In this week’s wrap-up, we discuss a CEO’s accountability in company challenges, the need for higher import duties on aluminium, the alarming rise in NPAs in P2P lending, SEBI’s proposal to change stock closing prices, and the growing appeal of STRIPS bonds among investors.

In this week’s markets edition, we took a closer look at the International Gemmological Institute’s (IGI) ₹4,225 crore IPO. If you’ve never heard of it before, well, brace yourselves, because there’s a good chance you’ve got one of their certificates tucked away in your jewellery locker, stapled to the bills, especially if they’re diamond studded jewellery.

IGI’s bread and butter is certifying diamonds, studded jewellery and coloured stones to ensure their authenticity. After all, you’d want to know that the sparkling jewellery you’re buying is the real deal, right? And with the market for it growing rapidly in recent years, IGI’s business has been shining bright, with plenty of room for future growth.

To make its prospects even brighter, IGI is now looking to raise money from retail investors like you. But is it worth your money?

Now, we can’t really advise you on that. But we’ve done the homework to break down IGI’s business for you.

Is it a star-studded opportunity or a diamond with a few flaws? Our story simplifies the details so you can make an informed choice.

Click here to find out.

Also, we won’t be publishing Sunny Side Up this Sunday. But we’ll be back next week with a fun edition in which we’ll also announce the winners of last week’s quiz.

Meanwhile, here’s a recap of what we wrote over the week...

Are CEOs always to blame for a company's struggles?

Being a CEO is a challenging job, and there is no doubt about it.

Take Intel’s Pat Gelsinger, for instance. He dreamed big, bringing chip production back to the US and reducing reliance on Taiwan’s TSMC. He also had plans to place Intel as a competitor in the AI race. But he had to go before his ambitious plans could come to fruition.

And he’s not alone. Starbucks, Nike and Hertz have also seen CEOs step down recently when these companies went through challenging times. But is it fair to blame just one person for a company’s struggles?

Find out in our Monday story.

Why India needs more import duties on Aluminium

Aluminium is an amazing metal. Lightweight, strong and yes, endlessly recyclable! And India stands as the second-largest aluminum producer globally.

Yet, something seems off. Domestic producers are losing ground to cheap aluminium imports, and that’s also undermining quality as well as their market share.

With Budget 2025 around the corner, local producers are lobbying for higher import duties to survive.

But here’s the big question: Will tariffs save the day or spark more significant economic troubles?

We break it all down in Tuesday’s story.

Is peer-to-peer lending set for a crash?

P2P lending platforms revolutionised borrowing in India. It matched the lenders and borrowers on its platforms, offering quick, collateral-free loans. But now, the dream seems shaky. Non-performing assets (NPAs) in the sector have surged to an alarming ₹1,163 crore in FY25, an 8,200% jump from FY19!

What caused this meltdown? With the RBI stepping in with strict regulations — like capping loans and banning risky loan pooling — the industry faces a critical turning point. Can it survive and rebuild trust, or is the damage too deep to repair?

Check out our Wednesday story to get the full scoop of it.

Why SEBI wants to change stock closing price rules

Once a company gets listed on the stock exchange, demand and supply dictate whether its stock price moves up or down. But that’s not exactly how it works for a stock’s closing price.

You see, when the trading day ends, stocks close at a specific price. That, though, isn’t the last traded price. Instead, it’s determined using something called the Volume Weighted Average Price (VWAP) method.

Now, SEBI, India’s market regulator, is looking to shake things up. It wants to change how stock closing prices are calculated by introducing a Closing Auction Session (CAS).

So, why is SEBI making this move?

Find out in Thursday’s newsletter, where we dive into this and tell you what it means for the stock market.

An explainer on STRIPS bonds

You may have come across the term ‘zero-coupon bonds’, and STRIPS bonds are a specific type of zero-coupon bond. The key distinction is that the principal amount and future coupon payments are separated and sold individually to investors.

It might sound unusual, but these securities have gained significant popularity among insurance companies. In fact, some insurance firms are advocating for state government debts to be converted into STRIPS and sold to them.

So, what makes these bonds so appealing?

Check out the Friday newsletter to get the complete, clearly explained picture.

Finshots Weekly Quiz 🧩

Here’s your chance to win some exclusive Finshots merch. All you have to do is click on this 👉🏽 link, answer all the questions correctly by 12 noon on December 21, 2024 (Saturday) and tune in to our Sunday newsletter aka Sunny Side Up next week to check if you got lucky.

That’s it from us this week. Have a great weekend!

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