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<div type="image" title="Data from RBI suggests that the outstanding amount on gold loans has swelled from Rs 85,009 crore in September 2022 to Rs 1,47,081 crore in September 2024." msid="115250619" hostid="261" sizebytes="118350" caption="&amp;lt;p&amp;gt;Data from RBI suggests that the outstanding amount on gold loans has swelled from Rs 85,009 crore in September 2022 to Rs 1,47,081 crore in September 2024.&amp;lt;/p&amp;gt;"></div> “Ye le beta, humare khaandani sone ke gehne. Ise girvi rakhva de, shayad kuch paise aa jaye ghar main.” How many times have we seen similar dialogues repeat itself in Bollywood films of the 70s and 80s—abject poverty and a frail-looking old mother pleading to her son to pawn the family’s heirloom <keyword id="18712" type="General" weightage="20" keywordseo="gold" source="Orion">gold</keyword> ornaments to a jeweller, all to get a few bucks? Well, if you’d ask that son in 2024, he’d rather hit the loan button on his <keyword id="19977340" type="General" weightage="20" keywordseo="demat" source="keywords">Demat</keyword> account than pawn his mother’s gold jewellery. Given how Indians are rapidly resorting to taking loans against their investments in shares and mutual funds, these might as well be a cherished family heirloom in today’s time. Fair warning though; it's not as if gold and loans against it are going down in India’s lending scene. It's very much the opposite, shining brighter than ever! The secured loan category is having its time in the spotlight, and people are certainly looking beyond land and property to get their hands on some extra monies! But what is funding the steep rise behind these loans? And are they as failsafe and secure as they’re made out to be? We decode for you in this week’s Simply Put. <h2>The great Indian pawning party</h2>Pawning one’s gold has been, by far, the OG Indian financial move to get a loan. That continues well into 2024, and apparently, more so when India decides to wed and celebrate! Data from <keyword id="19899808" type="General" weightage="20" keywordseo="rbi" source="keywords">RBI</keyword> suggests that the outstanding amount on gold loans has swelled from Rs 85,009 crore in September 2022 to Rs 1,47,081 crore in September 2024. It looks like Gold took the motto of rise and shine too seriously! Table 1: Growth in gold loans <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Year </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Amount (In Rs crore) </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">September 2022 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">85,009 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">March 2023 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">89,370 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">September 2023 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">97,426 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">March 2024 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1,02,562 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">September 2024 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1,47,081 </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table> Source: RBI data While the world continues to be riled up in multiple geopolitical crises in 2024, gold has been making merry of these tough times. Thus far this year, domestic gold prices have grown by 23%, outperforming benchmark indices like Nifty and Sensex by a mile, which have gone up by 9.85% and 8.86%, respectively. The growth in gold loan disbursal rates month on month this year could also put Nifty and Sensex’s growth to shame. In just September 2024, gold loans grew an astounding 51%, up from 40.9% in August, 30.5% in June, and just 14.8% in March. <h2>Hey, wait up for me, says <keyword id="23953567" type="General" weightage="20" keywordseo="las" source="keywords">LAS</keyword></h2>In lockstep with the elder, gold loan sibling, advances against shares and bonds have also been inching up since 2022. Data from RBI (Reserve Bank of India) notes that as of September 2022, the outstanding quantum of loans that were taken against shares (LAS) and bonds stood at Rs 7,397.94 crores. This inched up to Rs 7,764 crore in September 2023. Come 2024, and it looked like this was LAS’ time to shine. Loans swiftly skyrocketed, with outstanding loans in this category going up from Rs 8,492 crore in March 2022 to a staggering Rs 9,546 crore at the end of September 2024. Naturally, the smoke of LAS has its fire in the record inflows that Indians are pouring into the stock market and mutual funds month on month. Per AMFI (<keyword id="20090034" type="General" weightage="20" keywordseo="association-of-mutual-funds" source="keywords">Association of Mutual Funds</keyword> in India), the net AUM (assets under management) of India’s mutual fund industry grew to Rs 67,25,614.61 crores in October 2024, up from Rs 67,09,259.24 crores in September 2024. Even the number of retail mutual fund folios, which include equity, hybrid, and solution-oriented mutual funds, burgeoned to 17,23,52,296 in October, as compared to 16,81,61,366 in September. The same goes for stock investments in India, where the number of new demat accounts that are added every month just simply refuses to climb down. As of last month, total demat accounts in the country stood at 17.9 crore, which is more than the entire population of full-fledged nations like Japan (12.45 crore), Russia (14.38 crore), and Bangladesh (17.3 crore). In fact, since February this year, the monthly growth of LAS has been hitting double digits. From 11.3% in March to 21.6% in May to 26.8% in August, growth in LAS has been exceptional, hitting 22.9% in September this year. For context, monthly growth in the LAS segment was at a mere 5% in September 2023. <h2>What's driving the growth?</h2>It's a win-win for both the bank and the customer. Customers love them because LAS is available at a lower interest rate compared to unsecured personal loans. You can get a loan at an interest rate of anywhere between 9 and 12% by pledging your gold, MF units, or shares. Compare this to over 10-28% rates, which is the range where unsecured personal loans charge interest. Banks love <keyword id="827883" type="General" weightage="100" keywordseo="secured-loans" source="Orion">secured loans</keyword> since they are well-secured. In case you default on paying back, the bank can sell off your gold, shares, or mutual fund units to recover the amount. This takes a lot of stress off the banks, which are already dealing with secured loans’ riskier sibling-unsecured lending. High NPAs (non-performing assets) and non-payments in the unsecured borrowing space have already put RBI on red alert, which is why the apex bank is tightening the screws on unsecured lending, which was well on its way to becoming a ticking time bomb. As a result, credit growth has moderated to 12.8% YoY in October, as against the 19.3% rise recorded in the year-ago period. Yet it's not like the banks won't feel the heat. Analysts at Nomura note that personal loan delinquencies in India that have been overdue by over 90 days rose to 5.1% in the last financial year, as opposed to just 3.9% in the year prior. <h2>How does it work?</h2>Both these loans work on a similar principle: Your loan amount is equal to a certain percentage of the actual market value of your asset. This is known as the <keyword id="20051485" type="General" weightage="20" keywordseo="ltv" source="keywords">LTV</keyword> (loan-to-value ratio). In the case of gold and debt mutual funds, RBI mandates that this LTV be about 75-80%. So, for every Rs 100 of gold or debt mutual fund unit you pledge, your maximum loan amount cannot exceed Rs 80. If you pledge gold, which has a market value of Rs 10 lakh, you can take a loan of up to Rs 8,00,000. In the case of shares and mutual fund units, this limit is set at 50%. So, your shares worth Rs 5,00,000 can only get you a loan worth Rs 2,50,000. But the bright side? You can continue earning returns on your investments and pay interest only on the amount you use, since this loan works as an overdraft facility. <h2>Super safe, you say?</h2>Interest rates on both of these loans are very much dependent on the market value of the asset, which wildly fluctuates on a day-to-day basis. So, in case the value of your asset falls, you’ll have to keep a margin or more of the same asset in order to continue with the loan and maintain the LTV balance. Failure to do so could mean the bank can even sell off your asset. Says financial planner Nema Chaya Buch. “Yes, LAS offers easy availability of funds since these loans come with a lower interest rate as compared to personal loans. Also, you continue to earn average returns of 10–13% on your equity investments. But the downside is, in case of emergency, those pledged securities cannot be sold. Also, if the equity market goes down, then the bank may ask for additional collateral. Raghvendra Nath, MD, Ladderup Wealth Management notes that taking a LAS is best when the value of your securities has appreciated significantly. “This allows you to maximize the loan amount based on your collateral while also addressing financial needs without having to liquidate your investment portfolio. However, there are notable disadvantages to consider. The market risk is significant; a substantial decline in market value could lead to margin calls, which may incur fees and charges if there are delays or prepayments, ultimately increasing the effective cost of borrowing. Furthermore, failure to make timely payments could result in the loss of your assets.”. Umesh Mohanan, ED &amp; CEO, of Indel Money, cautions that one should have a sufficient quantity of gold to get the loan amount one wants. "According to the current RBI rules, the loan applicant/borrower can draw up to 75% of the total market value of the collateral/gold jewellery. So, always carry a sufficient quantity of gold based on one’s loan requirement. “The most important thing is that the valuation of the gold depends on the purity of the gold. If the borrower pledges gold with higher purity, such as 24 carats or 22 carats, he will get the maximum loan amount," he adds.

