SEBI’s proposed IPO changes, India's semiconductor edge and more…
In this week’s wrapup, we discuss why India’s semiconductor dreams might hinge on packaging and testing, whether Kodak’s bet on pharma can really keep it alive, if GST reforms can shield us from Trump’s tariffs, how China’s $11 trillion stock market compares with India’s, and why S&P finally upgraded India’s credit rating.
And in this week’s markets edition, we dig into SEBI’s consultation paper about changes around IPO minimum public ownership. If the proposals pass, many big IPOs could be on the cards. And if you’re curious to know what it means for the markets, click here to read the full story.
With that out of the way, let’s recap what we wrote this week.
Can India become the world’s BPO for semiconductors?
Every government on earth wants to build chip manufacturing facilities (called fabs), where semiconductors are processed. But fabs are expensive, water-guzzling, and talent-hungry.
That’s why India’s more realistic shot may be in chip packaging and testing. Or what the industry calls the OSAT (Outsourced Semiconductor Assembly and Test) business. It’s less glamorous, but it fits our strengths: talent, low-cost labour, and a growing electronics ecosystem. Think of it as the “back office” of chips, the way IT services once were for software.
But building OSATs has its own set of problems. And we take a look at this as well as what can India do to capture the potential in our Monday newsletter.
Will pharma help Kodak survive?
Once the company that owned photography, Kodak now makes more news for its debt warnings than its products. And yet, it’s trying to script a comeback. In pharmaceuticals!
Now that might sound strange, but Kodak has always been a chemical company in disguise. From photographic plates to solvents, chemistry was its backbone. And today it’s betting on drug ingredients, leaning on that legacy to convince lenders it still has a future.
But can a 133-year-old camera icon really reinvent itself as a pharma player? That’s what we try to answer by looking at the company’s numbers and history in our Tuesday’s story.
Can GST reforms be a shield against US tariffs?
By the end of August, nearly everything India sells to the US will face a 50% tariff. And that’s a big blow given $87 billion worth of our exports head there each year.
The Indian government’s counter-punch seems to be a sweeping GST reform: fewer slabs, cheaper goods, more consumption at home. And in theory, that sounds awesome since domestic demand could soften the GDP hit. But in practice, exporters of textiles, gems, and leather can’t sell their way out with cheaper fridges or scooters at home.
So can GST really be a shield, or is it just a band-aid? We break it down in our Wednesday newsletter.
Can China’s stock market ever deliver like India’s?
Despite being the world’s second-largest economy, China’s $11 trillion stock market has barely rewarded investors in the last ten years. And why is that? Well, because of state dominance, oversupply of IPOs, and shaky trust that has kept returns low.
Meanwhile, India’s market plumbing and bottom-up reforms have attracted sticky savings and strong earnings growth.
But a lot of the issues for China go back to how the market was designed. Our Thursday story takes a look at these cracks to answer if China’s so-called “value trap” flips into an opportunity.
Why S&P finally raised India’s credit rating
It took 18 years, but S&P has finally nudged India’s sovereign rating up from BBB− to BBB. This signals confidence in India’s fiscal trajectory and it could draw billions in global bond inflows.
But with high debt and deficits still looming, can India really build on this upgrade? Or is it just a fragile vote of confidence?
We tell you all about it in our Friday newsletter here.
Finshots Weekly Quiz 🧠
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That’s it from us this week. Have a great weekend!
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