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Time of India
31-07-2025
- Business
- Time of India
REITs account for 43% of real estate fundraising since FY18: Report
NEW DELHI: Smallcap real estate companies have emerged as the top-performing segment in the realty space over the past 12 months, delivering a 17% return, according to a recent report by Equirus Securities . The performance outpaced other market segments, with REITs yielding 15.2%, midcap realty stocks posting 2.5%, while the benchmark Sensex managed just 1.4%. Largecap real estate firms underperformed, registering a negative return of -2.9% during the same period. Equirus noted that the trend remains consistent even over a longer horizon, with smallcap real estate players leading gains since March 2021, followed by midcap and largecap players. REITs, despite their popularity, delivered the lowest returns in that timeframe. REITs dominate real estate fundraising since FY18 Real Estate Investment Trusts (REITs) have accounted for 43% of total capital raised via primary market sources since FY18, highlighting their growing role in institutionalising the Indian real estate sector. Out of the total ₹72,331 crore raised in the sector during this period, ₹31,241 crore was mobilized through REITs. The past 12 months alone saw over ₹26,000 crore raised by real estate companies via capital markets. This trend underlines investor appetite for income-generating commercial assets amid rising demand for high-quality office and retail spaces. REITs continue to attract capital due to their relatively steady yields and transparency. Warehousing stock surges 2X amid policy push and e-commerce boom India's warehousing sector has witnessed a significant transformation, with total stock more than doubling from ~213 million sq. ft. in 2019 to 438 million sq. ft. in 2024 across the top 8 Tier 1 cities. The total warehousing footprint, including Tier 2 and 3 cities, now stands at approximately 533 million sq. ft., according to the report. Government policy interventions such as GST, Gati Shakti, Dedicated Freight Corridors (DFCs), and the Urban Infrastructure Development Fund (UIDF) have accelerated infrastructure development, enhancing connectivity and enabling the warehousing sector to move beyond metros. Tier 2 and 3 cities now contribute approximately 95 million sq. ft., accounting for 18% of total stock, marking a fourfold increase since 2017. Notably, Grade A warehouses constituted about 80% of new absorption in top Tier 1 cities in 2024, while their share in emerging cities stands at around 30%, indicating a clear occupier preference for quality infrastructure. The rise in e-commerce activity, with nearly 60% of demand now originating from non-metro cities, continues to drive the sector's structural expansion.
Hans India
30-07-2025
- Business
- Hans India
Digital payments to merchants in India rise 19 pc in June: Report
New Delhi: Digital payments to merchants in India grew nearly 19 per cent year-on-year (YoY) in June to Rs 9,10,000 crore (Rs 9.1 trillion), a new report said on Wednesday. According to data compiled by Equirus Securities, UPI person-to-merchant (P2M) payments remained the biggest driver, rising 22 per cent YoY to Rs 6.8 trillion, while credit card spends increased 15 per cent YoY to Rs 1.8 trillion. Debit card spending, however, declined 14 per cent from previous year to Rs 35,300 crore. UPI-P2M accounted for 74.5 per cent of the total market share in June, while credit cards held 20 per cent. 'Nearly two-thirds of UPI-P2M transactions by value were above Rs 2,000,' according to the report. The number of active cards in force stayed flat at 11.12 crore during the same time period. HDFC Bank led with 2.13 lakh new cards, followed by Yes Bank, Federal Bank, SBI Card, and IDFC First Bank. Year-to-date (YTD), 13.1 lakh cards have been added, as per the report. In terms of market share, HDFC Bank maintained the lead in both cards in force and spending, with 22 per cent and 27.9 per cent shares respectively. E-commerce continued to dominate credit card spending, accounting for 63.1 per cent of total spends in June. The average e-commerce spend per card was Rs 10,400 per month, compared to Rs 6,100 at physical point-of-sale (POS) terminals. Meanwhile, earlier this week, Parliament was informed that over the last six financial years (FY20 to FY25), India has recorded more than 65,000 crore digital transactions, with a total value exceeding Rs 12,000 lakh crore. Minister of State for Finance Pankaj Chaudhary, in a written reply to the Lok Sabha on July 28, said the government has been working closely with the Reserve Bank of India (RBI), the National Payments Corporation of India (NPCI), fintech companies, banks, and state governments to boost the adoption of digital payments, including in tier-2 and tier-3 cities.
