Tag: GAIL

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SC Rules in Favour of Tata Group, Sets Aside NCLAT Order – Top Indian Market News

Supreme Court upholds Tata Sons’ decision to sack Cyrus Mistry as chairman

The Supreme Court (SC) on Friday upheld the Tata Group’s decision to sack Cyrus Mistry as chairman of the group.  A three-judge bench of SC, led by CJI Justice S A Bobde, set aside the National Company Law Appellate Tribunal (NCLAT) order that had reinstated Mistry on Tata Sons’ board and had termed current Chairman N Chandrasekaran’s appointment as ”illegal”. The SC also refused to entertain Shapoorji Pallonji Group’s plea for fair compensation of their equity shares in Tata Sons. 

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JSW Steel pays Rs 19,350 to complete acquisition of Bhushan Power & Steel

JSW Steel, on Friday, paid Rs 19,350 crore to the financial creditors of Bhushan Power & Steel Ltd (BPSL) towards implementation of the resolution plan for acquiring the insolvent company. With this move, Sajjan Jindal-led JSW Steel has closed the acquisition of BPSL. This marks JSW Steel’s entry into mineral-rich eastern India, which has so far been dominated by Steel Authority of India Ltd (SAIL) and Tata Steel.

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Bajaj Auto, Pierer Mobility to strengthen e-mobility cooperation

Bajaj Auto Limited said it is strengthening its strategic cooperation with Pierer Mobility AG for developing electric products in the two-wheeler sector. Both companies have decided to jointly explore zero tailpipe emissions, low maintenance, and long-lasting benefits of light electric vehicles (EVs) in urban settings and dense metropolitan areas. The first of these electric two-wheelers are set to hit the market in 2022.

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Barbeque Nation IPO subscribed 5.98 times on final day of bidding

The Rs 452-crore initial public offering (IPO) of Barbeque Nation Hospitality Limited was subscribed 5.98 times on the final day of bidding. The IPO has received bids for 2.99 crore equity shares against an offer size of 49.99 lakh shares. The portion reserved for retail investors was subscribed 13.13 times. The portion set aside for non-institutional investors (NIIs) saw a subscription of 3.1 times and that of qualified institutional buyers (QIBs) 5.11 times.

Godrej Properties sells over 275 flats worth Rs 475 crore at housing project in Noida

Godrej Properties Ltd said it has sold around 275 residences worth Rs 475 crore within one day at the launch of its housing project, Godrej Woods, in Noida. Located in Sector 43, Godrej Woods offers homes set amidst a lush green development with over 600 trees. The realty firm claims to have added 17 projects across five cities in the National Capital Region (NCR). Out of this, six projects have already been delivered.

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M&M board approves consolidation of Mahindra Electric Mobility

The Board of Directors of Mahindra & Mahindra Ltd has granted in-principle approval for the consolidation of Mahindra Electric Mobility Ltd (MEML) into the company. The consolidation will categorize electric vehicle (EV) operations into two focused verticals— Last-Mile Mobility and Electric Vehicle Tech Centre. M&M said simplifying the structure will drive improvements through innovation, execution excellence, efficiencies, and economies of scale.

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Tata Motors signs MoU with SBI for financing light commercial vehicles

Tata Motors has signed a three-year Memorandum of Understanding (MoU) with State Bank of India (SBI) to offer financial assistance for the purchase of the company’s range of small and light commercial vehicles. The collaboration with SBI will allow Tata Motors’ commercial vehicle (CV) customers to avail of loans in a hassle-free manner as well as access SBI’s unique technology-laden offerings.

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Power Grid acquires Bikaner-II Bhiwadi Transco from PFC

Power Grid Corporation of India said it has acquired Bikaner-II Bhiwadi Transco Ltd (BBTL), from Power Finance Corporation (PFC). BBTL is the special purpose vehicle (SPV) to establish a transmission system strengthening scheme for evacuation of power from solar energy zones in Rajasthan. The transmission company was acquired for an aggregate value of about Rs 20.50 crore, including 10,000 equity shares at Rs 10 per share, along with its assets and liabilities.

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Confidence Petroleum signs agreement with GAIL Gas to set up CNG stations in Bengaluru

Confidence Petroleum India Ltd has signed an agreement with GAIL Gas for setting up 100 compressed natural gas (CNG) stations in Bengaluru. The CNG stations will be set up on a Build-Operate (BO) basis over the next three years. This will significantly improve the accessibility of CNG auto fuel for cars, autorickshaws, buses, and heavy vehicles of Bengaluru.

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Prestige Estates acquires 50% stake in JV partnership with DB Realty

Prestige Estate Projects, through its subsidiary- Prestige Falcon Realty Ventures, has invested through capital account contribution in Turf Estate Joint Venture LLP as a new partner with an equal share of profit/losses with DB Realty. The joint venture (JV) firm aims to develop a 2.6 million sq. ft. commercial project in Worli, Mumbai. The project would consist of two office towers.

