After 3 failed bids, Government sells its stake in Pawan Hans to private consortium - The Indian Express

After three unsuccessful attempts at disinvesting its stake in the helicopter services provider, the government Friday approved the sale of Pawan Hans Ltd along with management control to Star9 Mobility Pvt Ltd — a three-way consortium between Big Charter Private Limited, Maharaja Aviation Private Limited and Almas Global Opportunity Fund SPC.

This disinvestment is the second major sale from the government’s aviation portfolio in the last 12 months — Air India went to Tata Group in January this year.

Pawan Hans, which currently operates 42 helicopters, is a 51:49 joint-venture between the government and state-owned Oil & Natural Gas Corp Ltd. ONGC had earlier decided to offer its entire shareholding to the successful bidder identified in the government strategic disinvestment transaction, on the same price and terms as the government. In December last year, the government received three financial bids for the company.

“M/s Star9 Mobility Private Ltd, a consortium of M/s Big Charter Private Limited, M/s Maharaja Aviation Private Limited and M/s Almas Global Opportunity Fund SPC, emerged as the highest bidder quoting Rs 211.14 crore, which was above the Reserve Price,” the Ministry of Finance said in a press release. “The other two bids were for Rs 181.05 crore and Rs 153.15 crore. Following due deliberations, the financial bid of M/s Star9 Mobility Private Limited has been accepted by the government,” it said.

Best of Express Premium

Mumbai-based Big Charter Pvt Ltd runs the ‘flybig’ airline, which operates on UDAN routes, while Delhi-based Maharaja Aviation Pvt Ltd is a helicopter charter company. Almas Global Opportunity Fund is a Cayman Islands-based fund managed by Dubai-based Almas Capital.

The consortium’s bid was also granted clearance by the Alternative Mechanism for Pawan Hans disinvestment. The Alternative Mechanism comprises Road Minister Nitin Gadkari, Finance Minister Nirmala Sitharaman and Civil Aviation Minister Jyotiraditya Scindia.

“The strategic disinvestment transaction was implemented through an open, competitive bidding process supported by a multi-layered consultative decision-making mechanism involving Inter-Ministerial Group, Core Group of Secretaries on Disinvestment and the empowered Alternative Mechanism,” the official statement said.

Moving forward, the government will now issue the Letter of Award, which will be followed by signing of the Share Purchase Agreement and closing the transaction.

In October 2016, the Cabinet Committee on Economic Affairs had approved strategic disinvestment of the entire government stake in Pawan Hans and post that the government made three fruitless attempts at disinvestment.

In the first round, the Preliminary Information Memorandum (PIM) was issued in October 2017, seeking Expressions of Interest (EOI). Out of four EOIs received, only one was found eligible and the transaction was cancelled.

In the second round, PIM was issued seeking EOIs in April 2018 and two bidders were found eligible and were issued the Request for Proposal (RFP). Finally, a single, incomplete bid, non-compliant with the RFP, was received.

Newsletter | Click to get the day’s best explainers in your inbox

In the third round, the PIM was issued seeking EOIs in July 2019. However, of the four EOIs received, only one was found eligible and the process was cancelled again.

In the fourth iteration, the government invited EoIs on December 8, 2020. Seven EoIs were received and four interested bidders were shortlisted as qualified bidders. After detailed due diligence, the qualified bidders were invited to submit financial bids, following which three financial bids were received.

Adblock test (Why?)

After 3 failed bids, Government sells its stake in Pawan Hans to private consortium - The Indian Express
Read More

Warren Buffett Is Back With One Of His Biggest Buying Sprees In Years | Mint - Mint

After complaining for years that high valuations were thwarting his stock-buying efforts, Warren Buffett’s Berkshire Hathaway Inc. is back hoovering up other companies’ shares.

The conglomerate made roughly $41 billion of net purchases in the first quarter, including a boost to its Chevron Corp. stake that vaulted the investment into Berkshire’s top four common stock holdings. Buffett also disclosed that the company now holds an expanded 9.5% stake in Activision Blizzard Inc. stock -- an arbitrage bet on the video-game maker in the midst of being acquired by Microsoft Corp.

Berkshire hasn’t been this significant of a net buyer of common stocks in any quarter in data going back to 2008. Buffett’s flurry of activity in recent months fueled a number of questions from shareholders on Saturday at its first in-person annual meeting since 2019.

The gathering, held in Buffett’s hometown of Omaha, Nebraska, lasted hours as the chief executive officer and his business partner Charlie Munger fielded questions about markets, nuclear weapons and even Bitcoin. They were joined on stage by two key deputies, Greg Abel and Ajit Jain, who answered questions about the railroad, cyber attacks and auto insurers. Last year, Abel was officially confirmed as the heir apparent to take over as Berkshire CEO from Buffett when he decides to step down. 

But Saturday’s event was still dominated by Buffett, 91, and Munger, 98, who both gave no indication that they plan to step back from their roles anytime soon. Both executives have slightly lessened other duties in recent years, with Buffett announcing that this year’s charity lunch auction will be his last after more than two decades and Munger relinquishing his chairman title at the Daily Journal Corp.

Buffett and his deputies have struggled in recent years to find ways to put Berkshire’s cash to work in higher-returning assets, due in part to stiff competition from buyers including private equity firms as well as high valuations. But the Berkshire executives were back in action during the first three months of the year, adding more Occidental Petroleum Corp. shares and striking an agreement to buy Alleghany Corp. for $11.6 billion in cash in a deal expected to close in the fourth quarter. That’s in addition to the newly ramped-up Chevron and Activision bets.

“We have so much trouble finding new ideas we find it hard to ignore any," Buffett said at the meeting in Omaha, Nebraska. Any deal by the conglomerate “has to be sizable now," he said.

Berkshire’s massive common equity holding in Occidental was one of its biggest disclosed purchases in the first quarter, and came on top of the $10 billion Berkshire had already invested in the oil producer years back. Buffett noted that the investment came together quickly after he spent a weekend reading a presentation from Chief Executive Officer Vicki Hollub.

“What Vicki Hollub was saying made nothing but sense and I decided it was a good place to put Berkshire’s money," Buffett said. “And two weeks later we had 14% of the company."

Berkshire’s substantial investment in Chevron during the quarter combined with its $10 billion investment in Occidental’s preferred shares add up to a $40 billion bet on the oil sector, said Jim Shanahan, an analyst at Edward Jones.

Cash Pile

The purchases helped chip away at Berkshire’s cash pile, which ended the first quarter at $106 billion, the lowest since the third quarter of 2018. The hoard had been trending at near-record levels in recent quarters.

As Berkshire revved up its stock-buying engine, the company slowed its roll on share repurchases during the quarter with just $3.2 billion of stock buybacks, the lowest since the same period in 2020 and down from the $6.9 billion repurchased during the last three months of 2021. Buffett had increasingly leaned on repurchases as one way to put money to work in a competitive dealmaking environment. Berkshire’s Class A shares were more expensive during the period, with a gain of more than 17% during the first quarter. 

The conglomerate eked out a profit gain of just 0.3% to $7.04 billion in the first quarter compared to the same period a year earlier. While the manufacturers and retailers were strong during the period, underwriting at the insurers was softer this quarter.

Subscribe to Mint Newsletters

* Enter a valid email

* Thank you for subscribing to our newsletter.

Adblock test (Why?)

Warren Buffett Is Back With One Of His Biggest Buying Sprees In Years | Mint - Mint
Read More

ED seizes Rs 5,551 crore of Xiaomi India under FEMA law - The Indian Express

Days after it questioned Chinese mobile manufacturer Xiaomi’s global vice-president for alleged forex violations by the company, the Enforcement Directorate (ED) on Saturday seized Rs 5,551.27 crore belonging to Xiaomi Technology India Private Limited under the provisions of the Foreign Exchange Management Act,1999.