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Business Standard
30-07-2025
- Business
- Business Standard
REITs rule capital raising; small caps lead realty gains with 17% return
In a rebound for India's real estate sector, small-cap real estate companies have emerged as the top performers, delivering 17% return over the past 12 months, according to financial services firm Equirus Securities. This growth notably outpaces the broader Sensex, which managed just 1.4%, and leaves large-cap real estate firms trailing in negative territory at –2.9%. REITs (Real Estate Investment Trusts) followed closely with 15.2% returns, while mid-cap players delivered 2.5% during the same period. "Small Cap real estate companies have been the best performing segment in the past 12 months, garnering 17% returns, followed by REITs at 15.2%, midcap at 2.5%, the benchmark index Sensex posted a meagre 1.4%, whereas the largecap real estate listed companies posted a negative -2.9% returns," said the note. Small Cap real estate companies have been the best performing segment in the past 12 months On a longer-term scale, small cap realty stocks have continued to outperform mid-cap and large-cap peers since March 2021, underscoring investor interest in agile, high-growth players in the sector. In contrast, REITs have offered the lowest cumulative returns, highlighting the segment's relatively stable but slower growth trajectory. small cap listed real estate companies continue to be the best performing segment since March 2021 followed by Mid Cap, large cap, benchmark Sensex and lastly the REITs, that posted lowest returns. Since FY18 a total of Rs 723,310 mn was raised in the real estate sector, out of that REITs accounted for over 43% around Rs 312,413 mn, followed by Rs 204,370 mn. Equirus' data reveals that since FY18, a total of ₹72,331 crore has been raised by real estate entities via primary capital markets. Of this, REITs alone contributed ₹31,241 crore, or 43% of the total capital raised, followed by Qualified Institutional Placements (QIPs) and IPOs. In the last 12 months alone, real estate firms have raised ₹26,000 crore, a signal of increasing investor confidence amid regulatory reforms and infrastructure push. Warehousing Boom: Stock Doubles Across Tier 1 Cities India's warehousing sector, once confined to metro hubs, is now expanding aggressively into Tier 2 and Tier 3 cities. Since 2019, total warehousing stock in the top eight Tier 1 cities has more than doubled, rising from 213 million sq. ft. to 438 million sq. ft. in 2024. Pan-India warehousing stock reached 533 million sq. ft. this year. The transformation is driven by e-commerce growth (with nearly 60% of demand from non-metro regions), improved connectivity through the Gati Shakti master plan, Dedicated Freight Corridors, and policy enablers like GST and the UIDF scheme.
