Best of the week: A closer look at Delhi’s UPSC hubs

Riding the Delhi Metro between Rajiv Chowk and Patel Nagar, one can't miss the signs for numerous IAS coaching centres that line this route.

Neighbourhoods like Karol Bagh, Patel Nagar, and Old Rajinder Nagar are bustling hubs for UPSC aspirants They throng the numerous affordable eateries and crowded bookstores offering materials at wholesale prices, all tailored to the needs of a thrifty student.

The allure of the UPSC exam is not just in its promise of job security but also in the profound respect it bestows on successful students. It’s a cultural phenomenon that has been captured in popular media, including television and Bollywood films like "12th Fail".

"Patel Nagar caters mostly to English-medium students, while Hindi-medium students head to Mukherjee Nagar," my friend Abhinav, a UPSC aspirant, shared during my visit to his accommodation in Old Rajinder Nagar.

Accompanying him to one of the local libraries, I couldn’t help but notice its resemblance to another one that tragically flooded last month, claiming the lives of three IAS aspirants.

This particular library was tucked away in the cramped basement of a three-story building, accessible only through a narrow exit. Inside, the air was thick with the sounds of rustling pages and whispered recitations. Dozens of students were wedged into tiny cubicles barely two feet wide, each deep in study.

Despite such cramped conditions, students continue to flock to Delhi in pursuit of their dreams. The recent tragedy, however, highlights a critical need for better regulation of these educational spaces to prevent future disasters.

On to the best of Mint’s journalism from last week:

🛵 🔋 Ola Electric opened its IPO on Friday with a price band set at ₹72-76 per share.Top executives and early investors at the company are poised for significant financial gains. CEO Bhavish Aggarwal's stake is expected to be valued at nearly ₹10,000 crore (about $1.18 billion). Additionally, he plans to sell some of his shares, potentially earning around ₹240 crore at the lower end of the price band. Mint’s startup reporter Priyamvada C notes that prominent investors such as Japan’s SoftBank Group, US hedge fund Tiger Global Management, and Matrix Partners India are also set to benefit significantly. Bollywood siblings Zoya Akhtar and Farhan Akhtar could see their shares in the company valued at ₹1.3 crore and ₹2.5 crore, respectively.

⚡ Ola Electric's valuation, however, has been significantly scaled down to $4 billion, lower than the initial target of $7 billion. This recalibration aligns Ola more closely with the global EV industry's valuation range, typically spanning 3 to 8 times annual sales. The adjustment reflects challenges posed by policy shifts and stiff competition from established players like Hero MotoCorp, underscoring the turbulent path Ola has faced due to fluctuating sales driven by changing government subsidies. Despite holding a 49% share of India’s electric two-wheeler market, Ola's financial standing is less robust as compared with Hero's, which benefits from healthier profit margins. The key question remains: will the lower valuation of Ola's IPO appeal to investors?Manish Joshi explores this in his Mark to Market piece.

🌆 More than a year after the Hindenburg setback, Gautam Adani-led Adani group’s expansion is in full swing. The Ahmedabad-based conglomerate is considering acquiring Jaypee Group's real estate business for up to $1 billion. Mint’s Anirudh Laskar reports that theplanned deal could quadruple Adani's real estate footprint, solidifying its position in the bustling property markets of Noida and Gurgaon. This is part of a strategic offer Adani is preparing to pitch to the lenders in the massive insolvency saga of Jaiprakash Associates, which owes a staggering ₹50,000 crore. For Jaypee’s real estate and cement businesses, the Adani group is willing to invest ₹15,000 crore. This move could catapult Adani into the league of heavyweights like Godrej, Tata, and Mahindra in the realty sector.

🕵️‍♀️ Have you ever wondered why alcohol brands often advertise products like music CDs and glass tumblers? This is known as surrogate advertising. Since direct alcohol ads are legally prohibited, companies use these alternative products to promote their brand name. The consumer affairs ministry is nowdrafting new rules to ensure these surrogate products genuinely stand alone in the market rather than serving as covert advertisements for alcohol. Mint’s Dhirendra Kumar reports that the ministry plans to require companies to prove that these products are actually sold in stores, with sales data made publicly available online. This initiative is part of the upcoming Consumer Protection Act 2029, which aims to clearly define acceptable advertising practices and prevent companies from using brand extensions to subtly market alcohol.

📊 India is considering adopting a range-bound fiscal deficit target from 2025-26 onwards, moving away from the traditional single-figure goal. According to insiders who spoke to Mint’s Rhik Kundu and Subhash Narayan, the approach aims to provide more flexibility while continuing efforts to reduce the national debt and enhance economic growth. The expected range for the fiscal deficit is between 3.7% and 4.3% of GDP. This strategic shift reflects an intention to balance fiscal responsibility with the need to support economic expansion. The change is informed by the ongoing challenge of aligning fiscal deficit reduction with economic realities, including the impacts of the covid-19 pandemic, which had previously driven the deficit to 9.1%.

