BACK PAGE | PAGE 18 COMPANIES | PAGE 5 Delhi govt schools choke, pvt ones turn to air filters INTERNATIONAL | PAGE 7 EV–hybrid subsidy battle to intensify Russia ready to endwar, but without compromise: Putin CHENNAI/KOCHI, SATURDAY, DECEMBER 20, 2025 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL NO. XLVI 192, 18 PAGES, `12 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: 84,929.36 ▲ 447.55 NIFTY: 25,966.40 ▲ 150.85 NIKKEI 225: 49,507.21 ▲ 505.71 HANG SENG: 25,690.53 ▲ 192.40 `/$: 89.65 ▼ 0.60 `/€: 104.56 ▼ 1.24 BRENT: $60.22 ▲ $0.40 GOLD: `1,31,340 ▼ `587 ICICI PRUDENTIAL AMC made a strong trading debut on Friday, rising around 20% over its issue price. The stock climbed as much as 23% intraday to close at `2,662 on the BSE, reports fe Bureau. » INSIDE « GOYALTOVISITBRUSSELSTO PUSH EU FTATALKS PAGE 2 AI RAISES NEWCOMPETITION RISKS: CCI PAGE 4 ECONOMY PAGE 2 FUNDS FOR RURALROADS SCHEME GROSSLY UNDERUTILISED Coca-Cola India FY25 profit up 46% on lower expenses COCA-COLA INDIA posted a 46.3% year-onyear jump in consolidated net profit to `615.03 crore in FY25, while revenue rose 7% y-o-y to `5,042.56 crore, regulatory filings showed, reports Viveat Susan Pinto. ■ PAGE 4 Accredited investor crunch hits AIF plans WHILE MARKETS REGULATOR Sebi wants to increase the number of accredited investors by allowing the launch of accredited investors-only funds, industry players say it is not feasible to launch these products given that the number of accredited investors remain low amid less flexibility, reports Ananya Grover. ■ PAGE 6 and in that plan,we have lined up `1 lakh crore across everything -- air-side, city-side and terminals. These investments will be across our eight airports and beyond,” Adani said. He saidthatthecompanyisconsid- ering tapping public markets through either an initial public offering or a demerger in the 2027-30 period. “Either it is going to be an IPO or a demerger, and 2027–30 is a good timeline,” he said. He outlined three preconditionsforalisting.Thefirstisthe startofoperationsatNMIA.The second is achieving financial self-sufficiency. Continued on Page 15 Advance taxes grow 4.3% in Q3 ● Apr-Dec direct tax mop-up rises 8% on lowerrefunds KULDEEP SINGH New Delhi, December 19 THE DECEMBER QUARTER instalment of advance taxes showed a marginal improvement over the previous two quarters, but lagged the yearago growth by a wide margin. The overall direct tax receipts significantly lagged Budget projections, increasing the chances of a significant shortfall in tax revenue collections in FY26, latest set of official data released on Friday showed. The Centre’s advance tax collections for the third quarter of 2025-26 (Q3) from IN GOVT COFFERS Direct tax collections (growth, y-o-y, %) Growth rate so far^ Advance tax collections (growth, y-o-y, %) FY25 FY26 Q1 FY26BE* Direct tax receipts 13.2 8 Q2 Corporate tax Income tax Q3 Income tax figures excluding STT ^ Till December 17, 2025 *Over actuals of FY25 companies, LLPs and individuals rose by 4.27% on year, compared with a 20.9% growth seen in the year-ago quarter, owing largely to the massive personal income tax relief announced in the Budget. In absolute terms, Q3 advance tax collections stood 9.7 10.54 21.6 6.59 at `7.88 lakh crore as on December 17, according to data released by the Central Board of Direct Taxes (CBDT). While advance taxes paid by corporate assesses rose nearly 8% to `6.07 lakh crore in Q3, collections from the non-corporate sectordeclined 6.5% to `1.81 lakh crore. The non-corporate tax includes those paid by individuals, HUFs, firms, local authorities,artificial juridical persons, etc. According to the CBDT data, direct tax collections after refunds between April 1 to December 17 recorded a growth of 8%yearon-year, compared with