September 9, 2025

THE CLIFF NEWS

National Daily Bilingual Newspaper

Category: Stock Market

ILJIN Electronics India Raises ₹1,200 Crore from ChrysCapital, InCred PE

ILJIN Electronics India Pvt Ltd, the electronics arm of Amber Group, has secured ₹1,200 crore in its first-ever external institutional funding round. The investment was led by ChrysCapital, which contributed ₹1,100 crore, while InCred Growth Partners Fund I (InCred PE) invested ₹100 crore. The funding, routed through separate definitive agreements, is subject to regulatory approvals. The capital will be deployed to scale operations, enhance manufacturing capabilities, and pursue strategic acquisitions, strengthening ILJIN’s leadership in the electronics space. The move aligns with India’s Aatmanirbhar Bharat vision and leverages government support under the Production Linked Incentive (PLI) scheme and Electronics Components Manufacturing Scheme (ECMS). ILJIN, a leading manufacturer of bare printed circuit boards (PCBs), PCB assemblies, and box build solutions, clocked ₹2,194 crore in revenues and ₹151 crore in operating EBITDA in FY25, achieving a 52% revenue CAGR from FY22 to FY25. Its product portfolio spans smartwatches, routers, solar inverters, EV charging systems, and energy storage solutions. Amber Group, which recently applied under ECMS for two projects worth ₹4,190 crore and announced acquisitions in battery energy storage and industrial automation, sees this investment as a growth catalyst. “This funding will empower us to pursue both organic expansion and strategic inorganic opportunities, reinforcing our leadership in PCB and EMS solutions,” said Jasbir Singh, Executive Chairman and CEO of Amber Group. With 31 manufacturing plants across India, Amber Group operates in three segments — consumer durables, electronics (EMS), and railway subsystems & defence.

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Editor02 mins

Vedanta outbids Adani, wins auction for debt-laden Jaiprakash Associates with ₹17,000 crore offer

New Delhi – Anil Agarwal’s Vedanta Group has outbid the Adani conglomerate to emerge as the top bidder for bankrupt Jaiprakash Associates Ltd (JAL), offering ₹17,000 crore in a challenge auction conducted by lenders on Friday. The offer, with a net present value of ₹12,505 crore, marks the highest recovery plan so far for the debt-laden company. However, lenders who have admitted claims of over ₹59,000 crore will still face a 71% haircut under Vedanta’s proposal, according to people familiar with the matter. Auction details Strategic significance For Vedanta, the acquisition provides an entry point into cement and infrastructure, sectors where it currently has no presence. The deal would bring marquee assets such as Jaypee Greens, Wish Town, and the International Sports City near Jewar airport into its fold. It also offers a foothold in the rapidly consolidating cement industry, dominated by UltraTech, Adani and Shree Cement. Meanwhile, Vedanta is also pushing ahead with a major restructuring plan to split its listed entity into five pure-play companies, a move facing legal scrutiny from the Indian government. Pending challenges Broader picture Once a formidable force in India’s real estate and infrastructure sector, the Jaiprakash Group has been weighed down by debt for nearly a decade. Successive resolution attempts have yielded little value for banks, making this one of the largest insolvency cases under India’s bankruptcy framework. Even with Vedanta’s winning bid, lenders will recover less than a third of their exposure. But for Vedanta, clinching Jaiprakash could reshape its portfolio and provide a new growth engine in housing and infrastructure, at a time when India’s economy is expanding at the fastest pace among major economies.

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Editor04 mins

Rupee Hits Record Low at 88.33 Against Dollar as U.S. Tariffs Bite; Job Creation Declines for Second Year

