Biggest winners from Swiggy's IPO

Top of the Morning

Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Wednesday, October 30, 2024. My name is Nelson John. Let's get started.

As Sebi comes down hard on futures and options trading, the National Stock Exchange is seeing fewer trades. Turnover and trades on the NSE have hit a six-month low. Ram Sahgal writes that average daily turnover fell nearly 12% to ₹1.07 trillion in October, with only 734.3 million trades taking place. Market experts said that Sebi's incoming clampdown on F&O trading is the main reason for the decline. Additionally, increased selling by foreign investors has contributed to a pessimistic market sentiment.

Swiggy is gearing up to “deliver” an IPO in early November. The quick commerce company is eyeing a valuation of $11.3 billion with a price band of ₹371-390 p er share. The IPO spells huge gains for Swiggy’s early backers like Accel, Apoletto, and Elevation Capital, with returns possibly soaring up to 35 times their initial investments, reports Priyamvada C. The IPO will be a mix of ₹4,499 crore in fresh issues and a secondary sale of 175.1 million shares. Swiggy is looking to expand its quick commerce arm, Instamart, and scale up its network of dark stores. As Swiggy steps into the public market, it's set against the backdrop of its rival Zomato's recent profitability and booming market cap.

Bharti Airtel recently announced a unique CEO transition plan with a 14-month wait before the new chief takes the helm on January 1, 2026. This prolonged handover period raises questions: What’s the ideal CEO transition time? Shelley Singh tackles that question in today’s Primer. Traditionally, CEO transitions can vary. For instance, Starbucks and Boeing witnessed rapid transitions due to performance crises, with new CEOs stepping in within a month. However, planned transitions generally allow six months to a year for a new CEO to settle in, providing clarity on a company’s direction to investors and employees.

India and Canada are at loggerheads. Diplomatic tensions between the two nations have affected geopolitics and harmed their trade. Previously on an upward trajectory, trade has dropped from last year's total to $3.38 billion in the first five months of this fiscal year. India's imports from Canada and exports both saw minor reductions, contributing to a widening trade deficit, reports Rhik Kundu. This slowdown in trade comes at a time when global trade is generally muted due to economic slowdowns in major economies and geopolitical tensions.

It's tough to grow out of your parent company's shadow. Peak XV (pronounced fifteen) Partners is experiencing just that. The venture capital firm is experiencing a decline in brand value since it was hived off from global brand Sequoia last year. Shelley Singh writes that despite inheriting assets worth $9.2 billion, Peak XV recently announced a reduction of 16% in its growth fund. It also reduced its management fees, reflecting a diminished brand prestige. Its leaders assert that such a move is necessary to remain competitive, and maintain that the firm's image and economics are still unparalleled.