Government Disburses ₹1,596 Crore Under PLI Schemes in 1H FY25

The Indian government has allocated ₹1,596 crore under the Production-Linked Incentive (PLI) schemes across six sectors, including electronics and pharmaceuticals, during the April-September period of the current fiscal year. Initiated in 2021, the PLI schemes aim to boost investments, enhance manufacturing capabilities, and improve India’s global competitiveness across 14 strategic sectors.

PLI Disbursals: Sectoral Distribution

Of the total ₹1,596 crore disbursed, the largest allocation of ₹964 crore was directed towards large-scale electronics manufacturing. This was followed by pharmaceuticals, which received ₹604 crores, food products with ₹11 crores, telecommunications at ₹9 crores, bulk drugs with ₹6 crores, and drones at ₹2 crores. Cumulatively, incentives disbursed under the PLI schemes stood at ₹9,721 crore as of FY24.

These schemes are designed to benefit not only major industries but also micro, small, and medium enterprises (MSMEs), as anchor units in each sector create demand for a new supplier base throughout their value chains.

Economic Impact of PLI Schemes

As of August 2024, the PLI schemes have resulted in ₹1.46 trillion of investments across 14 sectors, leading to incremental production and sales valued at over ₹12.50 trillion. These initiatives have generated over 9.5 lakh jobs and achieved exports exceeding ₹4 trillion. Over 760 applications have been approved under the scheme, with the respective departments overseeing disbursals.

The government envisions the PLI schemes as a pathway to scale up efficiencies in manufacturing, introduce cutting-edge technologies, and position Indian industries as global leaders in their respective domains.

Conclusion

The PLI schemes have demonstrated significant progress, with investments, employment generation, and export growth reflecting their transformative potential. By supporting key industries and MSMEs alike, these incentives aim to strengthen India’s manufacturing ecosystem and drive economic growth.

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.

Lumino Industries Filed DRHP With SEBI to Raise ₹1,000 Crore Via IPO

Headquartered in Kolkata, India, Lumino Industries Limited stands as a distinguished manufacturer specialising in power transmission and distribution conductors. Renowned for its commitment to delivering premium-quality products and services, the company embodies a relentless pursuit of excellence.

Lumino Industries Files for IPO

Lumino Industries, an established EPC firm specialising in conductors, power cables, and turnkey power projects, has submitted its Draft Red Herring Prospectus (DRHP) to SEBI, seeking to raise ₹1,000 crore through an initial public offering (IPO). 

The IPO comprises a fresh issue of ₹600 crore and an offer-for-sale (OFS) of ₹400 crore by the company’s promoters. As part of the offering, a reservation for employees ensures they have the opportunity to invest at preferential rates, adding an inclusive dimension to the IPO.

Pre-IPO Placement and Strategic Allocation of Funds

To optimise its funding structure, Lumino Industries may consider a pre-IPO placement worth ₹120 crore, which would proportionally reduce the size of the fresh issue. 

The company has earmarked ₹420 crore from the fresh issue proceeds to pare down debt, a move designed to bolster financial stability and reduce interest outgo. Additionally, ₹15 crore is allocated for minimal capital expenditure, reflecting a strategic focus on efficient resource utilisation rather than aggressive infrastructure expansion.

Strengths and Growth Potential

Lumino Industries, a leading name in the EPC sector with a strong foothold in manufacturing conductors and power cables, is primed for robust growth, fuelled by India’s infrastructure development ambitions, rural electrification drives, and renewable energy projects.

The Indian government’s emphasis on enhancing power transmission and distribution networks presents abundant opportunities for the company. Moreover, the utilisation of IPO proceeds to reduce debt will not only strengthen its balance sheet but also enhance its ability to undertake larger, more lucrative projects. 

IPO Insights and Market Sentiment

The IPO will feature a face value of ₹5 per equity share, with specifics such as the price band and listing dates to be disclosed in due course. Analysts and market participants are expected to closely monitor investor sentiment toward the offering.

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.

