🚗 SoftBank Dumps Ola Electric Shares

🌞 Good Morning, Chai Fam!

From cement to textiles to cola bottles, GST 2.0 has reshuffled prices across the board, sparking rallies, sell-offs, and confusion. Meanwhile, global markets are wobbling, startups are raking in fresh capital, and even luxury car buyers are celebrating a mini-Diwali. Let’s steep in the day’s hottest stories.

📰 Chai Shots

• 🛒 Festive Sale GST Puzzle: Flipkart’s Big Billion Days and Amazon’s Great Indian Festival are coming up just as GST on TVs, ACs, and dishwashers drops from 28% to 18% — but only from September 22. That means much of the inventory sold in early festive sales may still be billed at old rates. Retail experts note headline discounts will still come from bulk buying power, not tax cuts. Shoppers chasing the best deals may need to wait for new stock cycles.

• ⚡ SoftBank Trims Ola Electric Stake: SoftBank sold 9.4 crore shares (2.15%), cutting its stake to 15.7%. The move signals global investors are rebalancing India bets even as Ola Electric gears up to expand in the EV market. More in the Big Brew 👇

• 🏗️ Cement Stocks Rally: ACC, Ambuja, and UltraTech saw strong buying after GST on cement was cut from 28% to 18%, effective September 22. Anti-profiteering rules will force companies to eventually pass savings to consumers, though analysts expect dealers to keep lean inventories until the new rates kick in.

• 🔒 Google Hit With $425M Fine: A US jury ruled Google continued tracking user app data even after opt-outs, impacting nearly 100 million users. The company will appeal, claiming its tools honor user settings. The ruling follows a string of billion-dollar privacy settlements against Google this year.

📈 Market Masala

• 📉 Markets End Flat Despite GST Buzz: Indian equities opened strong on GST 2.0 optimism but fizzled out by the close. The Sensex ended 150 points higher at 80,718 and Nifty added just 19 points to 24,734 — far below their intraday peaks. Mid- and small-caps slipped 0.7% each. Autos led with Mahindra & Mahindra up nearly 1%, while Bajaj Finance also gained, but FMCG, IT, metals, realty, and PSU banks dragged.

• 🧵 Textiles Finally Fixed: From September 22, the entire man-made textile chain — fibre, yarn, and fabric — will attract a uniform 5% GST. This ends the inverted duty structure that taxed raw materials more than finished goods, freeing up working capital and boosting global competitiveness. Beneficiaries include KPR Mill, Welspun, Siyaram, Trident, and Raymond.

• 🚗 Auto Dealers Fear Credit Loss: Dealers are sitting on nearly 55 days of stock and billions in unused compensation cess credits. With GST 2.0 scrapping the cess and moving luxury cars to a flat 40% slab, those credits risk becoming worthless. Dealers have petitioned the Finance Ministry for a carry-forward or refund mechanism to avoid a financial blow during festive season sales.

• 🧾 GST New Rates Enforced From Sep 22: As mentioned yesterday, essentials like UHT milk and packaged paneer go tax-free; chocolates, biscuits, shampoos, sauces, and pasta drop to 5%. Home appliances like TVs, ACs, and fridges fall to 18%. Insurance premiums are exempt, salons and gyms move to 5%, and smaller hotel stays become cheaper. But not all are winners — coal, luxury vehicles, and sugary drinks face higher rates.

🌍 Global Masala

• 🌏 Asia-Pacific Markets Rise: Stocks in Japan, South Korea, and Australia gained after Trump cut tariffs on Japanese auto imports to 15% (from 27.5%) and confirmed $550B in Japanese investments into US projects. Chipmakers like Advantest, Lasertec, TSMC, and SK Hynix also rallied after Trump threatened tariffs on firms not shifting production to the US.

• ✈️ Jet2 Shares Dive: UK airline Jet2 fell up to 20% after warning profits will come in at the low end of expectations. Customers are delaying bookings, leaving winter capacity unsold. The cautious outlook rippled through Europe’s travel sector.

☕ The Big Brew: SoftBank Trims Ola Electric Stake — What’s Really Going On?

Japan’s SoftBank has once again shuffled its India portfolio, this time paring its shareholding in Ola Electric from 17.8% to 15.7%. The reduction — 94.9 million shares sold between mid-July and early September via its investment arm SVF II Ostrich (DE) LLC — crossed the disclosure threshold under Sebi rules, making it a market-moving development.

Why it matters:

• 🔻 Stock Impact: The announcement triggered a 7% slide in Ola Electric’s stock, which closed at ₹64.49. Yet, this comes after a 70% rally from July lows, showing how volatile sentiment has been.

• 📊 SoftBank’s Position: Despite trimming, SoftBank remains Ola’s second-largest institutional investor, behind founder Bhavish Aggarwal’s ~30% stake. The Japanese fund has been an early backer but has been steadily lightening positions across Indian tech as it rebalances globally.

• ⚡ Ola’s Momentum: The company is far from slowing down. It has launched the Gen 3 S1 scooters under the government’s PLI scheme, unveiled its in-house 4680 Bharat battery cell, and showcased a rare earth metal–free motor at its Tamil Nadu Gigafactory. Ola also teased new electric motorcycles, signaling ambitions beyond scooters.

• 🏭 Strategic Timing: The stake cut comes nine months after Ola Electric’s December 2024 IPO. Analysts suggest this could be routine profit-taking, especially with the stock rallying sharply in recent weeks, rather than a vote of no confidence.

💡 What does this mean?

• For SoftBank: It’s part of a broader strategy of trimming exposure and locking in profits while staying invested in high-potential bets.

• For Ola Electric: Short-term volatility is inevitable, but operational milestones — from battery tech to PLI-linked expansion — bolster its long-term story.

• For investors: The stock may remain choppy as global funds adjust stakes, but government incentives and EV adoption tailwinds keep Ola in focus as India’s flagship EV play.

🚀 Startup Scoop

• 🩺 FlexifyMe Raises ₹20 Cr: Backed by IvyCap Ventures, the physiotherapy startup will use funds to launch posture labs, expand offline presence, and deepen clinical research. It aims to tap into India’s $1.9 billion physiotherapy market by 2030.

• 🏘️ Colive Secures $20M: The coliving platform raised funds from Bain Capital and Sattva Group to expand housing supply and upgrade tech. Demand for managed rentals among professionals and students continues to rise.

🤔 Chai Break Trivia

Did you know 🦆 Ducks can sleep with one eye open? Half their brain stays awake to watch for predators while the other half gets some rest — a trick called unihemispheric slow-wave sleep.

🔮 What’s Brewing Next

📈 Dev Accelerator IPO: Subscription opens September 10, closes September 12, with listing on September 17.

That’s your Friday pour, Fam! From paneer going tax-free to Porsche prices falling, GST 2.0 is rewriting shopping lists and stock charts alike. As you head into the weekend, keep your eyes on festive sales — and maybe thank GST for that slightly cheaper chocolate bar. Until Monday, sip smart and stay curious.