A $6 billion investment in artificial intelligence infrastructure has been launched by India’s IT giant Tata Consultancy Services, marking a significant shift from its conventional services-led business model to the capital-intensive realm of AI data centres. This is one of the company’s most ambitious investments to date.
TCS announced plans to become the largest AI-led technology services company in the world at a time when India’s IT services behemoths were being severely criticised for missing out on the AI boom. Over the next five to seven years, the business intends to establish a new subsidiary in India that will create a co-location AI data centre with a capacity of up to 1 GW. The $6 billion question is whether this daring move would test TCS’s financial discipline or reinvent its growth story, as returns and synergies with its core services are questionable.
Mix Reactions from Market Analysts Over TCS’ Move
As the demand for AI throughout the world soars, some analysts see it as a smart move to ensure the future of the company; others caution that it’s a low-margin, high-capex diversion that could weaken TCS’s exceptional return profile. By putting its bank sheet to work at a time when the industry is pursuing AI scale, the effort represents an unusual change in direction for the typically conservative IT giant.
TCS will use a co-location architecture in which clients bring in computing and storage while TCS provides the passive infrastructure. TCS stated in an analyst call following the release of its Q2 results on 9 October that it anticipates the capital intensity to be about $1 billion per 150 MW, with funding being structured through a combination of debt and equity, supported by financial partners.
According to management, the first phase would be operational in 18 to 24 months, with the first anchor clients coming from Indian businesses, deep-tech AI companies, hyperscalers, and sovereign projects. TCS pointed out that although committed capacity is only 5–6 GW, India’s installed data centre capacity is now at 1.2 GW, but demand might increase by around 10 times over the next five to six years, offering a substantial income opportunity.
The Core 5 Pillars of TCS’ AI Approach
Beyond the data centre, management outlined five pillars of its AI strategy: building a future-ready talent model by investing in future-ready skills and hiring top talent locally. Hence, making AI real for clients through rapid builds, AI labs and offices, and value-chain solutions across industries; reframing every service line under a “human + AI” delivery blueprint.
This strategy makes TCS AI-first by empowering employees to learn, experiment, and integrate AI into their daily work and fortifying ecosystem partnerships. The company aims to generate a steady flow of income from deep-tech, hyperscalers, pure-play AI companies, and Indian government and commercial businesses.
TCS’s choice to invest in an AI data centre puts the company at an intriguing crossroads, where its renowned financial discipline meets the capital-hungry demands of the AI era, even though it posted a respectable quarter on low expectations. The outcome of this risk could determine the company’s future.
Quick
Shots
•TCS wants to become
the largest AI-led technology services company globally.
•Analysts divided as
some see it as future-proofing AI growth, others as low-margin, high-capex
diversion.
•The move puts TCS at a
crossroads between financial discipline and AI-era capital demands,
potentially shaping its growth trajectory.
•AI
data centre demand in India may grow 10x over next 5–6 years, offering
substantial revenue potential.
Global technology investor Prosus is investing INR 1,295.56 crore (about $146 million) to acquire a 10.1%stake in ixigo (Le Travenues Technology Ltd). The investment will come via a preferential issue of equity shares to Prosus’s affiliate MIH Investments One B.V. The approved price per share is INR 280, which is slightly above ixigo’s 10-day volume-weighted average price.
The ixigo board has approved issuing 46,270,092 equity shares in this move. After this allotment, Prosus will hold its 10.1 per cent stake on a fully diluted basis.
What ixigo plans to do with the funds
ixigo says it will use the fresh capital across several fronts:
Organic growth, like investing in AI, technology upgrades, and expanding its hotel business
Acquisitions and strategic investments to grow faster in adjacent areas
Working capital support to build out its operations in flights, buses, trains, hotels, etc.
Corporate uses such as staff cost, admin expenses, and contingencies
ixigo’s management noted that although this fresh issue will dilute near-term returns, the capital infusion is critical for its long-term growth. The company intends to deepen its use of AI, improve customer engagement, and build operating leverage over time.
Moreover, as part of the agreement, Prosus will have the right to appoint one director to ixigo’s board, as long as its stake stays at or above 10 per cent.
