Corporate News - November 2024

REGULATORY
SEBI Proposes Stricter Listing Regulations for SMEs
In a consultation paper, The Securities and Exchange Board of India (SEBI) has proposed doubling the minimum application value for SMEs IPO to INR 2 lakh, restricting the offer for sale (OFS) limit to 20 per cent of the issue size, and mandating the appointment of monitoring agencies to ensure that the money raised through an IPO was used appropriately.
Other measures include enhanced eligibility conditions, increasing the minimum application value, lockin requirements by promoters, tighter norms for migrating to the main board, and stricter corporate-governance measures.
The move comes after the regulator found instances of funds and proceeds from initial public offerings being allegedly diverted, circular transactions to related parties to inflate prices, and booking fictitious transactions to create positive sentiment among investors. The watchdog has proposed a two-year cooling-off period in case there is a change of promoter of the SME prior to the filing of the draft documents.
The draft documents of SME IPOs are processed by the stock exchanges and do not go through the scrutiny of the regulator. With the proposed measures, SEBI intends to bring more checks and balances in the segment. To access the SEBI Consultation Paper, visit: https://tinyurl.com/sebiupdates
INTERNATIONAL
US Regulators seek to break up Google, forcing Chrome sale as part of monopoly punishment
U.S. regulators have proposed breaking up Google to curb its dominance in the search engine market and prevent anticompetitive practices. In a 23-page filing, the Department of Justice called for significant measures, including the sale of Google's Chrome web browser and restrictions on how its Android operating system promotes its own search engine. The filing argues that selling Chrome would end Google's control over a major internet access point, giving rival search engines a fair chance to compete. The proposal follows a court ruling that found Google had maintained an abusive monopoly over the past decade.
British regulators will soon announce competition remedies for the multibillion-pound cloud industry
British regulators are set to unveil remedies aimed at curbing anti-competitive practices in the multi-billion-pound cloud infrastructure industry. The U.K. competition watchdog is expected to propose “behavioral” measures to address barriers to competition in a sector largely dominated by U.S. tech giants Amazon Web Services (AWS) and Microsoft Azure.
LATEST IPOs
Swiggy
Swiggy launched its IPO for subscription from November 6 to November 8, 2024. The offering comprised a fresh issue of 4,499 crore and an Offer for Sale (OFS) of 17.5 crore shares. The fresh issue size was increased from 3,750 crore, while the OFS component was reduced. The IPO received bids for 16 crore shares against the 5.82 crore shares on offer, achieving a subscription of 2.75 times. The allotment was finalized on November 11, 2024.
ACME Solar Holdings
ACME Solar Holdings, a renewable energy company specializing in solar, wind, and hybrid energy projects, launched its IPO with a price band of 275 to 289 per share, aimed to raise INR 2,900 crore. The minimum lot size was set at 51 shares, requiring a minimum investment of 14,739 from retail investors. The company focuses on firm and dispatchable renewable energy solutions, positioning itself as a key player in India's green energy sector.
NTPC Green Energy Ltd. (NGEL)
NTPC Green Energy, a wholly owned subsidiary of NTPC Ltd., opened its IPO to raise funds for debt repayment and general corporate purposes. Prior to the IPO, the company secured 3,960 crore from anchor investors. The public offering, open from November 6 to November 8, 2024, aimed to raise 10,000 crore. The price band was set at 102–108 per share, with a minimum lot size of 138 shares. The IPO reflects NTPC's commitment to strengthening its green energy portfolio.
MERGERS AND ACQUISITIONS
Reliance, Disney complete transaction for $8.5-billion merger deal to create India's largest media powerhouse
Reliance Industries Ltd (RIL), its subsidiary Viacom18, and Walt Disney Company have finalized a INR 70,532 crore merger to form India's largest media and entertainment powerhouse. The deal merges Viacom18's media and JioCinema businesses with Star India Private Limited, creating a joint venture (JV) backed by a 11,500 crore investment from RIL to drive growth. The merged entity will dominate the Indian entertainment landscape with 120 TV channels and two streaming platforms, competing with major players like Sony, Netflix, and Amazon. Post-merger, RIL controls a 16.34% stake in the JV, Viacom18 holds 46.82%, and Disney owns the remaining 36.84%.