Simply Put: Secured Loans 2.0 — why more and more Indians are turning to gold, shares and mutual funds to get loans

<ul class="summary-list"><li>Metro areas in Florida and Texas are notching record rent declines, according to Redfin.</li><li>Construction in both states spiked amid a pandemic demand frenzy, contributing to the ongoing declines.</li></ul>Metro areas in Florida and Texas are seeing rent declines as landlords struggle to fill newly built units, <a target="_blank" href="https://www.redfin.com/news/rents-fall-in-florida-austin-june-2024/">Redfin</a> reported.During COVID, an overload of pandemic demand burdened housing and rental markets in both states, triggering a wave of construction. But with demand now falling away, rental companies have been left with too many apartments.In Florida, the city of Jacksonville notched its biggest asking rent decline since 2019, dropping 12.4% in June on an annual basis. Tampa notched a 6% drop, Redfin said, marking its largest decline on record.Orlando and Miami also joined the trend, with rent falling 4.8% and 3.8%, respectively.For Texas, Austin was the standout metro. The city's median asking rent dropped a record 12.6% year-over-year, the biggest decrease of all 33 metros tracked by Redfin.Both states continue to be the country's leading building permitters. Between 2021 and 2023, Austin issued the most multifamily building permits per 10,000 people in the entire US, the report said."With so much supply on the market, renters may be able to get concessions like free parking or discounted rent," Redfin senior economist Sheharyar Bokhari said in the report.Meanwhile, the national median asking rent reached a two-year high — in June, it rose 0.7% on an annual basis, reaching an average of $1,654.The largest rent hikes are hitting the Midwest and Northeast, given that these regions are not building apartments at the same pace as other parts of the country.In some ways, the sharp declines seen in Florida and Texas are corrections from rent highs seen during the pandemic, Redfin suggested. For instance, heavy demand caused Tampa's rent appreciation to more than double national growth in 2022.Redfin previously reported that this has impacted the housing market in both states as well, as COVID-era prices have fenced off many would-be homebuyers. Most metros with <a target="_blank" href="https://www.businessinsider.com/falling-home-price-locations-us-housing-market-supply-florida-texas-2024-4">falling home prices were located in Florida and Texas</a>, Redfin found in April.Pushing demand out are rising insurance costs as well. In a spring survey, the firm found that close to three-quarters of Florida homeowners faced climbing insurance costs, given increasing risk of climate damage.In fact, <a target="_blank" href="http://Realtor.com">Realtor.com</a> found that this was a problem shared among <a target="_blank" href="https://www.businessinsider.com/cold-housing-market-deals-bargains-florida-texas-louisiana-homebuyer-inventory-2024-6">Florida, Texas, and even Louisiana</a>. Markets in these states are the nation's "coldest," the agency wrote last month.

These 2 states are seeing record rent declines even as prices rise nationally

The unsung warriors of 'The Price Is Right'

