Mubadala and Warburg are eyeing a majority stake in Encube Ethicals.

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WHAT WE’RE TRACKING TODAY

Adani faces US investigation; India flags illegal Iranian oil transfers at sea

Good afternoon, readers. It’s Wednesday, and we have a busy issue with updates spanning M&A, India’s tightening digital rules, and overseas regulatory action against the Adani Group.

Mubadala, along with Warburg, is making a bid for Mumbai-based pharma firm Encube Ethicals to snap up a majority stake. In other M&A news, Germany’s Bertelsmann has acquired a majority stake in Lets Transport, while Carlyle is making moves in India’s housing finance sector.

Plus: We have an exclusive feature on the IPO-bound Practo, a healthtech startup which is rapidly expanding in the UAE.

All of that and more, below.

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Watch this space

CONGLOMERATE WATCH — Adani Enterprises, owned by India’s second-richest man, Gautam Adani, is under investigation by US authorities for potential violations of US sanctions against Iran or individuals linked to these sanctions. The company disclosed in a regulatory filing that it has received a formal request for information from the US Treasury’s Office of Foreign Assets Control (OFAC). Adani Enterprises’ subsidiaries count many Gulf SWFs as marquee investors.

What changed: This follows Adani’s voluntary discussions with OFAC, which have now led to a formal civil investigation. In June 2025, the Wall Street Journal reported that Adani-linked firms imported Iranian-origin liquefied petroleum gas through its Mundra port. While the company denied these allegations, it has received a formal data request from the US government.

Why it matters: The probe adds to sustained scrutiny of the Indian conglomerate by US authorities, which could heighten regulatory and reputational risks at a time when the group is seeking to reassure global investors and lenders about its credibility. This follows a US bribery probe into Gautam Adani.

OIL WATCH — The Indian Coast Guard said it detected and seized a network of vessels engaged in illegal ship-to-ship oil transfers in international waters, according to a statement on X by the Indian Coast Guard. Iranian media, however, reported that Indian authorities stopped and seized three Iranian oil tankers — Al Jafziya, Asphalt Star, and Stellar Ruby — in the Arabian Sea on smuggling charges.

The operation involved the movement of cheaper oil from conflict-affected regions to other tankers to evade taxes and duties payable to coastal states, according to the Indian Coast Guard. The ships were sanctioned by the US Office of Foreign Assets Control in 2025 for transporting sanctioned Iranian oil.

Why it matters: The rare seizure comes after New Delhi withdrew funding for the Chabahar Port project amid growing US pressure on Iran and its trading partners. The incident could potentially strain diplomatic ties between New Delhi and Tehran.

EXPORTS — India is reportedly stepping up government-to-government outreach to expand steel exports to the Middle East and other Asian markets, as it looks to diversify trade dominated by outflows to Europe, PTI reports, citing a senior government official.

Why the Middle East? The Middle East is being prioritized as a key market because of large infrastructure projects coming up across the region, as Europe’s carbon border adjustment mechanism and stricter import quotas could restrict India’s exports. Several agreements with Indian companies are expected in the next six months.

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Data point

INR 84.8 bn (USD 936.2 mn) — India’s tea exports hit a record in 2025, driven largely by stronger demand from MENA markets, notably Iraq and the UAE, with Iran also contributing via re-exports through the UAE, Business Standard reports.

Market mix: Shipments to Iraq increased by 30% y-o-y, while exports to the UAE rose by 16.6%. The Middle East’s markets offset weaker demand from Russia and the US. Overall, the exports market saw a 9.5% y-o-y surge to 280k tons.

PSAs

India Post and Emirates Post have adopted the Express Mail Service Standard Agreement, aimed at making shipments between the UAE and India faster and more cost-effective, India Post announced on X. The agreement will streamline express mail flows, particularly from the UAE to India.

Happening tomorrow

Samyukt Kisan Morcha (SKM), one of India’s largest farmer coalitions, will press ahead with a nationwide protest tomorrow, alleging that New Delhi has conceded too much on agriculture under an interim trade agreement with the US, Bloomberg reports. The group has called for demonstrations, including a strike tomorrow.

India agreed to cut or remove duties on select US farm products such as distillers dried grains, soybean oil, tree nuts, and fruit, according to a joint statement. This move could lower food and feed costs but raise competitive pressure on domestic farmers. “Agriculture in trade talks is a taboo. This government has broken this taboo,” SKM leader Avik Saha told Bloomberg.