Murugappa to buy Germany's Hubergroup; acquisition at an enterprise value of $310 million
The Murugappa Group, in partnership with Avenue Capital Group, has agreed to acquire Hubergroup, a 259 years old German company, for an enterprise value of $310 million. This acquisition will help Murugappa expand its presence in the global print and packaging sector.
Founded in 1765, Hubergroup has grown from a small familyowned business to a global leader in the printing inks and chemicals industry, known for its dedication to quality and innovation. In 2015, Hubergroup celebrated its 250th anniversary, marking its status as one of the world's largest ink manufacturers. The acquisition deal includes $160 million to refinance Hubergroup's debt and a $150-million equity infusion from Murugappa. The acquisition is subject to regulatory approvals and is expected to strengthen Hubergroup's market position and support its growth in key international markets. Hubergroup has been facing significant debt issues. The company planned to take on substantial debt to buy equity in its subsidiaries from its parent company, MHM Holding GmbH. This led to financial challenges, and the company had to extend its repayment deadlines with the help of lenders. The acquisition by the Murugappa Group includes $160 million to refinance Hubergroup's debt, highlighting the extent of its financial struggles.
WORKFORCE
Australia Appoints First Anti-Slavery Commissioner to Combat Modern Slavery
In a landmark move, Australia has appointed its first Anti-Slavery Commissioner, Mr. Chris Evans, who will serve a five-year term starting in December 2024. The position is designed to strengthen efforts across the government, business, and society to combat modern slavery, which includes human trafficking, forced labour, and deceptive recruiting.
Freshers must crack AI-written code to land a job at IT firms
With IT firms and employees increasingly using AI tools to write codes, the deliverables in hiring tests for entry level and junior engineers are changing. From being asked to write simple codes, candidates are being asked to optimize and restructure existing AI written codes, to improve quality. With AI tools easily available, IT firms are also ensuring that they don't hire candidates who can just copy-paste codes.
ESG
ISO Launches Global ESG Implementation Principles at COP29
At COP29, the International Organisation for Standardization (ISO) introduced new ESG Implementation Principles designed to help organisations navigate the increasingly complex Environmental, Social, and Governance (ESG) landscape. With global ESG regulations surging by 155% over the past decade, these principles aim to simplify compliance with disclosure requirements and enhance the measurement, reporting, and communication of sustainability efforts. They provide a standardized framework for transparent and effective sustainability practices, suitable for all organisations, from small businesses to multinational corporations. By integrating ESG principles into organizational culture, the guidelines address environmental impacts, social considerations, and governance practices for a comprehensive approach to sustainability. Developed collaboratively by national standards bodies such as the British Standards Institution (BSI), the Standards Council of Canada (SCC), and the Brazilian Association of Technical Standards (ABNT), the principles reflect input from over 1,900 industry experts across 128 countries.
Microsoft Builds First Wood Datacenters, Cutting Carbon Emissions by 35%
Microsoft is revolutionizing data center construction in Northern Virginia by using cross-laminated timber (CLT) instead of steel and concrete, reducing embodied carbon emissions by up to 65%. This innovative approach aligns with Microsoft's goal to be carbon negative by 2030, showcasing the potential of low carbon materials in high-demand infrastructure. CLT, a fire resistant, layered wood that chars instead of burning, provides natural insulation and a sustainable alternative to traditional high-emission materials. Sourced sustainably, it supports eco-friendly production, while a thin concrete layer ensures waterproofing and stability, making it a resilient choice for modern construction.
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Institute of Directors India
Bringing a Silent Revolution through the Boardroom
Institute of Directors (IOD) is an apex national association of Corporate Directors under the India's 'Societies Registration Act XXI of 1860'. Currently it is associated with over 30,000 senior executives from Govt, PSU and Private organizations of India and abroad.
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