Xiaomi India is a wholly owned subsidiary of the China-based Xiaomi group. According to the ED, the seized amount was lying in the bank accounts of the company. The ED had initiated an investigation in connection with the illegal remittances made by the company in the month of February this year.

Earlier this month, the agency had questioned Manu Kumar Jain, Xiaomi’s global vice-president, in connection with the case.

In a statement, ED said, “The company started its operations in India in the year 2014 and started remitting the money from the year 2015. The company has remitted foreign currency equivalent to INR 5551.27 crore to three foreign based entities which include one Xiaomi group entity in the guise of Royalty. Such huge amounts in the name of Royalties were remitted on the instructions of their Chinese parent group entities. The amount remitted to other two US based unrelated entities was also for the ultimate benefit of the Xiaomi group entities.”

Best of Express Premium

According to ED, Xiaomi India is a trader and distributor of mobile phones in India under the brand name of MI.

ED has seized Rs.5551.27 Crore of M/s Xiaomi Technology India Private Limited lying in the bank accounts under the provisions of Foreign Exchange Management Act, 1999 in connection with the illegal outward remittances made by the company.

— ED (@dir_ed) April 30, 2022

“Xiaomi India procures completely manufactured mobile sets and other products from the manufacturers in India. The Xiaomi India has not availed any service from the three foreign based entities to whom such amounts have been transferred. Under the cover of various unrelated documentary façade created amongst the group entities, the company remitted this amount in the guise of Royalty abroad which constitutes violation of Section 4 of the FEMA. The company also provided misleading information to the banks while remitting the money abroad,” the ED statement said.

Reacting to the development, Xiaomi said it was fully compliant with the local laws. “As a brand committed to India, all our operations are firmly compliant with local laws and regulations. We have studied the order from government authorities carefully. We believe our royalty payments and statements to the bank are all legit and truthful. These royalty payments that Xiaomi India made were for the in-licensed technologies and IPs used in our Indian version products. It is a legitimate commercial arrangement for Xiaomi India to make such royalty payments. However, we are committed to working closely with government authorities to clarify any misunderstandings,” a Xiaomi spokesperson said.

Adblock test (Why?)

ED seizes Rs 5,551 crore of Xiaomi India under FEMA law - The Indian Express
Read More

2022 Tata Altroz EV will achieve this milestone first! - MotorOctane

Tata Motors is a manufacturer that dabbled in the EV space before many others. Tata’s strategy of converting its ICE cars into electric gave the brand a big initial push. This move has lead to Tata capturing 95% of the EV market in Q1 2022. Tata recently unveiled its Curvv electric SUV concept that will take a production-ready avatar by 2024. Tata yesterday revealed another new concept called Avinya which will take shape by 2025. The Curvv is based on Tata’s Gen-2 architecture whereas the Avinya is based on Gen-3 architecture. We have written a detailed article on Avinya for you to read. Check it out by clicking on the link below. However, coming to today’s topic, the next new EV from Tata is expected to be the Altroz EV. We believe Tata is working on it and is planning a launch in the coming months. The Altroz EV once launched will become the first car to achieve an important milestone. In today’s article, we will find out what the milestone is and other details about the 2022 Tata Altroz EV.

What is this important milestone?

Tata Altroz entered the market as a premium hatchback to compete with rivals like Maruti Baleno, Hyundai i20, etc. Once Tata launches the Altroz EV, it will become the first premium electric hatchback here. Other carmakers have not shown any concepts that reflect their plans of launching electric premium hatchbacks anytime soon. Tata will get to enjoy a monopoly in this segment. However, the bigger feat here would be that it will be the first electric hatchback. Maruti was expected to take the lead in this department but the brand instead moved its focus on an electric mid-size SUV.

2022 Tata Altroz EV – Design

The Altroz EV will be similar to the ICE-powered Altroz. Tata will give it some subtle design changes to differentiate it from the ICE Altroz. It will get an EV badging and blue highlights on the bumper. The EV will get a Signature Teal Blue colour like other Tata EVs. The interior is also expected to see minor changes in terms of seating & upholstery. Tata might offer a white upholstery similar to the Nexon EV on the Altroz EV.

Specifications

Like the Tigor EV and the Nexon EV, the Altroz EV will come with Tata’s Ziptron technology. As with all EVs, it will get an automatic rotary-style gearbox. It is expected to come with a 26kWh lithium-ion unit battery pack with IP67 water and dust proof. This battery is expected to give it a real-world range of around 180-200km range. Tata will also give it fast charging capabilities. It will also offer an eight-year battery warranty.

2022 Tata Altroz EV – Features

The Altroz EV will come loaded with feature such as a floating infotainment unit, an eight-speaker sound system, keyless entry, automatic climate control, alloy wheels and iRA connected car technology.

If you have car buying doubts click here to ask! Get the lowest price for car insurance here. For more such content stay subscribed to MotorOctane Youtube, Google News Facebook, and Twitter. Also, follow us on Flipboard and Reddit where we have a discussion community.

Adblock test (Why?)

2022 Tata Altroz EV will achieve this milestone first! - MotorOctane
Read More

Tatas plan to go atmanirbhar with chipmaking, EV battery plans - Economic Times

Semiconductors are next on the Tata Group's list as the coffee-to-cars conglomerate seeks to trim the pain from the global chip crisis as well as reduce its dependence on imports.

Apart from chips, the group plans to make batteries for electric vehicles too, N. Chandrasekaran, chairman of Tata Sons Pvt., told press at an event in Mumbai.

Chandrasekaran spoke about evaluating partnerships for cell and battery manufacturing in India and Europe in Tata Motors Ltd.’s annual report in June.

The initiatives by the $103 billion Tata Group are aligned to Prime Minister Narendra Modi’s attempts to make India a leader in semiconductor production and reduce its reliance on imports amid global chain disruptions. Several international chip giants including Intel Corp. and Taiwan Semiconductor Manufacturing Co. are exploring India as a potential manufacturing base, the nation’s Technology Minister Ashwini Vaishnaw said on Thursday.

Automakers around the globe are grappling with a semiconductor shortage, exacerbated by pandemic lockdowns in China, which have hobbled the automobile and the electronics sector by raising input costs for makers.

“Supply chain is getting very precarious and uncertain,” said Shailesh Chandra, managing director at Tata Motors Passenger Vehicles in an interview on Friday. Lockdowns in China have worsened the visibility of semiconductors and the logistics have become the next challenge for Tata Motors given the lack of availability of containers, he said.

To mitigate the semiconductor crunch, Tata Motors is going for premium freight, finding alternatives for chips and buying them from the open market, Chandra said. He expects the shortage to persist for six months at least and sees the fourth quarter being more uncertain than the previous year.

The impact of the chip shortage is more “acute” in electric vehicles than gasoline models, Chandra said. The waiting period for electric vehicles at Tata Motors could be as much as six months, compared with four months for cars with internal combustion engines, he said.

Volvo Car AB has said it would have a hard time meeting its production forecast for this year due to issues procuring a specific type of semiconductor, while Renault SA earlier this month halted production of its new electric vehicle because of a lack of components.

Tata’s foray into semiconductor making will also help its group firm, Tata Motors, which makes the iconic Jaguar Land Rover brands and has suffered due to these shortages.

Tata Motors, which has a 70% share of India’s nascent electric-car market, also announced plans to launch its first-ever pure electric car by 2025. The five-seater Avinya will have no gasoline variants, Chandra told reporters in a briefing on Friday.

Tata Motors currently sells two battery-powered models, the Nexon EV and Tigor EV, but these cars also have variants that run on fossil fuels.

Adblock test (Why?)

Tatas plan to go atmanirbhar with chipmaking, EV battery plans - Economic Times
Read More

Business - Latest - Google News

Wipro Q4 Results: Robust Demand Aids Revenue, Profit; Higher Attrition Drags Margin - BloombergQuint

Wipro Ltd.’s revenue rose in the fourth quarter, driven by its software services segment, but margin remained under pressure.

