Emerald Finance Expected to Raise Over ₹15 Crore via Preferential Allotment

Emerald Finance Limited (EFL), a Chandigarh-based fintech company renowned for its Early-Wage-Access Scheme, announced its decision to convene an EGM on March 25, 2025, for obtaining shareholder approval for the issuance of 11,48,900 equity shares through a preferential allotment scheme.

Prominent companies such as BAYA Finserve Technologies Pvt Ltd. and Saint Capital Mauritius are participating in EFL’s preferential allotment due to its robust financial fundamentals and innovative fintech ideas.

Why Is EFL Opting for Preferential Allotment?

Under preferential allotment, companies issue equity shares at a discounted price to a select group of investors (such as existing shareholders) to raise capital for financing business expansion plans.

On March 1, 2025, EFL’s Board of Directors decided to issue equity shares with a face value of ₹10 at a premium of ₹121. The objective behind raising nearly ₹15.05 crore is to facilitate loan repayments, enhance the reach of their EWA program, and utilise funds for other general corporate purposes.

Key Offerings of Emerald Finance Limited

Based on various reports, 75% of working professionals spend their earnings before the end of the month. EML’s EWA scheme provides employees with early access to 50% of their salary, and requires a basic smartphone and a bank account with minimum KYC. This has been a significant breakthrough in fintech.

Various consumer studies suggest that 50% of working professionals face significant financial stress, and 64% of them believe that early access to salary can resolve their problems.

EFL’s Performance Over the Past 3 years 

Emerald Finance Limited has maintained an ROA of nearly 5.82% in recent times. Its operating income has risen at a CAGR of nearly 41.46% with growth rate of profit climbing to nearly 44%.

With the availability of more capital, the company is expected to expand its business outreach beyond retail lending and offering MSME credit to make a significant impact on individuals’ financial health. This is creating a favourable market outlook for it.

Conclusion

Emerald Finance Limited is expected to emerge as one of the most innovative fintech start-up companies of this decade. By choosing to raise its capital availability by preferential allotment, it is well on its way to become a leading fintech company focused on technological innovation and customer centricity.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Did You Also Receive This Email From Axis Bank?

In Q2 of FY 2023-24, Axis Bank issued over 1 million new credit cards and became India’s fourth-largest credit card issuing company. However, a technical glitch in its Edge Rewards Program has threatened to destabilise its financial position by allowing its customers to make high-value transactions for free. How did this happen?

In 2023, a technical glitch in Axis Bank’s reward points allocation system enabled its credit card users to achieve higher reward points without actually spending any money. This happened when consumers placed high-value orders to earn reward points and later cancelled the transaction, which remained undetected by the system.

What Happened?

On Monday morning, Axis Bank mailed its customers, stating, “Due to a technical issue, EDGE REWARD points corresponding to cancelled/reversed/EMI transactions on your Axis Bank Credit Card/s during April’23-Jan’24 were not reversed. These points have now been deducted from your EDGE REWARDS account.”

“Since you redeemed X excess reward points beyond what was rightfully accrued by your transactions, we request you to pay INR Y to the bank as per the MITC clause.”

Axis Bank has justified this action by saying that these transactions were made unfairly and were not aligned with its most important terms and conditions (MITC). Moreover, the bank has also threatened its customers to take legal action if their negative points balance is not settled, thereby raising significant concerns over customer rights as laid down by the RBI.

Customer Backlash: What Went Wrong?

  1. Axis Bank’s Edge Rewards program has been frequently challenged by technical glitches, yet the RBI has made no regulatory intervention for securing customer rights.
  2. Axis Bank is demanding ₹0.40 per reward point misused by credit card users, which was initially worth ₹0.20. This has highlighted its inconsistent policy of reward point pricing, thereby raising questions of fairness and transparency.
  3. Former credit card users of Axis Bank are also subject to the new rules, thereby raising legal questions regarding reward points settlement in cash since the rules did not exist in 2023.

Conclusion

The Axis Bank reward points controversy has sparked significant debate over fairness, transparency, and customer rights. While the bank seeks to recover excess reward points redeemed due to a technical glitch, its approach has raised legal and ethical concerns.

