext.com/chaos/indias-growing-ac-divide

Lab-grown diamond is the latest gold rush for Indian startups Many companies are exploring the business opportunity that synthetic diamonds offer. It sure seems like an easy business to enter, but will everyone manage to scale it?

India is leading the lab-grown diamond boom with more startups than anywhere else in the world and big VC money flowing in.
But in a crowded market, who will actually scale and win?

Hiral Goyal u... https://themorningcontext.com/internet/lab-grown-diamond-is-the-latest-gold-rush-for-indian-startups

IndusInd Bank’s near Rs 2,000 cr financial dent was caused by ‘incorrect accounting’ An independent investigation, in its report, blames the notional recording of profits by the bank in its internal derivatives trades.

IndusInd found the discrepancy during an internal review related to the RBI Master Direction - Classification, Valuation and Operation of Investment Portfolio of Commercial Ban... https://themorningcontext.com/yesterday/indusind-banks-near-rs-2000-cr-financial-dent-was-caused-by-incorrect-accounting

Peak XV Partners’s American distraction VCs are a dime a dozen in the San Francisco Bay Area. So, aside from the bragging rights that come with being seen as a global venture firm, it makes no sense for the now-Indian Peak XV to invest in a market that’s already crowded.

Peak XV is setting up camp in the Bay Area.
After its split from Sequoia US, the India-born VC is now assembling a team to chase American startups.

Smart move? Or a crowded gamble?

Ashish K Mishra writes: https://themorningcontext.com/internet/peak-xv-partnerss-american-distraction

HUL, Nestle India report tepid Q4 results The packaged goods giants point to rising cost of production and sluggish urban demand as the reasons.

Both packaged consumer goods companies have noted increasing cost of raw material for their products, which include packaged food, coffee, beverages, snacks, chocolates and more.

Disha Acharya writes: https://themorningcontext.com/business/hul-nestle-india-report-tepid-q4-results

An invoice discounting platform's sweet deal is turning sour.
Full story to be unpacked tomorrow. Stay tuned.

For Volkswagen, tiny Indian market is no small matter Undeterred by its 2% market share and a looming $1.4 billion tax verdict, the German carmaker wants to be seen as committed to India. But, can it afford to stay the course?

$1.4 billion tax claim. Just 2% market share.
Still, Volkswagen is accelerating in India.
New launches, EV plans, and a long-term pitch—but can it really go the distance?

Azman Usmani drives you through t... https://themorningcontext.com/business/for-volkswagen-tiny-indian-market-is-no-small-matter

Used-car startup Cars24 acquires auto content platform Team-BHP The acquisition is aimed at enhancing Team-BHP’s digital capabilities and integrating AI tools.

The tie-up will involve Cars24 helping Team-BHP boost its technology and artificial intelligence capabilities to offer users improved video and photo review formats, a revamped homepage and new ... https://themorningcontext.com/internet/used-car-startup-cars24-acquires-auto-content-platform-team-bhp

Interestingly, this carmaker has a mere 2% market share in India.
Full story coming tomorrow. Stay tuned for the drive ahead.

Founded in 2007, Flipkart moved its base to Singapore in 2011 due to simpler taxation policies, fewer regulatory hurdles and better access to capital.

Disha Acharya writes more about this: https://themorningcontext.com/internet/flipkart-to-move-holding-company-back-to-india

The development comes a month after the Directorate General of Trade Remedies (DGTR) proposed a 12% tax as a safeguard duty on some steel imports, including China and Vietnam, for 200 days.

Disha Acha... https://themorningcontext.com/business/india-to-impose-12-safeguard-duty-on-some-steel-imports

Beyond the glare of the Honasa-HUL sunscreen ad war The recent spat between the two brands brings to the fore the stiff competition in the largely unregulated skincare industry.

Lakmé vs The Derma Co: A heated exchange over sunscreen
The recent spat between two brands brings to the fore the stiff competition in the largely unregulated skincare industry.

Disha Acharya breaks it do...
https://themorningcontext.com/yesterday/beyond-the-glare-of-the-honasa-hul-sunscreen-ad-war

Fly ash is a fine powdery residue that is a byproduct of burning pulverized coal in power plants. If released into the environment, it can contaminate water and soil and create serious health issues ...
https://themorningcontext.com/business/vedanta-gets-orissa-high-court-stay-on-rs-71-crore-penalty

Swiggy is no longer just about food.
Its new app, Pyng, connects users with professionals across finance, fitness, travel, astrology, and more.
But with players like Justdial and Topmate in the mix, the question is: wh... https://themorningcontext.com/internet/can-pyng-help-swiggy-break-out-of-a-rut

Swiggy, Zepto membership plans offer no cover against dark patterns What were touted as a means to access superior services (and discounts) for a fee are, in reality, no different to the plain vanilla offerings of quick-commerce platforms.

Swiggy and Zepto promise perks with their memberships—but users are spotting dark patterns instead. From sneaky cart additions to manipulative pricing, are the "benefits" just bait?
⏳ Free t...
https://themorningcontext.com/yesterday/swiggy-zepto-membership-plans-offer-no-cover-against-dark-patterns

Dip in urban female unemployment is just a drop in the bucket Unemployment among urban women is still way higher than any other group and the change seen in the latest survey is insignificant.

Between 2023 and 2024, urban female unemployment in India dropped from 7.5% to 6.7%, according to new government data.

While this might seem like progress, the full picture tells a different sto... https://themorningcontext.com/yesterday/dip-in-urban-female-unemployment-is-just-a-drop-in-the-bucket

Prashant Kumar takes spring-cleaning route to profitability The Yes Bank CEO ushers in a spate of changes in the retail banking business to stem its loss-making streak.

In March, Yes Bank removed senior leaders across SME, private banking, fee business, and strategy as part of a larger move to overhaul its loss-making retail banking vertical.

Furquan Moharkan writ... https://themorningcontext.com/business/prashant-kumar-takes-spring-cleaning-route-to-profitability

Paytm’s Vijay Shekhar Sharma forgoes 21 million ESOPs after SEBI heat The market regulator had sent a show-cause notice to the fintech as promoters are not supposed to be issued ESOPs.

In March last year, the Securities and Exchange Board of India had issued a notice to Paytm over the shares issued to Sharma in the 2021-22 fiscal. Paytm had granted the shares to Sharma be... https://themorningcontext.com/internet/paytms-vijay-shekhar-sharma-forgoes-21-million-esops-after-sebi-heat

A major shake-up is underway in a bank's retail vertical amid rising costs.
Full story out tomorrow.

With Fullerton acquiring a controlling stake last year, Lendingkart has seen an overhaul of the current leadership, trimmed loan disbursements and a halt in product rollouts.

Abir Dasgupta writes: https://themorningcontext.com/internet/the-silent-takeover-of-lendingkart

Pyng will be using artificial intelligence to help users find the right professionals by understanding their queries and needs. The app is currently live for users in Bengaluru and available on both iOS and Andr...
https://themorningcontext.com/internet/swiggy-launches-pyng-for-professional-services

A quiet storm is hitting a major fintech.
The full story lands tomorrow. Can you guess which company this is?