COMPANIES | PAGE 4 ECONOMY | PAGE 2 High gold prices alter state inflation picture INTERNATIONAL | PAGE 7 'Four of Mensa brands can cross `1,000 cr in revenue' NEW DELHI, WEDNESDAY, MAY 28, 2025 TrumpMedialookstoraise $2.5bntoinvestinbitcoin FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. L1 NO. 74, 50 PAGES, `12 (PATNA & RAIPUR `12, SRINAGAR `15) P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E SENSEX: 81,551.63 ▼ 624.82 NIFTY: 24,826.20 ▼ 174.95 NIKKEI 225: 37,724.11 ▲ 192.58 HANG SENG: 23,381.99 ▲ 99.66 `/$: 85.34 ▼ 0.25 `/€: 96.86 ▼ 0.04 BRENT: $64.22 ▼ $0.52 GOLD: `94,936 ▼ `552 THE GOVERNMENT’S DIRECT tax exemptions and fiscal measures, along with the rate cuts from the Reserve Bank of India, are expected to further stimulate consumption and investment to lift FY26 growth towards the upper end of forecast of 6.3-6.8%, given in the latest Economic Survey, according to finance ministry’s latest monthly report. ■ PAGE 2 CII seeks early GST rate rationalisation in meeting with FM NBFCs,banks agree on GST levyon co-lending charges ● 18% tax likely on 0.5-1% of the loan arranged PRASANTA SAHU New Delhi, May 27 PRICKLY ISSUE co-lending arrangements, sourcing NBFCs finance 20% of the loan amount to the customer, while banks finance 80% time when co-lending is given a policy boost by the Reserve Bank of India ■ Currently, NBFCs CO-LENDINGCHARGESLEVIEDby non-banking finance companies (NBFCs) will soon be subjected to 18%GoodsandServiceTax.Thelevy may be on 0.5-1% of the loan amount arranged. ThisfollowstheNBFCsandbanks having agreed to the presence of a service component in such arrangements,ending months ofwrangling overthe matter,sources told FE. The move comes at a time when largely source loan proposals in co-lending with banks co-lending is given a policy boost by the Reserve Bank of India. Co-lending assets under management (AUM) of NBFCs is believed to have crossed `1 lakh crore. The model, introduced six years ago, is seen to grow at a robust rate of 35-40% annually. Currently, NBFCs largely source loan proposals in co-lending with banks.However,noGSTispaidonthe service charges,as NBFCs argue that extrainterestearnedbytheminsuch cases is“income.” Continued on Page 10 ● FM PUSHES FOR DIGITALPUBLIC INFRA AHEAD OF THE goods and services tax (GST) council meeting, industry body CII on Tuesday sought early conclusion of the rate rationalisation process in a meeting with finance minister Nirmala Sitharaman, sources said, reports Prasanta Sahu. ■ PAGE 2 RESULTS CORNER LIC Q4 PROFIT JUMPS 38% TO `19,013 CRORE PAGE 6 BSNL POSTS `280-CRORE NET PROFIT IN Q4 PAGE 4 FE S P E C I A L S Bigger is not always better Indie agencies pulled off some big wins this Goafest. Just a flash in the pan? ■ BRANDWAGON, P9 From information to intelligence The shift to AI-helped answers in Google Search can change the way users interact with the web ■ EXPLAINER, P9 Continued on Page 10 Oyo restarts IPO process; valuation likely at $6-8 billion ■ Typically, in ■ The move comes at a Finance minister Nirmala Sitharaman with the staff of Pine Labs in Noida during her visit to the office of the fintech company on Tuesday. She also acknowledged fintech firms' contribution to expanding the country's digital public infrastructure RAGHAVAGGARWAL New Delhi, May 27 GLOBALTRAVELTECHplatformOyo has initiated fresh discussions with investmentbankersinpreparationfor athirdattemptatapubliclisting,with the aim of launching its IPO in the fourthquarterofthecurrentfinancial year. Sources close to the development said Oyo has begun engaging both domesticandinternationalbanksand is likely to file fresh IPO papers betweenAugust and September.The company is still weighing whether to file with FY25 audited results orwait untilthefirstquarterfinancialsofthe current fiscal are ready.The planned IPOcouldvalueOyointherangeof$67billion.Thecompany,whichfirstfiled adraftredherringprospectus(DRHP) withSebiin2021,targetinga`8,430 crore offering,withdrew the application in 2022.Asubsequent confidentialfilingin2023wasalsopulledback inMay2024. A key meeting between Oyo’s board and major shareholder SoftBank is scheduled forJune in London to finalise details including size and timeline. The renewed interest in going public follows a net profit of `620 crore in FY25, an increase of nearly 170% from the previous year, and an adjusted Ebitda of `1,132 crore. "The board and all shareholders, including SoftBank,are keen for the companytoactivelyevaluatefilingan IPOapplicationinthenearfuturedue totheswiftbusinessturnaroundwith an estimated `620 crore net profit in FY25,"areportquotedasourcecloseto thedevelopmentassaying. Oyo has also expanded its global presence and entered newverticals, including food and beverage services viain-housekitchensandQSRkiosks. With operations in India, the US, Europe,and SoutheastAsia,the companyispositioningitselfforsustained growthandinvestorinterestaheadof apossiblelisting. 