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Govt to Establish National Bank for Infra Investments – Top Indian Market News

Govt in the process of setting up National Infra Bank: Finance Minister

Union Finance Minister, Nirmala Sitharaman, said that the government is in the process of setting up a national bank for funding infrastructure investments. She stated that creating institutional structures, big thrust on monetising assets, and enhancing the share of capital expenditure in central and state budgets were three concrete steps taken by the government for building infrastructure. The minister is expected to introduce the National Bank for Financing Infrastructure and Development Bill, 2021, in Parliament next week. 

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Bharti Airtel to acquire 7.48% stake in Sandhya Hydro

Bharti Airtel Ltd said it will acquire 17.43 lakh equity shares (or 7.48% stake) in Sandhya Hydro Power Project Balargha. The cost of the acquisition is Rs 1.74 crore. Sandhya Hydro owns and operates a small hydro project of 9 megawatt (plus 10% continuous overload) in Kullu district, Himachal Pradesh. It is a subsidiary of Continuum Energy, Singapore.

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Adani Green Energy to acquire 50 MW solar asset from SkyPower Global

Adani Green Energy has signed definitive agreements with Toronto-based SkyPower Global to acquire a 100% stake in a special purpose vehicle (SPV) that owns a 50 megawatt (MW) operating solar asset in Telangana. The cost of the acquisition is based on the enterprise value of Rs 317 crore. The SPV, Surajkiran Renewable Resources, was commissioned in October 2017. It has a long-term Power Purchase Agreement (PPA) with the Southern Power Distribution Company of Telangana at Rs 5.37 per kilowatt-hour (kWh). 

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Power Grid to acquire 74% stake in Jaypee Powergrid for Rs 351.64 crore

Power Grid Corporation of India Ltd (PGCIL) has signed an agreement with Jaiprakash Power Ventures Ltd (JPVL) to acquire 74% stake in Japyee Powergrid Ltd (JPL) for Rs 351.64 crore. JPL is a joint venture (JV) between Power Grid and JPVL. After the acquisition, JPL will become a wholly-owned subsidiary of PGCIL. The transmission JV has a 214 km transmission link to supply electricity from the Karcham-Wangtoo hydropower project in Himachal Pradesh to Himachal Pradesh, Haryana, Punjab, Uttar Pradesh, and Rajasthan

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Failure at NSE clearing arm led to February outage: RBI

The Reserve Bank of India (RBI) said that shutting down of the system at NSE Clearing Limited (NCL) had led to the day-long trading blackout in the stock exchange on February 24, 2021. NCL is responsible for the clearing and settlement of all trades executed on the NSE, as well as risk management functions. “The major issue faced on Feb 24th was the ineffectiveness of inter-operability because of the shutting down of NCL”, said RBI in its State of the Economy bulletin. Another failure was the inability to switch NSE’s operations to the disaster recovery site.

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Barbeque Nation Hospitality IPO to open on March 24; price band fixed at Rs 498-500 per share

Barbeque Nation Hospitality Ltd will open its initial public offering (IPO) on March 24. The price band for the IPO has been fixed at Rs 498 – Rs 500 per share. The IPO comprises a fresh issue of shares worth Rs 180 crore and an offer for sale (OFS) of 54.57 lakh equity shares by existing shareholders. Net proceeds aggregating up to Rs 54.62 crore will be used for setting up 26 new Barbeque Nation Restaurants during financial years 2022 and 2023. 

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India’s crude oil processing hit 4-month low in February

India’s crude oil processing fell to its lowest level in four months in February 2021. According to provisional data released by the government, crude oil processing in February declined by 8.8% year-on-year (YoY) to 4.87 million barrels per day. On a monthly basis, crude oil throughput fell by 5.6%. Fuel consumption in the country also fell to a five-month low last month as higher retail prices affected demand.

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Future Group to challenge Delhi HC order on Biyani over RIL deal: Report

As per a report from Mint, the Future Group has decided to challenge the Delhi High Court (HC) order directing detention of its founder Kishore Biyani and attachment of his assets, while restraining the debt-ridden group from taking any step towards its proposed Rs 24,713 crore asset sale deal with Reliance Industries Ltd (RIL). The report states that an appeal challenging the order may be filed on Monday or Tuesday. On March 18, a single-judge bench of the Delhi HC ordered Future Retail not to go ahead with its deal with RIL, as it had willfully violated Singapore International Arbitration Centre’s emergency order.

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Govt receives Rs 747 crore from GAIL’s share buyback

The Central government has received Rs 747 crore from share buyback by GAIL (India) Ltd, said DIPAM Secretary Tuhin Kanta Pandey. The total share buyback size was Rs 1,046 crore. The government’s current holding in the company stands at 51.45%. To meet revenue targets, the Centre wants public sector undertakings (PSUs) to either meet their targets for capital expenditure or reward its shareholders in the form of dividends or share buybacks.