<ul class="summary-list"><li>While Democrats touted job growth under Biden, Trump won over voters facing high prices.</li><li>A BI analysis found real wages declined in states that had the biggest swings toward Trump.</li></ul>High prices dominated voters' minds this election cycle — and they likely played a key role in handing <a target="_blank" href="https://www.businessinsider.com/donald-trump-wins-presidential-election-race-2024-11">President-elect Donald Trump</a> his victory.On the campaign trail, Trump clashed with President Joe Biden and Vice President Kamala Harris over their <a target="_blank" href="https://www.businessinsider.com/what-us-economy-would-look-like-with-trump-biden-presidency-2024-5">handling of the economy</a>.<a target="_blank" class="" href="https://fred.stlouisfed.org/series/UNRATE">Unemployment</a> sharply fell during the first year of Biden's term and has remained low. Biden <a target="_blank" href="https://www.whitehouse.gov/briefing-room/statements-releases/2024/11/01/statement-from-president-joe-biden-on-the-october-2024-jobs-report/">oversaw the creation of 16 million new jobs</a> during his term as of October, and his administration frequently touted that growth.But <a target="_blank" href="https://www.businessinsider.com/personal-finance/investing/what-is-inflation">inflation</a> also spiked during the early years of Biden's presidency, before its pace gradually slowed, creeping toward the Federal Reserve's 2% target.Trump told voters he would provide relief to their wallets across the board, from groceries to housing."I am promising low taxes, low regulations, low energy costs, low interest rates, secure borders, low, low, low crime and surging incomes for citizens of every race, religion, color, and creed," Trump <a target="_blank" class="" href="https://www.c-span.org/video/?538141-1/president-trump-remarks-economic-club-york">said</a> during remarks in September. "My plan will rapidly defeat inflation, quickly bring down prices, and reignite explosive economic growth."That promise resonated: Real, or inflation-adjusted, wage growth — or lack thereof — across the country shows a possible reason why.Many states where Trump most improved his margins saw large declines in real wages under Biden. Increases in wages were more than offset by higher living costs in these states.Counties with higher costs of living also voted for Trump more than they did in 2020.<h2 id="592a8bc6-249e-4af5-904c-d806f3ba6a2f">How Trump won on prices</h2>Business Insider looked at how average hourly earnings for private employees have changed in each state from January 2021, when Biden took office, to this past September. BI adjusted 2021 amounts using <a target="_blank" class="" href="https://www.bls.gov/cpi/regional-resources.htm">Census-division-level inflation</a> to understand how much real wages have changed across the US. Rhode Island had the highest real wage growth, just one of around a dozen states that saw an increase.Using the <a target="_blank" class="" href="https://www.nytimes.com/interactive/2020/11/03/us/elections/results-president.html">2020</a> and <a target="_blank" class="" href="https://www.nytimes.com/interactive/2024/11/05/us/elections/results-president.html">2024</a> share of Trump votes by state reported by The New York Times, BI found that states with bigger real wage drops tended to have bigger shifts to Trump than other states.Some of the biggest swings came in heavily blue, expensive states. New York, which saw an 8.3% real wage decline and which has a high cost of living, also had a 6.5 percentage point increase in Trump's vote share from 2020 to 2024. Maryland, which saw an 11.2% real wage decline, swung toward Trump in 2024 by 5 percentage points.The nation's capital was an outlier. Real wages massively fell in <a target="_blank" class="" href="https://www.bea.gov/news/2023/real-personal-consumption-expenditures-state-and-real-personal-income-state-and">costly</a> Washington, DC; even before adjusting for inflation wages were roughly flat. While Trump did see a small uptick in the share of DC votes for him in 2024, it was one of the lowest percentage point increases based on BI's analysis.The cost of living and unemployment levels also factored into voters' feelings as they headed to the polls. Jed Kolko, an economist who served in the Biden administration, <a target="_blank" href="https://www.slowboring.com/p/breaking-down-the-election-results">wrote</a> in Matthew Yglesias' "Slow Boring" column that higher unemployment levels in US counties over the past year matched a swing in county votes toward Trump.The same goes with the cost of living: "Counties with a higher cost of living swung more toward Trump in 2024 relative to 2020. Expensive counties tend to be blue places like big coastal cities; Harris won most of these pricey counties, but by a smaller margin than Biden did in 2020, when controlling for demographics, education, and density," Kolko wrote.Kolko also found that local job growth did not have a significant relationship to voting patterns, while local federal spending from Biden's signature infrastructure and industrial investment programs did not appear to impact county election results either.Some experts have said that Trump's tariff policies would <a target="_blank" href="https://www.businessinsider.com/trump-tariffs-higher-inflation-fed-interest-rates-taxes-mortgage-rates-2024-11">stoke inflation and raise consumer prices</a>. Trump has instead argued that his policies would help with costs, promising voters they will see improvements once he takes office."Prices will come down," Trump <a target="_blank" href="https://www.cnn.com/2024/08/20/business/trump-inflation-prices-deflation/index.html">said</a> during an August speech. "You just watch: They'll come down, and they'll come down fast, not only with insurance, with everything."

Democrats wished the election was about jobs. Trump's win showed it was about prices.