1 2 3 4 5 5.4 noon trade and have gained 15% since the start of the year. The ITC stock ended Tuesday’s session at `433.90 ($5.10) on the BSE, down 2% overMonday’s close. ITC isvalued at `5.42 lakh crore (on a fullfloat basis) or approximately $64 billion. 11 NSE place via on-market trade. The maker of cigarette brands Kent, Dunhill and Lucky Strikes had last sold a stake in ITC in March 2024, when it offloaded around 3.5% or 436.9 million shares, for about $2 billion. At the time, it was India’s third-biggest block deal ever. BATshareswere down 19 pence or 0.6% at £33.15 in mid-after- Rank 10.3 deal have not been finalised, BAT said, adding it would keep investors posted on any developments. According to a report, investment banks Citi and Goldman Sachs are working on the proposed transaction. The London-listed cigarette maker said any sale would take M-cap (lakh crore) ICICI Bank Hotels, following the demerger of the hotel business of the diversified conglomerate 10.5 generated revenue of £25.9 billion in 2024 ■ BAT also holds 15.3% stake in ITC Bharti Airtel ■ The company THE SHARE PRICE of National Stock Exchange (NSE) hit a record high of `2,200 on Tuesday in the grey market, a day after reports emerged it is willing to pay `1,000 crore to settle case with the Securities and Exchange Board of India (Sebi) and revive its initial public offer (IPO) plans. Withtheriseinthesharepriceof the country’s largest exchange,NSE now ranks 11 among India’s most valued firms with `5.44 lakh crore m-cap ahead of ITC and L&T. Reliance Industries tops the list with `19.2 lakh crore m-cap, followed by HDFC Bank and TCS at `14.7 lakh crore and `12.6 lakh »INSIDE« crore rexpectively. INDICES The m-cap of FALLAFTER rival BSE is TWO DAYS `97,840 crore, less OF GAINS than a fifth of NSE. PAGE 6 BSEsharepricesare tradingat`2,400– over 140% rise since its listing. TheheavydemandforNSEshares ingreymarketisalsoduetothehigh returnsthatBSEhasgeneratedsince listing in 2017. BSE’s pre-IPO price was `200 while its issue price was `806.It listed on the NSE at `1,069. “The share price has risen exponentially.There is lot of institutional interest.Its IPO will be absorbed easily,” said Vikaas M Sachdeva,managingdirectorofSundaramAlternatives. NSE has beenattemptingan IPO forthe last decade.It applied forthe first time in 2016.However,a large 12.7 full-float basis) or approximately $64 billion EN ROUTE TO D-ST TCS ■ ITC is valued at `5.42 lakh crore (on a BRITISH AMERICAN TOBACCO (BAT) on Tuesday said it is evaluating the possibility of selling 2.3% stake in cigarettes to FMCG conglomerate ITC. The British firm now holds 25.46% stake in the company. BAT could lose its veto rights and see its influence at the board level go down as under Indian company law, a shareholding of 25% is the threshold for retaining those rights. Responding to recent speculation, the British firm clarified that discussions are under way,though it cautioned there is no certainty that such a transaction would proceed. The terms of any potential NESIL STANEY Mumbai, May 27 Source:BSE number of controversies have delayed its listing plans.Last week, Sebi chairmanTuhin Kanta Pandey said that the regulator is working with the exchange to iron out various issues. This has raised hopes that NSE could get listed soon. The exchange reported operational revenue of `3,771 crore in March, down 18% year-on-year compared to `4,625 crore in the same quarter of the previous year. Itsnumberofshareholdershasseen a sharp increase from around 33,896 in March-end to 100,000 recently. Above-normal rains to boost kharif crops SANDIP DAS New Delhi, May 27 THE INDIA METEOROLOGICAL Department (IMD) onTuesdayreiterated its forecast of‘above normal’ monsoon rainfall forthe June–September period this year, while noting that June could see‘excess’rainfall.Italso stated thatthereis a 90% probabilityof rainfall fallingwithin the “normal to excess” range throughout the four-month (JuneSeptember) season. The Met department marginally upgraded the quantum of rainfall expected during the next four months to 106% of the benchmark long period average (LPA), against 105% of the benchmark stated last month in the first stage forecast. Significantly,theMetdepartment forecast above normal rainfall of 106%forthe“monsooncorezone”in the central parts of the country,consisting of key rain-fed regions of Gujarat,MadhyaPradesh,Bihar,eastern Uttar Pradesh, Jharkhand,West Bengal and Odisha.This boosts the prospects of the kharif crop,the sowingofwhichissettostartsoon. Intermsofregionaldistribution, “above-normal” rainfall is expected “over most parts of the country exceptsomeareasofnorthwest,east MONSOON UPDATE Forecasts^ vs performance (% of LPA*) Forecast