Goldman Sachs Group | Business Upturn

NTPC shares surge 3% on bullish rating of Goldman Sachs: Details

Dixita Hazarika — Wed, 19 Jul 2023 11:10:41 +0000

On July 19th, NTPC shares gained over 3 percent, reaching Rs 193.60 around 1:34 pm today, after Goldman Sachs, a foreign brokerage firm bestowed a favourable buy rating on the power sector giant, considering it as a top pick.

Goldman Sachs initiated the buy rating on NTPC with a target price of Rs 265, indicating a potential upside of 42 percent.

The brokerage firm outlined two pivotal themes that have been shaping India’s power sector and influencing NTPC’s growth prospects. Firstly, the economics-led renewable transition is gaining momentum, driven by the viability of round-the-clock renewables. This transformative approach offers traditional utilities like NTPC the opportunity to unlock a superior business model, leading to higher returns and access to a broader customer base. Secondly, there is a concurrent onset of a peak power deficit cycle, attributed to a consistent rise in peak demand, which is met with insufficient ‘firm’ capacity addition. In this context, NTPC’s strategic advantage of low-cost debt serves as a robust moat, positioning the company as a frontrunner in this transition.

As per Goldman Sachs’ views, NTPC will emerge as a winner in this transition, as its ‘structural advantage’ of low-cost debt will provide a strong moat. Additionally, the rising peak shortages are expected to enhance the valuation of NTPC’s legacy thermal business, similar to what was observed in the previous cycle.

In comparison, Goldman Sachs also gave a buy rating on SVJN at a target price of Rs 55. The brokerage firm downgraded Tata Power to a sell rating at a target price of Rs 190, given the medium-term earnings headwind from global coal cost decline and limited growth catalysts in the renewables business since its partial monetisation in FY23.

Goldman Sachs to layoff Managing Directors including other employees; Here’s what we know

Dixita Hazarika — Mon, 26 Jun 2023 13:08:43 +0000

Goldman Sachs Group has started to cut down jobs as it is looking to let go of managing directors across the globe as the firm reduces its headcount amid deal slumps.

The Goldman Sachs Group, Inc. is a leading global financial institution that delivers a broad range of financial services to a large and diversified client base that includes corporations, financial institutions, governments and individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in all major financial centers around the world.

According to a source, the group is looking to let go of about 125 Managing Directors, including some in investment banking. Not all of the layoffs have happened yet.

This move by Goldman Sachs is a part of a deep cost-savings drive at the bank, which has seen at least three rounds of job cuts in less than a year. Goldman Sachs and other banks increased hiring in 2020 and 2021 amid a surge in M&A and initial public offerings are now grappling with falling fees as dealmaking sputters.

According to data, deal values have fallen more than 40 per cent this year to $1.2 trillion, with Goldman Sachs the number two adviser globally. The last time the bank didn’t top the rankings at the halfway point of a year was in 2018.

JPMorgan Chase & Co. is terminating about 40 investment bankers as part of its effort to cope with the global slowdown. Citigroup Inc. also started cutting hundreds of jobs across the company this year, and plans to shed 30 investment-banking jobs and 20 more at its corporate bank in London.

In the past month, several Goldman Sachs veterans joined the competitors, including Wells Fargo & Co. and Banco Santander SA. Tech banking co-head and global head of semiconductors, Tammy Kiely, jumped to Evercore Inc.

Ola Electric plans IPO by end of 2023, engages Goldman Sachs & Kotak for share sale

Viditha Ganji — Fri, 26 May 2023 04:25:53 +0000

Ola Electric, an Indian electric scooter manufacturer, is preparing for its much-anticipated stock market debut by the end of 2023. The company has enlisted the services of investment bank Goldman Sachs and domestic bank Kotak Mahindra Bank to manage the share sale, according to a source familiar with the matter.

With notable backers such as SoftBank Group and Tiger Global Management, Ola Electric achieved a valuation of $5 billion (approximately Rs. 41,375 crore) during its previous funding round in 2022. As the company seeks to tap into India’s burgeoning electric vehicle market, it aims to surpass this valuation in its IPO, although the exact fundraising target has not been finalized.

While additional investment banks are expected to join the deal closer to the IPO, the involvement of Goldman Sachs and Kotak represents a significant step towards a successful listing.

Ola Electric was founded by Bhavish Aggarwal, who is also the brain behind the ride-hailing giant Ola, a competitor to Uber. Aggarwal envisions capturing India’s nascent yet promising electric vehicle market with the company’s range of electric scooters.

Given the current market conditions, launching the IPO and completing the necessary procedures, including filing draft documents and marketing to investors, by the end of the year may prove challenging. However, Chief Executive Bhavish Aggarwal remains steadfast in his commitment to meet the proposed timeline, according to the source.

If Ola Electric manages to sell the minimum required 10 percent stake in the IPO at a valuation exceeding $5 billion, it could potentially become India’s largest IPO of the year. This achievement would come amidst relatively tepid market conditions.

When approached for comments, an Ola spokesperson declined to provide additional details, while Goldman Sachs and Kotak were yet to respond to Reuters’ requests for comment.