The demand for repayment, especially from former customers and at an inflated rate, questions the fairness of its policies.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Ola Electric Tops Electric Two-Wheeler Sales in February 2025

The increasing demand for electric scooters in tier III and tier IV cities across India has made Ola Electric the biggest player in India’s EV industry. In February 2025, the company sold nearly 25,000 units of two-wheelers and captured over 28% of the market share, thereby surpassing its competitors, like Bajaj Auto and TVS Motor Company (at around 20,000 units).

The presence of a robust sales and service network in semi-urban areas, coupled with the use of clever marketing strategies, allowed it to succeed in the face of stiff competition. Moreover, its continuous focus on innovation and customer-centricity has allowed it to become exceedingly popular. Other factors behind its successes are:

Competitive Pricing Strategies

Despite the withdrawal of government subsidies on e-scooters, Ola Electric has maintained its pricing strategies to ensure continued sales in a price-sensitive market like India. This enhanced its popularity among Indian consumers, thereby driving its overall performance.

Expansion of Its Existing Retail Network

Ola Electric operates nearly 700 company-owned stores and 4,000 sales-and-service networks across India. Based on numerous industry reports, it owns India’s largest retail network of electric vehicles.

Investments in Research and Development

The introduction of advanced features such as cruise control in Ola Electric’s two-wheelers has significantly bolstered their market adoption. The increasing government focus on ensuring road safety has also increased their demand, thereby influencing overall business performance positively.

Focus on Enhancing Value for Money

Ola has exhibited impressive growth due to the rising appeal of its S1 Pro electric scooter model. It can run for nearly 195 km on a single charge and can reach a speed of 120 km/h. It also provides an 8-year warranty on the battery pack, which distinguishes its offering from its competitors.

Based on market analysis, Ola Electric is expected to retain its market position by making substantial investments in capacity expansion and accelerating product innovation efforts.

On March 3, 2025, the stock price of Ola Electric was trading at ₹56.83, as of 1:36 PM.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Key Financial Deadlines to Note for March FY 2024-25

As we approach the closing of FY 2025-26, investors should review their investment strategies and insurance plans to minimise their tax liability and avail themselves of various benefits provided by government insurance schemes. Some of the critical deadlines you must NOT MISS are as follows:

15 March 2025: To Avail ELI Benefits

The Employees’ Provident Fund Organisation of India (EPFO) has extended the deadline for the activation of the UAN (Universal Account Number) for working professionals up to 15 March 2023. Make sure to seed your Aadhaar numbers with your personal bank accounts to provide adequate financial coverage for your families in the event of any adversity (under the ELI scheme).

31 March 2025

Here are the most important things to do before this date:

  • File An Updated ITR

An updated ITR can help you avoid unnecessary trouble from income tax authorities in case you have missed reporting additional income previously. An updated ITR can be filed any time from 2 years after the end of the assessment year. However, the deadline for FY 2022-23 is approaching fast, so make sure to tick this off your to-do list.

  • Invest In Special FDs

With the RBI’s recent decision to reduce the repo rate by 25 basis points, banks are expected to switch towards offering regular interest rates on their FDs, thereby putting a stop to their special schemes. However, special FDs offer higher interest rates for an average investor, which makes them an attractive investment instrument. Hint: Explore the SBI Amrit Kalash scheme.

  • Invest in Tax Saving Instruments

As you eagerly explore these options, don’t forget to avail deduction for your investments under the Income Tax Act! By investing in tax saving schemes like the Equity Linked Savings Scheme, National Pension System, Public Provident Fund, and Employees Provident Fund, you can reduce your tax liabilities and increase the size of your retirement corpus substantially.

Be careful to meet these deadlines to ensure maximum returns on your investments and provide a reliable safety net to your families before adversity occurs.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Will the United States Exit the World Bank and the IMF?

Project 2025 is a conservative blueprint of Donald Trump’s second presidency in the United States. It is aimed at reshaping government institutions by advancing conservative policies and limiting the influence of liberal agendas.