The Bengaluru-based IT company’s revenue increased 2.7% sequentially to Rs 20,860 crore in the quarter ended March, according to its exchange filing. That compares with the Rs 20,821.3-crore consensus estimate of analysts tracked by Bloomberg.

Its revenue from IT services jumped 3.1% over the preceding quarter to $2,721.7 million. It grew 3.1% in constant currency.

That meets its own guidance of $2,692-2,745 million for the fourth quarter, translating into a revenue growth forecast of 26.9-27.5% for the fiscal ended March 2022.

For FY22, the company saw its revenue grow 27.7%.

Wipro expects 1-3% sequential revenue growth, translating into 16-18% year-on-year basis in constant currency, said Thierry Delaporte, managing director and chief executive officer. “We expect to grow in double digit for FY23 as well. We have grown over 3% continuously in the last six quarters.”

Margin, he said, are expected to grow at 17-17.5% in the medium term. “For the next two-three quarters, however, we will see slightly lower margin because of the investments we have made.”

The company expects revenue from IT services business to be in the range of $2,748-2,803 million for FY23.

Wipro Q4 FY22 Highlights (QoQ)

• Net profit rose 3.98% to Rs 3,087.3 crore, compared with the Rs 3,005-crore estimate.

• EBIT fell 4.82% to Rs 3,402.9 crore.

• Margin contracted 130 basis points to 16.3%.

• 12-month trailing attrition rate rose to 23.8% from 22.7% at the end of the third quarter.

Quarterly annualised attrition rate has moderated by 500 basis points, said Thierry Delaporte, managing director and chief executive officer at Wipro. “We doubled our fresher intake for FY22 as compared to previous year. Our plan is to double this again in FY23.”

The IT services company has decided to increase the frequency of promotion cycle for 70% employees in junior bands to quarterly basis.

Adblock test (Why?)

Wipro Q4 Results: Robust Demand Aids Revenue, Profit; Higher Attrition Drags Margin - BloombergQuint
Read More

Eight core sectors' growth slows down to 4.3% in March from 6% in February - Moneycontrol

For FY22 as a whole, the eight core sectors grew 10.4 percent. In FY21, their output had shrunk by 6.4 percent.

India's eight core sectors grew by 4.3 percent in March, down from 6 percent in February, the commerce ministry said on April 29.

As per the latest data, only three of the eight core sectors exhibited faster rates of output growth in March as opposed to six in February. These three sectors were fertiliser, cement, and electricity.

While fertiliser output jumped by a huge 15.3 percent on a year-on-year basis in March, that of cement and electricity rose 8.8 percent and 4.9 percent, respectively.

In February, fertiliser output had contracted by 1.4 percent. Production of cement and electricity was up 5 percent and 4.5 percent, respectively.

Among the laggards were coal and crude oil. Production of coal in March was down a marginal 0.1 percent compared to the corresponding period last year. However, crude oil output fell by a larger 3.4 percent on a year-on-year basis.

	MARCH 2022	FEBRUARY 2022	FY22	FY21
Core sector growth	4.3%	6.0%	10.4%	-6.4%
Coal	-0.1%	6.8%	8.5%	-1.9%
Crude oil	-3.4%	-2.2%	-2.6%	-5.2%
Natural gas	7.6%	12.5%	19.2%	-8.2%
Refinery products	6.2%	8.8%	8.9%	-11.2%
Fertilisers	15.3%	-1.4%	0.7%	1.7%
Steel	3.7%	5.9%	16.9%	-8.7%
Cement	8.8%	5.0%	20.8%	-10.8%
Electricity	4.9%	4.5%	7.8%	-0.5%

For FY22 as a whole, the eight core sectors grew 10.4 percent. In FY21, their output had shrunk by 6.4 percent.

The decline in core sector growth in March will likely result in a fall for industrial growth, as measured by the Index of Industrial Production (IIP).

The eight core industries together account for 40.3 percent of the total weight of the IIP. As such, core sector performance is a lead indicator of sorts for IIP growth.

Data released on April 12 showed IIP growth edged up to 1.7 percent in February from 1.5 percent in January.

IIP data for March is scheduled to be released on May 12.

Download your money calendar for 2022-23 here and keep your dates with your moneybox, investments, taxes

Moneycontrol News

Adblock test (Why?)

Eight core sectors' growth slows down to 4.3% in March from 6% in February - Moneycontrol
Read More

Maruti Suzuki Q4 Result | Consolidated profit rises 51% YoY to Rs 1,876 crore, revenue up 11% - Moneycontrol

Maruti Suzuki (Representative image)

Maruti Suzuki India Limited (Maruti), the largest passenger vehicle manufacturer in India, on April 29 reported a growth of 51 percent year-on-year in its consolidated profit after tax (PAT) at Rs 1,876 crore as compared to Rs 1,241 crore registered in the corresponding quarter of the previous fiscal. On a sequential basis, the profit inched up 80 percent from Rs 1,042 crore logged during the October-December quarter.

The consolidated revenue for the company rose 11 percent on-year to Rs 26,749 crore as compared to Rs 24,035 crore registered in the year-ago quarter. On a sequential basis, the revenue was higher by 15 percent from Rs 23,253 crore recorded in the previous quarter.

For the full-year period from April to March 2022, the consolidated PAT has witnessed a decline of 12 percent at Rs 3,879 crore compared to a profit of Rs 4,389 crore achieved during FY21.

Consolidated revenue for FY22 jumped 26 percent to Rs 88,330 crore from the revenue of Rs 70,372 crore reported in the last year.

“The prices of commodities such as steel, aluminium, and precious metals witnessed an unprecedented increase during this year which forced the company to increase prices of vehicles to partially offset this impact”, the company said in its earnings release.

Lower advertising and market expenses and better efficiencies enabled the company to control costs to some extent.

Volumes

The ongoing semi-conductor shortage impacted the production for the company during the quarter resulting in a lower production of 270,000 vehicles. The shortage impacted the domestic models the most. The company had 268,000 pending bookings at the end of the current financial year.

The sales volume for the quarter declined 0.7 percent on-year as the company managed to sell 488,830 units during the reported quarter. Domestic sales volume declined 8 percent on-year to 420,376 units as against 68,454 units in exports which was also the highest ever export sales achieved in any quarter by the company.

Production during the year was impacted by the shortage of electronic components for an estimated 270,000 vehicles, mostly domestic models, because of which there were pending customer bookings of about 268,000 vehicles at the end of the year. In addition, the first quarter witnessed a disruption owing to the second COVID wave.

For the full year, the company sold a total of 1,652,653 vehicles during the year, up 13.4 percent over the previous financial year. Its domestic sales stood at 1,414,277 units, an increase of 3.9 percent over FY21.

Exports sales during the year were its highest ever recorded at 238,376 units compared to 96,139 units for FY21.

Costs

The raw material cost as a percentage of revenue from operations declined to 45 percent as compared to 50 percent in the year-ago quarter. Compared to the previous quarter, this was an increase of 200 bps.

Employee cost as percentage of revenue from operations increased marginally by 10 bps on-year to 3.9 percent. However, on a sequential basis, it witnessed a decline of 30 bps.

The company has implemented initiatives to improve efficiencies and bring down the costs and the result was evident in the decline in other expenses which reduced by 40 bps on year to 13.7 percent. On a sequential basis, the saving was 20 bps.

Depreciation during the quarter was also significantly lower compared to the year ago-period as well as the previous quarter.

Dividend

Maruti has recommended a dividend of Rs 60 per share (face value of Rs 5 per share) compared to Rs 45 per share in FY21. The total outgo for the dividend payment will be Rs 1,813 crore.

The date of payment of the dividend is September 8, 2022, subject to the approval of the shareholders in the ensuing annual general meeting.