Tackling conflict: The government says sensitive areas like dairy, poultry, and genetically modified crops remain excluded, but farmer groups and the opposition parties argue the framework leaves room for future concessions.

The big story abroad

Recent Wall Street gainers have one thing in common — they are not tech: Amid mounting fears that AI advancements will supersede software firms, equities of formerly disfavored sectors have risen, namely supermarkets, energy companies, and manufacturers. Investors have poured USD 62 bn into funds focused on non-tech stocks in recent weeks, outgrossing the USD 50 bn they attracted in the whole of 2025.

Brokerages were not spared: Major US brokerages were also hit by the selloff — Charles Schwab, Morgan Stanley, and Raymond James saw shares sharply drop.

MEANWHILE- US retail figures lag, raising doubts over spending: US retail sales during the December holiday season remained flat, suggesting that consumers remain held back by high living costs and a precarious job market.

Circle your calendar

MumbaiClimate Week will kick off on Tuesday, 17 February, and run through Thursday, 19 February, PTI reports. Speakers at the three-day event include India’s Foreign Minister S Jaishankar, Commerce Minister Piyush Goyal, Maharashtra Chief Minister Devendra Fadnavis, and Bill Gates, along with other business and political leaders.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays, and news triggers.

Mubadala-Warburg lead race to acquire Encube Ethicals

Abu Dhabi’s Mubadala Investment Company and US-based private equity firm Warburg Pincus have joined hands to acquire Mumbai-based Encube Ethicals. The duo has emerged as frontrunners to acquire up to 74% of Encube Ethicals, valuing the pharma company at INR 165 bn (USD 1.8 bn), The Economic Times reports. Sweden’s buyout firm EQT is the only other serious contender ahead of binding bids next week.

Why it matters: Encube’s valuation is being driven by the US BioSecure Act, which is forcing American pharma companies to decouple from Chinese manufacturers. As US regulators tighten the screws, specialized Indian players with US approved manufacturers like Encube will gain a strategic advantage over their rivals.

The details: Singapore’s private equity firm Quadria Capital, which holds a 14.9% stake, is expected to offload all of its stake. Promoters Mehul Shah and his family, who own about 84.2% of the firm, will also sell a significant portion of their holding.

Who are they? Encube, founded in 1998, is a topical-focused pharma contract manufacturer developing brands such as Soframycin. It operates three manufacturing plants in India and holds approvals from 12 global regulators, including the US Food and Drug Administration. About half its revenue comes from contract manufacturing, with the rest from the India and US markets.

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Bertelsmann takes majority stake in India’s Lets Transport

Germany-based media and services group Bertelsmann has acquired an 80% majority stake in India-based logistics technology platform Lets Transport, Reuters reports, citing the company’s CEO Carsten Coesfeld.

Gulf transactions flow: While Gulf investors accounted for the majority of MENA’s cross-border acquisitions in 2025, especially in the technology and logistics sectors, their M&A activity in India’s logistics sector has remained muted, with major firms such DP World focusing on greenfield investments.

What’s next: Bertelsmann is considering further acquisitions across Lets Transport’s supply chain, including warehouse assets, as it builds out its logistics platform.

Carlyle to buy 45% stake in Edelweiss housing finance arm

US-based private equity firm Carlyle will acquire a 45% stake in Nido Home Finance, the housing finance arm of India-based financial services group Edelweiss Financial Services, through an INR 21 bn (USD 232 mn) investment, Reuters reports. The transaction signals growing investment windows for Gulf investors in India’s financial services sector.

Following the transaction, funds affiliated with Carlyle Asia Partners will hold about 73% of Nido, which manages assets worth INR 48.04 bn. The transaction places Carlyle alongside global investors such as Blackstone and Sumitomo Mitsui Financial Group, which have been expanding their exposure to India’s housing finance sector.

(** Tap or click the headline above to read this story with all of the links to our background and outside sources.)

Practo’s UAE traction signals readiness for its global rollout

Bengaluru-based healthtech startup Practo is rapidly expanding in the UAE, using the country as a springboard to refine and scale its full-stack care platform, which it is now taking global, co-founder Siddhartha Nihalani told EnterpriseAM.

What is Practo? It is a digital platform that connects patients with doctors, hospitals, pharmacies, and diagnostic labs to book appointments, online consultations, and secondary services. Leveraging its experience in India and the Gulf, the firm launched operations in the US last month.