Financial Gains From IMF

Every year, the US Treasury Department analyses the financial impact of America’s contributions to the World Bank and the International Monetary Fund. In FY 2023-24, it obtained an unrealised gain of USD 407 million from the IMF. Hence, it is unlikely that the United States will cut off its branch by exiting these organisations.

The International Bank for Reconstruction and Development (headquartered in the United States) under the World Bank Group is financed by borrowing countries such as Turkey, India, the Philippines, Argentina, and Indonesia. By exiting the World Bank, the US would lose a key source of international funding, which may impact its economy.

In fact, the United States has provided USD 3.7 billion as paid-in capital to the IBRD and potentially stands to lose an opportunity for earning interest payments on loans advanced by the IBRD to developing economies.

US Relationship With IMF and World Bank

The United States is closely reliant on the IMF and World Bank for advancing its national interests, building strategic defence and security alliances, and addressing cross-border threats of terrorism. It also provides crucial reconstruction funding support to war-torn countries, including Afghanistan and Iraq.

Why Does The Government Want To Exit?

As per the US Department of Commerce, America’s economic growth declined to 2.3% during October-December 2024, despite witnessing solid growth in consumer spending at the time. Increasing concerns surrounding GDP growth have prompted the Trump administration to adopt the “America First” policy, thereby signalling a potential exit.

Conclusion

Though the Trump administration has a unique view of making America great again, the government can lose substantial cultural and economic influence over the world by formalising an exit plan. Hence, such a decision is unlikely, as it would give China (a key economic competitor of the USA) greater leverage in international institutions.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Why the World Bank Believes in the Long-Term Potential of the Indian Stock Market

Despite the prevalence of adverse macroeconomic conditions worldwide, India is expected to emerge as a “shining light” for potential investors (us!), says the World Bank. This can be attributed to the growing popularity of renewable energy projects and continuous government efforts to improve income and consumption levels in rural areas. 

Madhya Pradesh in the Limelight

The World Bank has emphasised on the strategic geographical advantages enjoyed by Madhya Pradesh as a key driver of India’s renewable energy industry. By 2030, the MP state government aims to meet 50% of its annual power consumption through clean sources. This is expected to increase stock market prices for energy companies in India. 

On 28 February 2025, the state government launched the Madhya Pradesh Renewable Energy Policy 2025 with the objective of incentivising the development of clean energy projects. It aims to attract investments worth ₹100 billion for creating adequate infrastructure for manufacturing renewable energy generation equipment. 

The increasing adoption of renewable energy sources by rural households is expected to reduce their electricity bills and further increase rural consumption. This is further expected to impact the market dynamics favourably. 

Growth of Monthly Per Capita Consumption Expenditure (MPCE)

The Ministry of Statistics and Programme Implementation publishes the MPCE to analyse the living standards of different households and estimate the number of households living below the poverty line. 

As per the Ministry of Statistics and Programme Implementation, the MPCE in rural areas of Odisha has witnessed the highest growth rate from FY 2022-23 (14%). Moreover, Kerala (18%) and Punjab (27%) have witnessed a significant decline in urban-rural MPCE differences. This is expected to favourably impact stock market performance in the long-run. 

In FY 2023-24, the Indian GDP recorded a growth rate of 8.2%. As the number of salaried employees and wage earners under government programs in rural India increases, expenditure on food products is expected to increase, thereby benefiting the stock market prices of FMCG companies. 

Based on government sources, food accounts for nearly 47% of the average household consumption in rural India. Beverages, processed foods, and refreshments are extremely popular (9.84%), followed by milk and dairy products (8.44%), and fresh vegetables (6.03%). This is creating a favourable outlook for the Indian stock market. 

Conclusion

As India strives to become a “vishwa-guru”, sustainable economic growth is expected to remain its key priority. With increasing government expenditure on the expansion of renewable energy projects, the Indian stock market is expected to pick up pace and generate steady returns for investors. Rising rural consumption is also favouring the overall economic outlook. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Aayushi Chaubey