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CAIT Demands Ban on Amazon’s E-commerce Operations in India – Top Indian Market News

(FILES)This file photo taken on November 28, 2019, shows the Amazon logo at one of the company's centre in Bretigny-sur-Orge. - US logistics giant Amazon announced on April 27, 2020, that it was extending until May 5, 2020, the suspension of activity at its distribution centres in France, after a court decision requiring it to assess the risks associated with the COVID-19 outbreak, caused by the novel coronavirus. (Photo by Thomas SAMSON / AFP)

CAIT demands ban on Amazon’s e-commerce operations in India

The Confederation of All India Traders (CAIT) demanded that the government should impose a ban on Amazon’s e-commerce portal and its operations in India. The traders’ body has accused the US-based company of indulging in predatory pricing, deep discounting, and inventory control. CAIT has also urged the government to probe the business practices of Amazon and Flipkart.

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Ambuja Cements Q4 Results: Net profit rises 24% YoY to Rs 732 crore

Ambuja Cements Ltd reported a 24% YoY increase in consolidated net profit to Rs 732.24 crore for the fourth quarter ended December (Q4 CY20). The company follows the January-December financial year cycle. Its revenue from operations grew 4.58% YoY to Rs 7,452.87 crore during the same period. The company witnessed significant growth in sales volumes under its Master Supply Agreement (MSA) with ACC Ltd.

The Board of Ambuja Cements has approved the renewal of the existing MSA with ACC Limited for a period of 3 years. 

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L&T Construction receives contract to build 2 units of Kudankulam plant

The construction arm of Larsen & Toubro (L&T) has secured a contract from Nuclear Power Corporation of India Ltd (NPCIL) for civil work at the main plant of Kudankulam Nuclear Power Plant’s units 5 and 6. The value of the contract is in the range of around Rs 1,000-2,500 crore. The scope of the order includes the construction of the reactor building, turbine building, and safety structures.

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India’s domestic air passenger traffic declines 40% YoY to 77.34 lakh in January

India’s domestic air passenger traffic declined 39.60% year-on-year (YoY) to 77.34 lakh in January 2021. IndiGo flew the most number of passengers at 42.03 lakh and obtained a market share of 54.30% of the total domestic traffic. This is followed by Vistara, which carried 9.92 lakh passengers, and secured a 12.8% market share. The air traffic data for January was released by the Directorate General of Civil Aviation (DGCA).

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GAIL share buyback offer to open on February 25

GAIL (India) Limited will open its share buyback offer on February 25 for 6.97 crore fully paid-up equity shares of the face value of Rs 10 each. This represents 1.55% of the total number of equity shares issued by the company. GAIL will buy back shares from all existing shareholders and beneficial owners as on the record date- January 28. The share buyback will close on March 10.

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Arvind Fashions to raise Rs 200 crore via rights issue

Arvind Fashions said its Committee of Directors has approved raising around Rs 200 crore through a rights issue. The company will issue 1.48 crore partly paid-up equity shares (of the face value of Rs 4 each) at an issue price of Rs 135 per share to all existing shareholders. The rights entitlement ratio is 3 rights equity shares for every 20 equity shares held in the company. 

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RBI approves Piramal’s resolution plan for DHFL

The Reserve Bank of India (RBI) has approved the resolution plan submitted by the Piramal Group to revive debt-ridden Dewan Housing Finance Ltd (DHFL). The Committee of Creditors (CoC) will now take the proposal to the National Company Law Tribunal (NCLT). On January 15, 2021, the creditors to DHFL gave more than 94% votes in favour of the resolution plan submitted by the Piramal Group.

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Dr Reddy’s launches Fluphenazine Hydrochloride tablets 

Dr Reddy’s Laboratories has launched Fluphenazine Hydrochloride tablets in the US market. The tablets are used for treating manifestations of psychotic disorders. The product is a therapeutic equivalent generic version of Prolixin tablets approved by the US Food and Drug Administration (USFDA). According to IQVIA Health data, the Prolixin brand had US sales of approximately $134 million (~Rs 9.72 crore) during the calendar year 2020.

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RailTel IPO subscribed 42 times on final day of bidding

The Rs 819-crore initial public offering (IPO) of RailTel Corporation of India was subscribed 42.39 times on the final day of bidding. The issue received bids for 259.4 crore equity shares against an offer size of 6.11 crore shares. The portion reserved for retail investors was subscribed 16.79 times, while that of employees was subscribed 3.36 times. The portion set aside for non-institutional investors (NIIs) witnessed a subscription of 73.25 times. The reserved portion for qualified institutional buyers (QIBs) was subscribed 65.14 times.

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RPP Infra Projects JV secures order worth Rs 176 crore

RPP-SMC JV (a joint venture between RPP Infra Projects and SMC Infrastructures) has received a Letter of Acceptance (LoA) for a project worth Rs 176.58 crore. The scope of the project includes the strengthening and widening of Triuneveli-Sengottai-Kollam Road of SH-39.  