Strategic significance and financials
For Prosus, this move reinforces its interest in India’s consumer internet sector. It already backs major names like Flipkart, Swiggy, Meesho, and Urban Company. In the travel space, Prosus previously invested in Goibibo (later acquired by MakeMyTrip).
Meanwhile, ixigo has been growing rapidly. In Q1 FY 26, its revenue from operations jumped from INR 182 crore to INR 314 crore. Its net profit for that quarter rose to INR 19 crore from INR 15 crore the previous year.
ixigo was listed in June 2024 at an issue price of INR 93 per share.
The collaboration between ixigo and Prosus now positions ixigo to push harder in travel technologies, AI-enabled services, and acquisitions. The inflow of funds brings both opportunity and expectations for future scaling.
With its latest processors now in production, Intel is taking a bold gamble by predicting that graphics chips, not dedicated neural engines, will be the key to AI computing in the future. The company’s most aggressive performance boost in years, the Core Ultra series 3, codenamed Panther Lake, represents a fundamental shift from the way all other chipmakers are addressing artificial intelligence.
Intel’s new Panther Lake chips demonstrate more than 50% performance gains in both processing and graphics when compared to current models, doubling down on a contentious approach: delivering AI power through graphics chips rather than specialised neural engines.
Panther Lake Runs on Intel’s 18A Process
Panther Lake is powered by Intel’s 18A process, which was the first 2-nanometre technology created and produced in the United States. This week, Panther Lake began production at Chandler, Arizona’s Fab 52. RibbonFET transistors and a modified power delivery mechanism that channels energy via the backside of the device allow the new architecture to fit 30% more transistors onto each chip while using 15% less power.
As part of Intel’s $100 billion wager on homegrown manufacturing, CEO Lip-Bu Tan presented the milestone as essential to the future of American tech leadership. The company’s sixth sizeable Arizona location is Fab 52 in Chandler.
Intel Following Different Path Compared to its Competitors
Neural processing units are the focus of every chipmaker, but Intel took a different approach. The new Xe 3 graphics architecture from the business can perform 120 trillion operations per second for AI activities, which is almost twice as fast as the previous generation. The NPU crept from 48 to 50 TOPS with little movement.
The first goods will be released in January 2026, and Panther Lake will power everything from industrial robots to laptops. Using the same 2-nanometre manufacturing technique, Intel is also producing a 288-core server chip called Clearwater Forest, which will be released the following year.
Quick
Shots
•Intel starts production of its Panther Lake (Core
Ultra 3) chips, marking a major leap in AI computing.
•Promises over 50% performance gains in processing
and graphics vs current models.
•Runs on Intel’s 18A process, the first 2nm tech
made in the U.S., built at Fab 52 in Chandler, Arizona.
•30% more transistors and 15% lower power
consumption with RibbonFET and backside power delivery design.
•Intel bets on GPUs for AI acceleration instead of
neural processing units (NPUs).
•Xe 3 graphics architecture delivers up to 120 TOPS,
nearly 2x faster AI performance than before.
India’s startup ecosystem witnessed significant developments on 9th October 2025, with funding across media, SaaS, wearables, healthtech, cybersecurity, mobility, and AI sectors. Key highlights include Rusk Media raising INR 103 crore in Series B, Reo.Dev securing $4 million in a seed round, Eternz expanding its wearable business, and Fastest.Health boosting rapid diagnostics services. Additionally, Lenskart unveiled smartglasses with direct UPI payments, while LG Electronics India’s IPO faces scrutiny over tax and royalty concerns, reflecting both innovation and regulatory attention in the Indian market.
