Nifty Pharma Records Steepest Fall Since 2020 – Here’s Why

On Friday, April 4, 2025, Indian equity benchmarks were seen trading in the red, with broader market sentiment turning negative. Among the hardest-hit sectors was Nifty Pharma, which saw a sharp decline of over 4% by 11:15 AM. The index dropped 4.34%, registering its steepest single-day fall since September 2020.

Broad-Based Sell-Off in Nifty Pharma Constituents

All ten constituents of the Nifty Pharma index were trading in negative territory during the session. Leading the decline were:

This broad-based sell-off reflects market participants’ apprehensions regarding external headwinds for the pharmaceutical industry.

US Tariff Fears Rattle Pharma Stocks

The sudden reversal in sentiment was largely driven by news reports suggesting that US President Donald Trump is considering imposing tariffs on pharmaceuticals. Speaking aboard Air Force One, Trump said his administration was evaluating trade measures targeting the sector. “Pharma is going to start coming in at, I think, a level that you haven’t seen before,” Trump remarked, hinting at an aggressive tariff stance.

He added that pharma would be treated as a separate category, with a formal announcement expected soon. This development has unnerved investors, especially given the significant exposure many Indian pharmaceutical companies have to the US market.

A Turnaround from the Previous Day’s Optimism

The timing of the statement has amplified market reactions, as it came just a day after pharma stocks had rallied on hopes that the sector would avoid new trade restrictions. This unexpected pivot has led to a swift reassessment of risk, prompting a sharp sell-off across the board.

Conclusion

While the tariff announcement is yet to be formalised, the prospect of heightened trade barriers has clearly unsettled investors in the pharmaceutical space. Going forward, market participants are likely to remain watchful of any official statements from the US administration regarding these proposed measures.

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.

India vs China: Are Startups Serving the Nation or Just the Urban Elite?

At the Startup Maha Kumbh 2025, Union Commerce Minister Piyush Goyal made a pointed observation: “We are making food/hyper delivery apps; creating cheap labour so that the rich can have a meal without stepping out while the Chinese are working on EVs, AI and semiconductors.” His statement highlights the gap between the current focus of many Indian startups and the deep-tech innovation being pursued in countries like China. The message was clear—India’s startup ecosystem needs to shift its focus towards more ambitious, innovation-led ventures.

China’s Bold Bet on AI and Deep Tech

China’s focus on artificial intelligence is relentless. With over 4,500 AI-related companies and more than 300 GenAI products, the country has swiftly embedded AI into its economic strategy.

According to Stanford’s Global Vibrancy Tool 2024, China leads globally in AI patent filings, outpacing even the United States. It’s also gaining traction in real-world usage, with over 230 million AI users by June 2024 and every sixth internet user engaging with GenAI tools.

To fuel this growth, China has pledged $140 billion in AI investments and is expected to commit $1.4 trillion by 2030. Major companies like Alibaba, Baidu, and DeepSeek are central to this charge, building models and applications that compete with the world’s best.

But China’s edge doesn’t stop at capital. It has:

  • Vast data pools from its large user base

  • Access to cheap and scalable energy

  • A skilled and growing AI workforce

  • Aggressive AI education and skilling initiatives

Even US-imposed chip export restrictions haven’t stopped the momentum.

India Wakes Up to the AI Challenge

India, long dubbed a sleeping giant in AI, has now begun to stir. In March 2024, the government launched the IndiaAI Mission with a budget outlay of ₹10,372 crore (approx. $1.2 billion) spread over 5 years.

The Union Budget 2025–26 provided a further boost, increasing the allocation to ₹2,000 crore—a significant leap from the previous year’s ₹806.8 crore. In total, India has earmarked ₹4,349.8 crore so far to promote indigenous research, innovation, and AI ecosystem development.

A cornerstone of India’s approach is to build its own Large Language Models (LLMs)—AI tools designed to understand and process India’s diverse languages and contexts. Within the next 4–8 months, India plans to launch 6 indigenous AI models to compete with the likes of ChatGPT and Google Gemini.