Performance 106 Fiscal and monetary steps may lift growth to 6.8%: Finmin report 25.46% shareholding in cigarettes-toFMCG conglomerate ITC 106 108 INTERGLOBE AVIATION PROMOTER Rakesh Gangwal and his family trust on Tuesday trimmed their holdings by divesting a 5.72% stake in the airline for `11,564 crore through open market transactions, reports PTI. ■ PAGE 4 ■ BAT manufactures cigarette brands like Kent, Dunhill and Lucky Strikes ■ British American Tobacco (BAT) holds 96 94 Gangwal, family trust sell 5.7% stake in IndiGo for `11,564 cr FE BUREAU Mumbai, May 27 SECOND STAKE SALE 14.8 THE INCOME TAX department on Tuesday extended the due date for filing returns for assessment year 202526 by individuals and entities who do not have to get their accounts audited to September 15, reports PTI.■ PAGE 3 valued associate, says British firm 103 106 ITR filing due date for this assessment year extended to Sept 15 ● ITC to remain a 19.2 INDIA’S OVERALL EXPORTS are expected to touch $1 trillion this financial year as buyers seek to diversify their sourcing in the wake of additional global tariffs, reports Mukesh Jagota. ■ PAGE 2 BATto sell 2.3% more in ITC Surgingshareprice ingreymktputsNSE at11thinm-caplist Reliance Industries HDFC Bank Exports expected to rebound in FY26, touch $1 trn: FIEO SHAREHOLDING MAYFALLBELOWVOTING RIGHTSTHRESHOLD 101 99 IN THE NEWS 2021 2022 2023 2024 2025 ^2nd long range forecast, *LPA (long period average) is average annual rainfall (87cm) recorded between 1971-2020 and northeast India where below normal rainfall is very likely,” Mrutyunjay Mohapatra, director-general, IMD, said, while releasing the second-stage long-range forecast. For the first time, the IMD also released 36 sub-divisions specific forecast forthe monsoonseason. Continued on Page 10 Experts feel a sharper focus is better than juggling multiple verticals as many launches fail to sustain momentum Swiggydiversificationstrategyrunsintoanalysts’pushback S SHANTHI Bengaluru, May 27 SWIGGY’S DIVERSIFICATION INTO multiple services is now drawing criticism, with analysts questioning whether the food and grocerydeliverymajoris spreading itself too thin. What was once hailed as a smart strategic hedge is increasingly being seen as a risk of over-extension. Over the past six years, Swiggy has launched a slewofverticals like Dineout, Instamart, Scenes, Snacc, Bolt, InsanelyGood, Assure, Rare, Minis, Swiggy Maxx and most recently, the services marketplace Pyng.While the intentwas to boost revenue and leverage its logistics platform,not allventures have sus- SPEED BUMPS ■ Over the past six years, Swiggy has launched a slew of verticals like Dineout, Instamart, Scenes, Snacc, Bolt etc ■ Some of them like ■ Its core businesses of food hyperlocal delivery service Genie was shut down while InsanelyGood was merged into Instamart delivery and quick commerce continue to perform strongly with revenue rising 18% to `1,629 cr during the January-March quarter ■ Swiggy’s platform approach was initially seen as a logical extension of its logistics playbook, some believe it may now be overstretched ■ Some experts believe Swiggy’s broader platform could succeed if backed by solid execution tained momentum. For instance, Swiggy recently shut down its hyperlocal delivery service Genie citing operational challenges.Sim- ilarly, InsanelyGood was merged into Instamart last year. In contrast, its core businesses of food delivery and quick com- merce continue to perform strongly. Revenue from the food delivery business grew 18% to `1,629 crore during the January- March quarter of FY25 from `1,375 crore in the same quarter last year. Similarly, revenue from Instamart surged by115% to `689 crore in Q4 FY25 from `320 crore in Q4 FY24. Analysts saythe companywould be better served by doubling down on these high-performingverticals. With rivals like Zomato’s Blinkit leading in quick commerce,Swiggy may need to focus rather than pursue a broad super-app vision. “Diversification can unlock growth and improve margins, but only if it doesn’t hurt operational focus,” said Ankita Vashistha, founder and managing partner, AriseVentures.“Swiggy’s agilityhas been a strength, but sustainable scale demands sharper execution,” New Delhi she added. While Swiggy’s platform approachwas initiallyseen as a logical extension of its logistics playbook, some believe the company may now be overstretched. “Startups thrive on focus,” said Anil Sharma, mentor at MoneyMyBoard.“Too manyverticals can lead to resource drain, internal misalignment, and rising burn rates. Unless each business line reaches operating leverage, this strategy could backfire,”he said. Sharma said that from an investor’s point of view, the priority should be high-margin, highfrequency services that drive stronger lifetime value per user. Continued on Page 10