Daily Indian Funding Roundup – 9th October 2025
Company
Amount
Round
Lead investor(s)
Sector
Rusk Media
INR 103 Cr
Series B
Info Edge; undisclosed investors
Media / Content distribution
Reo.Dev
$4 Mn
Seed
Heavybit
Developer tools / SaaS
Eternz
Undisclosed
Pre-Series A
Timex Group India
Tech-enabled watches / Wearables
Fastest.Health
INR 1.2 Cr
Pre-seed
Inflection Point Ventures
Quick diagnostics / Healthtech
Pantherun Technologies
$12 Mn
Series A
Sahasrar Capital Investors and Lucky Investment Managers
Cybersecurity / Enterprise security
Hala Mobility
INR 30 Cr
Hala+ FOCO
Mobility / Transportation
Contrails AI
$1 Mn
Pre-seed
Huddle Ventures; IAN Group
AI / Trust & Safety / Risk governance
Rusk Media raises INR 103 Cr in Series B round
Rusk Media, a content distribution and media startup, raised INR 103 crore in its Series B round led by Info Edge and other investors. The funding will help scale operations, enhance technology infrastructure, expand content offerings, and strengthen market presence, enabling the company to grow its audience and reach across India.
Reo.Dev raises $4 Mn in seed round led by Heavybit
Developer-focused SaaS startup Reo.Dev raised $4 million in a seed round led by Heavybit. The funding will accelerate product development, expand its suite of developer tools, improve customer support, and drive adoption in global developer communities. The company aims to simplify software workflows and enhance developer productivity at scale.
Eternz raises Pre-Series A to accelerate growth, partners with Timex Group India
Eternz raised a Pre-Series A round to expand its wearable technology business in partnership with Timex Group India. The funds will be used to enhance product innovation, improve distribution channels, and scale operations. The startup focuses on tech-enabled watches, blending style and functionality for an evolving customer base.
Fastest.Health raises INR 1.2 crore in pre-seed funding
Quick diagnostics platform Fastest.Health secured INR 1.2 crore in pre-seed funding led by Inflection Point Ventures. The investment will support doorstep sample collection, fast 90-minute report delivery, and expansion of services across cities. The startup aims to simplify healthcare access, improve patient convenience, and build a reliable rapid diagnostics network in India.
Pantherun Technologies secures $12M funding
Cybersecurity firm Pantherun Technologies raised $12 million to expand its enterprise security offerings globally. The funding will strengthen product development, enhance threat detection capabilities, and support international market entry. The company aims to provide scalable, AI-driven security solutions to enterprises, addressing rising cyber threats and safeguarding sensitive organizational data effectively.
Hala Mobility raises INR 30 crore under Hala+ FOCO
Hala Mobility raised INR 30 crore under its Hala+ FOCO initiative to scale mobility and transportation services. The funds will enhance fleet management, expand operations, and improve technology integration. The startup aims to provide reliable, tech-enabled transport solutions while optimizing operational efficiency, supporting sustainable mobility, and increasing customer satisfaction.
Contrails AI raises $1 million led by Huddle Ventures and IAN Group
AI startup Contrails AI raised $1 million in a pre-seed round led by Huddle Ventures and IAN Group. The funding will enhance its AI-powered trust and safety platform, helping online businesses detect, prevent, and manage risks. The company focuses on ensuring safer digital experiences and governance for platforms using generative AI content.
Key Business News for 9th October 2025
Lenskart Integrates UPI Payments into Smartglasses
Lenskart has unveiled its upcoming B Camera Smartglasses, set to launch in the coming months. These smartglasses feature direct UPI payment integration, allowing users to make instant QR-based transactions by simply scanning a code and issuing a voice command, eliminating the need for a smartphone or PIN. The UPI Circle feature, developed by the National Payments Corporation of India (NPCI), ensures secure and private transactions. This innovation marks a significant step in India’s wearable technology landscape, combining AI-based camera features with digital payment capabilities.
LG Electronics India IPO Faces Scrutiny Over Tax and Royalty Issues
LG Electronics India’s INR 11,607 crore initial public offering (IPO) is under scrutiny following concerns raised by governance advisory firm InGovern Research Services. InGovern highlighted INR 4,717 crore in disputed tax liabilities, ongoing royalty payments, and related-party transactions as potential risks that could affect the company’s future profitability. Despite these issues, the IPO has been oversubscribed, with significant participation from institutional investors. The offering is a 100% offer-for-sale by the Korean parent company, LG Electronics Inc., which will retain 85% ownership post-listing.
India’s festive season, long known for its grandeur and generosity, is undergoing a significant shift. A new study titled “Aspirations of New India: How Consumers Select, Shop, and Shape Brand Connections” by early-stage venture capital firm Rukam Capital highlights how wellness, authenticity, and purpose are driving consumer choices this year.