a budgeted growth target of 13.2% over FY25 actuals for the whole of FY26.The collections after refunds reached `17.04 lakh crore.The corporate tax collections were `8.17 lakh crore and the noncorporate tax collection, `8.46 lakh crore. Significantly, refunds declined 13.52% on-year to `2.97 lakh crore. Continued on Page 7 2026 maysee record $25-bn IPO bonanza RAJESH MASCARENHAS & BAIJU KALESH December 19 FUNDSRAISEDTHROUGHinitial public offerings (IPOs) may hit a record for a third year in 2026,withastrongpipelineand buoyant investor demand supporting momentum,according to top investment bankers. KotakMahindraCapitaland Goldman Sachs Group expect next year’s IPO fundraising to reach as much as $25 billion, representing an increase of roughly 14% from the current year’s level. JPMorgan Chase & Co sees the proceeds staying above $20 billion for the next few years. The three banks together have nearly one-third of the market forsuchdeals. The primary market has surged over the past couple of years as surging inflows from mutual funds and retail investorsencouragecompanies to seek listing. The appetite is growing and the pipeline for next year includes muchawaited offerings such as Jio PlatformsaswellastheNational Stock Exchange (NSE). Indiaisoneofthefewemerging markets offering strong growth, said Abhinav Bharti, headofIndiaequitycapitalmarkets at JPMorgan, the biggest arrangerofIPOsthisyear. LISTING LANDSCAPE IPO hotspots of 2025 (value, in $ billion) 74.9 US 35.2 Hong Kong 22.8 China 22 India 8.4 Japan Source: Bloomberg India's IPO market 30 is booming Amount raised (in $ billion) Source: Bloomberg Continued on Page 7 20 10 0 China to allow export ofrare earths for civilian use KJM VARMA Beijing, December 19 CHINA ON FRIDAY said it will approve export of its rare-earth metals for civilian use, amid India’s persistent calls for Beijingtoliftcurbsandresumethe export of precious metals neededtomanufactureahostof modern products. China’s export control on rare earth-related items in accordancewith laws and regulations does not target any specific country, its foreign ministry spokesperson Guo Jiakun said, responding to a media query on India’s calls for resumptionofrare-earthoverwhich Beijing holdsa nearmonopoly. “As long as the export is for civilian use and complies with regulations, the Chinese governmentwillapprovetheapplication in a timely manner,” he said,highlightingChina’sstand nottoexportthemetalstomanufacture defence products. “China stands ready to step up dialogue and cooperation with relevant countries and regionstojointlykeeptheglobal industrialandsupplychainsstable,” he said. However, he emphasised that the permits would be forcivilian use. Continued on Page 7 »INSIDE« 2021 2022 2023 2024 2025 CHINA MOVES WTO AGAINST INDIA P2 Dec 19 Recent mega deals in financial services sector Target Shriram Finance Buyer Mitsubishi UFJ Financial Group Seller Shriram Finance Oct 19 THE BOARD OF Shriram Finance on Fridayapproved an investment of `39,618 crore by Japan’s Mitsubishi UFJ (MUFG) Bank through a preferential issuance of equity shares, making it the largest foreigndirectinvestment(FDI) inafinancialservicescompany in the country. The board cleared the issuance of 471.1 million equity shares at `840.93 apiece to MUFG Bank, which will translate into a 20% minority stake in Shriram Financeonafullydilutedbasis. The fundraise, subject to shareholder and regulatory approvals, will be carried out through a private placement route, Shriram Finance informed the exchanges. "This transaction marks a defining moment in our growth journey,” Umesh Revankar,executivevice-chairman,Shriram Finance,said. The board will meet shareholders on January 14 to seek approval for the BIG-TICKET ACQUISITIONS RBL Bank Emirates NBD Bank RBL Bank