Time of India
04-07-2025
- Business
- Time of India
Deposits outpace loans at HDFC Bank, a positive indicator: Analysts
MUMBAI: Persistently robust growth in deposits ahead of credit disbursements, analysts believe, will likely help HDFC Bank match the pace of business expansion for the broader banking industry this fiscal after the merger with HDFC left the country's most valued lender a relative straggler for a couple of years. Provisional business data released by HDFC Bank on Friday showed that gross advances at the end of the first quarter ended June increased 7% to Rs 26.53 lakh crore, from Rs 24.86 lakh crore a year earlier. Loan growth is still slower than the system-level growth of above 9%. But the bank's year-on-year deposit growth at 16% outpaced its credit growth for the third successive quarter, indicating a return to normalcy. Total deposits at the end of June stood at Rs 27.64 lakh crore up 16% over the Rs 23.79 lakh crore a year ago and at more than double the rate of credit growth. This is a change from the fiscal year ended March 2024, post the acquisition of its parent in July 2023, when advances grew at 54% outstripped deposits growth of 26%, exposing the bank to an asset-liability mismatch. Analysts say those concerns have now abated. Rohan Mandora , analyst at Equirus Securities , said while the bank is still some distance away from the historical growth rates of 1.5 times the broader banking industry, one can expect it to match system-level growth starting this fiscal year and have a better hold on its margins. "HDFC Bank has been aggressive in cutting term deposit rates in the first quarter and has brought it in line with large private peers. Additionally, quarterly average CASA (current and savings accounts) growth has been much better in the first quarter. We thus believe that improvement in the incremental cost of funds for HDFC would be better than peers. They additionally have levers on loan mix/ liability mix change. We expect HDFC to have lower NIM (net interest margin) compression than larger private banks," Mandora said in a note. HDFC Bank's average CASA deposits were Rs 8.60 lakh crore at the end of June 2025, up 6% over Rs 8.10 lakh crore a year ago. Total CASA deposits increased 9% to Rs 9.37 lakh crore as of June 2025, but were lower by around 1% compared to the Rs 9.44 lakh crore reported at the end of March 2025. Total term deposits at Rs 18.27 lakh crore at the end of June 2025 were up 21%.
Entrepreneur
02-07-2025
- Business
- Entrepreneur
Torrent Pharma to Acquire Controlling Stake in JB Chemicals in INR 266 Billion Deal
The acquisition involves Torrent Pharma buying a 46.39 per cent stake from global investment firm KKR and an additional 2.8 per cent from JBCP employees, both at INR 1,600 per share You're reading Entrepreneur India, an international franchise of Entrepreneur Media. Torrent Pharmaceuticals has entered into definitive agreements to acquire a controlling 49.2 per cent stake in JB Chemicals & Pharmaceuticals (JBCP) for Rs 126.4 billion. The deal, structured in phases and inclusive of a share swap for the remaining stake, places the enterprise value of JBCP at INR 266.3 billion, adjusted for FY25 net cash. The development was announced in a press release issued by Equirus Securities. The acquisition involves Torrent Pharma buying a 46.39 per cent stake from global investment firm KKR and an additional 2.8 per cent from JBCP employees, both at INR 1,600 per share. Following this, Torrent will extend a mandatory open offer to public shareholders for up to 26 per cent at INR 1,639 per share. The second phase involves merging JBCP into Torrent, offering 51 Torrent shares for every 100 JBCP shares, valuing the remaining 50.8 per cent at INR 140.4 billion. The transaction is expected to conclude within 15–16 months, subject to regulatory approvals including the Competition Commission of India, anticipated within six months. Once completed, the deal will make Torrent the fifth-largest pharma company in India by revenue. JBCP draws nearly 80 per cent of its domestic revenue from gastrointestinal and cardiac therapies. Torrent anticipates procurement and distribution efficiencies in the near term, along with field-force optimization. Longer-term revenue gains are expected from broader prescription reach, deeper penetration in international markets, and scaling of JBCP's acute, ophthalmology, and CDMO segments. The combined entity is projected to deliver margin gains of 350–400 basis points over the next three years. While the deal is likely to be earnings dilutive in the first year, Torrent expects to break even by FY27 and reach EPS accretion by FY28. Return on capital employed (ROCE) is projected to return to pre-deal levels of 28 per cent by the same year, supported by operational synergies. Equirus estimates a payback period of 14–15 years and sees the company's leverage easing within four to five years post-deal. The company remains confident about navigating regulatory hurdles, although some divestments may be necessary to satisfy antitrust requirements. This acquisition marks Torrent's strategic push to solidify its position in India while tapping into JBCP's established international footprint in the US, Russia, and South Africa, and entering new therapy areas such as ophthalmology and nephrology.