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Bharti Airtel adds 40 lakh subscribers in December; Vodafone Idea loses 57 lakh: TRAI

Bharti Airtel added more subscribers than market leader Reliance Jio for the fifth straight month in December. According to data collected by telecom regulator TRAI, Airtel gained 40.5 lakh subscribers, while Jio added 4.7 lakh subscribers in December 2020. Vodafone Idea lost nearly 57 lakh subscribers during the same month.

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Adani Ports’ Q3 Profit Rises 16% YoY to Rs 1,576 crore – Top Indian Market News

adani ports and sez

Adani Ports Q3 Results: Net profit rises 16% YoY to Rs 1,576 crore

Adani Ports & Special Economic Zone (APSEZ) Ltd reported a 16.22% YoY increase in consolidated net profit to Rs 1,576.53 crore for the quarter ended December (Q3). Its consolidated revenue rose 12% YoY to Rs 4,274.79 crore during the same period. APSEZ’s overall cargo volume surged 37% YoY to 76 million metric tonnes (MMT) in Q3. The revenue from port operations increased by 35% YoY, while its logistics business grew by 8% YoY during the October-December period.

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GAIL acquires IEX’s 5% stake in Indian Gas Exchange

State-owned GAIL (India) Ltd has acquired a 5% stake in Indian Gas Exchange (IGX) from its parent company, Indian Energy Exchange (IEX). It has been reported that 36.93 lakh equity shares of IGX have been sold to GAIL for a cash consideration of Rs 3.69 crore. IEX stated that the partnership between IGX and GAIL will add robust value addition in the development of gas markets in India.

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Muthoot Finance Q3 Results: Net profit rises 17% YoY to Rs 1,006 crore

Muthoot Finance reported a 17% YoY increase in consolidated net profit to Rs 1,006.6 crore for the quarter ended December (Q3). Its revenue rose 16% YoY to Rs 3,000.78 crore during the same period. The company’s consolidated loan assets grew by 28% YoY to Rs 55,800 crore during the nine months of 2020-21. Muthoot Finance said that its active customer base crossed 50 lakh. 

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HFCL partners with Qualcomm for development of Wi-Fi 6 products

HFCL Limited has partnered with US-based Qualcomm Technologies for the development of Wi-Fi 6 products. WiFi 6 is the next generation of WiFi, which is compatible and complementary to 5G networks. HFCL said it is eyeing to increase its WiFi segment revenue by threefold to Rs 450 crore over the next 3 years. The company will market the co-developed products worldwide after necessary trials under its IO brand.

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Berger Paints Q3 Results: Net profit rises 51% YoY to Rs 275 crore

Berger Paints India Ltd reported a 51.2% YoY increase in consolidated net profit to Rs 274.98 crore for the quarter ended December (Q3). Its revenue from operations rose 25% YoY to Rs 2,118.2 crore during the same period. The company has witnessed a consistent pick-up in demand for its high-margin decorative paints business. 

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Tata Steel Q3 Results: Net profit at Rs 3,989 crore

Tata Steel Limited reported a consolidated net profit of Rs 3,989 crore for the quarter ended December (Q3). It had posted a net loss of Rs 1,228 crore in the corresponding quarter last year. The company’s revenue rose 11.5% YoY to Rs 39,594 crore in Q3 FY21. The company’s performance in Q3 was driven by higher prices, better product mix, lower exports, and operating efficiency initiatives.

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IOB Q3 Results: Net profit at Rs 213 crore

Indian Overseas Bank (IOB) reported a net profit of Rs 213 crore for the quarter ended December. The bank has posted a net loss of Rs 6,075 crore in the corresponding quarter last year. Net interest income (NII) rose 19% YoY to Rs 1,522 crore in Q3 FY21. IOB’s gross non-performing assets (GNPA) ratio declined to 12.19%, compared with 17.12% in Q3 FY20.

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Bharat Electronics secures order worth Rs 1,000 crore from Ministry of Defence

Bharat Electronics Ltd has signed a contract with the Ministry of Defence for the procurement of Software Defined Radio Tactical (SDR-Tac). The estimated contract value is Rs 1,000 crore. SDR-Tac is a radio system primarily used in ships. BEL will deliver the product to the Indian Navy within three years.

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Mahanagar Gas Q3 Results: Net profit rises 16% YoY to Rs 217 crore

Mahanagar Gas Ltd (MGL) reported a 16.8% YoY increase in net profit to Rs 217.2 crore for the quarter ended December (Q3). Its revenue rose 10.4% YoY to Rs 666.4 crore during the same period. MGL has increased the price of CNG by Rs 1.50 per kg and that of domestic PNG (cooking gas) by 95 paise per unit in Mumbai. The company’s board has declared an interim dividend of Rs 9 per share.

Indoco Remedies Q3 Results: Net profit jumps 169% YoY to Rs 25 crore

Indoco Remedies reported a 169.2% YoY increase in consolidated net profit to Rs 25.1 crore for the quarter ended December (Q3). The company’s consolidated revenue rose 17.2% YoY to Rs 332.3 crore during the same period. Revenue from its international business registered a strong growth of 73% YoY in Q3. Indoco Remedies is a Mumbai-based research-oriented pharma company that has a presence in over 55 countries.