The study, conducted by YouGov with over 5,000 respondents across 18 states, reveals that Indians are increasingly mindful and value-driven when it comes to festive spending. Rather than shopping based purely on impulse or tradition, consumers are now choosing brands that align with their identity and values.
India’s festive retail market is expected to grow by 23%, reaching an estimated $125-150 billion in 2025. Backed by GST 2.0 reforms, this growth is no longer limited to metropolitan cities but is also expanding across smaller towns — offering brands deeper cultural opportunities to connect with consumers.
Archana Jahagirdar, Founder and Managing Partner at Rukam Capital, said:
“Indian consumers are not just trend followers anymore. They seek brands that make them feel understood and valued. Loyalty today is built through connection and purpose, not discounts. This evolution is compelling even the most traditional categories to innovate from offering healthier alternatives to embracing transparency and community engagement.”
Key Festive Insights
1. Rise of the Homegrown
Festive shopping is increasingly tied to local pride and conscious choices.
Local Love: Over half of Indian consumers prefer homegrown or small business brands.
Purposeful Purchases: In Tier I cities, 61% of consumers actively choose Indian brands, while 59% align their spending with social or environmental causes.
Start-up Support:43% of respondents enjoy shopping from new start-ups during the festive season.
2. Wellness Takes Centre Stage
Health is redefining indulgence this festive season.
Healthy Snacking:53% of Millennials and 47% of Gen Z shoppers plan to buy healthy snacks.
Sugar-Free Trend:73% of young consumers prefer sugar-free or substitute-based sweets.
Cultural Wellness: One in three shoppers seek festive products blending heritage with health — highlighting demand for traditional yet guilt-free treats.
3. Digital Dominance: UPI Leads the Way
India’s digital payment revolution continues to reshape festive shopping.
UPI on Top: Nearly 40% of shoppers use UPI for purchases, making it the most preferred payment method.
Tier Trends: Tier III cities show the highest UPI usage (42%), while Tier I consumers balance UPI (36%) with credit card payments (24%) for cashback and rewards.
A $128 million lawsuit brought by former CEO Parag Agrawal and three other senior managers who claimed they were not given severance pay has been settled between Elon Musk and the business that was formerly known as Twitter.
A September 30 federal court filing that postponed litigation deadlines and the date of a scheduled hearing in San Francisco did not reveal the terms of the settlement. The executives’ attorney stated in the petition that the parties had negotiated a settlement and that it has specific requirements that must be fulfilled soon.
Musk and X Officials Agrees to Settle $500 Million Suit
The agreement comes as Musk and representatives of X Corp., the new name for Twitter, reached a settlement in August to pay $500 million to roughly 6,000 rank-and-file workers who were laid off and claimed the billionaire had cheated them on severances after taking over the social media company. An email requesting comment on the settlement was not immediately answered by X and Musk representatives on Tuesday. Additionally, a lawyer for the former executives did not immediately respond to a request for comment via email.
Musk did Entire Reshuffling of X After Taking Over
Musk acquired Twitter in 2022 after abandoning an attempt to renege on his $44 billion acquisition offer. This decision was made after a judge in Delaware, where Twitter was incorporated at the time, ruled against him in several pre-trial decisions. Musk sacked a few high-ranking Twitter executives as soon as he took over.
The individuals who filed the lawsuit in addition to Agrawal were Vijaya Gadde, the company’s chief legal and policy officer; Ned Segal, the company’s chief financial officer; and Sean Edgett, the former general counsel of Twitter who currently serves in the same capacity for Match Group. In numerous lawsuits, Twitter—which the billionaire rebranded as X—was charged with labour and workplace infractions, including not providing severance compensation to thousands of laid-off employees.
Former Twitter employees accused Musk of stealing their wages in a severance class-action lawsuit, but a federal court in Delaware dismissed part of the case last month, ruling that the billionaire could not be held accountable as an “alter ego” of the corporation.
Quick Shots
•Elon Musk and ex-Twitter CEO Parag Agrawal reach
settlement over unpaid severance claims.