Maruti Suzuki stock closed Rs 170.35 lower at Rs 7,717.8 on April 29 at the National Stock Exchange. The stock has generated returns of 17.55 percent in the past one year and has gained 3.75 percent over the last one month.

Download your money calendar for 2022-23 here and keep your dates with your moneybox, investments, taxes

Adblock test (Why?)

Maruti Suzuki Q4 Result | Consolidated profit rises 51% YoY to Rs 1,876 crore, revenue up 11% - Moneycontrol
Read More

Indian economy to overcome COVID losses only in FY35, says RBI report - Moneycontrol

In monetary terms, the output losses assumed by the central bank's staff in its estimates are Rs 19.1 lakh crore for FY21, Rs 17.1 lakh crore for FY22 and Rs 16.4 lakh crore for FY23.

It will take nearly 15 years for the Indian economy to make up for the losses it has incurred during the coronavirus pandemic, according to the Reserve Bank of India's (RBI) report on currency and finance for FY22.

"Taking the actual growth rate of -6.6 percent for 2020-21, 8.9 percent for 2021-22 and assuming growth rate of 7.2 percent for 2022-23, and 7.5 percent beyond that, India is expected to overcome COVID-19 losses in 2034-35," the report, released on April 29, said.

The report, whose theme this year is 'Revive and Reconstruct' in the context of nurturing a durable post-pandemic recovery and raising trend growth in the medium-term, does not reflect the views of the central bank itself but of the contributors, who are part of the RBI's Department of Economic and Policy Research.

The assumption of a growth rate of 7.5 percent from next year onwards is rather optimistic. The International Monetary Fund's latest World Economic Outlook report pegged India's growth rate for FY24 at 6.9 percent. Even the RBI's own Monetary Policy Report, released on April 8, said structural models indicated GDP growth in FY24 might be 6.3 percent.

Several independent economists see GDP growth next year, and possibly beyond that, closer to 6 percent. This would mean the losses incurred during the pandemic would take longer to overcome.

Source: Report on Currency and Finance for 2021-22 (RBI)

In monetary terms, the output losses assumed by the central bank's staff in its estimates are Rs 19.1 lakh crore for FY21, Rs 17.1 lakh crore for FY22 and Rs 16.4 lakh crore for FY23.

India's real GDP in FY22 is estimated to be Rs 147.54 lakh crore.

"The dividends of reforms initiated to counter the pre-COVID slowdown along with additional measures and initiatives during the pandemic will help launch the economy on a sustainable high growth path. The behavioural and technological changes brought about by the pandemic may usher in a new normal which would not necessarily ape the pre-pandemic trends but would be built on a more efficient, equitable, clean, and green foundation," the report added.

In the foreword to the report, Governor Shaktikanta Das said it was not sufficient to just stabilise the economy and return it to its pre-first wave path. The task at hand, according to Das, was to create a "virtuous cycle of greater opportunity" for entrepreneurs, businesses, and the fiscal authority.

Download your money calendar for 2022-23 here and keep your dates with your moneybox, investments, taxes

Adblock test (Why?)

Indian economy to overcome COVID losses only in FY35, says RBI report - Moneycontrol
Read More

Confused between HDFC Bank vs ICICI Bank? Investors making money by betting on none - Economic Times

While you were busy debating and analysing whether India’s private sector lender will beat its bigger rival in the years to come, smart investors made money by betting on the other end of the sector - PSU bank stocks.

In the last one year, Nifty Bank index has delivered a better-than-FD return of 8 per cent but the Nifty PSU Bank index has outperformed with a 35 per cent return. On a year-to-date basis, the PSU Bank index has rallied over 8 per cent against a flat Nifty Bank.

While ICICI Bank, which is now turning into a favourite of many investors on the back of improving margins and asset quality, has given a return of 20 per cent in the last one year, PSU banks like State Bank of India (SBI) have rallied 41 per cent, Bank of Baroda 73 per cent,

68 per cent and Indian Bank 44 per cent during the same period.

On the other hand, HDFC Bank has eroded nearly 7 per cent of its value in the last one year. Kotak Mahindra Bank is down 2 per cent. Bandhan Bank too has underperformed with a nominal return of just 1 per cent during the period.

'Big Bull' Rakesh Jhunjhunwala, who bought a stake in Canara Bank last year, hiked his shareholding to 1.96 per cent last quarter. Earlier in February, he had said the rerating in PSU stocks had just started and that PSU banks will outperform private sector banks by a wide margin going ahead.

Sandeep Tandon, CIO, Quant Mutual Fund, says PSU banks have the potential to outperform private sector banks. "So we like to keep our portfolio more skewed towards public sector banks as a strategy, rather than keeping skewed towards the private sector," Tandon said.

Global brokerage CLSA prefers corporate banks, which include large PSU banks as well. "We still see enough opportunity in the large corporate side of banks because a lot of these saw a pretty long de-rating through a large part of the last decade when there was a long balance sheet deleveraging cycle. So it is really a kind of mean reversion. The worst part of that balance sheet worry is behind us and their performance is clearly improving," CLSA's Vikash Kumar Jain said.

He said retail banks have become very expensive and are seeing some kind of mean reversion in their valuations.

Anshul Saigal of Kotak Mahindra AMC says that during the 2014-2020 cycle, PSU banks and corporate banks had got de-rated but the cycle has now reversed. Selective PSU bank stocks, as well as large private sector banks, should do well this year, he adds.

Sudip Bandyopadhyay of Inditrade Capital recommends aggressive buyers to look at PNB and Bank of Baroda (BoB). "I will not try to venture into smaller PSU banks. If you are an aggressive investor, PNB and BoB are definitely worth buying because the upside from here at the current level looks pretty realistic in the medium to short term."

Adblock test (Why?)

Confused between HDFC Bank vs ICICI Bank? Investors making money by betting on none - Economic Times
Read More

Centre to step on the gas to meet Rs 1.62 lakh crore asset monetisation target - Economic Times

The government is looking to speed up work to achieve its ambitious target to raise ₹1.62 lakh crore through asset monetisation in FY23.

Cabinet secretary Rajiv Gauba has called a meeting on Friday of secretaries from 12 key ministries to discuss their detailed roadmap with clear timelines for monetising assets such as power lines, gas pipelines, roads, and railway assets among others. The meeting will also seek an explanation from the ministries that missed the FY22 monetisation target, people with knowledge of the matter told ET.

Officials from the ministries of petroleum and natural gas, telecommunication, railways, ports, shipping and waterways, civil aviation, power, coal, mines, road transport and highways, tourism, sports and food, and public distribution are likely to attend the meeting. Finance ministry officials will also be present at the meeting. "This year the target is high. While this is achievable, the mandate is to start working early on the monetisation plan," said an official.

'Detailed Presentations'
"All the ministries have been asked to come up with detailed presentations on the future roadmap regarding asset monetisation, with clear deadlines," the official said. The cabinet secretary will also review the performance of all ministries in the last fiscal. Against the target of Rs 88,190 crore for FY22, the government monetised assets worth Rs 96,000 crore.

"While coal and mining sector and even highways did well, some ministries like railways, warehousing and telecom have not done well," said the official. "So, they are required to enhance their efforts."

Earlier this month, finance minister Nirmala Sitharaman had reviewed the implementation of the National Monetisation Pipeline (NMP) along with the Niti Aayog, which had been tasked to help ministries in identifying assets. The NMP was announced in August 2021 by Sitharaman to unlock value in infrastructure assets across sectors in brownfield projects by engaging private sector participants or transferring to them revenue rights for a fixed period.

Adblock test (Why?)

Centre to step on the gas to meet Rs 1.62 lakh crore asset monetisation target - Economic Times
Read More

India To Launch Open E-commerce Network To Take On Amazon, Walmart | Mint - Mint

India will on Friday launch an open network for digital commerce (ONDC) as the government tries to end the dominance of U.S. companies Amazon.com and Walmart in the fast-growing e-commerce market, a government document showed.