<ul class="summary-list"><li>The construction industry is facing a labor shortage of about 500,000 workers this year.</li><li>The worker shortage is pushing up housing costs amid a national housing shortage. </li></ul>When the pandemic hit the US in the spring of 2020, <a target="_blank" href="https://www.businessinsider.com/housing-market-recovery-mortgage-rates-outlook-inventory-construction-demand-nahb-2024-1">construction</a> projects of all kinds froze and workers were <a target="_blank" href="https://www.cpwr.com/wp-content/uploads/DataBulletin-July2020.pdf">laid off in huge numbers</a>. But as remote work took hold and many sought larger homes, demand for new residential construction quickly picked up and workers were back on the job.That momentum has kept up. Over the last four years, the industry has seen a surge in demand for labor amid <a target="_blank" href="https://www.jchs.harvard.edu/blog/estimating-national-housing-shortfall">a nationwide shortage of housing</a> and a surge in new government funding for <a target="_blank" href="https://www.businessinsider.com/biden-laws-us-infrastructure-invest-funding-2024-3">major infrastructure projects</a>. This year, the construction industry is short about 500,000 workers — and that's "on top of the normal pace of hiring," <a target="_blank" href="https://www.abc.org/News-Media/News-Releases/abc-2024-construction-workforce-shortage-tops-half-a-million">according to</a> a January 2024 news release from the trade group Associated Builders and Contractors. The worker shortage is now the biggest issue builders are facing, experts say."Contractors do tell me that finding workers is their number one problem," Ken Simonson, chief economist at the Associated General Contractors of America, told Business Insider.While the rising cost of housing is in large part a result of <a target="_blank" href="https://www.aeaweb.org/articles?id=10.1257/jep.32.1.3">restrictive zoning laws and building regulations</a>, the construction worker shortage is also pushing up home costs. Fewer construction workers means less — and slower — residential construction, which in turn leads to higher home prices, <a target="_blank" href="https://www.haas.berkeley.edu/wp-content/uploads/Howard_Wang_Zhang_Housing-Supply-and-Construction-Labor-Dayin-Zhang.pdf?ref=thebuildersdaily.com#:~:text=We%20show%20that%20negative%20shocks,2019%2C%20Freddie%20Mac%202017).">according to a 2023 report</a> from researchers at the University of Utah and the University of Wisconsin-Madison."It boils down to that age-old supply and demand in the sense of if there are fewer workers to work on the projects, that's going to elongate the project, the completion, that's going to increase the cost of the project itself," Kit Dickinson, an industry executive at ADP — a human capital management solutions provider — told Business Insider. "Conversely, that creates a great demand for these workers, which can command a higher wage."Builders and infrastructure projects are in desperate need of all kinds of construction workers, but especially skilled tradespeople. Dickinson said there aren't enough plumbers, pipefitters, or people in other trades to meet growing demand.Demand for workers is only expected to rise with the construction of major infrastructure and clean energy projects — in part funded by big federal packages, including the <a target="_blank" href="https://www.businessinsider.com/whats-in-the-infrastructure-bill-amtrak-clean-energy-2021-7">Infrastructure Investment and Jobs Act of 2021</a>, the <a target="_blank" href="https://www.businessinsider.com/house-passes-inflation-reduction-act-sending-it-to-biden-2022-8">Inflation Reduction Act of 2022</a>, and the <a target="_blank" href="https://www.businessinsider.com/chips-act-bill-to-boost-us-chipmaking-competition-with-china-2022-7">CHIPS and Science Act of 2022</a>. Ben Brubeck, vice president of regulatory, labor and state affairs at Associated Builders and Contractors, said the US will see an uptick in demand for skilled tradespeople for these "mega" projects, "not only in their initial construction but also in their operation and maintenance," he added.<h2>Growing the workforce</h2>Both short- and long-term solutions to the worker shortage are key."I think the construction industry has long been saying our workforce is rapidly retiring, and it needs to be replenished," Maja Rosenquist, senior vice president of builder and development company Mortenson, told Business Insider. "We need to be as inclusive as possible to make sure that we've got the right workforce in the future."Simonson said that allowing more <a target="_blank" href="https://www.businessinsider.com/typical-immigrant-united-states-jobs-construction-food-services-florida-california-2024-4">immigrants</a> into the country <a target="_blank" href="https://www.cnn.com/2024/03/21/business/construction-industry-needs-immigrant-workers/index.html">to fill construction jobs</a> is crucial. But the US also needs to create a stronger pipeline of young people interested in pursuing construction as a career, he said. This will require more funding from the federal government, he said, but also more local support."It really also comes down to state and local school district policies and individual guidance counselors, teachers and parents to get the message to kids that there are lucrative, rewarding — both financially and in satisfaction — careers in construction," Simonson said.Brubeck said his organization is trying to promote the trades as a path into the middle class, and potentially to owning a business, as many tradespeople ultimately run their own operations. "We think it's sort of the best-kept secret, the fact that you can earn while you learn. You don't get in this college debt cycle," he said. "And you've got a job ready for you basically right away."The increasing use of technology in construction could also be a draw for younger generations."There's a stronger technology element that people might not be initially aware of and come to understand that construction is a very high-tech industry," Dickinson said, noting the use of technology from the work site to the construction office.That even includes usage of AI, "to help with planning and bidding on future projects, as well as executing projects," Dickinson said.Highlighting the diverse work opportunities in construction could also be helpful for employers and builders looking to increase employment.Rosenquist said it's an "amazing industry in terms of you can pretty much do anything you want to in this industry.""But I think the general population when they think about, oh, my kids going into construction just has this vision of a hard hat and holding a sign," Rosenquist said.President Joe Biden is <a target="_blank" href="https://apnews.com/article/joe-biden-union-endorsement-651dd9dd2eb8e16ab898366e9501dc4e">relying on union support</a> in his re-election campaign and is widely viewed as the <a target="_blank" href="https://www.newyorker.com/news/daily-comment/biden-is-the-most-pro-labor-president-since-fdr-will-it-matter-in-november">most pro-union president</a> since Franklin D. Roosevelt."These are relatively good jobs, especially if they're jobs with unions," Heather Boushey, a member of the president's Council of Economic Advisers and chief economist for Investing in America, told Business Insider in 2023 about construction jobs. "If they're represented by a union, people can know that their safety issues are being focused on by the union and the like."Some experts say the federal government is overly concerned with prioritizing union labor, which makes up a small fraction of the broader construction workforce. By <a target="_blank" href="https://www.whitehouse.gov/omb/briefing-room/2023/12/18/fact-sheet-biden-harris-administration-announces-action-to-support-economic-and-efficient-construction-projects-while-creating-good-paying-and-union-jobs/">requiring union workers</a> for most large federal government-funded projects, "the Biden administration is actually exacerbating the skilled labor shortage that we have because there just isn't enough union labor to do this work," Brubeck said.<h2>Making the industry more appealing to women</h2>Boushey pointed out that the share of women in the overall construction industry has climbed. Experts find attracting more women needs to be a priority in construction.To do so, that would include more accommodations, which Dickinson said "whether it's nursing stations at the job site or daycare, to making the equipment more tailored to different genders and body types as opposed to a one-size-fits-all."Rosenquist said that she's encouraged by the future of prefabricated construction, which could be more attractive to women."Maybe they're going to the same manufacturing facility every single day for five years versus being on a job site where they're changing locations every five months," Rosenquist said.But the construction industry has lost some of its edge as compensation in other industries, including restaurants and hospitality, <a target="_blank" href="https://stateline.org/2024/01/09/hospitality-workers-wages-are-rising-faster-than-high-earners-in-most-states/">has risen</a>, and remote and hybrid jobs offer cushier, more flexible alternatives, Simonson said. The construction industry is also at a disadvantage because most workers can't do manual labor until they retire."I worry that construction is going to keep losing out on workers or have to raise pay even more than the 5% increase that we've seen for the last three years," he said.What is it like working a construction job or dealing with a construction worker shortage in the US? Reach out to these reporters to share at <a target="_blank" href="mailto:mhoff@businessinsider.com">mhoff@businessinsider.com</a> and <a target="_blank" href="mailto:erelman@businessinsider.com">erelman@businessinsider.com</a>.