Existing base: Practo has operated in the UAE for over a year and has offered its Insta clinic management software services in the emirates and Saudi Arabia. The UAE rollout demonstrates the firm’s ability to thrive in mature, ins. led economies, said Nihalani.

The company has localized its platform by integrating ins. led models that dominate Dubai and Abu Dhabi, Nihalani said. The UAE is now a sustained focus market where the firm expects to continue investing in product innovation rather than treating it as a short-term experiment. In markets like Dubai, ins. strongly shapes how patients access care, making visibility into coverage a critical input for decision-making.

Practo preferred its first overseas launch in the UAE over Europe or Southeast Asia to tap into the country’s high-density urban population and its mature private healthcare infrastructure, Nihalani said. Ins. penetration and digitally fluent users made the market a natural extension of Practo’s consumer journey.

An attractive consumer market: Long-standing links between India and the UAE, through the Indian diaspora, Indian doctors, and established medical travel patterns, also shaped Practo’s market entry. The diversity of medical providers and a patient base that actively seeks clarity when navigating healthcare decisions were also deciding factors.

The firm expects to reach roughly 10% of Dubai’s population in annual usage, Nihalani said. Early consumer traction suggests the platform has found relevance. More than 31k doctors across some 3k healthcare facilities are currently discoverable on Practo in the UAE, with over 50k monthly active users.

The near-term priority is not aggressive geographic expansion but stronger engagement within the UAE, particularly across high-frequency outpatient categories such as dentistry, dermatology, general practice, gynecology, ENT, physiotherapy, and mental health.

The UAE experience has influenced how Practo approaches global rollouts. Learning from ins. visibility has sharpened Practo’s approach to compliance, partnerships, and user decision-making in developed markets, but Nihalani cautioned against drawing a direct parallel between global markets and the US. “The US strategy is shaped by 17 years of operating across diverse healthcare systems to build a new category spanning discovery, access, feedback, and care navigation at scale.”

Category adoption varies by market: In the US, early traction has been strongest in dental and mental health, whereas in the UAE, outpatient specialties dominate early usage, and in India, secondary care discovery is more mature, Nihilani told us. Over time, Practo expects these patterns to converge, with the platform serving as a single entry point for complex care journeys.

Practo remains open to strategic acquisitions and partnerships across the US and the Middle East, and it is also exploring collaborations with hospital groups and insurers to formalize care pathways. In healthcare, Nihalani argued, “partnerships can be as powerful as acquisitions in improving how patients move through the system.”

What’s next for Practo: Practo is reportedly preparing for a potential listing in 2H 2026, according to Bloomberg. However, Nihalani refrained from commenting on its listing plans.

(** Tap or click the headline above to read this story with all of the links to our background and outside sources.)

India tightens deepfake rules with three-hour takedown mandate

India has amended rules for social media platforms, requiring them to remove “unlawful content” within three hours of being notified by authorities and tightening scrutiny of deepfakes. The new rules bring deepfakes and other AI-generated impersonation content under the compliance framework, according to rules published yesterday, which will take effect on 20 February.

Why it matters: India’s increasingly stringent digital regulations require large technology companies to comply to maintain access to the world’s largest digital market. These regulations could serve as a model for MENA governments as they develop their own digital regulatory frameworks.

(** Tap or click the headline above to read this story with all of the links to our background and outside sources.)

Disclosure and labeling: Platforms that allow users to upload or share audio visual material must require users to disclose whether content is synthetically generated or AI generated. They must verify those disclosures and ensure that such content is prominently labeled. The amended rules bar certain categories of synthetic content, including “deceptive impersonation,” “non-consensual intimate imagery,” and material linked to serious crimes.

Takedown deadlines: An executive government order can determine “unlawful content” that platforms must take down within three hours, replacing an earlier 36-hour deadline. For certain urgent user complaints involving AI-generated impersonations, platforms are required to act within two hours.

Compliance burden: Platforms must deploy automated tools to verify, identify, and label deepfakes and to prevent the creation or circulation of prohibited synthetic content. Failure to comply, including when content is flagged by authorities or users, could put platforms’ safe-harbor protections under Indian law at risk.

Expert view

The three-hour takedown requirement is operationally feasible for large platforms, but will require higher investment in moderation systems, Ami Kumar, founder of Contrails AI, told EnterpriseAM. “It’s totally workable, it just requires more investment,” he said, adding that with current tools, enforcement can happen “under a second” once content has been flagged as unlawful.

