Latest news with #DRHP
Economic Times
18 hours ago
- Business
- Economic Times
Qcomm's worker woes; Capillary's IPO moves
Happy Friday! Quick commerce platforms are facing challenges in hiring and retaining delivery partners. This and more in today's ETtech Morning Dispatch. Also in the letter: ■ Foxconn expands in India ■ Krutrim exits, layoffs■ Groww expands offerings Quick commerce players running out of delivery riders as demand shoots up India's booming quick commerce sector is facing a key operational hurdle: hiring and retaining delivery partners. As demand for rapid deliveries surges, incumbents are scaling up and new players are joining the race. But recruitment has struggled to keep pace with growth. Tell me more: Recruitment platform Vahan, which works with leading gig economy firms, confirms the pressure. Hiring is getting harder as 'manpower availability is not rising in proportion to demand.' Dark store managers echoed the concern. Several said they need more riders, with daily orders nearing 1,500. Quote, unquote: 'Bikers are getting more demanding for all of us. It's becoming tough to hire and retain. These aren't good signs. It's reasonably acute, though not unmanageable yet,' said an executive at a quick commerce firm. Ground reality ET spoke to delivery partners in Bengaluru and New Delhi, most of whom said that falling per-order payouts are making the job unsustainable. A Flipkart Minutes rider said promised referral bonuses aren't being honoured, pushing many to switch platforms for better pay. Harsh weather conditions are adding to the strain on operations. Also Read: Quick commerce fires up record discounts with rivals getting quicker Loyalty tech firm Capillary Tech files draft IPO papers; eyes Rs 430 crore via fresh issue Aneesh Reddy, founder, Capillary Technologies Customer engagement and loyalty tech provider Capillary Technologies India has filed its draft red herring prospectus (DRHP) with Sebi for an initial public offering (IPO), joining a growing list of new-age companies eyeing the public markets. IPO details: Fresh issue: Rs 430 crore. Rs 430 crore. Offer for sale: 18.3 million shares. 18.3 million shares. Promoter Capillary Technologies Pte, backed by Peak XV Partners and Avataar Venture Partners, will offload 14.2 million shares. JM Financial, IIFL Capital, and Nomura are book-running lead managers. Second attempt: The company initially filed its DRHP in December 2021, but the proposal did not receive Sebi's nod. ET had first reported in November that Capillary Technologies was reviving its IPO plans and was aiming to file this year. Objectives: Capillary Technologies will use the proceeds from the fresh issue to: Cover its cloud infrastructure costs. Invest in product and platform R&D. Fund inorganic growth through acquisitions. The funds will be deployed between fiscal years 2026 and 2028. Foxconn plans to make iPhone enclosures in India Apple's largest supplier, Foxconn, is setting up a unit in Oragadam, Tamil Nadu, to manufacture iPhone enclosures, as ET first reported on September 25 last year. The move is part of the Taiwanese contract manufacturer's broader efforts to expand and diversify its operations in India. Foxconn India footprint: iPhone assembly unit at Sriperumbudur, Tamil Nadu. New facility in Devanahalli, near Bengaluru. New AirPods assembly unit in Hyderabad. Progress so far: Construction has commenced at the ESR Industrial Park in Oragadam, close to Foxconn's upcoming display module facility, according to one person aware of the developments. Quote, unquote: "This gives Apple more leverage and also provides Foxconn with ease of integration and boosts value addition," said Neil Shah, vice president, Counterpoint Research. "This improves supply chain effectiveness for Foxconn as well as Apple." Tariff troubles: Apple is keen to move iPhone production to India to avoid potential US tariffs on Chinese-made devices. However, US President Donald Trump has threatened a 25% duty on devices made overseas. Despite this, Foxconn is pressing ahead with its expansion plans for India. Applied Materials says Bengaluru chipmaking centre to rake in $2 billion Suraj Rengarajan, head of semiconductor products group, Applied Materials India American chip equipment manufacturer Applied Materials plans to establish a chip manufacturing centre in Bengaluru for $400 million over four years, Suraj Rengarajan, managing director at Applied Materials India, told ET. The company expects the plant to attract investments up to $2 billion in the future. Other Top Stories By Our Reporters Bhavish Aggarwal, founder, Krutrim Fresh exits at Krutrim: Three senior executives heading engineering and AI product execution at Bhavish Aggarwal's Krutrim have left, as the company laid off over a dozen people from their linguist teams across multiple languages early this week, sources familiar with the matter told us. Groww to apply for corporate bond trading licence: Stockbroker Groww is planning to seek Sebi's approval to offer trading in corporate bonds through its mobile application, according to two people in the know. AI, automation, geopolitics in focus at TCS AGM: Tata Consultancy Services (TCS) will focus on four strategic pillars: establishing a large pool of AI agents to work alongside the human workforce, delivering solutions for a human-plus-AI model, investing in AI data centres, and partnerships, said director Keki Mistry during the company's 30th annual general meeting (AGM). Insurtech firm Renewbuy bags $10 million: Insurance broking startup Renewbuy has secured $10 million (approximately Rs 86 crore) in a funding round from its existing investors, London-based Apis Partners and 360 One (previously IIFL Wealth). Global Picks We Are Reading ■ How much energy does AI use? The people who know aren't saying (Wired) ■ Samsung is desperate to compete on chips. Workers say it comes at a cost. (Rest of World) ■ I tried the future of smart glasses at WWDC. They weren't made by Apple (CNET) Updated On Jun 20, 2025, 07:27 AM IST
Mint
a day ago
- Business
- Mint
Mint Explainer: What did Sebi decide at its 210th board meeting?