A national shortage of construction workers is driving high home prices. The industry is struggling to fill the gap.

<ul class="summary-list"><li>As fears over economic volatility and deficits grow, investors and central banks are buying gold.</li><li>Gold is often seen as a safe-haven asset among investors.</li></ul>Now is looking like a golden opportunity to <a target="_blank" class="" href="https://www.businessinsider.com/personal-finance/investing/how-to-invest-in-gold">invest in gold</a>.For decades, the yellow metal has been considered a safe-haven asset, serving as a hedge against high inflation and economic uncertainty due to its low correlation to stocks and bonds.And there's certainly no shortage of economic uncertainty right now. The US presidential election is right around the corner, inflation concerns remain elevated, geopolitical tensions are high, and the US national debt is reaching untenable levels.Investors and central banks alike have been snatching up gold. The asset's price hit another record high earlier this week at $2,739.40 per ounce after rising over 30% this year, and some analysts are setting a price target of $3,000.Investing in gold is slightly different from putting money into stocks or bonds. Below, two gold experts share four ways investors can add gold to their portfolios.<h2 id="f6498d65-9f43-415b-a374-53643e6db3e3">4 ways to invest in gold</h2>For starters, investors can purchase the metal directly.You can buy gold coins online. You can buy gold bars at Costco. Those strip mall stores with a big "We Buy Gold" sign? You can buy gold there, too.Buying the physical commodity is a tangible way to invest in gold, but it does have some drawbacks. Jeff Muhlenkamp, portfolio manager at Muhlenkamp &amp; Company, points out that there are transaction costs when buying directly from a gold dealer. The investor also has to ensure the gold is certified regarding purity and weight. Buyers must also consider secure storage solutions and insurance for their physical assets.In general, physical gold is a less liquid way to own the asset and is quite costly. "Most of the time when people go and buy gold coins, they'll pay a big premium upfront, and they'll probably suffer a discount when they come to sell at the end," George Milling-Stanley, chief gold strategist at State Street Global Advisors, said.Investors can avoid the complications of investing in bars and coins by buying a gold ETF instead.Physical gold ETFs can be bought through a brokerage account and are directly backed by gold bullion held in bank vaults, meaning that investors don't have to worry about storage or liquidity issues. Examples include the iShares Gold Trust fund (<a target="_blank" href="https://markets.businessinsider.com/etfs/ishares-gold-trust-us4642852044?miRedirects=1">IAU</a>) and the SPDR Gold Shares fund (<a target="_blank" href="https://markets.businessinsider.com/etfs/spdr-gold-shares-us78463v1070?miRedirects=1">GLD</a>).Synthetic gold ETFs don't hold physical gold, investing instead in gold derivatives such as futures and options. These ETFs can be cheaper than physically backed ones since they don't need to store the metal, but they have counterparty risk, or the risk of loss from a contract participant not fulfilling their obligation. Examples include the SPDR Gold MiniShares Trust (<a target="_blank" href="https://markets.businessinsider.com/etfs/spdr-gold-minishares-us98149e3036?miRedirects=1">GLDM</a>) and the ProShares Ultra Gold fund (<a target="_blank" href="https://markets.businessinsider.com/etfs/proshares-ultra-gold-us74347w6012?miRedirects=2">UGL</a>).For investors who want to get as close to the real thing without buying bars, physical gold ETFs tend to track changes in the price of gold more accurately than synthetic ones, Muhlenkamp said.Mining companies are another option for more indirect exposure. These can vary wildly in risk, so Milling-Stanley advises that investors approach these stocks with discretion. The multi-billion-dollar market-cap mining companies offer the most liquidity and stable business models. Smaller mining companies, known as junior miners, are in the exploration phase of looking for mineral deposits and might not be generating revenues, Muhlenkamp said.Mining stocks are less directly correlated with the price of gold than ETFs and may lag trends in gold prices by several months, Muhlenkamp said.In Milling-Stanley's opinion, investing in mining stocks instead of directly investing in gold erodes some of the metal's portfolio protection, as mining stocks behave more in line with the general equity market.This area of investment is definitely higher in risk, but if enthusiasm for gold continues to surge, more speculative mining stocks will enjoy the biggest upside, according to Muhlenkamp.Examples of mining stocks include Agnico-Eagle Mines (<a target="_blank" href="https://markets.businessinsider.com/stocks/aem-stock">AEM</a>) and Newmont Mining Corp (<a target="_blank" href="https://markets.businessinsider.com/stocks/nem-stock">NEM</a>).Gold royalty and streaming companies are yet another way to add gold to a portfolio. These companies finance gold mines and receive a percentage of the gold produced.Royalties limit the holder's exposure to the risks associated with directly investing in mines, such as exploration, development, and regulatory compliance. Royalty and streaming companies are a good way to gain exposure to junior mines but still retain liquidity, especially for investors who don't have the ability or resources to conduct due diligence, Muhlenkamp said.Examples of gold royalty companies include Franco-Nevada (<a target="_blank" href="https://markets.businessinsider.com/stocks/fnv-stock">FNV</a>) and Wheaton Precious Metals (<a target="_blank" href="https://markets.businessinsider.com/stocks/wpm-stock">WPM</a>).

4 ways to add gold to your portfolio as investors pile in and send prices to record highs  