Most of the technical requirements for detecting and labeling synthetic content are already mature. “For 90% of the AI generators implementation is possible and for 10% it is very difficult,” Kumar said, referring to edge cases such as re-recorded or re-captured content and outputs from new open-source models.

Counterview: “Obligations related to the use of automated tools effectively require intermediaries to actively monitor their services for any unlawful content, which risks making them the arbiters of online speech,” Shweta Venkatesan, a fellow at the Esya Centre, told us, adding that these norms could contravene the Supreme Court of India’s judgment, which held that platforms cannot determine the lawful nature of content on their services.

On the scope of the new prohibitions, the language in the rules could affect legitimate expression, Venkatesan noted. “This phrasing is broad enough to cover valuable forms of expression like satire, parody, or journalism analyzing real-world persons or events within its ambit. Thus, this prohibition may have a chilling effect on the right to freespeech,” she said.

Enforcement context: Meta restricted more than 28k pieces of content in India in 1H 2025 following government requests.

Citi names Ankur Khurana as India commercial banking head

Ankur Khurana (LinkedIn) has been appointed head of Citi Commercial Bank in India to strengthen its commercial banking franchise across Asia, Reuters reports. Khurana brings more than two decades of experience in corporate and investment banking and joins Citi from Standard Chartered, where she most recently served as managing director and co-head of client coverage for India and South Asia.

India rewrites deep-tech funding rules, eligibility window widens

India revises deep-tech funding rules, widening eligibility window

The Indian government has revised its criteria for deep-technology startups, extending the eligibility window to 20 years and introducing a new certification process for access to public funding and tax incentives, according to the Department for Promotion of Industry and Internal Trade. The revised framework applies to India-incorporated companies in areas including artificial intelligence, biotechnology, quantum computing, and advanced materials, while excluding digital platforms and consumer internet applications.

What changes: Startups with annual revenue of up to INR 3 bn will be required to undergo certification by an inter-ministerial board to be eligible for government funding programs, tax incentives, and intellectual property support under the updated rules.

MENA backdrop: While Indian startups and venture funds are increasingly using the UAE and the wider Gulf as markets for overseas expansion, the new rules by the Indian government will prove as a first vetting ground for deep tech startups seeking global capital.

ACME Solar secures 220 MW solar-storage project

Gurugram-based renewable power producer ACME Solar Holdings has secured a 220 MW solar project with battery energy storage at the Morena Solar Park in Madhya Pradesh under a tender floated by a government firm, PTI reports. The project highlights growing investment windows for Gulf investors in India’s fast-growing clean energy market.

UAE-based MS Holdings kicks off Global Capability Centre ops in Kerala

UAE-based MS Holdings has started operations at its Global Capability Centre in the southern state of Kerala, the Hindu Businessline reports. The center will support global functions including technology services and financial research and development, serving as a core hub for the group’s overseas operations.

China tells its banks to rein in holdings of US Treasuries

It may sound like a geopolitical warning shot, but China’s latest directive to curb US debt holdings is better read as a risk-management exercise. Officials in Beijing have recently issued a verbal directive to major banks to limit purchases of US government bonds and trim existing holdings to reduce concentration risk, Bloomberg reports. While the headlines echo past trade-war fears of coordinated “dump the USD,” insiders and economists say the move reflects balance-sheet housekeeping rather than geopolitical escalation.

This is likely a cleanup operation, not a strategic exit, Council on Foreign Relations Senior Fellow Brad Setser told Axios. Over the past two months, Chinese exporters sold roughly USD 100 bn per month to state-owned banks, which in turn parked much of that inflow in US Treasuries, creating a lopsided risk profile that Chinese regulators are now seeking to rebalance, Setser noted.

The move was framed around diversification rather than concerns over US creditworthiness, helping explain the muted market reaction. Treasury yields ticked slightly higher, but volatility measures are setting near five-year lows, signaling limited investor alarm.

While commercial banks clean up their books, longer-term data point to a broader shift in who holds America’s debt. China’s official Treasury holdings have fallen to USD 683 bn — their lowest level since 2008 — dropping the country to third place behind Japan and the UK.

But analysts say that this does not amount to a full retreat. Holdings in custodial accounts in Belgium — often seen as a proxy for Chinese holdings — have quadrupled since 2017 to USD 481 bn. At the same time, total foreign holdings of US treasuries climbed to a record USD 9.4 bn in November, underscoring continued global demand for USD assets.