In his second board meeting as chairperson of the Securities and Exchange Board of India (Sebi), Tuhin Kanta Pandey approved a sweeping set of regulatory changes aimed at reducing friction across capital markets. With reforms for startups and PSU delisting norms, tweaks to the structures of alternative investment funds (AIFs) and angel funds, and easier procedures for intermediaries, the regulator moved decisively to bolster its 'ease of doing business' agenda. Mint breaks down the key decisions from Sebi's 210th board meeting, and what they mean for investors, startups and the broader financial ecosystem. What did Sebi decide for promoters of startups? Sebi permitted founders designated as promoters to retain employee stock options (Esops), provided these were granted at least a year before the company filed its draft red herring prospectus (DRHP). Earlier, such holdings had to be liquidated before the listing, creating regulatory headaches for startup founders, already under pressure to become unicorns and reward their early investors with rich exits. Many are now in wait-and-watch mode. 'The move by Sebi is intended to ease the pain of many promoters who started the business, going from employee to entrepreneur," said Archana Balasubramanian, partner at Agama Law Associates. Also read | Mint Explainer: How Sebi uncovered Sanjiv Bhasin's alleged stock manipulation scheme Shubha Yadav, partner at RS Law Chambers, termed the change 'clear and targeted", adding that the one-year cooling-off period 'covers only those share-based benefits including Esops granted one year prior to the filing of the DRHP, which should not raise any legal or compliance challenge during IPO preparation". Flagging potential grey areas, Ketan Mukhija, senior partner at Burgeon Law said, 'Determining the start of the cooling-off period and ensuring there are no indirect grants will require careful documentation." How is Sebi easing PSU delistings? Public sector undertakings (PSU) in which the government and other PSUs hold an at least 90% stake can now delist without the two-thirds public shareholder approval that was previously mandated. The new fixed-price route requires a 15% premium above the calculated floor price, based on historical data and independent valuation. Prashant Mishra, founder & CEO of Agnam Advisors, said government-owned companies now have a clearer path to exit the stock market through a straightforward pricing system, making it easier for big institutional investors to understand what is happening. Legal experts said one critical legal question remains: how will minority shareholders' rights be safeguarded? Abhishek Dadoo, partner at Khaitan & Co, said this framework enables the delisting of PSUs that would otherwise struggle to exit, but comes at the cost of diluting minority protections. 'The delisting price is linked to an independent valuation, not the historic market price—which could be higher. The removal of the public vote effectively un-democratises the process." he added. Can AIF investors now co-invest more easily? Category I and II AIFs can now offer co-investment schemes (CIVs) within their structure, giving accredited investors a chance to invest alongside the AIF in unlisted companies. 'The approval of the co-investment vehicle is a breakthrough that will significantly expand private capital participation in India," said Gopal Srinivasan, chairman and managing director, TVS Capital Funds. 'Typically, in global practice, 15-20% of a fund's corpus comes through such co-investments, and this is now within reach", he said. Also read: Sebi's new fee platform aims to protect investors. But not many have taken to it However, Nandini Pathak, partner at Bombay Law Chambers, emphasised caution, saying the eligibility of co-investors would hinge on their accreditation status. 'Restrictions may continue around exit timing and terms. These advisory rights are being considered for listed co-investments," she said. Pathak suggested fund managers adopt appropriate internal controls and best execution practices, and provide adequate disclosures to the main AIF investors. How is Sebi changing investment norms for angel funds? Only accredited investors (AIs) can now invest in angel funds. AIs undergo independent verification to ensure compliance and protect investors. Earlier investments by non-AIs are grandfathered in, with a one-year transition period. Limits for investing in startups have been widened from ₹10 lakh to ₹25 crore), the 25% concentration cap has been removed, and more than 200 accredited investors can invest together. Managers must retain 'skin in the game" of at least 0.5% or ₹50,000 per deal. Experts said AIFs have long been attracting high-net-worth individuals (HNIs) and relatively sophisticated investors, which gives Sebi more leeway to relax norms and make it easier to do business. 'It is now possible for fund managers to advise on listed securities, allowing them to provide advisory services," said Kush Gupta, director at SKG investment & Advisory. He added that the revision of investment thresholds would give angel funds more flexibility to choose their investments. What relief has Sebi offered to FPIs who invest only in government securities? Sebi has eased compliance norms for foreign portfolio investors that invest only in government securities (GS-FPIs). Key measures include longer KYC review cycles, no need to disclose investor group structures. NRIs and OCIs can now be constituents of GS-FPIs without restrictions, and material changes can be reported within 30 days, from from 7 days. These steps aim to attract foreign capital as Indian G-Secs have been included in global bond indices since 2024-25. Also read: Sebi engages with venture capital funds directly to smoothen transition to AIF 'The risk profiling for FPIs who only invest in G-Secs is now various notches lower than a mix portfolio FPI with significant easing," said Manisha Shroff, partner at Khaitan & Co. However, she flagged some legal ambiguities. 