•Former CFO Ned Segal, legal chief Vijaya Gadde, and
ex-general counsel Sean Edgett also part of the case.
•Federal court filing confirms resolution but does
not disclose settlement details.
•Lawsuit follows Musk’s $500 million settlement with
6,000 former Twitter employees over severance pay.
•Musk fired top executives after his $44 billion
takeover of Twitter in 2022.
Cricket lovers often argue that the spirit of the game matters more than the scoreboard, and Royal Challengers Bangalore (RCB) might just be the best proof of that. For many years, the team became a synonym of hope and disappointment, a franchise that promised the world but often fell short of the IPL trophy. Yet somehow, it built one of the most popular, most profitable, and most loved brands in Indian sports history.
In 2025, when RCB finally got the IPL trophy after 17 long seasons, it became the crowning moment of a billion-dollar brand story. According to a 2025 report by Houlihan Lokey, IPL’s business value rose by 13% in 2025 to $18.5 billion, which is nearly INR 1.6 lakh crore. At the same time, the brand value of the league increased by 14% to nearly $4 billion, or about INR 33,000 crore.
But how did a team known for its near misses turn into a marketing and business powerhouse? In this article, we will discuss the business journey of Royal Challengers Bangalore (RCB) in detail.
In a podcast appearance, Vijay Mallya opened up about how he became the owner of the Royal Challengers Bangalore franchise back in 2008. Interestingly, Mallya revealed that he had actually bid for three IPL teams, including the Mumbai Indians, which was ultimately bought by Mukesh Ambani.
“I was very impressed with Lalit Modi’s pitch about the IPL,” Mallya shared. “He called me and said the teams were going to be auctioned. I bid for three franchises and lost Mumbai by a very small amount. Eventually, I bought RCB for $112 million, which was about INR 600–700 crore at that time, the second-highest bid of the auction.”
According to Mallya, he saw the IPL as a game-changer for Indian cricket, and he wanted RCB to reflect the vibrant, cosmopolitan spirit of Bangalore.
RCB’s Branding Strategy: How a Cricket Team Turned into a Global Brand?
Vijay Mallya’s vision for RCB was never limited to cricket. He wanted to build a lifestyle brand that matched the city’s energy, modern, glamorous, and full of flair.
“I wanted RCB to embody Bangalore’s essence; vibrant, dynamic, glamorous,” Mallya said. “That’s why I tied it to Royal Challenge, one of our top-selling liquor brands. I wanted a bold, confident identity, one that stood for excellence on and off the field.”
This branding strategy made RCB one of the most recognizable franchises in the league, even when the team wasn’t winning trophies. With Kingfisher and Royal Challenge as major sponsors, every match felt like a celebration, an event that extended far beyond the cricket ground.
The Early Years: Signing Virat Kohli and Rahul Dravid
Mallya also shared how he played a crucial role in bringing Virat Kohli into the RCB family. During the 2008 U-19 World Cup, Kohli had caught Mallya’s attention with his passion and leadership. While many expected Delhi Daredevils (now Delhi Capitals) to sign him, they instead chose Pradeep Sangwan, giving RCB the chance to grab the young talent.
“I handpicked players who could make RCB a powerhouse,” Mallya said. “My biggest pride was spotting Virat Kohli. My instinct told me he was special. Getting Rahul Dravid as our icon player was obvious; he was Bangalore’s pride. Then we brought in global stars like Jacques Kallis, Anil Kumble, and Zaheer Khan. My dream was to bring the IPL trophy to Bangalore, and I built the team for that purpose.” Eighteen years later, that dream finally came true, with Kohli still at the heart of RCB’s journey.
Glamour, Parties, and the Making of a Lifestyle Brand
RCB’s early days under Mallya were marked by glitz, glamour, and legendary after-match parties. These weren’t random indulgences; they were part of a deliberate branding strategy to make RCB the most exciting and talked-about franchise in the IPL.
“I wanted RCB to be more than just a cricket team. It was about creating a lifestyle experience,” Mallya revealed. “The after-parties, cheerleaders, fan engagement, all of it was designed to make RCB stand out. Some called it flashy, but it was strategic. Bangalore loved it, and RCB became the city’s heartbeat.”