The diplomatic backdrop reinforces the view that the financial directive is not a signal of escalating hostilities. US Treasury staff were in China last week to strengthen communication channels ahead of a planned meeting between US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, Reuters reports. Those talks are setting the stage for a potential summit between Donald Trump and Xi Jinping in Beijing as early as April.

MARKETS THIS MORNING

Markets this morning were reacting to US retail sales figures, which came in lower than expected. Meanwhile, Asia-Pacific markets appeared to be nearing the end of their almost-weeklong rally triggered by Japan’s election, posting softer gains in early trading this morning. The Nikkei was closed today as Japan celebrates National Foundation Day.

Sensex	84,211	-0.07% (YTD: -1.1%)
NIFTY 50	25,952.20	+0.07% (YTD: -0.7%)
ADX	10,630	-0.19% (YTD: +6.4%)
DFM	6,701	-1.03% (YTD: +12%)
Tadawul	11,134	-0.7% (YTD: +6.8%)
EGX30	50,275	-0.2% (YTD: +20.1%)
Boursa Kuwait	8,061	-0.8% (YTD: -2.9%)
QSE	11,480	-0.3% (YTD: +6.8%)
S&P 500	6,941	-0.3% (YTD: +1.4%)
FTSE 100	10,391	+0.3% (YTD: +4.2%)
Euro Stoxx 50	6,035	-0.1% (YTD: +4.4%)
Brent crude	USD 69.7	+1.3%
Natural gas (Nymex)	USD 3.12	+0.6%
Gold	USD 5,083	+1.05%
BTC	USD 66,939	-3.1%

The values in the table above are listed according to the market position as of 3:30pm IST / 2pm GST.

CALENDAR

14-18 February (Saturday-Wednesday): IHGF Delhi Fair (Spring), New Delhi.

17-19 February (Tuesday-Thursday): Mumbai Climate Week, Mumbai.

16-20 February (Monday-Friday): India-AI Impact Summit, Bharat Mandapam, New Delhi.

25 February (Wednesday): World Sustainable Development Summit, Taj Palace, New Delhi.

MARCH

4 March (Wednesday): Holi.

12 March (Thursday): ET Entrepreneur Summit & Awards, Bengaluru.

19-22 March (Thursday-Sunday): Bharat Urja Manthan – Global Energy Conclave, New Delhi.

20 March (Friday): Eid Ul-Fitr.

23-25 March (Monday-Wednesday): Indiasoft: International IT Exhibition & Conference, New Delhi

23-25 March (Monday-Wednesday): Smart Cities Expo, Bharat Mandapam, New Delhi.

23-25 March (Monday-Wednesday): Plastiworld India, Jio World Convention Centre, Mumbai.

31 March (Tuesday): Mahavir Jayanti.

Signposted to happen sometime in March 2026

Election Commission of India is expected to announce polling dates for elections in the states of Tamil Nadu, Kerala, West Bengal, Assam, and the union territory, Puducherry.
Canadian Prime Minister Mark Carney’s visit to India.

APRIL

3 April (Friday): Good Friday.

23-25 April (Thursday-Saturday): Rail & Metro Technology Conclave, Bharat Mandapam, New Delhi.

29 April-2 May (Wednesday-Saturday): Bharat Buildcon, Yashobhoomi, Dwarka, Delhi.

7-10 April (Tuesday-Friday), India Rubber Expo, ITPO, Pragati Maidan, Delhi.

MAY

1 May (Friday): Buddha Purnima.

26 May (Tuesday): Eid Ul-Adha.

JUNE

24-25 June (Wednesday-Thursday): India Homeland Security Expo, Bharat Mandapam, Pragati Maidan, New Delhi.

26 June (Friday): Muharram.

Signposted to happen sometime in 1H 2026:

Signing of India-Qatar Freetrade Agreement (Details yet to be announced).
India-EU Trade and Technology Council Ministerial Meeting, Brussels, Belgium.

AUGUST

15 August (Saturday): Independence Day.

26 August (Wednesday): Prophet Mohammad’s Birthday.

OCTOBER

2 October (Friday): Gandhi Jayanti (Mahatma Gandhi’s Birthday).

20 October (Tuesday): Dussehra.

NOVEMBER

24 November (Tuesday): Guru Nanak Jayanti.

DECEMBER

8-11 December (Tuesday-Thursday), Expand North Star, Dubai.

25 December (Friday): Christmas Day.

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