'Sebi's relaxation is currently only for existing and prospective FPIs that exclusively invest in G-Secs. The fine print on how long such FPIs need to remain sovereign-only and if there will be different and fast-tracked registration process remains to be seen." What is the new settlement scheme for brokers involved in the NSEL case? Sebi has introduced a one-time monetary settlement plan based on quantity and value of trades. Brokers facing enforcement actions—but not named in charge sheets or declared defaulters—can opt in to close proceedings. The settlement mechanism for NSEL-related brokers is a bold move to unclog legacy enforcement actions, said Amit Tungare, managing partner at Asahi Legal, said. "Sebi will need to ensure that the settlements do not dilute accountability, particularly in cases involving systemic failure", he said.
Time of India
2 days ago
- Business
- Time of India
Explained: Sebi's new Esop norms for IPO-bound startup founders
Capital markets regulator Securities and Exchange Board of India (Sebi), in a board meeting on June 18, greenlit multiple measures to enable "ease of doing business". One of them was relaxing norms around employee stock options (Esops) for startups heading to Dalal Street. Here is a look at the rules and the updates: As per the new rules, Sebi is allowing startup founders to continue holding Esops even after their company lists on the stock exchange. What was the old rule? Previously, it was mandated that founders be classified as "promoters" when filing their initial public offering (IPO) documents. After that, they would be ineligible to hold or be granted share-based benefits such as Esops. If they held shares before the IPO, they had to liquidate them. Founders miffed Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories Founders found this provision impacted them negatively. Because of these rules, they could not benefit from their company's potential long-term growth through their stock options after listing and had to sell their holdings at a less mature stage in the company's life. Many felt the rule was unfair. In their early stages, startups often compensate founders with Esops instead of high salaries to conserve cash and align their interests with shareholders. However, as companies secure investments, founders see their equity stake getting diluted. The old rule effectively penalised them for their ownership stake ahead of an IPO. What are the changes? The regulator said the new rule would facilitate founders who received Esops at least one year prior to the filing of the draft red herring prospectus (DRHP) to continue to hold such benefits. Why the change? Sebi has acknowledged the ambiguity in the old regulations. The markets watchdog stated that requiring an employee, later classified as a promoter due to his/her shareholding and options, to forgo these benefits may not be justified.
Time of India
2 days ago
- Business
- Time of India
Sebi eases regulations for startup founders and public sector cos to boost capital market
The Securities and Exchange Board of India (SEBI) has approved new rules. Startup founders can now hold employee stock options after listing. Alternative investment funds get co-investment opportunities. Public sector companies can voluntarily delist with relaxed norms. Foreign funds will benefit from eased investment rules. These changes aim to boost investment and simplify regulations for businesses in India. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Mumbai: The board of India's capital markets regulator on Wednesday cleared a draft of measures to enable ease of doing business, including allowing startup founders to continue holding employee stock options (Esops) even after listing, extending co-investment opportunities to alternative investment funds , and permitting voluntary delisting of public sector rules require founders to be classified as promoters at the time of filing of initial public offering (IPO) documents. However, once listed as promoters, they are ineligible to hold or be granted share-based benefits. If they hold Esops at the time of filing of offer documents, they are required to liquidate such benefits before the IPO."This provision has been found to be impacting founders," Sebi chairman Tuhin Kanta Pandey are "classified as promoters at time of filing of DRHP (draft red herring prospectus)," Pandey regulator said the new rule would facilitate founders who received such benefits at least one year prior to the filing of DRHP with Sebi, to continue to hold such also eased norms for foreign funds investing in government securities. This comes at a time when several global index providers have included local sovereign debt in their respective bond indices, such as JP Morgan Global EM Bond Index, Bloomberg EM Local Currency Government Index and FTSE Russell Emerging Markets Government Bond has harmonised KYC (know your client) requirements with the central bank Sebi also clarified that no new Esops could be issued to promoters after the company is listed. The regulator has also approved tweaking of rules on offer for said equity shares received upon conversion of fully paid-up compulsorily convertible securities received pursuant to an approved scheme would be exempted from the requirement of a minimum