The launch of the platform comes after India's antitrust body on Thursday raided domestic sellers of Amazon and some of Walmart's Flipkart following accusations of competition law violations. The companies did not respond to request for comment on the raids.

Indian retailers, key supporters of Prime Minister Narendra Modi, have long contended that Amazon and Flipkart's platforms benefit a few big sellers, via predatory pricing, though the companies say they comply with all Indian laws.

The government's so-called ONDC platform will allow buyers and sellers to connect and transact with each other online, no matter what other application they use. It will be soft-launched on Friday before being expanded, the trade ministry told Reuters.

The government document said that two large multinational players controlled more than half of the country's e-commerce trade, limiting access to the market, giving preferential treatment to some sellers and squeezing supplier margins. It did not name the companies.

Amazon and Flipkart did not immediately respond to requests for comment on ONDC.

The document said India's ONDC plan aimed to onboard 30 million sellers and 10 million merchants online. The plan is to cover at least 100 cities and towns by August.

It would focus on apps in local languages for both buyers and sellers, with a special emphasis on small merchants and rural consumers, the document said about the project.

The government said it had already received support from retailers and venture capital firms. Lenders such as the State Bank of India, ICICI Bank and Bank of Baroda have already committed total investments of 2.55 billion rupees ($33.26 million) into ONDC.

A Reuters investigation last year, based on Amazon internal documents, showed the company had given preferential treatment for years to a small group of sellers on its platform and used them to bypass Indian laws. Amazon denies any wrongdoing.

This story has been published from a wire agency feed without modifications to the text.

Subscribe to Mint Newsletters

* Enter a valid email

* Thank you for subscribing to our newsletter.

Adblock test (Why?)

India To Launch Open E-commerce Network To Take On Amazon, Walmart | Mint - Mint
Read More

Axis Bank Q4 profit jumps 54% on sharp fall in provisions, NII gains 17% - Moneycontrol

Axis Bank, one of the largest private sector lenders in India, reported on April 28 a massive 54 percent year-on-year growth in standalone profit for the quarter ended March 2022, largely driven by significant fall in provisions and improved asset quality performance.

Profit increased to Rs 4,117.8 crore during the quarter, compared to Rs 2,677 crore in same period last year, the bank said in its BSE filing.

Net interest income, the difference between interest earned and interest expended, grew by 16.7 percent year-on-year to Rs 8,819 crore with credit growth of 15 percent and deposits growth of 19 percent for March 2022 quarter.

Axis Bank said advances at Rs 7.07 lakh crore as of March 2022 grew 15 percent YoY, with retail loans (which accounted for 57 percent of net advances) growth at 21 percent YoY and the growth in corporate loan book was just 4 percent compared to corresponding period last fiscal.

Click Here For All Earnings Related News

Provisions and contingencies in Q4FY22 declined sharply by 54.4 percent to Rs 987.2 crore compared to corresponding period last fiscal, while the sequential decline was 26 percent.

The bank said it has not utilized Covid provisions during the quarter. It holds cumulative provisions (standard + additional other than NPA) of Rs 12,428 crore at the end of Q4FY22.

Credit cost for the quarter ended March 2022 stood at 0.32 percent, declining by 116 bps YoY and 12 bps QoQ, it added.

Its provision coverage ratio, as a proportion of gross NPAs stood at 75 percent as of March 2022, improving from 72 percent in previous quarter.

Axis Bank showed better improvement on the asset quality front, with gross non-performing assets as a percentage of gross advances declining 35 bps sequentially to 2.82 percent in quarter ended March 2022, while net NPA ratio in the same period dropped 18 bps to 0.73 percent.

"Gross slippages during the quarter were Rs 3,981 crore, which were lower compared to Rs 4,147 crore in Q3FY22. Recoveries and upgrades from NPAs during the quarter were Rs 3,763 crore, which resulted into net slippages in NPAs (before write-offs) for the quarter at Rs 218 crore, down sharply compared to Rs 860 crore in previous quarter," said the private sector lender.

Recoveries from written off accounts were Rs 719 crore. Hence on aggregate, "the slippages were lower than recoveries, upgrades and collections from written off accounts," said the bank, which in the quarter wrote off NPAs aggregating Rs 1,696 crore.

The bank recorded a 19.3 percent year-on-year growth in non-interest income (other income) at Rs 4,223 crore for March quarter, with fee income, which contributed the most to other income, grew by 11 percent in the same period.

Pre-provision operating profit for the quarter at Rs 6,466 crore increased by 12.7 percent compared to year-ago period, with core operating profit rising 9 percent in the same period.

In the full year, Axis Bank clocked 98 percent growth in profit at Rs 13,025 crore and 13 percent increase in net interest income compared to the previous year.

Download your money calendar for 2022-23 here and keep your dates with your moneybox, investments, taxes

Adblock test (Why?)

Axis Bank Q4 profit jumps 54% on sharp fall in provisions, NII gains 17% - Moneycontrol
Read More

James Murdoch's Bodhi Tree Systems to invest Rs 13,500 crore in Viacom18; RIL arm to add Rs 1,645 crore - Moneycontrol

Viacom18 operates Colors TV channels and OTT platform VOOT (Representative image)

Bodhi Tree Systems, the content platform of media baron James Murdoch and former Disney India chief Uday Shankar, has entered into a "strategic partnership" with Reliance Industries Ltd (RIL) and Viacom 18, and will invest Rs 13,500 crore into the latter, a joint statement said on April 27.

The partnership is aimed at building India’s leading entertainment platform and pioneering the Indian media landscape’s transformation to a “streaming-first approach", they said.

Viacom18 owns and operates the suite of Colors TV channels and OTT platform, VOOT.

"Bodhi Tree Systems is leading a fund raise with a consortium of investors to invest Rs 13,500 crore in Viacom18," the joint statement noted.

An investment of Rs 1,645 crore would also be made by Reliance Projects and Property Management Services Limited, a wholly owned subsidiary of RIL, it said.

"In addition, the popular JioCinema OTT app will be transferred to Viacom18," it added.

The deal is expected to close within six months and is subject to closing conditions and requisite approvals.

Paramount Global, the media entity which comprises leading platforms such as CBS, Showtime Networks, Paramount Pictures, Nickelodeon, MTV, Comedy Central, BET, Paramount+ and Pluto TV will continue as a shareholder of Viacom18 and will continue to supply Viacom18 its premium global content, it further stated.

RIL Chairman and MD Mukesh Ambani, while commenting on the decision to partner with Bodhi Tree, said the track record of Murdoch and Shankar in the digital media industry is "unmatched". They have, over the past two decades, "played an undeniable role in shaping the media ecosystem in India, Asia, and around the world," he added.

"We are very excited to partner with Bodhi Tree and lead India’s transition to a streaming-first media market. We are committed to bringing the best media and entertainment services for Indian customers through this partnership," Ambani further said.

Murdoch and Shankar, in a joint statement, said their ambition through the new partnership is to "leverage technology advances, particularly in mobile" and "to provide meaningful solutions to meet everyday media and entertainment needs at scale".

"We seek to reshape the entertainment experience across more than one billion screens," they added.

Disclaimer: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.

Download your money calendar for 2022-23 here and keep your dates with your moneybox, investments, taxes

Adblock test (Why?)

James Murdoch's Bodhi Tree Systems to invest Rs 13,500 crore in Viacom18; RIL arm to add Rs 1,645 crore - Moneycontrol
Read More

Reliance Industries Shares At Record High, Market Cap Crosses ₹19 Lakh Crore | Mint - Mint

Shares of Reliance Industries shrugged off weak broader markets and hit record high in early trade today. RIL shares were up 1% to ₹2,802, giving it a market cap of ₹19 lakh crore. 