GAIL and BPCL to Establish Compressed Biogas Plants in Chhattisgarh

GAIL (India) Limited, formerly the Gas Authority of India Limited, is a premier public sector undertaking (PSU) under the aegis of the Ministry of Petroleum and Natural Gas, Government of India. Established in 1984, GAIL stands as the cornerstone of India’s natural gas sector and holds the distinction of being the nation’s largest state-owned entity in natural gas processing and distribution.

Chhattisgarh Biofuel Development Authority’s Partnership

In a groundbreaking initiative, the Chhattisgarh Biofuel Development Authority (CBDA) has entered into a tripartite agreement with GAIL (India) Limited and Bharat Petroleum Corporation Limited (BPCL) to produce compressed biogas (CBG) from urban solid waste across six municipal corporations in the state.

GAIL Expansion 

Chhattisgarh harbours immense potential for biofuel production, particularly CBG, under the Sustainable Alternative Towards Affordable Transportation (SATAT) scheme. This landmark collaboration aims to establish cutting-edge CBG production plants in the municipal corporations of Ambikapur, Raigarh, Korba, Bilaspur, Rajnandgaon, and Dhamtari.

Under this accord, GAIL will spearhead the development of plants in Ambikapur, Raigarh, and Korba, while BPCL will oversee operations in Bilaspur, Rajnandgaon, and Dhamtari.

Revolutionising Waste into Wealth

This visionary project envisages utilising approximately 350 metric tonnes of urban solid waste daily, coupled with an additional 500 metric tonnes of surplus biomass from these municipalities, to produce biofuel. These state-of-the-art plants are expected to generate around 70 metric tonnes of CBG per day.

Investment By GAIL and BPCL

The combined investment by GAIL and BPCL will amount to a substantial ₹600 crore, while the state exchequer stands to benefit from an annual goods and services tax (GST) revenue of ₹6 crore derived from the production and sale of biofuel.

Remarked From Chief Minister Vishnu Deo Sai 

Chief Minister Vishnu Deo Sai lauded this transformative endeavour, describing it as a pivotal step towards a cleaner environment and sustainable future. “Chhattisgarh has embarked on an ambitious journey to ensure environmental protection and carbon neutrality. 

This project not only aligns with the goals of cleanliness and sustainability but will also serve as a catalyst for job creation,” he remarked.

Share Price Performance 

At 12:39 PM today, Gail (India) Ltd. shares traded at ₹173.15 per share on the NSE.

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.

HCLTech Launches New Center in Hyderabad for Cloud and AI Solutions

HCLTech, formerly known as HCL Technologies, stands as a beacon of India’s global IT prowess. Founded in 1976 by visionary Shiv Nadar, the company has risen to become a multinational powerhouse, offering a comprehensive suite of technology services, solutions, and products.

Creates 5000 Jobs

At the World Economic Forum Annual Meeting in Davos, Switzerland, on January 20, 2025, HCLTech announced a significant milestone—the launch of a state-of-the-art tech centre in Hyderabad. This strategic expansion underscores the company’s commitment to delivering transformative cloud, AI, and digital solutions across industries, including high-tech, life sciences, and financial services which leads to the creating of 5000 jobs.

Hyderabad’s Position as a Premier IT Hub

The sprawling 320,000 sqft facility, situated in Hyderabad’s prestigious Hi-Tech City, will accommodate 5,000 IT professionals, bolstering the city’s status as a global technology hub. Awarded the esteemed Gold Certification by the Indian Green Building Council, the centre exemplifies HCLTech’s unwavering dedication to sustainable and eco-conscious business practices.

Statement From CEO C Vijayakumar

This advanced hub is poised to spearhead the development of innovative solutions while fostering growth within the local technology ecosystem. C. Vijayakumar, CEO and Managing Director of HCLTech, remarked, “Hyderabad has long been a pivotal location within our global network. 

This new centre will elevate our capabilities, enabling us to better serve our international clientele.” Vijayakumar extended a formal invitation to the Chief Minister and IT Minister to inaugurate the facility next month.

Share Price Performance 

At 11:51 AM today, HCL Technologies Ltd shares traded at ₹1,813.15 per share on the NSE.