public holding period of one present, this exemption is allowed only for equity shares acquired pursuant to an approved scheme. "This will assist the companies contemplating reverse flipping," the Sebi chief Sebi board also approved the proposal to allow public sector companies (PSUs) to voluntarily delist from stock exchanges through a separate carve-out mechanism-provided the government holds more than 90% stake. There are five listed PSUs where government holding equals or exceeds 90%.This new rule would not be applicable to banks, non-banking financial companies and insurance delisting is considered successful if the promoter's shareholding, along with shares tendered by public shareholders, reaches 90%.Under the proposed mechanism, PSUs could go private through a fixed-price delisting process, irrespective of whether their shares are frequently or infrequently traded. However, the fixed delisting price would need to be at least 15% premium over the floor regulator has also relaxed the requirement of securing approval from two-thirds of public shareholders for delisting Sebi board also approved the proposal to permit AIFs and investors to co-invest in unlisted companies through AIFs."Sebi's approval of a dedicated co-investment vehicle (CIV) framework under the AIF regulations is a breakthrough reform. It streamlines how accredited investors - already participants in AIFs - can co-invest in high-conviction opportunities alongside fund managers, aligns India with global norms, and removes longstanding friction around such structures," said Gopal Srinivasan, chairman and managing director, TVS Capital new norms will allow both higher fund flows and limit regulations, experts said."This will further increase the flow of private--especially domestic capital--to entrepreneurial and growth businesses. By limiting CIVs to accredited investors, Sebi has also signaled a shift toward more principle-based, lighter-touch regulation for qualified participants," Srinivasan said. "Alongside the clarity on ESOPs for startup founders, this marks Sebi's strong commitment to innovation, deeper capital access, and sustained alignment among investors, founders, and fund managers," Srinivasan regulator said a separate co-investment scheme would have to be launched for each co-investment in an investee company.
Time of India
2 days ago
- Business
- Time of India
Captains of Startup Inc to Retain Esops Post-IPO
The board of India's capital markets regulator on Wednesday cleared a raft of measures to enable ease of doing business, including allowing startup founders to continue holding employee stock options (Esops) even after listing, extending co-investment opportunities to alternative investment funds, and permitting voluntary delisting of public sector companies. Currently, rules require founders to be classified as promoters at the time of filing of initial public offering (IPO) documents. However, once listed as promoters, they are ineligible to hold or be granted share-based benefits. If they hold Esops at the time of filing of offer documents, they are required to liquidate such benefits before the IPO. 'This provision has been found to be impacting founders,' Sebi chairman Tuhin Kanta Pandey said. They are 'classified as promoters at time of filing of DRHP (draft red herring prospectus),' Pandey said. The regulator said the new rule would facilitate founders who received such benefits at least one year prior to the filing of DRHP with Sebi, to continue to hold such benefits. It also eased norms for foreign funds investing in government securities. This comes at a time when several global index providers have included local sovereign debt in their respective bond indices, such as JP Morgan Global EM Bond Index, Bloomberg EM Local Currency Government Index and FTSE Russell Emerging Markets Government Bond Index. Sebi has harmonised KYC (know your client) requirements with the central bank norms. Meanwhile, Sebi also clarified that no new Esops could be issued to promoters after the company is listed. The regulator has also approved tweaking of rules on offer for sale. It said equity shares received upon conversion of fully paid-up compulsorily convertible securities received pursuant to an approved scheme would be exempted from the requirement of a minimum public holding period of one year. At present, this exemption is allowed only for equity shares acquired pursuant to an approved scheme. 'This will assist the companies contemplating reverse flipping,' the Sebi chief said. The Sebi board also approved the proposal to allow public sector companies (PSUs) to voluntarily delist from stock exchanges through a separate carve-out mechanism—provided the government holds more than 90% stake. There are five listed PSUs where government holding equals or exceeds 90%. This new rule would not be applicable to banks, non-banking financial companies and insurance companies. Currently, delisting is considered successful if the promoter's shareholding, along with shares tendered by public shareholders, reaches 90%. Under the proposed mechanism, PSUs could go private through a fixed-price delisting process, irrespective of whether their shares are frequently or infrequently traded. However, the fixed delisting price would need to be at least 15% premium over the floor price. The regulator has also relaxed the requirement of securing approval from two-thirds of public shareholders for delisting proposals. The Sebi board also approved the proposal to permit AIFs and investors to co-invest in unlisted companies through AIFs. The new norms will allow both higher fund flows and limit regulations, experts said.