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BPCL to sell 61.6% stake in Numaligarh refinery by March-end

Bharat Petroleum Corporation Ltd (BPCL) said it plans to complete its 61.65% stake sale in Numaligarh Refinery (NRL) to Oil India Limited and the Government of Assam by March 31. The transaction is subject to government approvals. The sale of NRL is considered to be the first step towards the disinvestment of BPCL. In the nation’s biggest privatisation till date, the Central government will sell its entire 52.98% stake in BPCL.

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NBCC’s subsidiary secures project worth Rs 1,800 crore

NBCC (India) Ltd announced that its subsidiary, HSCC Limited, has secured a project for the upgradation of district hospitals and medical colleges in 12 districts of Rajasthan. The agreement was signed between HSCC and the Medical Education Department, Government of Rajasthan. The total cost of the project is estimated at Rs 1,800 crore.

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HCL Tech’s Q3 Net Profit Rises 31% YoY – Top Indian Market News

HCL Tech Q3 Results: Net profit rises 31% YoY to Rs 3,982 crore

HCL Technologies Ltd reported a 31.1% year-on-year (YoY) increase in net profit to Rs 3,982 crore for the quarter ended December (Q3). The IT firm had posted a net profit of Rs 3,037 crore in the same quarter in FY20. Its revenue rose 6.4% YoY to Rs 19,302 crore in Q3 FY21. HCL Tech’s solid performance during Q3 was driven by success in strategic investments and improved demand for its digital and cloud platforms. The company has declared an interim dividend of Rs 4 per share.

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GAIL announces Rs 1,046 crore share buyback

The Board of Directors of GAIL (India) Ltd has approved a Rs 1,046.35 crore share buyback programme. The state-owned gas distributor will buy back 6.97 crore shares, representing 2.5% of the total paid-up equity share capital. The buyback price has been fixed at Rs 150 per share, a 4.1% premium to Thursday’s closing price. GAIL has also declared an interim dividend of Rs 2.5 per share. The board has fixed January 28 as the record date for buyback and dividend.

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PVR reports Q3 net loss of Rs 49 crore

PVR Limited reported a consolidated net loss of Rs 49.21 crore for the quarter ended December (Q3). It had posted a net profit of Rs 36.26 crore in the corresponding period a year ago. The company’s revenue from operations declined by 95% YoY to Rs 45.4 crore in Q3 FY21. PVR stated that it has taken significant steps to mitigate the adverse impact of Covid-19 on business. The company has reached settlements with landlords for 88% of cinemas for a complete or partial waiver for the lockdown period. They also introduced temporary salary cuts and reduced overhead costs.

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Fiat Chrysler partners with Wipro to set up its first global digital hub in India

Wipro Limited has been chosen as a strategic technology services partner by Fiat Chrysler Automobiles (FCA) to establish its first global digital hub in Hyderabad. This digital hub, called FCA ICT India, will support FCA’s Information and Communication Technology operations to focus on delivering premium mobility services. Wipro will source and build a talent pool of more than 1,000 skilled consultants and technologists for FCA ICT India.

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Indian exports rise marginally to $27.15 billion in December

According to latest government data, India’s exports rose marginally to $27.15 billion (~Rs 1.98 lakh crore) in December 2020. Imports have surged 7.56% YoY to $42.59 billion (~Rs 3.13 lakh crore). The trade deficit for December increased by 23.66% YoY to $15.44 billion (~Rs 1.12 lakh crore). Prahalathan Iyer, Chief General Manager of India EXIM (Export-Import) Bank, stated that the trade data for December gives positive hopes with both exports and imports showing growth. Notably, the export growth of non-petroleum and non-jewellery was positive at 5.5%, indicating pick up in manufacturing activity in the country.

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CEAT to supply tyres to Royal Enfield for its 650cc Interceptor range

CEAT Limited announced that it will supply its Zoom Cruz tyres to bike maker Royal Enfield for its 650cc Interceptor range. With Zoom Cruz tyres, CEAT marks its entry in the 650cc segment for the two-wheeler and twin-engine cylindrical motorcycles segment. CEAT has associated with Royal Enfield in the past by supplying tyres for Royal Enfield Bullet, Classic, and Himalayan. The company is the first Indian manufacturer to supply tyres as original fitment for the Interceptor 650cc range.

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Maruti Suzuki launches online finance platform in Arena dealerships across 30 cities

Maruti Suzuki India Ltd has announced the launch of their online financing platform, Smart Finance, for Maruti Suzuki ARENA customers. Smart Finance offers customers a one-stop solution for all vehicle finance needs. The services include the option to choose among a wide range of finance products based on customer needs, selecting the best-suited loan product, and completion of all finance-related formalities. The platform will be available in over 30 cities in India.