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.

HDFC Nifty 1D Rate Liquid ETF Switches to Growth Option

HDFC Mutual Fund is making changes to its HDFC Nifty 1D Rate Liquid ETF, with the Income Distribution cum Capital Withdrawal (IDCW) option being converted into a Growth option. From February 28, 2025, the IDCW option will no longer exist, and the scheme will be renamed HDFC Nifty 1D Rate Liquid ETF – Growth.

Redemption Window for Investors

Investors who do not wish to stay invested after the change can redeem their units without paying an exit load between January 29 and February 27, 2025. This redemption period provides flexibility to those who prefer the IDCW option and do not want to transition to the Growth plan.

Why the Change?

The HDFC Asset Management Company (AMC) has stated that moving to the Growth option will improve operational efficiency. The Growth option is expected to simplify fund management and help control scheme expenses, though no direct financial impact on investors has been highlighted.

Fund Overview

The HDFC Nifty 1D Rate Liquid ETF is an open-ended scheme launched on August 24, 2023, by HDFC Mutual Fund. It is designed to track the NIFTY 1D Rate Index, making it a low-risk option for investors seeking stable returns.

Here are the details:

  • Assets Under Management (AUM): ₹72 crore (as of December 31, 2024)
  • Expense Ratio: 0.50% (as of December 31, 2024)
  • Riskometer: Low
  • Minimum Investment: ₹5,000

What Investors Need to Know

For existing investors, the switch to the Growth option means there will no longer be any payouts from the scheme. Instead, earnings will be reinvested into the fund, potentially increasing the NAV over time.

The fund remains suitable for investors looking for low-risk exposure, but it’s essential to evaluate whether the new Growth option aligns with individual financial goals. For further details, investors can refer to the AMC’s official communication.

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. 

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

ICICI Prudential Mutual Fund Announces Income Distribution Under IDCW Option

ICICI Prudential Mutual Fund has declared income distribution under the Income Distribution cum Capital Withdrawal (IDCW) option for several of its equity-thematic schemes. The record date for the distribution is set as January 23, 2025.

Income Distribution Details

Under the ICICI Prudential Housing Opportunities Fund, an income distribution of ₹1.3 per unit has been announced. This applies to both the IDCW and Direct-IDCW options of the scheme. Similarly, the ICICI Prudential PSU Equity Fund will distribute ₹1.4 per unit, available under both IDCW variants.

For investors in the ICICI Prudential Innovation Fund, the income distribution has been set at ₹1.6 per unit for both the IDCW and Direct-IDCW options.

Record Date for Eligibility

The record date of January 23, 2025, determines investor eligibility for this distribution. Investors must ensure they hold units of the respective schemes on or before this date to qualify for the payout. The distribution will be credited to the accounts of eligible unit holders as per the schedule specified by the fund house.

Scheme-Wise Income Distribution

Scheme Name Distribution (₹/unit)
ICICI Pru Housing Opportunities-IDCW 1.3
ICICI Pru Housing Opportunities Direct-IDCW 1.3
ICICI Pru PSU Equity-IDCW 1.4
ICICI Pru PSU Equity Direct-IDCW 1.4
ICICI Pru Innovation-IDCW 1.6
ICICI Pru Innovation Direct-IDCW 1.6

Investor Considerations

The announced income distribution under these equity thematic schemes provides additional returns to investors. However, income received under IDCW options is subject to applicable tax laws. Investors are advised to review their portfolio holdings and consult their financial advisors if needed.

Plan your SBI SIP investments better! Use our easy-to-use SBI SIP Calculator and estimate future returns with just a few clicks. Your financial growth starts here.

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. 

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

Bandhan Mutual Fund Files Draft for Bandhan Fixed Maturity Plan (FMP) – Series 211

Bandhan Fixed Maturity Plan (FMP) – Series 211 is a close-ended debt scheme with a tenure of 93 days. The primary aim is to generate income by investing in debt and money market instruments that mature on or before the scheme’s maturity date. There is no guarantee that the scheme will achieve its objectives.