To support this growth, India is investing in talent development, including a ₹500 crore Centre of Excellence in AI education and five National Centres of Excellence for AI skilling. Yet, this remains modest when compared to global benchmarks:

  • China: $2.1 billion in AI education

  • USA: $1.8 billion

  • South Korea: $1.3 billion

India’s Startup Scene: Convenience First?

India’s startup ecosystem is bustling with innovation, and technology adoption has been nothing short of remarkable. From food delivery to quick commerce, startups have successfully transformed consumer behaviour by offering unparalleled convenience. But as we celebrate this progress, it’s also worth asking: with so much focus on convenience, are we overlooking areas that could benefit from similar innovation?

1. Food & Instant-Delivery Apps

From piping hot biryanis to bubble tea, Indian startups are racing to deliver anything, anywhere, anytime. These platforms have set new benchmarks in logistics and service, catering effectively to fast-paced urban lifestyles. As the ecosystem matures, there’s growing interest in exploring how such models can also support local economies and smaller towns.

2. Dessert and “Health” Brands

A new generation of food startups is blending indulgence with wellness, offering treats that align with evolving consumer preferences. 

3. Fantasy Sports 

India loves sports, and fantasy platforms have tapped into this passion by allowing individuals to create their own dream teams and engage more deeply with the games they follow. These platforms have not only enhanced the fan experience but also created a new digital experience for millions of fans and sports lovers.

China’s Startup Engine: Deep Tech & National Strategy

In stark contrast, China’s startup ecosystem is shaped by a different vision.

1. Electric Vehicles & Battery Innovation

Companies like BYD are leading China’s EV revolution—not just domestically but globally. Their R&D-led approach is transforming transport infrastructure and climate goals alike.

2. Semiconductors & AI Models

China’s startups are chasing tech independence. From silicon chips to super-intelligent AI models like DeepSeek, they are building tools that define the next technological era.

3. Robotics & Automation

Next-gen factories powered by robotics and AI are reducing reliance on human labour and enhancing production efficiency across industries.

4. Global Logistics & Trade

Chinese firms like Alibaba, DJI, and Shein are not just startups—they’re full-fledged global logistics and commerce machines, building supply chains that the world depends on.

5. Energy, Infrastructure & Space Tech

From solar tech to space missions, Chinese startups are aligning with national interests. Their projects are long-term, capital-intensive, and often strategically significant.

The Broader Picture: Convenience vs Capability

India and China are both nurturing thriving startup ecosystems, but the underlying intent behind the innovation varies significantly.

  • India is building convenience, digital leisure, and consumer-facing applications.

  • China is building capacity, technological infrastructure, and national leverage.

Conclusion

This isn’t to say India is doing it all wrong. Every ecosystem evolves in phases. But as Minister Goyal implied, perhaps it’s time for India’s startups to dream beyond the next delivery—and start thinking about the next decade.

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.

Mazagon Dock OFS: Stock Falls 6% – All You Need to Know to Apply For the OFS

Shares of Mazagon Dock Shipbuilders Ltd., the state-owned defence enterprise, declined by over 6% on Friday, April 4, 2025, after the Government of India revealed its plan to offload a 4.83% stake through the Offer For Sale (OFS) mechanism.

As per the December 2024 shareholding data, the government holds an 84.8% stake in the company.

Floor Price and Key Dates for the OFS

The floor price for the OFS has been set at ₹2,525 per share—nearly 8% lower than April 3, 2025 closing price. The OFS opened for non-retail investors on Friday, April 4, while retail investors will be able to participate on Monday, April 7.

What Is an OFS and How Does It Work?

An OFS is a transparent mechanism used by promoters, particularly the government, to reduce their holdings in listed companies. It allows for efficient price discovery, as investors can bid at the floor price or any price above it.

Post-bidding, a cut-off price is determined based on the collective demand across various price points.

Can You Place More Than One Bid?