Reliance shares today opened with downside gap of near ₹20 per share but soon started to climb. Within few minutes of opening bell it went to hit its new life-time high of ₹2,826 per share on NSE, logging around 1.25 per cent rise in early morning deals. During this course, the Sensex heavy-weight went on to become first Indian company to hit ₹19 lakh crore market capitalization as well.

According to stock market experts, Singapore GRM surging to record high is the major reason for Reliance Industries share price rally and its market capital hitting ₹19 lakh crore. They said that after rise of every one US dollar in Singapore GRM, Reliance Industries earning goes up by around ₹4 and in post-Russia-Ukraine war, Singapore GRM has surged by around $7 to $8 dollar.

Speaking on the reason for rise in Reliance share price and its market capital, Avinash Gorakshkar, Head of Research at Profitmart securities said, “This rally in Reliance shares can be attributed to rising GRM (Gross Refining Margin) in Singapore. Reliance Industries Limited's earning grows by around ₹4 per dollar rise in GRM. As Singapore GRM has shot by around $7 to $8, market is expecting strong Q4FY22 numbers of Reliance petrochemical business."

Avinash Gorakshkar of Profitmart Securities went on to add that soaring crude oil prices are the big reason for rise in GRM as it is providing margin benefit to big petrochemical companies like Reliance.

Echoing with Avinash Gorakshkar's views; Santosh Meena, Head of Research at Swastika Investmart Ltd said, "Reliance industries is firing on all cylinders because its petrochemical business is doing extremely well on the back of a surge in Oil and Gas prices where Singapore GRM is at an all-time high. Its telecom business is unaffected by geopolitical tension and inflation whereas it is exploring synergies in its retail business. It is continuously expanding its path in the renewable energy business that opening more opportunities for the company."

“Technically, Reliance share has created a strong base at the ₹2250 mark then witnessed a smart rally where it has broken out of falling channel formation which is leading to fresh bullish momentum. On the upside, it has the potential to move towards the ₹3000 mark. On the downside, ₹2500 should act as an immediate and strong support level."

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

Subscribe to Mint Newsletters

* Enter a valid email

* Thank you for subscribing to our newsletter.

Adblock test (Why?)

Reliance Industries Shares At Record High, Market Cap Crosses ₹19 Lakh Crore | Mint - Mint
Read More

Bajaj Finance Clocks Highest-ever Net Profit Of ₹2,420 Cr, Up 80% Yoy | Mint - Mint

Bajaj Finance has clocked its highest ever consolidated profit after tax of ₹2,420 crore for the quarter ended 31 March, 2022, up 80% over ₹1,346 crore in the year-ago period.

Net interest income for the March quarter rose 30% to ₹6,068 crore as against ₹4,659 crore in same quarter last year.

On Tuesday, Bajaj Finance shares closed 3.61% higher at ₹7,258.60 apiece on NSE.

The Board has also recommended a dividend of ₹20 per equity share of face value of for financial year 2021-22.

Assets under management (AUM) during the quarter grew by 29% to ₹1.97 lakh crore (including IPO financing receivables of ₹5,365 crore) as of 31 March 2022 from ₹1.52 lakh crore as of 31 March 2021.

New loans booked during the fourth quarter grew by 15% to 6.28 million as against 5.47 million in same quarter of last year.

Gross non-performing assets (NPAS) and Net NPA as of 31 March 2022 stood at 1.60% and 0.68% respectively, as against 1.79% and 0.75% as of 31 March 2021.

The company has provisioning coverage ratio of 58% on stage 3 assets and 134 bps on stage 1 and 2 assets as of 31 March 2022.

Subscribe to Mint Newsletters

* Enter a valid email

* Thank you for subscribing to our newsletter.

Adblock test (Why?)

Bajaj Finance Clocks Highest-ever Net Profit Of ₹2,420 Cr, Up 80% Yoy | Mint - Mint
Read More

Billionaire Gautam Adani In Talks To Buy Holcim India Units: Report | Mint - Mint

Gautam Adani’s conglomerate is in advanced talks to acquire Holcim Ltd.’s businesses in India, according to people familiar with the matter. The billionaire’s Adani Group could sign an agreement to acquire a controlling stake in Ambuja Cements Ltd. from Holcim as soon as in the coming days, the people said, asking not to be identified as the information is private. Other bidders including JSW Group remain interested in the assets, they said.

Ambuja shares have climbed about 26% in April, giving it a market value of about $10 billion. Holcim, which controls 63.1% of the company, has been considering the sale of its stake, Bloomberg News has reported. Ambuja’s subsidiaries include ACC Ltd., which is also publicly traded. 

No final decisions have been made and talks could still fall apart, the people said. Representatives for Holcim and JSW Group declined to comment, while spokespeople for Adani and Ambuja didn’t immediately respond to requests for comment.

Holcim has recently been selling off non-core assets, divesting its Brazilian unit for $1 billion in September and planning the sale of its business in Zimbabwe. 

Founded in 1983, Ambuja has a cement capacity of 31 million metric tons, and has six integrated manufacturing plants and eight cement grinding units in India, its website shows. 

Adani Group’s flagship firm Adani Enterprises Ltd. has two cement subsidiaries. Adani Cementation Ltd. is planning to build an integrated facility in Gujarat, according to a compliance report in November. The group established Adani Cement Ltd. in June 2021.

What Bloomberg Intelligence Says:

“India’s cement producers face tough competition and volatile fuel costs, both of which are impediments to sustainable, steady profits. This makes the country’s fragmented cement industry fertile ground for an extended shakeout."

-Sonia Baldeira, senior analyst

 

Subscribe to Mint Newsletters

* Enter a valid email

* Thank you for subscribing to our newsletter.

Adblock test (Why?)

Billionaire Gautam Adani In Talks To Buy Holcim India Units: Report | Mint - Mint
Read More

LIC IPO price band set at Rs 902-949, discount of Rs 60 for policyholders: Govt sources - Moneycontrol

The price band for the initial public offering of Life Insurance Corporation of India (LIC) has been set at Rs 902 to Rs 949, with a discount of Rs 60 for policyholders, CNBC TV18 learnt from government sources on April 26.

For retail and employees, the discount will be of Rs 40, the persons privy to the development told the news channel.

The much-awaited IPO of the state-run insurance behemoth is set to open on May 4, the sources said a day earlier, adding that the issue is likely to close on May 9.

The anchor book for the offer is expected to open on May 2, they added, further noting that there will be no greenshoe option in the IPO.

The Securities and Exchange Board of India on April 25 gave its nod to the updated draft red herring prospectus, which lists a 3.5 percent stake sale instead of 5 percent as mentioned in the previous draft papers, CNBC TV18 had reported.

The revised DRHP was submitted before the market regulator last week. The government, which wholly owns the insurance behemoth, plans to raise an amount of Rs 21,000 crore by selling around 22 crore shares which is equivalent to a 3.5 percent stake.

The red herring prospectus will be submitted before Sebi by April 27, it added.

Also Read | With LIC IPO back on track, it’s crucial to strike the right stock price

By seeking Rs 21,000 crore for the revised holding on the block, the government is targeting a valuation of Rs 6 trillion for the insurer.

The IPO, notably, holds the key to the Centre's plan to meet its disinvestment targets. The government has pegged divestment receipts at Rs 65,000 crore for 2022-23, up from Rs 13,531 crore last fiscal.

The previous draft papers related to the IPO was filed with the Sebi in February, when the government had stated that it plans to sell 31.6 crore shares in a 5 percent stake sale in the state-run insurer.

The IPO plans, however, were deferred as the market faced volatility following the Russian invasion of Ukraine.

Download your money calendar for 2022-23 here and keep your dates with your moneybox, investments, taxes

Adblock test (Why?)