<ul><li><keyword id="361005" type="COMPANY" weightage="20" keywordseo="Barbeque-Nation">Barbeque Nation</keyword>'s share price has jumped by 20% after the casual dining chain announced its fourth-quarter results on May 24.</li><li>Investors can still sell their shares at the upper limit of ₹ 767.50.</li><li>The casual dining restaurant chain plans to open up 20 outlets in the ongoing financial year and double down on its delivery business as well.</li></ul> Barbeque Nation’s share price jumped by 20% on May 25 and hit the upper circuit on Indian stock exchanges, the <keyword id="43628" type="COMPANY" weightage="20" keywordseo="Bombay-stock-exchange">Bombay Stock Exchange</keyword> (<keyword id="35140" type="COMPANY" weightage="20" keywordseo="BSE">BSE</keyword>) and the <keyword id="53581" type="COMPANY" weightage="20" keywordseo="NATIONAL-STOCK-EXCHANGE">National Stock Exchange</keyword> (<keyword id="6354646" type="COMPANY" weightage="20" keywordseo="nse">NSE</keyword>). <div type="image" title="bbq nation share price" msid="82936010" hostid="261" caption="&amp;lt;p&amp;gt;Barbeque Nation&amp;#39;s share price since the launch of its IPO&amp;lt;/p&amp;gt;"></div> After hitting the 20% upper limit of ₹ 767.50, the share price dropped after sellers came into the picture to book their profits. Between the 20% limit, upper and lower, investors can continue to trade. <div type="Article" hostid="261" msid="82934949" title="Barbeque Nation plans to open 20 new stores in the middle of a pandemic hoping for a bargain" mstype="2" mssubtype="0"></div> The jump in the restaurant franchise’s share price comes after one day after it posted its fourth-quarter earnings, which put the company back in the green. After reporting a loss since the first quarter of the financial year, due to the impact of the pandemic, Barbeque Nation nation posted a profit of ₹64.06 crore. Alongside profit, the company’s revenue also grew 18.5% as compared to the same quarter last year. And its earnings before interest, taxes, depreciation, and amortisation (EBITDA) has more than doubled to ₹56.1 crore. According to the management, the addition of the delivery vertical to its business has opened up a new market of customers. Those who wouldn’t normally come to dine in restaurants now have access to Barbeque Nation’s food, at reasonable prices, at home. And the company's ‘Barbeque in a Box’ offering has been one of the growth drivers in the delivery segment. The casual dining restaurant chain plans to open up 20 outlets in the ongoing financial year and double down on its delivery business as well. SEE ALSO: <a href="https://www.businessinsider.in/tech/apps/news/whatsapp-says-it-will-wait-for-the-indian-government-to-pass-the-personal-data-protection-law-before-limiting-features/articleshow/82931362.cms">WhatsApp says it will wait for the Indian government to pass the Personal Data Protection law before limiting features</a> <a href="https://www.businessinsider.in/business/startups/news/zeta-is-indias-newest-unicorn-with-1-45-billion-valuation/articleshow/82930353.cms">This banking tech startup is the newest Indian unicorn with a $1.45 billion valuation</a>

Barbeque Nation's share price jumps 20% and gets locked in upper circuit

<keyword id="19896380" type="General" weightage="20" keywordseo="Reliance-Industries" source="keywords">Reliance Industries</keyword>' 2024 annual report revealed that <keyword id="20671686" type="General" weightage="100" keywordseo="JioBharat" source="keywords">JioBharat</keyword>, an affordable keypad smartphone, has achieved an impressive 50 per cent <keyword id="20038792" type="General" weightage="20" keywordseo="market-share" source="keywords">market share</keyword> in the <keyword id="3342432" type="General" weightage="20" keywordseo="sub-rs-1" source="Orion">sub-Rs 1</keyword>,000 segment. Launched with the mission to empower every Indian with digital services, JioBharat has marked a significant step towards digital freedom for the 250 million feature phone users in India, bridging the digital divide like never before. Since its launch a year ago, JioBharat has been transforming lives by offering features and digital capabilities such as UPI, JioCinema, and JioTV, enabling various segments of society to achieve more. This affordable device not only empowers users with smartphone capabilities but also provides high-quality and affordable data, making it accessible to the common people. Despite the recent industry-wide tariff increases, <keyword id="2003276" type="General" weightage="20" keywordseo="Jio" source="Orion">Jio</keyword> has maintained consistent pricing for JioBharat, allowing users to enjoy full digital capabilities at just Rs 123 per month. In contrast, the most affordable plans from other operators start at Rs 199 per month and enables access to limited functionality, restricted to voice and SMS services, as their feature phones do not support data or LTE usage. In his letter to shareholders, <keyword id="19916798" type="General" weightage="20" keywordseo="Mukesh-Ambani" source="keywords">Mukesh Ambani</keyword>, Chairman of Reliance Industries Ltd, stated, "The launch of the JioBharat phone is another revolutionary step towards bridging the country's digital divide. A smartphone at the price of a feature phone, the JioBharat phone will go a long way in realizing a 2G-mukt Bharat." In 2016, when Jio was launched, it left no stone unturned to democratise internet access and pass the benefits of technology to every Indian. With affordable high-speed data and a ubiquitous network, technology was no longer a privilege for a select few. The subsequent launch of affordable devices like <keyword id="22711694" type="General" weightage="20" keywordseo="jiophone" source="keywords">JioPhone</keyword> and the availability of affordable wired broadband (<keyword id="20282548" type="General" weightage="20" keywordseo="jiofiber" source="keywords">JioFiber</keyword>) has truly democratised data connectivity. "With the launch of Jio 4G in 2016, we set out on a journey to make digital inclusion in India a reality. Jio turned a Data Dark India into a Data Rich nation, supplying every Indian home with affordable, high-speed 4G data. And this year, Jio has further enhanced the country's digital infrastructure by rolling out its True5G network across India in world-record time," states Mukesh Ambani's letter to shareholders in the latest annual report released on Thursday.

JioBharat captures 50% market share in sub-Rs 1,000 segment: Reliance annual report