The Indian rupee slumped to a fresh record low , falling to ₹88.33 per U.S. dollar, breaching its previous lifetime low of ₹88.3075. The persistent depreciation reflects market unease over the impact of higher U.S. tariffs on Indian goods, which now stand at 50% following Washington’s latest increase. “Unless we see some improvement in trade relations between India and the U.S., we cannot expect any stability in the rupee. Everything now depends upon the RBI, on how they plan to manage the markets,” said V.R.C. Reddy, treasury head at Karur Vysya Bank, in remarks to Reuters. The Reserve Bank of India (RBI), while maintaining it does not target specific exchange rates, has a track record of stepping in to curb excessive volatility. Market participants are closely watching whether it will intervene to calm the current slide. Economists warn that the tariffs are a significant blow to India’s export competitiveness, particularly in textiles, engineering goods, and other labor-intensive sectors. A slowdown in exports risks widening the trade deficit and weighing on corporate earnings. Adding to concerns, foreign investors have pulled out $2.4 billion from Indian equities in the past three sessions, according to Reuters data. Job Creation Slows The stress on the economy is further underscored by weakening job creation. Net formal job additions under the Employees’ Provident Fund Organisation (EPFO) have fallen for two straight years since peaking in FY23. The number of establishments making their first Electronic Challan cum Return (ECR) filings also slipped to 52,309 in FY25, down 6.6% from a year earlier. While India continues to project strong GDP growth, the combination of a weakening rupee, higher trade tariffs, export slowdown, and declining formal job creation paints a challenging picture for policymakers.

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Editor03 mins

Gold Prices Hit Record ₹9,535 per Gram in Chennai Amid Rupee Fall and US Tariff Impact

Gold prices surged to a fresh all-time high in Chennai on Friday, driven by uncertainties over U.S. export tariffs and the sharp depreciation of the rupee against the dollar. In the Chennai market, the price of 22-carat gold rose to ₹9,535 per gram and ₹76,280 per sovereign, up from the morning rate of ₹9,470 per gram and ₹75,760 per sovereign. The intra-day rally marked an increase of ₹65 per gram and ₹520 per sovereign. The precious metal has been on a record-breaking run in 2025. On January 1, 22-carat gold was priced at ₹7,150 per gram. It crossed ₹8,000 for the first time on February 9, touching ₹8,060, and surpassed the ₹9,000 mark on April 21 at ₹9,015. On August 19, the price stood at ₹9,235 per gram and ₹73,880 per sovereign—meaning prices have jumped ₹300 per gram and ₹2,400 per sovereign in just 10 days. Santha Kumar S, secretary of The Jewellers and Diamond Traders’ Association – Madras, said U.S. tariffs have temporarily frozen new shipments, while the weak rupee pushed prices higher. “If export duty is removed, rates could stabilise or increase further,” he said, noting that strong domestic demand during the upcoming festival season could push gold beyond ₹10,000 per gram. Meanwhile, in Delhi, bullion prices surged ₹2,100 to hit a fresh record of ₹1,03,670 per 10 grams on Friday. The All India Sarafa Association attributed the rise to persistent buying by stockists and the rupee’s continued weakness. “The Indian rupee hit an all-time low, raising concerns about the impact of 50 per cent U.S. tariffs on the country’s GDP,” explained Saumil Gandhi, senior analyst (Commodities) at HDFC Securities, highlighting the factors behind the latest spike.