Yes, multiple bids are allowed. However, your demat account must have sufficient funds to support the total value of your bids.

Is It Possible to Modify the Bid?

Yes. You can adjust the bid price during the bidding period. The final allotment is announced after the trading session concludes.

Will You Receive All the Shares You Bid For?

Not always. In case the OFS is oversubscribed, you may receive partial allocation, and any excess amount is credited back to your account.

Can You Bid Below the Floor Price?

No. Bids below the floor price are invalid and will not be considered for allotment.

Step-by-Step Guide: How to Apply for the Mazagon Dock OFS

Here’s a simple guide for retail investors planning to apply for the Mazagon Dock OFS:

  1. Log in to your online trading account.
  2. Go to the corporate actions or OFS section.
  3. Select ‘OFS’, choose the appropriate category (retail or non-retail).
  4. Enter your bid price or select the market order option to bid at the floor price.
  5. Note: While stock market trading ends at 3:30 PM, OFS bids can only be placed until 3:00 PM.

Share Price Reaction

At 12:57 PM on Friday, shares of Mazagon Dock Shipbuilders were trading at ₹2,551.90, down by 6.78%. The decline is attributed to the announcement of the government’s stake sale.

 

 

 

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.

Uniform KYC: India’s Push for a Centralised System Towards One Nation, One KYC

Category: Market Update

In a significant move to simplify and unify Know Your Customer (KYC) norms across India’s financial ecosystem, the Modi 3.0 government is taking concrete steps to roll out a uniform KYC framework. This initiative is aimed at streamlining access to financial services and improving customer convenience, while also reducing redundancy and strengthening security.

A High-Level Meeting to Accelerate KYC Reform

A key meeting was recently chaired by M Nagaraju, Secretary of the Department of Financial Services (DFS), in New Delhi. The gathering brought together senior officials from various regulatory bodies, including the Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), Insurance Regulatory and Development Authority of India (IRDAI), and Pension Fund Regulatory and Development Authority (PFRDA), as well as stakeholders from financial institutions.

The primary agenda was to assess the status of the Central KYC Records Registry (CKYCR) and explore pathways to implement a standardised and modernised KYC process across all financial services.

Objectives of a Uniform KYC Framework

The government envisions a unified KYC system that will ease the experience for individuals when accessing financial services, such as opening a bank account, purchasing insurance policies, or investing in mutual funds. By standardising and modernising the KYC process, the aim is to minimise repetitive verifications and documentation across platforms.

During the meeting, Nagaraju underscored the importance of upgrading the CKYCR infrastructure and improving the interoperability of KYC data across different segments of the financial sector.

Discussion Points and Regulatory Involvement

The officials engaged in a comprehensive discussion around the existing challenges and hurdles faced by individuals and regulated entities. Some of the key issues raised included:

  • Redundancy in documentation for different financial products
  • Security and privacy concerns regarding KYC data
  • Delays in verification and data updating
  • Lack of real-time data sharing between regulators and financial institutions

Participants also reviewed the measures already implemented by the government and regulators to streamline KYC processes and suggested potential improvements to enhance efficiency and coordination.

Revamp of the Central KYC Registry

The government has committed to revamping the Central KYC Registry (CKYC Registry) as part of its Budget 2025 proposal. Finance Minister Nirmala Sitharaman had previously announced that the modernised CKYCR system will be introduced in 2025, alongside a new framework for periodic updates to customer KYC records.

The CKYC Registry is designed to serve as a centralised repository of KYC records for individuals availing of various financial services. It allows mutual funds, insurance companies, stockbrokers, banks, and SEBI-registered investment advisers to verify and retrieve customer data from a single source.

Current Status and Future Possibilities

At present, KYC details verified by SEBI, IRDAI, and PFRDA are being uploaded to the CKYCR system. This opens the possibility for cross-utilisation of KYC records—such as a mutual fund distributor accessing KYC data verified by an insurance company.