Investment Allocation

The scheme will invest between 0% and 100% in debt and money market instruments, with up to 40% allocated to securitised debt. It avoids investments in derivatives, foreign securities, and structured debt instruments, among others. The approach will help the portfolio align with the scheme’s relatively low-risk profile.

New Fund Offer (NFO) Details

Units are available during the NFO period at ₹10 per unit. The minimum application amount is ₹5,000 and multiples of ₹1 thereafter. After the NFO closes, the scheme will not reopen for subscriptions. However, units will be listed on BSE, allowing investors to trade.

The fund manager, Harshal Joshi, has over 14 years of experience in fixed-income investments. He has been with Bandhan AMC since 2008.

Risk and Benchmark

The scheme is classified under “B-I” in the Potential Risk Class Matrix, indicating relatively low interest rate risk and moderate credit risk. It uses the Nifty Ultra Short Duration Debt Index A-I as its benchmark to evaluate performance.

NAV and Liquidity

The scheme’s Net Asset Value (NAV) will be disclosed on the AMC’s website, the AMFI website, and through other channels like toll-free numbers. Being a close-ended scheme, redemption is only possible through trading on the stock exchange.

Important Considerations

This scheme is suitable for those looking for short-term income with limited risk. It is not open-ended, meaning investors need to carefully consider the NFO timeline and listing details on the exchange. As always, investors should consult with financial advisors before committing funds.

Ensure steady returns with systematic withdrawals! Estimate your withdrawals with our SWP Calculator and manage your finances seamlessly.

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. 

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

Bandhan Mutual Fund Files Draft for Bandhan Fixed Maturity Plan (FMP) – Series 210 (93 Days)

Bandhan Fixed Maturity Plan (FMP) – Series 210 is a close-ended debt scheme with a 93-day tenure. It aims to generate income by investing in debt and money market instruments that mature on or before the scheme’s maturity date. The scheme carries a relatively low interest rate risk and moderate credit risk.

NFO and Subscription Details

The scheme is available during the New Fund Offer (NFO  period, with units priced at ₹10 each. After the NFO closes, no further subscriptions are allowed. However, the scheme is proposed to be listed on the BSE, allowing investors to trade their units on the exchange.

Investment Plans and Options

There are two plans available: Regular and Direct. Both plans offer Growth and Income Distribution cum Capital Withdrawal (IDCW) options. If no option is selected, the default is the Growth option under the Direct Plan.

Benchmark and NAV Disclosure

The scheme’s performance will be compared to the Nifty Ultra Short Duration Debt Index A-I. The first Net Asset Value (NAV) will be published within five business days after allotment and subsequently updated daily on the websites of AMFI and Bandhan Mutual Fund.

Asset Allocation and Risk

The fund invests primarily in debt and money market instruments, with up to 40% allocated to securitized debt. It will not invest in high-risk instruments such as equity derivatives or foreign securities. The portfolio is to balance low interest rate risk with moderate credit risk.

Who Can Consider This Scheme?

This scheme is suitable for investors looking for fixed income over a short period, especially those who prefer low-risk investments. It may appeal to individuals seeking predictable returns without exposure to equity markets.

The scheme will not charge an exit load, and recurring expenses are capped at 1% of the daily net assets. 

Curious about your SBI SIP returns? Get accurate estimates of your investment growth using our SBI SIP Calculator and stay ahead of your financial goals.

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. 

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

Thinking of Starting a SIP? Here’s Some Great News for You!

If you’ve been considering starting your Systematic Investment Plan (SIP), now is an excellent time to make the move. The Securities and Exchange Board of India (SEBI) is encouraging Asset Management Companies (AMCs) to roll out SIP options with a minimum investment of just Rs. 250 (approximately $3 USD).

Why This Matters?

This initiative is designed to make SIPs more accessible, especially for those in smaller towns (tier-3 and tier-4 cities) where mutual fund penetration has historically been low. Simplified customer identification processes and relaxed KYC (Know Your Customer) norms will make it even easier for first-time investors to start their financial journey.