Mar 17 investment in financial services Bajaj Allianz Life & General Insurance Bajaj Group Yes Bank Sumitomo Mitsui Financial Group Inc Sammaan Capital IHC Amount (` cr) Allianz May 9 ● Largest foreign Oct 2 We are currently dependent on Adani Enterprises for support...Over next 2-3 years, on an ongoing basis, we should become self-sufficient Workers at the upcoming Navi Mumbai International Airport. It will be the largest in Adani Airports’ portfolio once fully built out `39,618-crdeal: MUFG buys 20% in Shriram Fin KSHIPRA PETKAR Mumbai, December 19 PAGE 4 JEET ADANI, DIRECTOR, ADANI AIRPORTS HOLDINGS 4.27 ICICI PRU AMC SHARES JUMP 20% ON DEBUT & 20.9 PAGE 6 ADANI AIRPORTS HOLDINGS (AAHL) plans to invest around `1 lakh crore over the next five years across airport infrastructure, terminals and city-side development.It is also evaluating a potential listing between 2027and2030oncekeyoperational and financial milestones are met,directorJeetAdani told FE duringan interaction. Theproposedcapitalexpenditure will span air-side assets, terminal expansion and largescalenon-aeronauticaldevelopment across the company’s airport portfolio, including the upcoming Navi Mumbai International Airport (NMIA),which is scheduled to be commissioned on December 25.AAHL currently operates seven airports, including Mumbai, Ahmedabad, Lucknow, Jaipur and Guwahati, making it the country'ssecond-largestprivate airport operator. “We have done a five-year guidanceoncapitalexpenditure 2.9 MARKETS AKBAR MERCHANT Mumbai, December 19 22.61 INFOSYS LTD’S AMERICAN Depository Receipts surged 56%, leading to a brief halt in trading at the New York Stock Exchange on Friday. The ADRs peaked to a 52week high of $30, showed Bloomberg data. Brokers flagged the unusual spike that led to the temporary halt, a Reuters report said. Adanigiveswingstoairport bizwith`1L-crinvestment 3.87 INFYADR SURGES 56%, TRADING HALTS AT NYSE POTENTIALIPO BETWEEN 2027 & 2030 27.34 IN THE NEWS transaction.The board has also given the right to nominate up totwonon-independentdirectors and the pre-emptive right of the investor to subscribe to pro-rate shareholding. The rights would no longer be applicable once the shareholding falls below 10%. The fund infusion will enhance the non-bank lender’s 39,618 26,853 24,180 SBI, others Sammaan Capital 13,483 8,850 capitaladequacy,strengthenthe balancesheetandprovidelongterm growth capital. It would also improve access to low-cost liabilities and strengthen the credit ratings of the company. MUFG will pay $200 million to Shriram Finance's promoter as non-compete fee. Continued on Page 15 Real interest rates need to be lower: RBI guv inflationinthefirsthalfat2.2% turned out to be much softer thananticipatedduetothegenRESERVE BANK OFIndia(RBI) eralised moderation in price Governor Sanjay Malhotra pressures,particularlythesharp believes real interest rates— decline in food prices. both headline and core—need Going ahead, good agriculto be lower, given the benign tural production, low food inflation outlook, minutes of prices and exceptionally the Monetary Policy Commit- benigninternationalcommodtee (MPC) meeting released on ity price outlook suggest that Fridayshowed. headline inflation for the full Malhotra voted for year (2025-26) is likely to be a 25-basis point around 2%. rate cut as demand The RBI also SANJAY MALHOTRA pressures are minirevised its RBI GOVERNOR mal and projected FY26 growth toremainlowinthe projection The neutral nextthreequarters. from 6.8% to stance gives “Thiswillalsostim7.3%. the requisite ulate demand and Malhotra begrowth-supportalso said that flexibility to ive,”he said. retaining the remain dataThe six-memneutral stance dependent ber MPC cut the gives the reqrepo rate by 25 bps uisite flexibilto 5.25% in ity to remain