🍺 Launched in 2015, Bira quickly became a popular beer brand, taking the market by storm despite competition from established players like United Breweries' Kingfisher. However, the landscape has changed significantly. Bira's parent company, B9 Beverages, which also operates the Bira Taproom, has faced criticism for cancelling artists without providing necessary remunerations. Additionally, the company has been struggling financially. Mint’s Varuni Khosla and Sumant Banerji spoke with several vendors for this deep dive into the beer brand's financial challenges, revealing multiple reports of delayed payments.

🦈 The battle for dominance in India's cement industry escalated last week as UltraTech Cement took a significant step by acquiring a 32.72% stake in India Cements from its promoters for ₹3,954 crore. This move is part of a broader strategy to expand UltraTech's reach in the southern markets and support its goal to increase capacity to over 200 million tonnes per annum. This acquisition is particularly strategic as it comes amid fierce competition from the Adani group, which has rapidly become India's second-largest cement maker through aggressive acquisitions. Mint’s Anirudh Laskar reports on UltraTech’s plans to make an open offer for an additional 26% stake. This could bring its total investment to around ₹9,000 crore if fully subscribed.

💵 🫰 The story of Henry G. Davis, a Wall Street magnate before World War II, offers a timeless lesson on the value of long-term investment and the intricacies of market timing. Despite turbulent periods, such as the mid-1930s stock market sell-off, Davis maintained a strong, fundamental investment philosophy. His key insight? Wealth often comes from holding stocks over the long term or capitalizing on opportunities during market downturns. Interestingly, today's investors face similar challenges, especially with evolving tax policies that can influence investment decisions and capital growth. The recent Union Budget adjustments, like the increase in long-term capital gains tax, have raised concerns about future tax hikes and their impact on investor returns and behaviours. Yet, the core principle remains: successful investing is less about reacting to immediate fiscal changes and more about strategic, long-term planning. In this Long Story by Mint’s Abhishek Mukherjee, you'll find a practical guide to rejig your portfolio in light of the recent budget.

💸 The 2024 Budget has reshaped the investment scene, particularly spotlighting exchange-traded funds (ETFs) as a more appealing option compared to funds of funds (FoFs), especially when it comes to gold, silver, and overseas investments. Thanks to the updated tax treatments, ETFs now enjoy a shorter holding period for long-term capital gains (LTCG) benefits and offer greater flexibility in trading, making them a go-to choice for savvy investors looking to optimize their portfolios. Previously, both ETFs and FoFs had distinct tax rules but the recent changes have leveled the playing field, tipping the scales in favor of ETFs. Now, the holding period for considering ETFs for LTCG is just 12 months, as opposed to 24 months for FoFs. This difference not only simplifies the investment process but also enhances the appeal of ETFs due to their ease of trading and potential cost savings, thanks to generally lower expense ratios compared to FoFs. Mint Money’s Anil Poste writes.

☔ The recent landslide in Wayanad, Kerala, which claimed over 200 lives, serves as a stark reminder of the growing frequency of such natural disasters in India. Ranked among the top four countries most prone to landslides, India's terrain faces significant risks. The mountains, still evolving due to tectonic pressures between the Indian and Eurasian plates, are vulnerable to the slow yet constant geological shifts that heighten their susceptibility to both landslides and earthquakes.Mint’s Sumant Banerji explores why the country faces a heightened risk of landslides in this Primer.

🍗 Despite the rise of direct-to-consumer (D2C) online retailers like Licious, Freshtohome, Zappfresh, and Meatigo, India’s $31 billion meat and seafood market remains dominated by offline trades, holding nearly a 99% market share. In contrast, the online sector accounted for less than half a billion dollars in 2023. The offline market's resilience is bolstered by a small organized segment that includes big names like Godrej Agrovet and Venky’s, alongside numerous local vendors. Licious, a major player in the online space,has decided to tap into this predominantly offline market. Despite challenges such as managing supply chains and competing with lower-priced offline offerings, Licious is moving forward with plans to open physical stores. Mint’s startups correspondent Samiksha Goel reports on this strategic move by the online meat retailer.

That's all for this week, I hope you have a pleasant weekend!

If you have any feedback, want to talk about food, or have anything else to say about our journalism, write to me at siddharth.sharma1@htdigital.in or reply to this mail. You can also write to feedback@livemint.com.

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Siddharth Sharma

Community Editor

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