However, banks have not yet begun uploading their customer KYC data to the registry. If banks were to integrate their data with CKYCR, it could pave the way for individuals to use a single bank account verification to access a wide array of financial services—eliminating the need to complete separate KYC processes for each service.

Conclusion

The push for a uniform KYC system is a significant milestone in India’s journey toward improving financial inclusion and operational efficiency in the financial sector. By harmonising KYC norms and enabling data-sharing across regulators and service providers, the government seeks to create a more seamless and secure experience for both customers and institutions.

While several challenges remain, the momentum behind the initiative signals a serious commitment to reform. As the 2025 deadline approaches, stakeholders across the ecosystem will be closely watching the progress of this ambitious transformation.

 

 

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.

Top 3 Contra and Value Mutual Funds That Delivered Up to 37% Returns

In the diverse landscape of equity mutual funds, value and contra funds stand out for their unique investment approaches. Unlike growth funds, which chase high-performing momentum stocks, value and contra funds focus on identifying opportunities in overlooked or undervalued segments of the market.

Top 3 Contra/Value Mutual Funds Based on 5-Year Performance

The following schemes have emerged as strong performers in the contra/value category, delivering impressive annualised returns over a 5-year horizon. 

Mutual Fund Scheme Fund Manager AUM(in ₹  crore) Expense Ratio (%) NAV in ₹ Return (%)5 yrs
SBI Contra Fund Dinesh Balachandran 39,589.7 1.54 358.63 37.22
Bandhan Sterling Value Fund Daylynn Pinto 8,995.8 1.77 137.24 36.78
Templeton India Value Fund Ajay Argal 1,978.8 2.09 661.47 33.82

Note: NAV and Returns as of April 3, 2025, and all are regular funds. 

Regulatory Note

As per SEBI’s mutual fund categorisation norms, an asset management company (AMC) can offer either a Contra Fund or a Value Fund, but not both. This distinction ensures clarity and consistency in investment strategies across fund houses.

Conclusion 

While these funds have demonstrated strong performance, investors should carefully consider factors such as expense ratios and the fund’s asset under management (AUM) alongside their own risk tolerance and investment goals.

As always, it’s essential to align any investment decision with your individual financial goals, time horizon, and risk tolerance.

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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.

GR Infraprojects Wins ₹106 Crore Arbitration Victory Over Bihar Highway Project

G R Infraprojects Limited (GRIL) has won an arbitration case against the Chief Engineer, NH (S) Wing & Road Construction Department, Government of Bihar. The dispute arose over claims related to the construction of a two-lane highway with a paved shoulder on the Bhagalpur Bypass in Bihar. The Arbitral Tribunal ruled in favour of GRIL, awarding significant financial compensation.

Arbitration Award and Details

The Arbitral Tribunal delivered its decision on 2nd April 2025, granting GRIL ₹106.45 crore as compensation plus future interest on the aforesaid amount at the rate of 12% per annum from the date of this award till the date of realisation. The claims were raised due to project-related disputes under the Engineering, Procurement, and Construction (EPC) contract.

Financial Impact

Despite the large sum awarded, GRIL has confirmed that the ruling will have no negative impact on its financial position. This suggests that the compensation either covers previous costs or strengthens the company’s financial standing. Such rulings highlight the importance of legal enforcement in infrastructure contracts.

GR Infraprojects Share Performance 

As of April 04 2025, at 9:50 AM, GR Infraprojects share price was trading at ₹1,065.05 reflecting a decline of 1.23% from its previous closing price. Over the past month, it has surged by 9.11%.

Conclusion

The tribunal’s decision reinforces the significance of fair contract enforcement in public infrastructure projects. With the awarded compensation, GRIL ensures its claims are settled while maintaining financial stability.

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.

Surya Roshni Share Price in Focus on ₹116.15 Crore Order from GAIL India

On April 3, 2025, Surya Roshni Limited announced that it has secured an order worth ₹116.15 crore (inclusive of GST) from GAIL India Limited. The disclosure was made through an exchange filing in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

As of 10:30 AM on April 4, 2025, Surya Roshni share price was trading at ₹255.78, while GAIL (India) share price was at ₹178.70.