December, taking data-depenthe total reduction this dent and act accordyear to 125 bps.The panel ing to the evolving also retained a neutral macroeconomic stance, with five memconditions bers, including the and outlook RBI governor, in the backing it. February Malhotra policy. explained that the headline Continued on Page 15 KSHIPRA PETKAR Mumbai, December 19 »INSIDE« SLOWING GROWTH LED TO RATE CUT MOVE P6 Bank ofJapan hikes rate to a three-decade high of 0.75%; India Inc says impact will be muted BoJ shadowovera low-cost loanwindowforIndia Inc CHRISTINATITUS, RAGHAVENDRA KAMATH & KISHOR KADAM Mumbai, December 19 WHILE THE BANK of Japan’s (BoJ) decision to raise interest rates by 25 basis points to 0.75%—the highest level in three decades—could increase financingcostsonyenborrowings and amplify foreignexchange losses on unhedged loans, Indian companies are taking it in their stride – at least for now. Consultants and rating agencies, however, cautioned thatyenborrowingandhedging costsarelikelytorise.Soumyajit Niyogi,directoratIndiaRatings & Research,said“the combined impact of capital flows and higher yen borrowing costs remainsakeyrisktomonitorfor Indian companies.” RanenBanerjee,partnerand economic advisory leader at PwC India, said bond yields would rise immediately, effectively shutting off a segment of low-cost international borrowing that Japan has long provided. “Companies with yendenominated borrowings will also face mark-to-market treasurylosses,” he said. Corporates are unlikely to TIGHTER CREDIT ■ Yen borrow- Top corporates having yen loan exposure (FY25, ` crore) 18,414 31,545 REC 15,668 2,859 ■ Indian 16,251 Reliance Industries PFC Source: Annual reports pursuefreshyenborrowings,as the interest-rate arbitrage between India and Japan has narrowed, reducing the incen- ing & hedging costs are likely to rise, say experts NTPC JSW Steel tive for new loans, said Ritesh Bhansali,deputy CEO at Mecklai Financial Services. Companies such as REC, markets may see some moderation in foreign portfolio inflows Reliance Industries, Power FinanceCorporation,TataSteel, Adani Group firms, NTPC and othershaveraisedyen-denomi- natedloansworthover`60,000 crore,accordingtoindustryestimates.PFC,REC and NLC India together have unhedged yen loans of nearly `13,000 crore taken at low Japanese rates,but the yen’s recent appreciation has heightened their forex risk and could lead to potential mark-to-market losses — orthe unrealised ‘paper losses’ that occur when an asset’s current market value drops below its recorded book value, requiring financial statements to reflect this decline — in some cases. An executive at a stateowned company with significantyenexposure,however,said CHENNAI/KOCHI “yen borrowing costs will obviously rise, but the majority of our floating-rate loans are hedged at fixed rates,so there is no direct impact on existing borrowings. Fresh loans, however,wouldcostmore.” Foreigncurrency borrowing is also less compelling at present due to cheaperdomesticrupeeoptions andheightenedrupeevolatility, the executive added.“So we are movingveryslowlyon it.” Some companies also point out that the quantum of the BoJ’s rate hike was lower than expected. “The market was expecting a 50-basis-point hike,butitwasonly25bps.Soit will not significantly raise our costs or materially affect our portfolio,” said an executive at another company that had raisedyen loans earlier. Theexecutiveaddedthatthe recentdepreciationoftherupee is seen as temporary.“When it comes to external commercial borrowings,wetakealong-term view. One- or two-month fluctuationsdonotdictatehedging levels—it’s a forward-looking decision. If the trend persists, hedgingcostswillrise,butECBs are assessed over a five-year horizon,not one ortwoyears.” Continued on Page 15