Arvind's Newsletter

1.Adani ‘bribery’ case: Andhra Pradesh likely to suspend Adani Group’s power supply deal

India's Andhra Pradesh state is likely to suspend a power purchase deal linked to Adani Group due to the U.S. indictment of the group's billionaire founder Gautam Adani over an alleged bribery scheme, two state government sources said.

The southern state will ask the federal government and the Solar Energy Corporation of India (SECI), which awards power supply contracts to companies like Adani, to investigate the charges, the sources said. 

The suspension, likely to be announced soon, would be the first such action by an Indian state government after U.S. prosecutors charged Gautam Adani and seven others with agreeing to pay bribes of $265 million to unidentified Indian government officials to obtain solar power-supply contracts.

Most of the alleged bribes - $228 million - were paid to a government official to get Andhra Pradesh's state electricity distribution companies to agree to purchase power, the U.S. indictment said. Adani has said the allegations are baseless 

2.IPOs to get larger after average size more than doubles to ₹2,000 crore this year: Kotak’s S Ramesh

So far this calendar year, there have been 73 IPOs that mopped up $16.7 billion. Comparatively, there were 58 IPOs with share sales of $6.35 billion in 2023. 

With more large firms and new-age companies looking to list over the next two years, the average IPO size is likely to go up further, Ramesh said.

“The average size (of IPOs) has roughly moved from about ₹900 crore to close to ₹2,000 crore because this year saw the advent of some of the large IPOs of companies such as Bajaj Housing Finance, Hyundai, FirstCry, and Swiggy. So, I think it has navigated towards larger size on an average," Ramesh said in an interview, without providing any estimates.

The large IPOs in 2024 included Hyundai Motor India ( ₹27,870 crore), Swiggy ( ₹11,237 crore), Bajaj Housing ( ₹6,560 crore), Ola Electric Mobility ( ₹6,145 crore) and Brainbees Solutions (FirstCry) for ₹4,193.73 crore. The Carlyle Group Inc is exploring a $1 billion share sale in portfolio company Hexaware Technologies Ltd later this year or in 2025.

3.PAN 2.0: New PAN card to have a QR code, will your current PAN card become inoperative?

The government announced the PAN 2.0 project, introducing a revamped Permanent Account Number (PAN) system on Monday. The initiative will provide free upgrades to PAN cards, integrating advanced technology and a QR code for improved security and ease of use.  

The PAN 2.0 project, part of an e-governance drive, will overhaul the existing system to streamline taxpayer registration and verification processes. “This initiative brings faster service delivery, improved data accuracy, and seamless digital experiences,” said Adhil Shetty, CEO of Bankbazaar.com.  

He added, “With PAN 2.0, taxpayers can look forward to shorter waiting times for card delivery, uniform information across platforms, and better security to protect their data. It’s designed to simplify tax management for individuals and businesses alike.”  

Is your current PAN card still valid?  

Yes, existing PAN cards remain valid. However, taxpayers can upgrade their cards to the new version with a QR code at no extra cost. “The QR code enhances security and offers a convenient way to access digital verification features without financial burden,” said Sudhir Kaushik, Co-founder & CEO of Taxspanner.  

4.Vedanta Plans to Invest $2 Billion in Saudi Copper Projects

Vedanta is set to invest $2 billion to build copper-processing facilities in Saudi Arabia, a significant boost for the kingdom’s ambitions to become a global metals and mining hub.

The firm, controlled by Indian billionaire Anil Agarwal, will build a new smelter and refinery with a capacity of 400,000 metric tons per year, according to a statement Tuesday. Vedanta also plans to set up a facility to produce as much as 300,000 tons per year of copper rods, a key raw material for electric cables.

Meanwhile,UK-based Vedanta Resources, the parent of India's Vedanta, has raised $800 million from global investors through a new bond issue.

The proceeds will be used to prepay the company's outstanding debt due in 2028.

5.Israel Weighs Hezbollah Deal

Israel's Cabinet is expected to vote today on the terms of a proposed ceasefire deal with Hezbollah in Lebanon.

The deal—which does not cover the Israel-Hamas war in Gaza—would reportedly include a 60-day Israeli withdrawal from southern Lebanon as Hezbollah fighters move north of the Litani River. The Lebanese army would monitor the border in a process overseen by five countries, led by the US and France. Israel could continue to take military action to disrupt Hezbollah's ability to smuggle weapons and reestablish a border presence.

Hezbollah renewed its conflict with Israel on Oct. 8, 2023, launching thousands of rockets into the country following Hamas' Oct. 7 attacks. Since then, around 60,000 people have been displaced in Israel and more than 1 million people in Lebanon. Israeli attacks in Lebanon—including a ground invasion this year—have killed more than 3,500 people and wounded over 15,000 others; Hezbollah attacks have killed around 140 people in Israel.

6.Donald Trump says he will hit China, Canada and Mexico with new tariffs

Donald Trump has made no secret his love of tariffs, having called it “the most beautiful word in the dictionary.” And he’s not waiting until January to show off his plans for levies on rival nations.

The president-elect unveiled details of his planned tariffs — an extra 10% on goods from China as well as 25% on all products from Mexico and Canada — on his Truth Social network late Monday in the US. The threats are a sharp counter to expectations Trump might temper his trade policies, and that his decision to tap Scott Bessent as US Treasury secretary could mean a more measured tariff stance.

In echoes of his first term, Trump is already moving markets with social media posts, with the Canadian dollar falling to a four-year low, the Mexican peso at its weakest since 2022 and a selloff in the Chinese yuan. Investors around the world are bracing for volatility, but one currency trader sees a silver lining: “The good thing is there’s plenty of opportunity to make money here for the next four years under Trump.”

7.Nvidia’s new AI audio model can synthesise sounds that have never existed

At this point, anyone who has been following AI research is long familiar with generative models that can synthesize speech or melodic music from nothing but text prompting. Nvidia's newly revealed "Fugatto" model looks to go a step further, using new synthetic training methods and inference-level combination techniques to "transform any mix of music, voices, and sounds," including the synthesis of sounds that have never existed.

8.A Google poll says pretty much all of Gen Z is using AI for work

Some 82% of young adults in leadership positions at work said they leverage AI in their work, according to a Google Workspace survey released Monday. With that, 93% Gen Z and 79% of millennials surveyed said they use two or more tools on a weekly basis.

The Harris Poll surveyed more than 1,000 workers between 22 and 39 years old in the U.S. who have or plan to hold a leadership position at work on behalf of Google Workspace.

Most respondents said they use AI to start a task that feels overwhelming, improve their writing, and take notes, allowing them to join meetings on the go, Google Workspace said. A majority (86%) believe that AI can help leaders become better managers.

9.The 13-year-old Indian cricketer who won a $130,500 IPL deal

Vaibhav Suryavanshi — the son of a farmer who later had to seek employment as a nightclub bouncer and public toilet warden — is already representing India, a global cricketing behemoth, in under-19 competitions and impressed scouts in the country’s national youth championships: One cricket official told The Indian Express that Suryavanshi, a left-handed batsman, “will play for India in the future for sure.” His contract with the Rajasthan Royals will help him along that path: The team’s head coach is the Indian cricketing legend, Rahul Dravid.