LIC IPO price band set at Rs 902-949, discount of Rs 60 for policyholders: Govt sources - Moneycontrol
Read More

Majority of India’s 900 million workforce stop looking for jobs: Report - The Indian Express

India’s job creation problem is morphing into a greater threat: a growing number of people are no longer even looking for work.

Frustrated at not being able to find the right kind of job, millions of Indians, particularly women, are exiting the labor force entirely, according to new data from the Centre for Monitoring Indian Economy Pvt, a private research firm in Mumbai.

With India betting on young workers to drive growth in one of the world’s fastest-expanding economies, the latest numbers are an ominous harbinger. Between 2017 and 2022, the overall labor participation rate dropped from 46% to 40%. Among women, the data is even starker. About 21 million disappeared from the workforce, leaving only 9% of the eligible population employed or looking for positions.

Now, more than half of the 900 million Indians of legal working age — roughly the population of the U.S. and Russia combined — don’t want a job, according to the CMIE.

“The large share of discouraged workers suggests that India is unlikely to reap the dividend that its young population has to offer,” said Kunal Kundu, an economist with Societe Generale GSC Pvt in Bengaluru. “India will likely remain in a middle-income trap, with the K-shaped growth path further fueling inequality.”

India’s challenges around job creation are well-documented. With about two-thirds of the population between the ages of 15 and 64, competition for anything beyond menial labor is fierce. Stable positions in the government routinely draw millions of applications and entrance to top engineering schools is practically a crapshoot.

Though Prime Minister Narendra Modi has prioritized jobs, pressing India to strive for “amrit kaal,” or a golden era of growth, his administration has made limited progress in solving impossible demographic math. To keep pace with a youth bulge, India needs to create at least 90 million new non-farm jobs by 2030, according to a 2020 report by McKinsey Global Institute. That would require an annual GDP growth of 8% to 8.5%.

“I’m dependent on others for every penny,” said Shivani Thakur, 25, who recently left a hotel job because the hours were so irregular.

Source: Bloomberg

Failing to put young people to work could push India off the road to developed-country status.

Though the nation has made great strides in liberalizing its economy, drawing in the likes of Apple Inc. and Amazon.com Inc, India’s dependency ratio will start rising soon. Economists worry that the country may miss the window to reap a demographic dividend. In other words, Indians may become older, but not richer.

A decline in labor predates the pandemic. In 2016, after the government banned most currency notes in an attempt to stamp out black money, the economy sputtered. The roll-out of a nationwide sales tax around the same time posed another challenge. India has struggled to adapt to the transition from an informal to formal economy.

Explanations for the drop in workforce participation vary. Unemployed Indians are often students or homemakers. Many of them survive on rental income, the pensions of elderly household members or government transfers. In a world of rapid technological change, others are simply falling behind in having marketable skill-sets.

For women, the reasons sometimes relate to safety or time-consuming responsibilities at home. Though they represent 49% of India’s population, women contribute only 18% of its economic output, about half the global average.

“Women do not join the labor force in as many numbers because jobs are often not kind to them,” said Mahesh Vyas of CMIE. “For example, men are willing to change trains to reach their job. Women are less likely to be willing to do that. This is happening on a very large scale.”

The government has tried to address the problem, including announcing plans to raise the minimum marriage age for women to 21 years. That could improve workforce participation by freeing women to pursue higher education and a career, according to a recent report from the State Bank of India.

Changing cultural expectations is perhaps the harder part.

After graduating from college, Thakur started working as a mehndi artist, earning a monthly salary of about 20,000 rupees ($260) applying henna on the hands of guests at a five-star hotel in the city of Agra.

But because of late working hours, her parents asked her to quit this year. They are now planning to marry her off. A life of financial independence, she said, is slipping away.

“The future is being ruined in front of my eyes,” Thakur said. “I have tried everything to convince my parents, but nothing is working.”

Adblock test (Why?)

Majority of India’s 900 million workforce stop looking for jobs: Report - The Indian Express
Read More

Religare Enterprises resolves all legacy issues with Sebi - Moneycontrol

Religare Enterprises has deposited Rs 5,41,80,000 with Sebi to settle one of the legacy issues.

Religare (Source: Shutterstock)

Religare Enterprises Limited (REL) said in an exchange filing on April 24 that it has resolved all legacy issues with the Securities and Exchange Board of India (Sebi).

The market regulator had reportedly brought to the notice of Religare Enterprises that certain compliance requirements were overlooked or not complied with during the period between April 1, 2011, and March 31, 2018.

REL pointed out that during this period, the control and management of the company rested with former promoters Malvinder Mohan Singh and Shivinder Mohan Singh and some others who “were accustomed to act on their instructions”. However, none of these people are associated with them any longer, the company assured.

“The erstwhile promoters have already been reclassified as public shareholders by the exchanges and REL is a professional company without any promoter. Further, the Company and its subsidiaries have been vigorously pursuing various legal recourses against such persons,” Religare Enterprises, a core investment company (CIC) registered with the Reserve Bank of India (RBI), added.

To settle the other legacy issue with Sebi, REL submitted an application under the Sebi (Settlement Proceedings) Regulations, 2018 without admission or denial of Sebi’s findings. The said application along with the settlement terms proposed by the company was examined by Sebi which having considered the facts and circumstances of the case, approved that the specified proceedings may be settled upon payment of Rs 5,41,80,000.

REL has complied with the direction and the money has been deposited with Sebi.

Commenting on the development, REL’s Executive Chairperson Dr Rashmi Saluja said: “This is a reaffirmation of the consistent efforts made by the REL management to adhere to the highest levels of corporate governance. The current management is working tirelessly to restore REL to its rightful position as a leading player in the BFSI domain and closing these legacy issues remains a top priority as we embark on a new journey with new businesses and fresh funding on the horizon.”

Download your money calendar for 2022-23 here and keep your dates with your moneybox, investments, taxes

Moneycontrol News

Adblock test (Why?)

Religare Enterprises resolves all legacy issues with Sebi - Moneycontrol
Read More

International flying rights to Indian carriers: Privatised Air India loses preferential status - Times of India

NEW DELHI: Privatised Air India will no longer get precedence in getting international flying rights under India’s bilaterals with other countries and all Indian carriers will now be on the same footing.
The Directorate General of Civil Aviation (DGCA) has revised the guidelines in this regard by dropping the clause that was meant for the erstwhile state-owned Maharaja: “Due consideration shall be given to the operational plans submitted by Air India before allocation of the traffic rights to the other eligible applicants.”
The regulator, on April 19, 2022, issued the revised rules for granting permission for scheduled international flights to Indian carriers who can qualify for doing so after meeting the 0/20 requirement — no cap on years of operation but having a minimum of 20 aircraft in fleet.
The Tatas had taken over AI and AI Express three months back. Alliance Air, which as an all turboprop fleet, is going to be privatised soon.
Given the poor financial health of a majority of Indian carriers, under-utilisation of flying rights granted to them has been a common phenomenon in past few years.
When airlines who wanted to add flights would approach the ministry for nod to do so, first consent would be taken from AI if it planned to operate on that particular route/s.
“This used to delay the entire process and added to the problem of airlines under-utilising flying rights at the cost of those who could have done so,” said people in the know.
The demand for international flying rights is soon going to increase as under the Tata’s, Air India and AI Express are expected to add international routes.
IndiGo had major international expansion plans from mid-2024.
Billionaire investor Rakesh Jhunjhunwala’s upcoming Akasa hopes to have a fleet of 20 aircraft by next year and will then seek international flying rights. So the move comes just ahead of the anticipated rise in demand.
In this situation, the only requirement is that airlines should operate the flying rights they seek and not sit on them without deploying flights.
“The traffic rights allocated to an airline for a particular schedule period shall be fully utilised by it during the same schedule period. Failure to do so shall result in the unutilised rights reverting to aviation ministry at the end of the schedule period for which they were allocated and the ministry will be free to allocate them to other airlines. The defaulter airline may also apply afresh, if it so wishes, but its priority for allocation of rights will be reckoned as the lowest among all the applicants,” the guidelines say.
In case airlines apply for routes which go beyond services permitted by bilaterals or air service agreements (ASA) between India and the destination country, preference will be given to flights connecting small towns directly with foreign destinations. “In case the available traffic rights are not sufficient to cover the requirements reflected in the applications, the allocation shall be first made to satisfy the requirement contained in any application for operations from a non-metro airport ...”