Scope of the Order

The order involves the supply of High-Frequency Welded (HFW) coated pipes. Specifically, the order includes HFW pipes of dimensions 355.60 mm outer diameter with wall thicknesses of 8.7 mm and 10.3 mm. These pipes are to be manufactured to Grade X-70, PSL-2 standards.

The total time allotted for the execution of the order is 39 weeks. Delivery and completion of the order will occur within this specified period. The contract is classified as a domestic order. There is no international component involved in the agreement.

Project Locations

The pipes will be used for projects located in Madhya Pradesh and Uttar Pradesh. Both states are within India, making the order a domestic contract.

The customer awarding the contract is GAIL India Limited, a public sector undertaking (PSU). The order is for the supply of coated pipes and does not involve any services outside of product delivery.

Promoter and Related Party Disclosure

The company has confirmed that neither the promoter nor the promoter group has any interest in GAIL India Limited. Additionally, the transaction does not fall under the category of related party transactions.

Conclusion

The ₹116.15 crore order from GAIL India involves the supply of coated pipes over a 39-week timeline for domestic infrastructure projects. The contract is not a related party transaction and is fully domestic in nature.

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.

SBI, Citi to Provide $295 Million Social Loan for Indian Small Farmers

In a significant move to strengthen financial support for India’s agricultural sector, Citi and the State Bank of India (SBI) have announced a social loan facility worth $295 million. The initiative aims to provide much-needed credit to small and marginal farmers, enhancing their agricultural productivity and income. The loan, facilitated by Citi’s Trade & Working Capital Solutions, will be channelled through SBI’s Kisan Credit Card loan portfolio to ensure widespread access to credit in rural areas.

Enhancing Financial Access for Farmers

The social loan facility will enable SBI to finance its Kisan Credit Card loan portfolio, ensuring that farmers with small landholdings receive essential credit. This initiative aligns with the government’s broader vision of financial inclusion in the agricultural sector, empowering farmers with the necessary funds to invest in better farming practices and resources. By leveraging Citi’s expertise in trade and working capital solutions, this collaboration aims to create a significant social and economic impact.

Innovation in Trade Finance for Social Impact

Citi’s approach to trade finance has been centred around innovation, and this partnership exemplifies how financial solutions can drive positive change. Mayank Gupta, Asia South head of Citi’s Trade & Working Capital Solutions, highlighted the importance of this agreement in unlocking economic growth through innovative financing. SBI’s deputy managing director, Jayati Bansal, emphasised the bank’s commitment to financial inclusion, stating that the collaboration would help reach small and marginal farmers who often struggle to access credit.

SBI Share Performance 

As of April 04 2025, at 10:10 AM, SBI share price was trading at ₹774.75 reflecting a decline of 0.57% from its previous closing price. Over the past month, it has surged by 8.20%.

Conclusion

The Citi-SBI partnership marks a crucial step towards strengthening financial accessibility in India’s agricultural sector. By facilitating credit for small farmers, this social loan initiative not only supports economic growth but also fosters sustainable agricultural development. Through this collaboration, both institutions reinforce their commitment to financial inclusion and rural empowerment.

 

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.

Union Government Disburses ₹1,440 Crore Grants to Strengthen Rural Development

In a significant push towards rural development, the Union Government of India has disbursed over ₹1,440 crore in grants under the 15th Finance Commission (XV-FC) to Rural Local Bodies (RLBs) and Panchayati Raj Institutions (PRIs) across five states. These funds aim to empower grassroots governance and improve basic infrastructure and service delivery in rural India.

States Receiving XV-FC Grants

The grants were distributed to Arunachal Pradesh, Gujarat, Madhya Pradesh, Nagaland, and Punjab during the financial year 2024–25. The Ministry of Finance released the funds in accordance with the recommendations of the Ministry of Panchayati Raj and the Ministry of Jal Shakti (Department of Drinking Water and Sanitation).