<keyword id="19907577" type="General" weightage="20" keywordseo="shares" source="keywords">Shares</keyword> of <keyword id="19906967" type="General" weightage="20" keywordseo="Tata-Motors" source="keywords" meta.keywordsubtype="org" meta.entityname="Tata Motors" meta.hostid="261" meta.entityid="Tata Motors">Tata Motors</keyword> slumped 4 per cent on Friday after the Mumbai-based auto major reported an 11 per cent year-on-year dip in total <keyword id="19911652" type="General" weightage="20" keywordseo="sales" source="keywords">sales</keyword> in July. The stock of the company declined 4.09 per cent to trade at Rs 1,097.65 apiece on the National Stock Exchange (NSE). On the BSE, scrip of Tata Motors dropped 3.69 per cent to trade at Rs 1,102.40 per piece. The 30-share BSE Sensex tumbled 767.65 points or 0.94 per cent to trade at 81,099.90, while NSE Nifty fell 206.70 points to 24,804.20. On Thursday, Tata Motors reported an 11 per cent year-on-year dip in total sales at 71,996 units in July. The company had sold 80,633 units in July 2023. Its total domestic sales dipped 11 per cent and stood at 70,161 units last month as against 78,844 units in the year-ago period. The auto major said its consolidated net profit increased 74 per cent to Rs 5,566 crore in the June 2024 quarter, aided by robust performance by Jaguar Land Rover as well as domestic business. It had posted a net profit of Rs 3,203 crore in the April-June quarter of last fiscal. The company's total income increased to Rs 1,09,623 crore for the period under review against Rs 1,03,597 crore in the June quarter in FY24. On a standalone basis, the automaker said its net profit stood at Rs 2,190 crore compared to a net loss of Rs 64 crore in the year-ago period. Total income rose to Rs 18,851 crore in the first quarter of the current fiscal against Rs 16,132 crore in the corresponding period of FY24. Jaguar Land Rover reported a revenue of 7.3 billion pounds, the best first-quarter revenue on record, up 5 per cent versus the June quarter of FY24. The company also said its board has approved the Scheme of Demerger of Tata Motors Ltd (TML) into two separate listed companies. As part of the scheme, TML will demerge its commercial vehicle undertaking, involving the commercial vehicle business (all the assets, liabilities and employees relating to the commercial vehicle business) and all its related investments, into TMLCV. Further, pursuant to the scheme, the existing passenger vehicle business in TMPV, will be merged into TML, the existing listed entity. Upon the scheme becoming effective, both TMLCV and TML will be renamed, resulting in two separate listed entities. SEE ALSO:<a href="https://www.businessinsider.in/stock-market/webstories/ola-electric-ipo-price-band-to-risk-factors-all-you-need-to-know/slidelist/112185870.cms" target="_blank"></a> <a href="https://www.businessinsider.in/stock-market/webstories/ola-electric-ipo-price-band-to-risk-factors-all-you-need-to-know/slidelist/112185870.cms" target="_blank">Ola Electric IPO – Price band to risk factors, all you need to know</a><a href="https://www.businessinsider.in/tech/mobile/news/nothing-phone-2a-plus-with-dimensity-7350-pro-chipset-launched-in-india-starting-at-29999/articleshow/112164963.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/mobile/news/nothing-phone-2a-plus-with-dimensity-7350-pro-chipset-launched-in-india-starting-at-29999/articleshow/112164963.cms" target="_blank">Nothing Phone (2a) Plus with Dimensity 7350 Pro chipset launched in India starting at ₹29,999</a><a href="https://www.businessinsider.in/tech/mobile/news/indian-smartphone-shipments-decline-by-2-in-q2-2024-xiaomi-retakes-the-throne/articleshow/112162312.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/mobile/news/indian-smartphone-shipments-decline-by-2-in-q2-2024-xiaomi-retakes-the-throne/articleshow/112162312.cms" target="_blank">Indian smartphone shipments decline by 2% in Q2 2024, Xiaomi retakes the throne</a>

Tata Motors shares slump 4% on poor sales data

<ul class="summary-list"><li>The recent gold rally is counterintuitive, as high interest rates typically make bullion less attractive.</li><li>But billionaire investor David Einhorn has a theory that he shared in his latest investor letter. </li></ul><a href="https://markets.businessinsider.com/commodities/gold-price">Gold</a> has had a record-setting year so far in 2024. That being said, the commodity's sudden surge may come as a surprise. That's because the macro environment was supposed to create headwinds to gold's price appreciation, as the Federal Reserve's higher-for-longer interest rate stance typically makes other investments like bonds and saving accounts more appealing compared to the metal, as it's not a yield-bearing asset. To explain the strong run for gold, billionaire investor David Einhorn offered a potential theory in his latest letter to investors published this week. "While it's possible the advance was related to the market beginning to doubt the sustainability and wisdom of both monetary and fiscal policies, other indicia suggest that this was not the case," Einhorn said in the letter.Instead, the Greenlight Capital founder said there's been a "secular trend" of the countries in the East buying gold from Western nations."Perhaps the West is running out of gold it is willing to sell, while Eastern demand has remained strong enough to force the price higher," he said in the statement. Indeed, global central banks have been racing to buy gold, snapping up over 1,000 tonnes for the past two years straight, according to data from World Gold Council — and one of the biggest buyers is China.The world's second-largest economy has been crippled by a sluggish economy for years, with an ailing property sector, a flailing stock market, and a persistently high unemployment rate. This has led its <a href="https://www.businessinsider.com/gold-price-china-consumers-central-bank-pboc-economy-concerns-dedollarization-2024-4">central bank and consumers to hoard precious metal</a> as a stable store of value and as a way for the People's Bank of China to diversify reserves away from the dollar. For 17 months straight, the PBOC has been gobbling up gold, increasing its holdings by 16% in that time.The World Gold Council reveals India and Singapore have also been scooping up gold to hedge against global economic turbulence.Gold's soaring demand is turbocharging its prices, with economists predicting the rally to rocket even higher as geopolitical uncertainties and macro hurdles like inflation fuel more gains. Top economist <a href="https://markets.businessinsider.com/news/commodities/gold-price-forecast-outlook-spot-fed-interest-rate-cut-rosenberg-2024-4?_gl=1*1lmouos*_ga*MzM4NjQ0MzYuMTcxMTQxNzkzMQ..*_ga_E21CV80ZCZ*MTcxNDEzNzQ0My4yMTcuMS4xNzE0MTQ2NDM0LjM0LjAuMA..">David Rosenberg</a> predicts another 15% upswing in the price of the yellow metal, with a potential 30% on the table as central banks consider rate cuts, but he emphasized that gold can rally no matter if the economy ends up having a soft landing or a deeper recession.Market guru <a href="https://markets.businessinsider.com/news/commodities/gold-price-outlook-record-2025-inflation-oil-production-us-economy-2024-4?_gl=1*192hxa1*_ga*MzM4NjQ0MzYuMTcxMTQxNzkzMQ..*_ga_E21CV80ZCZ*MTcxNDEzNzQ0My4yMTcuMS4xNzE0MTQ2ODM5LjYwLjAuMA..">Ed Yardeni</a>, meanwhile, predicts gold could surge to $3,500 by next year, hinting at a potential 50% upside. He draws parallels to the 1970s Great Inflation era, suggesting current inflation trends could propel gold to new heights. Others, like billionaire investor Ray Dalio, say gold can <a href="https://markets.businessinsider.com/news/commodities/ray-dalio-portfolio-gold-price-debt-inflation-us-economy-outlook-2024-4?_gl=1*1uyn5m2*_ga*MzM4NjQ0MzYuMTcxMTQxNzkzMQ..*_ga_E21CV80ZCZ*MTcxNDEzNzQ0My4yMTcuMS4xNzE0MTQ2OTk0LjU5LjAuMA..">hedge risks stemming from high government debt levels</a>. In a recent post, he said he's owning gold because the risk of a debt or an inflation crisis is rising.