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Hathway Cable Q3 Results: Net profit declines 6.96% YoY to Rs 62 crore

Hathway Cables & Datacom Ltd reported a 6.96% YoY decline in consolidated net profit to Rs 62.56 crore for the quarter ended December (Q3). The company had posted a net profit of Rs 67.24 crore in the corresponding period in FY20. Its revenue declined by 1.9% YoY to Rs 442.25 crore in Q3 FY21. 

ABB India partners with Surat Municipal Corporation for optimizing water system

ABB India Ltd has partnered with the Surat Municipal Corporation (SMC) to roll out next-generation technology for delivering continuous water supply across the city. The new infrastructure will enable over 10 lakh residents to access a safe and reliable water supply in line with the government’s Smart Cities Mission. ABB said that the latest investments follow the success of Phase-1 digitalisation upgrade of the city’s water system, which took place in 2018.

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NTPC completes trial run of Unit-2 of 660 MW Meja Thermal Power Project

NTPC Limited announced that Unit-2 of 660 megawatt (MW) capacity of Meja Thermal Power Project of Meja Urja Nigam Pvt Ltd (MUNPL) has successfully completed trial operation. The total installed capacity of MUNPL and NTPC has become 1,320 MW and 63,635 MW, respectively. MUNPL is a joint venture between NTPC and Uttar Pradesh Rajya Vidyut Utpadan Nigam, an electricity generation company under the UP Govt.

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Trident receives European patent for ‘Fabric & Method of Manufacturing Fabric’

Trident Limited has been granted a patent for “Fabric and Method of Manufacturing Fabric” by the European Patent office. The present invention comprises a method of producing fabric by subjecting it to a special treatment, thereby obtaining increased air space. This will help the company to deliver its special soft towels in the European market, without using chemical-based fibres.

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All Industries in Delhi to Switch to PNG by Jan 31 – Top Indian Market News

Air Quality Commission directs switching over of all industries in Delhi to PNG

The Commission for Air Quality Management in NCR and Adjoining Areas has directed all industrial units in Delhi to switch over to piped natural gas (PNG) by January 31. The Commission has also directed the Delhi Pollution Control Committee (DPCC) to inspect and identify industries using polluting fuels and take stringent penal action against those found violating the directive. IGL and GAIL have been directed to complete the pipeline network, metering, and associated infrastructure by January 31.

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Govt invites bids for selling its stake in Shipping Corporation of India

The Indian government has initiated the sell-off plan for Shipping Corporation of India Ltd (SCI), by inviting expression of interest from potentially interested parties. The government proposes to sell its entire shareholding of 63.75% in the listed entity to a buyer that will takeover the company with full management control. The deadline for submitting initial bids is on February 13, 2021. 

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Bajaj Auto to set up a Rs 650-crore unit in Maharashtra 

Bajaj Auto Ltd has signed a Memorandum of Understanding (MoU) with the Government of Maharashtra for Rs 650 crore, to set up a manufacturing unit in Chakan. The state government will facilitate Bajaj Auto in obtaining necessary permissions, registrations, approvals, clearances, and fiscal incentives from the concerned departments. The facility will be utilised for manufacturing high-end KTM, Husqvarna, and Triumph motorcycles. Bajaj Auto stated that the new facility is expected to commence production in 2023.

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Infosys partners with Daimler for IT infrastructure transformation

Infosys Ltd and German automotive major Daimler AG have entered a long-term strategic partnership for a technology-driven IT infrastructure transformation. With support from Infosys, Daimler AG will transform its IT operating model and infrastructure landscape across workplace services, data centers, and networks. The collaboration will also empower Infosys to strengthen its automotive expertise.

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Dr. Reddy’s seeks approval from Canada for Favipiravir pills for Covid-19 treatment

Dr. Reddy’s Laboratories Ltd, Canada-based Appili Therapeutics, and Dubai-based Global Response Aid FZCO (GRA) on Tuesday said that Dr. Reddy’s Canada has filed an application on behalf of the consortium for Reeqonus (favipiravir) Tablets. The tablets are indicated for acute treatment of mild to moderate Covid-19 adult patients. The application has been filed under Health Canada’s “Interim Order Respecting the Importation, Sale, and Advertising of Drugs for Use in Relation to Covid-19”.

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Embassy REIT raises Rs 3,680 crore to fund acquisition of Embassy Tech Village

Embassy Office Parks REIT has raised Rs 3,680 crore ($501 million) through an institutional placement of its units. The proceeds from this placement will be utilised to fund the REIT’s proposed acquisition of Embassy TechVillage (ETV), an information technology park in Bengaluru, for $1.3 billion (~Rs 9,602 crore). The transaction is expected to close by the end of this month.

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Oil India signs MoU with Assam Hydrocarbon 

Oil India Ltd, on Tuesday, signed a Memorandum of Understanding (MoU) with Assam Hydrocarbon & Energy Company (AHECL) in Guwahati. The company stated that the MoU is aimed at establishing a joint institutional framework to facilitate bilateral cooperation in hydrocarbon exploration, development, and marketing of natural gas in Assam for mutual benefit.

