Business
Smallcap stock jumps 24% in a week as NSE stake could be valued at Rs 850 crore
The rally follows the filing of the National Stock Exchange’s (NSE) Draft Red Herring Prospectus (DRHP) with Sebi for what could become India’s largest-ever initial public offering. Documents filed by the exchange show that Maithan Alloys, one of India’s leading ferroalloy manufacturers and exporters, owns a 0.17% stake in NSE, equivalent to 41,25,500 shares.
Based on NSE’s last traded price of Rs 2,055 in the unlisted market prior to the DRHP filing, the value of Maithan Alloys’ holding stands at roughly Rs 850 crore.
The proposed issue, estimated at around Rs 30,000 crore, is entirely an offer-for-sale (OFS) of up to 148.9 million shares, representing nearly 6% of NSE’s paid-up equity capital.
If completed at the expected size, it would surpass Hyundai Motor India‘s Rs 27,000 crore IPO in 2024 to become the largest public issue in the country. While Reliance Industries‘ Jio is also expected to pursue a larger listing, it is yet to file its draft papers.
PSUs make big money
State Bank of India (SBI) stands to be among the biggest beneficiaries of the IPO. The country’s largest lender is poised to monetise a long-held investment in NSE, translating into an estimated gain of 256,775% based on its acquisition cost.
Several other public sector and institutional investors are also in line for substantial returns from the offer-for-sale.
The New India Assurance Company Ltd. and National Insurance Company Limited have the lowest acquisition cost among the selling shareholders at just 32 paise per share, putting them on track for returns of as much as 6,422 times their investment. Stock Holding Corporation of India is offering around 11 million shares that were acquired at 46 paise apiece, implying a potential return of about 4,467 times.
Among foreign investors, Singapore sovereign wealth fund Temasek Holdings Pte is selling approximately 11.25 million shares through Aranda Investments and is set for a return of around 33 times. Global investment bank Morgan Stanley is expected to earn roughly 31 times its original investment.
Life Insurance Corporation of India (LIC), NSE’s largest shareholder with a stake of nearly 11%, is not participating in the offer-for-sale. LIC was among the earliest investors in the exchange when it subscribed to NSE shares in 1992 and will continue to hold its stake.
The DRHP states that up to 50% of the issue will be reserved for qualified institutional buyers (QIBs), while at least 15% will be allocated to non-institutional investors and 35% to retail investors.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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Accenture cuts revenue outlook, stock crashes 11% in pre-market trading
The consulting giant now expects revenue growth of 3%-4% for FY26, narrowing its earlier guidance of 3%-5%. It also forecast fourth-quarter revenue of $17.75 billion-$18.4 billion, below analysts’ consensus estimate of $18.47 billion, according to LSEG data.
The weaker outlook overshadowed Accenture’s announcement of $4.18 billion worth of cybersecurity acquisitions, sending its shares down more than 11% in premarket trading.
The company said it will acquire asset intelligence company runZero and device security specialist NetRise, while also taking a majority stake in industrial cybersecurity firm Dragos. The transactions are expected to close in August or September, subject to regulatory approvals.
The acquisitions are aimed at expanding Accenture’s cybersecurity capabilities, particularly in protecting industrial operations and critical infrastructure such as power grids, factories, pipelines and data centres amid rising cyber threats and increasing adoption of artificial intelligence.
Together, the acquired businesses generate annual recurring revenue of about $208 million and will strengthen Accenture’s cybersecurity business, which currently generates around $10 billion in annual revenue.
The revised forecast suggests clients continue to delay or reduce spending on discretionary consulting projects as they navigate an uncertain macroeconomic environment.
While demand for AI and cybersecurity services remains resilient, enterprises are becoming more selective in committing large transformation budgets, weighing on the broader consulting industry.
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Hollister partners with Target to sell dorm bedding, apparel
Abercrombie & Fitch‘s Hollister is branching out of its apparel roots and partnering with Target to start selling home and dorm decor for the first time as both brands look to new categories to drive growth.
The collaboration, dubbed The Hollister Collection at Target, will launch online, in most Target stores and select Hollister locations on June 28 and will feature almost 60 items across men’s and women’s apparel and bedding.
Hollister’s tie-up with Target comes as both companies contend with declines in discretionary spending and waning consumer confidence, which have forced retailers to get creative to entice shoppers to spend.
Hollister, Abercrombie’s brand targeting shoppers ages 13 to 22, has been comfortably growing for much of the past year but is looking to become more of a lifestyle brand that sells more than clothes. By offering a wider assortment, especially across a larger footprint, Hollister can acquire new customers, encourage existing shoppers to spend more and create a new pipeline for organic growth.
On the other hand, Target already has a large home and dorm decor department but has long leaned on brand collaborations as a competitive differentiator, especially because they’re not as common at rival Walmart. Across the business, it has regularly brought in buzzy names like Kendra Scott, Diane von Furstenberg, Bombas and Champion, even before it was dealing with sluggish sales and shrinking profits.
For both companies, the collaboration offers access to the lucrative back-to-college shopping market, which reached $88.8 billion last year, or about $1,325 in spending per person that participates, according to data from the National Retail Federation.
Within that market, spending on dorm or apartment furnishings has been steadily growing for more than a decade. In 2025, it reached $12.8 billion, second only to electronics or computer-related equipment.
Hollister’s expansion into home and dorm decor comes as sister brand Abercrombie & Fitch expands into outside footwear brands like Puma, Sperry and Hunter as a means to drive growth. In interviews with CNBC, executives said category expansion across the business can both draw in new customers and entice existing shoppers to spend more.
With Target’s “brick-and-mortar presence, we should be able to expose the Hollister brand to people who aren’t shopping with us today,” said Corey Robinson, the company’s chief product officer, overseeing both the Abercrombie and Hollister brands. “And then with those customers who love us so much today, to be able to be an even bigger part of their lives is something we’re looking forward to.”
Under the terms of the collaboration, Hollister and Target are working together to design the products while Target, given its expertise in the space, will handle manufacturing, Robinson said. The collaboration will last at least through next year with drops expected during the fall, holiday and spring 2027 shopping seasons.
“Moving beyond just bedding and thinking about blankets, wearable blankets, plush, that’s how we will evolve the partnership,” Robinson said. “With our target age, dorm is top of mind. From a seasonality perspective, there’s a lot of ways you can refresh your dorm, and decorate with newness based on seasonality.”
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