With Kingfisher as the headline sponsor, the RCB brand quickly became synonymous with energy, entertainment, and elite cricket culture, a combination that made it one of the IPL’s most valuable franchises.
Changing Hands: The Diageo and United Spirits Era
After 2016, following Vijay Mallya’s legal troubles, the ownership of RCB shifted. United Spirits Limited (USL), the liquor giant originally co-owned by Mallya, came fully under the control of Diageo India, a subsidiary of the global beverage powerhouse Diageo PLC.
From there, the focus of RCB’s leadership shifted from extravagance to structured brand building. Under the guidance of Mahendra Kumar Sharma (Chairman) and Anand Kripalu (MD & CEO), RCB became a professionally managed sports business with a clear commercial roadmap.
USL, which owns brands like Johnnie Walker, Smirnoff, and Black & White, rebranded RCB as part of its “Royal” portfolio, aligning it with its flagship liquor brand, Royal Challenge. This gave RCB strong corporate backing and a global identity under the Diageo umbrella.
The Business Powerhouse: Sponsorships and Brand Value
RCB’s Sponsorships and Brand Value
In recent years, RCB has transformed into a marketing magnet. The franchise’s partnership roster features some of the biggest global and Indian brands, Qatar Airways, Happilo, KEI Wires & Cables, Hindware Homes, Jio, PUMA, boAt, Bira 91, Nippon Paint, and DNA Networks.
Each partnership isn’t just about money; it’s about co-branding synergy. PUMA and boAt, for instance, have launched exclusive RCB merchandise lines that fuel fan loyalty and online engagement.
According to CricketOne, RCB’s brand value now stands at around $117 million (INR 1,013 crore), one of the highest among IPL franchises, a demonstration of the team’s consistent visibility, player charisma, and business partnerships.
Women’s Premier League Expansion: The RCB-W Legacy
RCB has also expanded its empire to the Women’s Premier League (WPL), launching the Royal Challengers Bangalore Women (RCB-W) team. This move not only strengthened its inclusivity stance but also broadened its brand footprint across genders and markets.
With growing fan support and a young, marketable squad, RCB-W has become a key part of RCB’s modern identity, signaling that the brand’s future goes beyond men’s cricket.
RCB Finally Breaks the 18-Year Curse
Royal Challengers Bengaluru (RCB) as IPL Champions
After 18 years of heartbreak, grit, and unshaken fan loyalty, Royal Challengers Bengaluru (RCB) finally lifted the Indian Premier League (IPL) title in 2025. The moment came at the Narendra Modi Stadium in Ahmedabad, where RCB triumphed over Punjab Kings in a thrilling final.
For a franchise that’s always been among the most followed teams in the IPL, this victory was more than just a trophy; it was redemption. Over the years, RCB saw several cricketing legends come and go, but one man remained constant: Virat Kohli. As soon as the final ended, all eyes turned to Kohli, the man who had carried the team’s hopes for nearly two decades.
The occasion also brought back memories of Vijay Mallya, RCB’s original owner, whose flamboyant style helped shape the franchise’s identity in its early years.
Conclusion
RCB’s journey proves a powerful truth: winning isn’t the only way to build a legacy. Through visionary branding, star power, fan loyalty, and smart corporate management, the franchise turned its narrative of near misses into a story of lasting business success.
From Vijay Mallya’s audacious vision to Diageo’s disciplined execution, Royal Challengers Bangalore stands as one of India’s most valuable sports brands, a perfect blend of passion, business, and belief.
Who was the original owner of Royal Challengers Bangalore (RCB)?
Royal Challengers Bangalore (RCB) was originally owned by Vijay Mallya, who purchased the franchise in 2008 for $112 million (around INR 600–700 crore). It was the second-highest bid during the first IPL auction.
What role did Virat Kohli play in shaping RCB’s identity?
Virat Kohli joined RCB in the inaugural IPL season of 2008 and became the face of the franchise.
Which brands sponsor RCB in the IPL?
RCB’s sponsorship roster includes top global and Indian brands like Qatar Airways, PUMA, boAt, Happilo, KEI Wires & Cables, Hindware Homes, Jio, Bira 91, Nippon Paint, and DNA Networks.