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Editor03 mins

Ambani Faces Investor Spotlight Amid US Tariffs, Russian Oil Tensions

Mumbai, August 29, 2025 — Reliance Industries Ltd.’s annual investor meeting, a red-letter event in India’s financial calendar, will this year see attention divided between future growth plans and geopolitical headwinds. Traditionally a stage for Chairman Mukesh Ambani to unveil ambitious targets, bold ventures, and shareholder rewards, the gathering on Friday comes just two days after the US doubled tariffs on India in retaliation for imports of discounted Russian oil — a trade in which Reliance has been a key participant. Russian Oil Bind Reliance has purchased large volumes of Russian crude under a 10-year deal with Rosneft Oil Co PJSC, helping India save an estimated $3.8 billion in FY25, according to ICRA. Bloomberg calculations suggest Reliance alone saved about $571 million in the first six months of 2025. But that advantage comes at a cost: Reliance’s $214 billion empire now faces exposure to tariffs, possible US sanctions, and reputational risks. Nayara Energy, which operates a refinery near Reliance’s Jamnagar complex, was blacklisted by the EU in July, serving as a cautionary example. Prime Minister Narendra Modi’s government has resisted US pressure, insisting Russian oil is not sanctioned. A withdrawal, however, would rupture Reliance’s long-term deal and erode its refining edge. Ambani’s Speech: Focus on Future, Not Russia Despite heightened scrutiny, Ambani’s much-anticipated address is expected to sidestep Russia, focusing instead on: Reliance did not respond to queries from Bloomberg on whether Ambani would address the oil issue. US Pressure Mounts Senior US officials have intensified criticism, with White House trade adviser Peter Navarro accusing India of funding Russia’s “war machine.” While Ambani has not been named, US statements targeting “India’s richest families” underscore the stakes. “Will commitments on reduction of Russian oil purchases and shifting to US sources be enough for the Trump administration?” asked Mark Linscott of The Asia Group. “It’s hard to know, given how difficult it is to read its objectives.” Oil Still Pays for Diversification Though Reliance has pivoted toward consumer businesses and green energy, its oil, gas, and chemicals arm still generates over half of annual revenue and two-fifths of profit (EBITDA). The refining segment’s contribution was surpassed only recently by digital services. The Russian oil discount, therefore, remains a crucial pillar funding Reliance’s transformation — even as it draws Ambani into the geopolitical crossfire.

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Editor04 mins

RC Bhargava Bats for Lower GST as US Tariffs Hit Indian Industries

At Maruti Suzuki’s annual general meeting, Chairman RC Bhargava urged the government to expedite GST reforms, warning that fresh US tariffs could disrupt multiple Indian industries and erode the purchasing power of small car buyers. To be sure, the Narendra Modi government has already proposed lowering the GST on Maruti Suzuki’s bestselling small cars. However, the additional US import duties—effective 27 August—have raised total tariffs to as high as 50% on goods like garments, gems and jewellery, footwear, sporting goods, furniture and chemicals. The move threatens thousands of small exporters and jobs, a vital customer base for the carmaker. In his Independence Day address on 15 August 2025, Prime Minister Modi announced India’s biggest tax overhaul since the rollout of GST in 2017. Consumer, auto and insurance firms are expected to benefit most when product prices fall from October. The Centre has suggested cutting GST on small cars from 28% to 18%, while insurance premiums could see rates drop from 18% to as low as 5%—or even zero.

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Editor02 mins

GST Reforms Could Offset US Tariff Impact, Says BMI

India’s upcoming Goods and Services Tax (GST) reforms—which aim to cut rates and boost private consumption—could help cushion the economy against the impact of new US tariffs, according to BMI, a Fitch Solutions company. Despite additional trade pressures, India is expected to remain one of the fastest-growing emerging market economies in Asia, with GDP projected to stay above 6% through this decade, BMI said in its latest note. Growth Outlook This revision follows its estimate that a 25 percentage point reciprocal tariff could trim GDP growth by 0.2% in those years. GST Reform as a Growth Driver The GST slab rationalisation—likely moving to a two-slab structure—is expected to: BMI noted that depending on its scope, GST reform could effectively cancel out tariff-related drags. For now, it sees this as a slight upside risk to growth projections. Supporting this view, an SBI Research report estimated that GST changes combined with recent income tax cuts could add ₹5.31 lakh crore to consumption, equivalent to 1.6% of GDP. Global Ratings View Meanwhile, Fitch Ratings reaffirmed India’s sovereign rating at ‘BBB’ with a stable outlook, and said US tariffs are likely to have only a limited impact on the country’s overall growth trajectory.

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Editor03 mins

Databricks Valuation Set to Soar Past $100 Billion in New Funding Round

San Francisco-based Databricks said on Tuesday its valuation is poised to climb 61% to over $100 billion in a fresh funding round, less than a year after its last raise—highlighting strong investor appetite for artificial intelligence startups. The company has signed a term sheet for a Series K round worth over $1 billion, led by existing backers including Thrive Capital, Insight Partners, and Andreessen Horowitz, according to a person familiar with the deal. If completed, Databricks would rank among the world’s most valuable AI firms. The firm expects to hit $3.7 billion in annualized revenue by July, marking 50% year-on-year growth, and turned cash-flow positive in January. CEO Ali Ghodsi said investor interest surged after Figma’s $1.22 billion IPO in July. “We’re seeing a revolution in IT where companies move from buying software to building their own internal applications,” he noted. Databricks plans to channel the new capital into expanding its Lakehouse data warehouse product and developing AI agents—software systems that can autonomously perform tasks. The company’s acquisition of Neon has already generated tens of millions in annualized revenue since June. With a customer base of about 15,000 companies—including payments giant Block—Databricks is considered one of the strongest candidates for a future public listing.