State Amount Allocated in ₹ Coverage
Madhya Pradesh 651.7794 crore (1st instalment, untied grant) 52 District Panchayats, 309 Block Panchayats, 22,995 Gram Panchayats
Gujarat 508.6011 crore (1st instalment, untied grant) 27 District Panchayats, 242 Block Panchayats, 14,469 Gram Panchayats
Punjab 225.975 crore (2nd instalment, untied grant) 22 Zila Parishads, 149 Block Panchayats, 13,152 Gram Panchayats
Arunachal Pradesh 35.40 crore (1st instalment, untied grant for FY 2022-23) All eligible RLBs in the state
Nagaland 19.20 crore (1st instalment, untied grant for FY 2022-23) All eligible RLBs in the state

Purpose and Utilisation of XV-FC Grants

Untied Grants

Untied grants offer flexibility to the local bodies to address location-specific requirements. These may include works related to any of the 29 subjects listed in the Eleventh Schedule of the Constitution. However, they cannot be used for salary or establishment expenses. This autonomy allows local bodies to prioritise projects based on immediate community needs.

Tied Grants

While untied grants give leeway in utilisation, tied grants are earmarked for specific sectors, namely:

  • Sanitation: Includes maintaining Open Defecation Free (ODF) status, and proper management of household waste, human excreta, and faecal sludge.
  • Drinking Water and Water Management: This encompasses rainwater harvesting, water recycling, and the provision of safe drinking water.

Strengthening Rural Governance

The disbursement of these funds reiterates the Union Government’s focus on decentralisation and community-led governance. By financially empowering local bodies, the aim is to facilitate responsive planning, efficient execution, and improved service delivery in rural regions. The strategic timing of these grants ensures uninterrupted development work across panchayats.

Conclusion

The XV-Finance Commission grants are a crucial tool for enabling rural transformation through empowered local governance. While the amounts vary by state and instalment, the broader vision remains consistent: to uplift rural infrastructure and enhance quality of life through decentralised planning and execution.

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.

Thermax Limited Sells Stake in Covacsis Technologies for ₹10 Crore

Thermax Limited has officially announced the sale of its stake in Covacsis Technologies Private Limited. This transaction, completed through a Share Purchase Agreement with Infinite Uptime Inc., USA, results in Covacsis ceasing to be an associate company of Thermax. The sale, executed under SEBI’s Listing Obligations and Disclosure Requirements (LODR) Regulations, signifies a strategic decision by the company.

Details of the Transaction

As per the disclosure made to the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), the agreement for the sale was signed on 3rd April 2025, with the transaction set for completion on 4th April 2025. The stake was sold for approximately ₹10 crores, and Covacsis had incurred a loss of ₹1.79 crores in FY 2023-24, of which ₹0.30 crores was consolidated into Thermax’s financials. The transaction does not fall under related party transactions, and the buyer is not associated with Thermax’s promoter group.

Regulatory Compliance and Business Impact

Thermax Limited has ensured full compliance with SEBI’s regulatory framework, particularly Regulation 30 of the SEBI (LODR) Regulations, 2015. The sale does not involve a slump sale or a Scheme of Arrangement. By divesting its stake in Covacsis, Thermax aims to realign its investment strategy, focusing on core business areas. This move reflects the company’s intent to streamline operations and optimise financial performance.

Thermax Share Performance 

As of April 04 2025, at 9:50 AM, Thermax share price was trading at ₹3,475.40, reflecting a decline of 2.09% from its previous closing price. Over the past month, it has surged by 8.46%.

Conclusion

The sale of Thermax Limited’s stake in Covacsis Technologies marks a significant corporate development. By executing this transaction, Thermax has restructured its investment portfolio while maintaining compliance with SEBI’s regulations. The move highlights the company’s strategic focus on financial prudence and operational efficiency.

 

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.