After InGovern Research Services identified INR 4,717 crore in contested tax liabilities, ongoing royalties, and related-party transactions, LG Electronics India’s INR 11,607 crore IPO (Initial Public Offering) is being investigated. The advising company added that the Korean parent will maintain 85% control after listing, noting that a poor decision in these procedures might severely reduce future earnings or necessitate remedies.
Findings of the InGovern
With all proceeds going straight to the parent firm and no new funds being collected for expansion, the IPO, which is a 100% offer-for-sale by Korean promoter LG Electronics Inc., is set to close today, October 9, at 5 p.m. According to InGovern, LGEIL has revealed contingent liabilities totalling INR 4,717 crore, which accounts for 73% of its total net worth.
The main source of these obligations is contested income tax, excise, and service tax claims. Citing current appeals before appellate forums and legal guidance, the advice also stated that the company has not made provisions for these proceedings.
LG India Faces Contingent Liability of INR 315 Cr
Transfer pricing on royalties and payments for technical services to the promoter account for a sizable amount of tax disputes. InGovern emphasised that royalties they pay to the promoter under the terms of the licence agreement or in other circumstances could be subject to regulatory scrutiny or action. Royalties alone accounted for INR 315 crore of LG India’s potential liabilities as of the IPO filing; this amount may increase as a result of regulatory reviews.
The advice firm also pointed out that, without shareholder consent, the Korean parent company may increase royalties from domestic production by up to 5% of yearly consolidated turnover. Over the last three years, royalty outflows have historically varied from 1.63% to 1.90% of revenue; this structure may have an impact on margins in the absence of scrutiny by minority investors.
InGovern cautioned that LG Electronics Inc. would lose its ability to produce and market under the LG brand and that operations would be seriously disrupted if it terminated or changed the perpetual licence agreement with six months’ notice.
Multiple Legal Agreements Between LG India and Other LG Entities
The promoter would have effective control over board decisions and related-party transactions when LG Electronics retains 85% of its Indian unit following the IPO. “The promoter may take into account the interests of its subsidiaries and affiliates that may not align with minority shareholders,” according to InGovern.
The Korean parent company, LG India, and other LG Group companies have a number of licensing, technical service, and framework agreements that result in continuous governance exposure. Concerns regarding transparency and transfer pricing were raised by the advising company when it stated that “no independent benchmarking study or third-party pricing review for royalty payments is presented.”
LG India’s IPO is a pure offer-for-sale that only benefits the promoter, even though the company reported INR 24,367 crore in revenue and INR 2,203 crore in net profit for FY25 with a debt-free balance sheet. InGovern concluded by stating that careful thought should be given to the governance issues surrounding related-party transactions and contingent liabilities.
Quick Shots
•InGovern flags INR 4,717 crore in disputed tax,
royalty, and related-party risks.
•Tax, excise, and service tax disputes form 73% of
LG India’s net worth.
•IPO proceeds go entirely to Korean parent LG
Electronics Inc.; no fresh funds raised for expansion.
•INR 315 crore liability linked to royalty payments
and technical service fees to the parent firm.
The Bombay High Court last week upheld the State Bank of India’s (SBI) decision to label the accounts of Reliance Communications (RCom) as “fraud” and submit Anil Ambani’s name to the Reserve Bank of India (RBI).
On October 3, a panel of Justices Revati Mohite Dere and Neela Gokhale decided that a personal hearing was not required and that the SBI had given him enough time to present his case in accordance with the RBI’s and the Supreme Court’s directives. Ambani asserted that the bank had not given him a chance to present his arguments in a face-to-face hearing.
Why Reliance’s Anil Ambani is Facing the Heat?
The court held that once RCom – where Ambani was a director and promoter – was identified as “fraud”, his name could be disclosed to the RBI since he was “in control” of the firm during the relevant period. Due to his affiliation with RCom, which defaulted on loans and credit facilities totalling more than INR 1,500 crore that were approved between 2012 and 2016, the court’s ruling will essentially prohibit Ambani from raising money or pursuing credit facilities.