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Jubilant Foodworks introduces India’s first plant-protein based pizza

Jubilant Foodworks Ltd announced that Domino’s Pizza has introduced India’s first plant-protein based product – ‘The Unthinkable Pizza’. The company stated that Domino’s latest offering is 100% vegetarian, and yet, has the sensory properties of chicken. The pizza would be available at all Domino’s restaurants across Delhi NCR, Mumbai, and Bangalore. Jubilant Foodworks is the master franchisee for Domino’s Pizza in India, Nepal, Sri Lanka, and Bangladesh.

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NMDC signs MoU with MECL for joint mineral exploration

NMDC Limited has signed an MoU with Mineral Exploration Corporation Limited (MECL) for joint exploration for iron ore, gold, coal, diamond, and other minerals in mutually agreed projects across various states. This will support the government’s ‘Atmanirbhar Bharat Abhiyan’ initiative and extend its commitment towards mineral security for the nation. NMDC Ltd is India’s largest iron ore producing ‘Navaratna’ company.

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Aster DM Healthcare to invest $100 million to set up hospital in Cayman Islands

Aster DM Healthcare said it will invest around $100 million (~Rs 738 crore) to set up a tertiary care hospital in the Cayman Islands, as part of its plans to set up a clinical excellence hub in the region. The company stated that it has signed an agreement with the Government of Cayman Islands to set up a clinical excellence hub to serve the Caribbean Region, North America, Canada, and South America. Aster will initially develop around 150-bed tertiary and quaternary care hospitals in these regions.

Promoters of Wendt India withdraws its proposed OFS

Carborundum Universal and Wendt GmBH, the promoters of Wendt India Ltd, has decided to withdraw the proposed offer for sale (OFS) of shares. In a BSE filing, the Murugappa Group company said that due to delay in transfer of the sale shares as required under the SEBI OFS circulars, it has decided to withdraw the OFS. On Monday (21 December 2020), both promoters had proposed to sell up to 94,704 equity shares, or 4.74% stake of Wendt (India) via an OFS on 22nd and 23rd of December 2020. 

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Categories
Editorial

What is a Navratna PSU? Elgibility and Benefits

Since independence, India has been an agrarian country. Till the late 1990s, it failed to develop its industrial base and give special focus to infrastructure facilities. The government soon realised that there is a need to make public investments to boost the economy. 

According to ownership, the government companies are commonly classified into the followinng categories:

  • State Level Public Enterprises (SLPE) – Companies where the direct holding of the State Government or other SLPEs is 51% or more.
  • Public Sector Banks (PSB) – Banks where the direct holding of the Central/State Government or other PSBs is 51% or more.
  • Central Public Sector Enterprises (CPSE) – Companies where the direct holding of the Government of India or other CPSEs is 51% or more.

The central government of India allots special status to public companies to enhance their reputation. There are 3 special statuses which are bestowed to these SLPEs/ PSBs/ CPSEs if they meet certain criteria.

  • The Maharatnas
  • The Navratnas
  • The Miniratnas (I and II)

Let us read all about Navratna companies today.

Eligibility Criteria for Navratna status

  1. A PSU (Public Sector Undertaking) should fall under the Miniratna category. Being a Miniratna company is not that hard. Any government company having made profits continuously for the last three years or earned a net profit of ₹30 crore or more in one of the three years qualifies to be Miniratna-I company. A Miniratna-II company needs to make profits for three years and have a positive net worth.
  2. It should have obtained a rating of ‘very good’ or ‘excellent’ rating in 3 of the last 5 years under the Memorandum of Understanding(MoU) system. This shows that the company is dependable.
  3. The company should have a composite score of 60 or above out of 100 in the following six selected parameters:
ParameterMaximum Weight
Earnings per share10
Profit before interest and taxes (PBIT) to turnover15
Net profit to net worth25
Profit before depreciation, interest and taxes (EBIDTA) to capital employed15
Manpower cost to total cost of production/services15
Inter-Sectoral performance20