As the demand for sustainable transportation continues to grow, Ola Electric’s IPO holds significant promise for investors looking to capitalize on India’s shifting automotive landscape. With its solid backing from prominent investors and Bhavish Aggarwal’s track record of success, Ola Electric is poised to make a considerable impact in the electric vehicle sector, further accelerating the country’s transition to cleaner and greener mobility solutions.

Goldman Sachs leads India fintech funding while deals dry up

News Desk — Tue, 14 Feb 2023 06:25:51 +0000

Indian fintech startup InsuranceDekho raised $150 million from a clutch of investors led by Goldman Sachs Asset Management, an unusually large investment round that will help it target an under-served domestic market. TVS Capital Funds co-led the equity and debt financing, the largest-ever Series A round for an Indian insurance technology company, the startup said in a statement. Investcorp, Avataar Ventures and LeapFrog Investments participated.

InsuranceDekho — Hindi for “Check Out” Insurance — was founded by Ankit Agrawal and Ish Babbar in 2016. It will use the new capital scale up technology and product, expand into new markets and grow the company’s business with small and medium enterprises. It could also bankroll acquisitions. The business, which has its headquarters in the Delhi suburb of Gurgaon, aims to reach an annually premium run rate of 35 billion rupees ($423 million) by March. It faces competition from companies like Amazon.com Inc.-supported Acko General Insurance Ltd. and PolicyBazaar from PB Fintech Ltd., which is funded by SoftBank Group Corp. About three-quarters of insurance plans offered in India are still acquired by the country’s urban population. But by utilising technology for wider distribution, digital businesses like InsuranceDekho want to reach consumers in smaller cities and rural areas.

CEO Agrawal stated in an interview that “there are two Indias within India.” “The real India lies in the small towns and villages, where the keys to buying insurance are affordability and trust.”

The investment round took place when the global venture capital market was struggling. According to CB Insights, funding in India fell to $2.7 billion in the most recent quarter, the lowest level in more than two years. More than 80% of the insurance products sold by InsuranceDekho, a division of used car marketplace CarDekho, are sold outside of the major cities. By the end of the year, the business, which already serves 1,300 municipalities, hopes to have over 200,000 advisers using its platform.

According to the company, which cited the India Brand Equity Foundation and Statista, insurance penetration in India is roughly 4.2% of gross domestic product, compared to 12% in the US and below the global average of 7%

Goldman Sachs likely to exit from Russia: Report

Himanshu Mishra — Thu, 10 Mar 2022 15:27:29 +0000

According to a report by Reuters, Goldman Sachs Group Inc. is planning to shut down its business in Russia, the first major Wall Street bank to leave in response to Russia’s invasion of Ukraine.

The company said “Goldman Sachs is shutting down its business in Russia in compliance with regulatory and licensing requirements. We are focused on supporting our clients across the globe in managing or closing out pre-existing obligations in the market and ensuring the well-being of our people.”

The Firm has retained an existence in Russia in current years, but the nation doesn’t amount to a significant fraction of its global banking business. At the end of 2021, the company’s total credit exposure to Russia was $650 million, the maximum of which was linked to non-sovereign counterparties or borrowers.

Earlier this month company started moving some of its staff to Dubai, responding to requests by some of its Russian staff to work from a different location.

Since Goldman is the first Wall Street firm to announce a departure, Citigroup Inc. said that it’s evaluating operations in the country. The US-based company has the largest presence in Russia than other US banks. It earlier declared steps to exit its customer service there, and is now functioning it “on a more limited basis given present circumstances and obligations,” Edward Skyler, executive vice president of global public affairs, said in a statement.

India’s stock market can overtake Britain in market value, could enter into the World’s top-five club: Report

Ayisha Farah — Mon, 11 Oct 2021 13:37:21 +0000

India’s equity market is on the verge of passing the U.K. in value to enter the world’s top-five club, almost by one measure. The plausible action arrives as record-low interest rates and a retail-investing increase thrust stocks in India to record highs.

According to an index organised by Bloomberg, India’s market capitalisation has risen 37% this year to $3.46 trillion, serving the merged value of businesses with a primary listing there. That’s meeting with the U.K., which has seen a rise of about 9% to $3.59 trillion, though the number is much more significant if secondary listings and depositary receipts are involved.

As the two markets meet in size, India’s higher growth potential and an active technology area that’s seen a surge of startups going unrestricted this year give the growing market an advantage, significantly when the attitude toward Chinese investments has curdled. As for the U.K., questions related to Brexit proceed to show on the market.

“India is seen as an attractive domestic stock market with good longer-term growth potential from an immature economy, and a stable and reformist political base is helpful in realising this potential,” Roger Jones, head of equities at London and Capital Asset Management, wrote in emailed comments. “On the other hand, the U.K. has been out of favour since the Brexit referendum outcome.”

The S&P BSE Sensex, the critical index of the Indian bourse BSE Ltd., has risen more than 130% since its dip in March last year, the most among major national benchmarks followed by Bloomberg. It has given investors an annualised return of almost 15% in dollar terms over five years, more than double the 6% for the U.K.’s benchmark FTSE 100 Index.

According to Goldman Sachs Group Inc, India’s share-market capitalisation will increase to $5 trillion by 2024. Nearly $400 billion of market value could be calculated from new IPOs over the next 2-3 years, analysts led by Sunil Koul wrote in a note last month.