The RBI Master Directions on Frauds list this restriction on credit and funding as one of the “penal measures”. These regulations prohibit anyone who is deemed to be a fraudster and those “associated” with them from obtaining credit from banks and non-banking financial companies (NBFCs), which are governed by the RBI.
This restriction is in effect for five years after the date of the settlement of dues or the full repayment of the fraudulent sum. Ambani filed a plea in court contesting a June ruling by the SBI’s Fraud Identification Committee (FIC). In 2020, the SBI initially deemed RCom accounts to be “fraud” in accordance with the RBI’s 2016 Master Directions.
Following a Supreme Court decision in 2023 that required borrowers to have a previous hearing, this injunction was revoked. After that, the bank sent Ambani a new show-cause letter and provided him an opportunity to reply. In June, it declared that RCom’s account was fraudulent and that the RBI would be notified of his identity.
On What Basis HC Termed RCom Fraud?
Based on the financial system’s handling of “fraud”, which is regulated by the RBI’s Master Directions and altered by the Supreme Court’s historic State Bank of India & Ors. v. Rajesh Agarwal & Ors. ruling in 2023, the HC ruling was made. How banks identify, categorise, and report fraud is outlined in the RBI’s 2016 Master Directions on fraud classification and reporting by commercial banks and selected financial institutions.
In 2017, the SBI designated Reliance Communications’ account as a non-performing asset (NPA) due to the company’s failure to fulfil its commitments under the loan restructuring. As instructed by the RBI, SBI’s FIC deemed RCom’s account to be “fraud” in November 2020. In a subsequent case, the directives were contested on the grounds that they did not necessitate a hearing before labelling an account as fraudulent.
Following a historic Supreme Court ruling in the Rajesh Agarwal case, which established that borrowers must be given a chance to be heard before such categorisation, SBI retracted its classification of RCom’s account as fraudulent.
Quick Shots
•Court backs State Bank of India’s move to report
Anil Ambani to RBI over RCom fraud.
•Ambani barred from raising funds or obtaining
credit from banks/NBFCs for five years post-repayment.
•Ruling follows RBI’s 2016 Master Directions on
fraud and the 2023 Supreme Court Rajesh Agarwal judgment requiring borrower
hearings.
•SBI had issued show-cause letters and allowed Ambani
to reply before reaffirming fraud classification.
Creencia Consulting, a new-age, hedge-fund style investment platform today announced the launch of its maiden fund with an AuM commitment of INR 100 crore. With backing from reputed family offices, UHNIs, and seasoned industry leaders, the fund uses globally inspired strategies tailored for growth in the Indian market. With the launch of the fund, Creencia Consulting has now introduced a hedge-fund style investment vehicle to the Indian market, which is structured and risk-managed, designed to deliver consistent, direction-neutral returns.
Within the next six to twelve months, the company plans to double its AuM, by onboarding strategically aligned investors—maintaining the ethos of a member-only club for refined capital. The company also aims to deliver a clear track record of stable, risk-adjusted returns with disciplined drawdown control (<5%), reinforcing the fund’s risk-first DNA.
India’s Alternative Investment Funds (AIFs) have seen significant growth, with total commitments reaching Rs. 13,00,000 crore (US$ 149.25 billion) as of December 2024, reflecting a 5% QoQ increase, according to the Securities and Exchange Board of India (SEBI). Investors today are looking at alternative assets to hedge against public market volatility, build a diversified portfolio, and enhance portfolio performance across market scenarios. Despite India being home to one of the world’s most liquid derivatives markets, very few institutional funds have built structured, risk-managed models around it, and Creencia Consulting aims to tap this opportunity.
Amandeep Singh Uberoi, Founder & CIO, Creencia Consulting said, “Today, the market dynamics are changing rapidly, and investors are looking for stable, risk-managed alternatives. At Creencia, we have a proven track record of managing and growing assets of over ₹70 crore, and our integration of advanced algorithms and data-driven systems for precise execution and agile decision-making enables us to fill in a white space effectively.”
With a young yet experience team, bold, and data-driven risk practices, Creencia represents a new category of its own: a fund that blends global best practices with India’s market opportunities, designed for consistency, transparency, and scale.