Adblock test (Why?)

International flying rights to Indian carriers: Privatised Air India loses preferential status - Times of India
Read More

Ola To Recall Over 1,400 Electric Scooters Amid Rise In Fire Incidents - NDTV

The fire incidents had prompted the government to form a panel (File)

New Delhi:

Ola Electric is recalling 1,441 units of its electric two-wheelers in the wake of incidents of vehicles catching fire, according to a company statement.

The company said its investigation into the fire incident on March 26, in Pune, is ongoing and preliminary assessment found that it was an isolated one.

However, it said, "As a pre-emptive measure we will be conducting a detailed diagnostic and health check of the scooters in that specific batch and therefore are issuing a voluntary recall of 1,441 vehicles."

Ola Electric further said, "These scooters will be inspected by our service engineers and will go through a thorough diagnostics across all battery systems, thermal systems as well as the safety systems." Ola Electric said its battery systems already complies with and is tested for AIS 156, the latest proposed standard for India, in addition to being compliant with the European standard ECE 136.

Recently, there have been widespread incidents of electric two-wheelers catching fire in various parts of the country forcing manufacturers to recall their vehicles.

Okinawa Autotech had recalled over 3,000 units, while PureEV did a similar exercise for around 2,000 units.

The fire incidents had prompted the government to form a panel to examine and had warned companies of penalties if they were found to be negligent.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

Adblock test (Why?)

Ola To Recall Over 1,400 Electric Scooters Amid Rise In Fire Incidents - NDTV
Read More

LIC IPO: New Issue Size Approved; Know Fresh Date, Quota, More Info - News18

The initial public offering of Life Insurance Corporation (LIC) is expected to hit the market in the first week of May and its board has also approved reducing the issue size. In the LIC IPO, the government has now decided to dilute its 3.5 per cent stake for Rs 21,000 crore, compared with the 5 per cent proposed in the draft papers.

The proposal to reduce the IPO’s size to 3.5 per cent, from the 5 per cent proposed earlier, was tabled and approved at a board meeting on Saturday. Here’s what we know about the IPO so far:
LIC IPO Size

In its draft red herring prospectus, state-owned LIC informed that the government will offload its 5 per cent stake through the IPO. Now, the stake dilution has been reduced to 3.5 per cent for Rs 21,000 crore, valuing the country’s largest insurer at Rs 6 lakh crore. The IPO is also likely to have a greenshoe option of Rs 9,000 crore.

A greenshoe option is an over-allotment option. The option gives the company a choice to retain excess subscription and helps it adjust the public issue as per demand and market conditions.
LIC IPO Date

The initial public offering is likely to hit the market in the first week of May, government sources have told CNBC-TV18. Last month, the government filed fresh draft papers for the IPO. The Centre now has time till May 12 to launch the offer, after which the Centre will need to file fresh papers with markets regulator Sebi. It will also need to declare the results of the December quarter and also update the embedded value. The embedded value of LIC was Rs 5.39 lakh crore as on September 31, 2021, according to draft papers.
LIC IPO Reserved Quota

Retail investors will be eligible to participate in about 35 per cent of the IPO issue size and about 15 per cent will be reserved for non-institutional investors. Around half of the IPO issue has been fixed for qualified institutional buyers (QIBs). Out of the QIB’s portion, 60 per cent has been earmarked for anchor investors on a discretionary basis.

One-third of the anchor investor portion will be reserved for domestic mutual funds. A significant portion, not exceeding 10 per cent of the public issue, will also be reserved for the policyholders. For employees also, 5 per cent of LIC IPO will be reserved. Both the employees and policyholders will get a chance to book LIC IPO at a discounted rate.
Biggest IPO So Far

Even after the reduced size of Rs 21,000 crore, the LIC IPO is going to be the biggest initial public offering ever in the country. Till now, the IPO of Paytm is the biggest one at Rs 18,300 crore in 2021, followed by Coal India Ltd at Rs 15,500 crore in 2010 and Reliance Power at Rs 11,700 crore in 2008.

Read all the Latest News , Breaking News and IPL 2022 Live Updates here.

Adblock test (Why?)

LIC IPO: New Issue Size Approved; Know Fresh Date, Quota, More Info - News18
Read More

Lic Board Approved Minimum 3.5% Stake Dilution Via Ipo, Can Raise Limit To 5% Depending On Market Conditions | Mint - Mint

The Board of Life Insurance Corporation (LIC) of India is learnt to have agreed on diluting 3.5% stake in the country’s largest insurer, even as it keeps the 5% stake dilution as an upward limit, as filed in the draft red herring prospectus.

A senior official aware of the development, the Board in a meeting on Saturday, decided on reducing the stake for dilution, which will be subject to regulatory approvals, amid headwinds from volatile stock markets and investor interest, even as it could dilute up to 5% stake as stated in the prospectus.

“The 5% limit is still on the table. As per the demand at the moment, markets can support about 3.5%, but if it changes, we can easily increase it to 5%," the official said, asking not to be named as the proceedings are not in public domain.

The government is seeking to garner between ₹21,000- ₹30,000 crore from the sale, at a valuation of ₹6 trillion, the official added.

While IPO is expected to be taken to the markets in the first week of May, reservations, discounts and issue price will be ascertained by Wednesday morning. Queries to the finance ministry did not elicit a response as of Saturday late evening.

The largest IPO to come to the Indian stock markets will therefore take place well before its deadline of May 12 after which it will have to refile the DRHP with March quarter results.

Tuhin Kanta Pandey, the secretary for the department of investment and public asset management (Dipam), said last month at the Mint India Investment Summit 2022 that there is strong investor interest in the state-run company’s offer, but the Centre will proceed with the IPO only when it is confident of successfully listing the insurer.

The success of LIC’s IPO is crucial for the government to meet its asset sales goal, which has been cut to a modest ₹65,000 crore target for the current fiscal, lower than the revised ₹78,000 crore for the previous fiscal. The government could meet less than 17% of the revised asset sales target for FY22 as the Russian invasion of Ukraine, and the ensuing volatility in stock markets forced it to postpone the LIC share sale to this fiscal year.

However, delaying the IPO beyond 12 May will mean delaying the IPO by two to three months.

Mint reported earlier this week that the country’s largest insurer put up a stellar performance with first-year premium collection, a key metric, rose 7.9% to ₹1.98 trillion for the year ended 31 March, with a market share of 63.25%, lower than the previous year. However, in March, the company’s premium collections grew 51% to ₹42,319.22 crore from a year earlier, garnering a market share of 71%. LIC sold 21.7 million insurance policies in the year ended 31 March, 3.54% more than the previous fiscal, boosting its market share to 74.6% in terms of policies sold.

The mega IPO has drawn significant interest from at least 12 large foreign and domestic fund management firms, Mint reported last week. At least five of India’s top asset management companies, at least three large foreign sovereign funds, two global pension fund management companies and two global hedge funds have committed to invest ₹18,000 crore to bankers managing the LIC IPO, the report said. Mint had also reported that domestic mutual funds are likely to invest ₹7,000-8,000 crore as anchor investors.

Subscribe to Mint Newsletters

* Enter a valid email

* Thank you for subscribing to our newsletter.

Adblock test (Why?)

Lic Board Approved Minimum 3.5% Stake Dilution Via Ipo, Can Raise Limit To 5% Depending On Market Conditions | Mint - Mint
Read More