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Aurobindo Pharma in Advanced Talks to Acquire Zentiva for $5–5.5 Billion

Hyderabad-based Aurobindo Pharma has emerged as the leading contender to acquire Prague-based generic drugmaker Zentiva from Advent International in a deal valued at $5–5.5 billion (₹43,500–47,900 crore), according to people familiar with the matter. If concluded, this would mark the largest-ever acquisition by an Indian pharmaceutical company, surpassing Daiichi Sankyo’s $3.2 billion takeover of Ranbaxy in 2014 and Biocon Biologics’ $3.3 billion acquisition of Viatris’ biosimilars business. Final Stages of Negotiation Aurobindo is competing closely with US private equity firm GTCR, with both sides locked in final negotiations. Price discussions have reportedly been settled, and a formal announcement could come within the next month, said one executive involved in the talks. Advent, which acquired Zentiva seven years ago, has been working with Goldman Sachs and PJT Partners since late 2024 to explore exit options. Other global private equity firms, including TPG, and pharma rivals were also approached before the process narrowed to two contenders. Expansion in Europe The acquisition would give Aurobindo a significant boost in its European operations, particularly in Czech Republic, Romania, and Slovakia, where Zentiva has a strong presence. Analysts say eastern Europe is an attractive market due to steady government-led procurement of medicines, which ensures stable returns compared to the aggressive price erosion faced in the US market. Zentiva generated revenues of €1.7 billion ($1.98 billion) in 2024, with an EBITDA of €400 million ($467 million). Aurobindo already derives the highest share of revenues from Europe among Indian peers, and the deal could further consolidate its position. Financing the Deal Aurobindo, with a current market capitalization of ₹63,684.9 crore ($7.4 billion), has reportedly secured a $4.75 billion credit line from MUFG as a bridge loan, while the remaining $800 million is expected to come from internal accruals. While analysts acknowledge the boldness of the move given ongoing geopolitical uncertainties and tariff threats, industry experts see the acquisition as a game-changing bet to strengthen Aurobindo’s global footprint. Neither Aurobindo Pharma nor Zentiva responded to queries, while Advent International and MUFG declined to comment.

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Editor03 mins

Modi Unveils Biggest Tax Cuts in Eight Years Amid Strain from U.S. Trade Tensions

Prime Minister Narendra Modi’s government has announced India’s most sweeping tax cuts since 2017, a move that will reduce prices on daily essentials and electronics but cost the state an estimated $20 billion annually in lost revenue. The overhaul of the Goods and Services Tax (GST), unveiled Saturday, abolishes the highest 28% tax slab and shifts most items from the 12% bracket into the 5% category. The reforms are expected to boost GDP growth by 0.6 percentage points over the next year, according to IDFC First Bank, while also improving weak stock market sentiment. Businesses including Nestlé, Samsung, and LG are expected to benefit, alongside millions of consumers. Analysts say the move will win Modi political dividends ahead of November’s key Bihar elections, where unemployment has dented his party’s prospects. Unlike income tax cuts that affect only a small share of the population, the GST reduction reaches nearly everyone. The announcement came just a day after Modi’s Independence Day speech, in which he urged Indians to buy domestically made products amid growing calls to boycott U.S. goods. Relations with Washington have soured following President Donald Trump’s decision to raise tariffs on Indian imports to 50% starting August 27, after trade talks collapsed. Critics say the tax reforms are politically timed, but the ruling BJP has framed them as a “Diwali gift” of simpler taxes and more savings. With U.S. tariffs adding fresh pressure and domestic elections looming, Modi’s bold tax reset is as much about economics as it is about political survival.

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