A Step Towards Financial Inclusion

Industry experts believe this move will also appeal to Gen Z investors eager to explore the world of investing but hesitant about committing larger sums. By lowering the barrier to entry, AMCs aim to attract a broader audience, including young professionals and college students.

The Growing Popularity of SIPs

SIP investments have seen remarkable growth in recent years. According to an AMFI report, the total SIP contributions in FY 2024-25 surged over four times to Rs. 2.1 trillion compared to FY 2016-17. Investors are currently parking over Rs. 223.6 billion (approximately $2.59 billion USD) on average every month into stock market-linked mutual funds.

What’s Next?

To ensure the success of this initiative, the mutual fund industry is also working on reducing operational costs associated with KYC, account opening, and transaction settlements. It’s anticipated that these Rs. 250 SIPs will include a mix of equity and debt funds, giving investors access to diversified portfolios even at low entry points.

Technology as a Catalyst

Digital investment platforms are expected to play a crucial role in driving this shift. Their ease of access and user-friendly interfaces will simplify the process for new investors, making these smaller SIPs both practical and viable for fund houses.

With this exciting development, mutual funds are set to become even more accessible to millions, paving the way for broader financial inclusion and empowering investors to start small while thinking big. If you’ve been waiting for the right moment to begin your SIP journey, this could be it!

Disclaimer: This blog has been written exclusively for educational purposes. 

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These 8 Semiconductor Stocks Have Given Over 50% Returns in 2024

Semiconductors are the cornerstone of modern technology, powering everything from smartphones to advanced artificial intelligence. These tiny yet powerful chips are essential for developing innovations in sectors such as autonomous vehicles, renewable energy, and medical devices. With nations striving to dominate the semiconductor industry, India is making significant strides in this competitive arena.

India’s Semiconductor Market Growth

India’s semiconductor market has been growing rapidly. Valued at approximately $41.2 billion in 2024, it is expected to reach $115.6 billion by 2030, registering a compound annual growth rate (CAGR) of 18.8%. This growth is fuelled by increasing digitisation, rising demand for consumer electronics, and advancements in industrial automation and renewable energy.

8 Semiconductor Stocks Have Given Over 50% Returns in 2024

Stock Name Performance in 2024 in %
ASM Technologies LTD 197.78%
Dixon Technologies (India) Ltd 156.47%
Mic Electronics LTD 116.14%
Kaynes Technology India Ltd 115.43%
Kernex Microsystems (India) Ltd 98.14%
Moschip Semiconductor Technology Ltd 96.62%
Vedanta Ltd 67.57%
Bharat Electronics Ltd 59.18%

Semiconductor Stock Highlights

  • ASM Technologies LTD

ASM Technologies recorded an impressive growth of 197.78% in 2024. According to their official website, the company is a global provider of end-to-end engineering and product R&D services. With a focus on cutting-edge technologies, ASM serves clients across industries like automotive, aerospace, and semiconductor manufacturing.

  • Dixon Technologies (India) Ltd

Dixon Technologies, a leading electronics manufacturer, achieved a remarkable 156.47% growth. Renowned for its robust contract manufacturing services, the company caters to segments such as consumer electronics, home appliances, and lighting.

  • Mic Electronics LTD

With a growth of 116.14%, Mic Electronics continues to innovate in LED lighting and display solutions. The company is leveraging advancements in semiconductor technology to expand its product offerings.

What Are Semiconductors?

A semiconductor is a material with electrical conductivity between a conductor (like copper) and an insulator (like glass). Its unique properties make it integral to electronic devices, enabling the creation of transistors, diodes, solar cells, and integrated circuits (ICs).

Why Are Semiconductors Crucial?

Semiconductors are the foundation of integrated circuits, which serve as the ‘brains’ behind electronic devices. Their applications span numerous industries, such as:

  • Consumer Electronics: Smartphones, gaming consoles, and televisions.
  • Healthcare: Medical imaging and wearable technology.
  • Automotive: Electric and autonomous vehicles.
  • Telecommunication: Data centres and 5G networks.
  • Energy: Solar panels and energy-efficient systems.

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.