Billionaire investor David Einhorn shares an overlooked theory for why gold prices have spiked so much

<ul><li>Barbeque Nation is looking to raise ₹180 crore from the public markets by selling 54.5 lakh shares.</li><li>As of November 2020, the company’s net debt was ₹148 crore.</li><li>In an interview with Business Insider ahead of the IPO, the company’s chief executive officer Rahul Agrawal shares how Barbeque Nation survived the COVID-19 pandemic, its new delivery business and their growth plans.</li></ul>Indian casual dining chain Barbeque Nation Hospitality has finally made its way to the public markets, after a failed attempt at it over three years ago. The company, which operates the Indian restaurant chain Barbeque Nation and Italian chain Toscano, is looking to raise ₹180 crore from fresh issue of shares and an offer for sale up to 54.5 lakh shares. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Issue opens </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">March 24 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Issue closes </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">March 26 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Price band </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹498-500 per share </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Market lot </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">30 shares </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Minimum order value </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹15,000 </td></tr></tbody></table> In an interview with Business Insider ahead of the IPO, the company’s chief executive officer Rahul Agrawal shares how Barbeque Nation survived the COVID-19 pandemic, its new delivery business and their growth plans. Agrawal said that they have been ‘unlucky with the way they filed the IPO’. “We filed our papers in February 2020, and COVID-19 happened right after that,” he said. The company, which had initially got an approval to raise ₹1100 crore, has now cut it short drastically to ₹180 crore. The company hopes to raise ₹453 crore at the upper end of the price band. “Later on, some investors weren’t keen to exit, that's why the IPO size got reduced. We also raised a pre-IPO round that’s how the primary component came down,” said Agrawal. Barbeque Nation in a pre-IPO round raised ₹150 crore from Xponentia Capital, founded by private equity veteran Ajay Relan, and Jubilant Foodworks, the parent company of Domino’s Pizza in India. It is also backed by CX Capital, a PE firm, and Alchemy Capital, the investment firm headed by ace stock market expert Rakesh Jhunjhunwala. “We are raising ₹180 crore, of which ₹75 crore will go in repayment of debt, ₹55 crore will go for expansion, and the balance will be for general corporate expenses,” he said. As of November 2020, the company’s net debt was ₹148 crore. <cmsannotation type="cmsannotation" annotationid="Surviving COVID-19" comment="subhead" text="Surviving COVID-19">Surviving COVID-19</cmsannotation> With the COVID-19 pandemic and the subsequent nationwide lockdown, Barbeque Nation saw its business being completely shut in April and May, last year. “Frankly, lockdown was extremely challenging. We have over 160 outlets, 8000 people, the business had some debt, which still hasn’t been repaid. I don't think anything could have gone worse,” said Agrawal. But the team was swift to jump into precautionary measures. “We were very transparent to all our stakeholders – from employees to guests. The team also went ahead and started asking for rebates, renegotiating contracts etc.,” he said. During the pandemic, Barbeque Nation managed to save 98% of its outlets. “Once the lockdown happened, we went back to our landlord partners and asked them for assistance in terms of rental waivers given the fact that it was no business time. We are happy to say that we were able to save 98% of our stores. Unfortunately, three outlets, which were at high rental places, two in Mumbai and one in Delhi had to shut down,” Kushal Budhia, head of strategy and investor relations of Barbeque Nation told Business Insider. While in April and May there was barely any business, eventually, the growth started from June and by November, their business was at 84% of last year’s November numbers. <div type="image" title="BBN new" msid="81626190" hostid="261"></div> <cmsannotation type="cmsannotation" annotationid="Diving into a new business category" comment="subhead" text="Diving into a new business category">Diving into a new business category</cmsannotation> As COVID-19 pandemic made the transition to online inevitable for all companies, Barbeque Nation, which is famous for its dine-in business, jumped into the online delivery model. The company launched a new concept of ‘Barbeque in a box’ for delivery. “The delivery business has seen good response and is growing – it does digital numbers as a proportion of revenue,” said Agrawal. “Barbeque Nation stands for value for money, service and experience. The last two components you can’t replicate in a delivery business. We thought of it differently – the largest market size is for Indian cuisine. Our thesis is very simple: the market is there, delivery is going higher. We said that don’t confuse us with giving the same experience of Barbeque Nation at home. Instead, they have been ordering Indian food, so we carried forward our value and variety concept,” he said. <cmsannotation type="cmsannotation" annotationid="Ready for troubled times ahead" comment="subhead" text="Ready for troubled times ahead">Ready for troubled times ahead</cmsannotation> As Barbeque Nation opens its doors to the public markets, there’s also the fear of another nationwide lockdown, while several cities are already subject to lockdown or night curfew. But Agrawal said that while there may be a short term disruption in business, their long term vision to grow in the Indian restaurant industry remains intact. “This will be the nature of the business going forward for at least a couple of quarters – different states will have different restrictions. In the short term, you would see business disruption. We believe that we have already gone through a strict lockdown in the past, and survived it and that will help us sail through this,” he said. As things stabilise, the company also plans to get back to its expansion plans, having gone from 80 restaurants in FY17 to over 160 restaurants now. “We will also focus majorly on the new delivery vertical,” said Agrawal. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/how-to-check-allotment-status-of-laxmi-organic-ipo/articleshow/81624672.cms">Laxmi Organic IPO allotment live – how to check allotment, listing date and more</a> <a href="https://www.businessinsider.in/stock-market/news/how-to-check-craftsman-automation-ipo-allotment-status/articleshow/81625011.cms">Craftsman Automation IPO allotment live – how to check allotment, listing date and more</a>

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