List of Navratna companies

  1. Bharat Electronics Limited: BEL designs, develops and manufactures a range of advanced electronic products for the Indian Armed Forces. A few of the products are the weapon locating model, battlefield surveillance radar, electronic voting machines, tank electronics.
  2. Container Corporation of India Limited: CONCOR comes under the Indian Ministry of Railways. It has three activities in its core business which are a cargo carrier, a terminal operator, and a warehouse operator.
  3. Engineers India Limited: EIL comes under the Ministry of Petroleum and Natural Gas. It helps by providing engineering and related technical services for petroleum refineries. Over the years, it has expanded in business from hydrocarbon chain to metallurgy, infrastructure & power.
  4. Hindustan Aeronautics Limited: HAL comes under the Indian Ministry of Defence. It is involved in designing and assembling aircraft, jet engines, helicopters and their spare parts.
  5. Mahanagar Telephone Nigam Limited: MTNL is one of the most famous telecommunications service providers.
  6. National Aluminium Company Limited: NALCO comes under the Ministry of Mines. It has diversified its operations across mining, metal and power.
  7. NBCC (India) Limited: The company is focussed on three fields PMC (Project Management Consultancy), EPC (Engineering Procurement & Construction) & RE (Real Estate).
  8. NMDC Limited: NDMC comes under the Ministry of Steel. It is India’s largest iron ore producer & exporter and also explores copper, rock phosphate and limestone.
  9. NLC India Limited: It operates in the fossil fuel mining sector and thermal power generation. 
  10. Oil India Limited: OIL is present in the business of exploration, development and transportation of crude oil and natural gas. 
  11. Power Finance Corporation Limited: It is the largest NBFC (Non-Banking Financial Corporation) by net worth (all reserves) in India. It helps by providing financial assistance to power projects across the country.
  12. Rashtriya Ispat Nigam Limited: RINL comes under the Ministry of Steel. Its customers include different industrial users, retailers, specific project customers, etc.
  13. Rural Electrification Corporation Limited: REC was incorporated in 1969 and works under the Ministry of Power. It is a public infrastructure finance company which finance projects in the power sector.
  14. Shipping Corporation of India Limited: It came into existence with the amalgamation of Eastern Shipping Corporation and Western Shipping Corporation. Incorporated in 1961, today it is the largest Indian shipping Company.

Why Become a Navratna Company?

When a company achieves Navratna status, it gets enhanced financial and operational freedom and empowers it to invest up to Rs 1,000 crore or 15% of their net worth on a single project without seeking government approval. They will also have the freedom to enter joint ventures, form alliances and float subsidiaries abroad. So definitely it is a very coveted title, and the benefits may push more Public Sector Enterprises(PSEs) to perform better and make profits. Next day, we can learn about the next level which are Maharatna companies. Till then, have a great weekend!

Categories
Market News Top 10 News

Tata Power Reports 10% YoY Rise in Net Profit – Top Indian Market News

Tata Power Q2 Results: Net Profit rises 10% YoY to Rs 371 crore

Tata Power Ltd. reported a 10% year-on-year (YoY) increase in consolidated net profit to Rs 370.9 crore, for the quarter ended September (Q2). The company’s consolidated revenue increased by 15% YoY to Rs 8,413 crore, during the same period. Tata Power has stated that the rise in revenue was mainly due to a higher solar EPC (engineering, procurement, and construction) income.

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ITC steps up game in India’s chocolate market with a dozen launches

ITC Limited is planning to achieve a bigger share in the Rs 11,000-crore chocolate segment in India, with over a dozen launches in the category during the festive season. The company has announced plans to give customers a differentiated experience and make a profitable business out of its chocolate segment. On 9th November, ITC had also announced the launch of around 70 products in the non-cigarettes fast-moving consumer goods (FMCG) space.

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M&M Q2 Results: Net Profit falls 3% YoY to Rs 1,311 crore

Mahindra & Mahindra Ltd. reported a 3% year-on-year (YoY) decline in consolidated net profit to Rs 1,311 crore, for the quarter ended September (Q2). The company’s revenue increased by 6% YoY to Rs 11,590 crore, during the same period. M&M has stated that it has posted a strong performance in tractor sales, and its operations have nearly recovered to pre-Covid levels.

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Gland Pharma IPO subscribed 8.6% on second day of bidding

Gland Pharma’s initial public offering (IPO) has been subscribed 8.6% on the second day of bidding. The IPO is worth Rs 6,480 crore. It has been reported that the company has received bids for 26.93 lakh equity shares against the IPO size of 3.02 crore equity shares. The issue will close on November 11.

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Godfrey Phillips India Q2 Results: Net Profit declines 9% YoY to Rs 103 crore

Godfrey Phillips India Ltd. reported a 9.23% year-on-year (YoY) decline in consolidated net profit to Rs 103.06 crore, for the quarter ended September (Q2). The total revenue from operations increased by 9.05% YoY to Rs 822.21 crore, during the same period. In a separate filing, the company stood behind its MD Bina Modi and called off allegations of illegality in her appointment. The allegations had been put forth by the company’s director Ruchir Modi.

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Tata Communications secures order from De Tune

Tata Communications Ltd. has partnered with De Tune, a global industry-leading media and entertainment company. The telecommunications company would provide media network and cloud support to De Tune’s next-generation broadcast viewing experience for live events. With the help of Tata, De Tune can now transmit media content from simultaneous event locations to its studio in Los Angeles.

Hindalco Q2 Results: Net Profit falls 60% YoY to Rs 387 crore

Hindalco Industries Ltd. reported a 60% year-on-year (YoY) decline in consolidated net profit to Rs 387 crore, for the quarter ended September (Q2). The company’s consolidated net sales increased by 5.3% YoY to Rs 31,237 crore, during the same period. Hindalco has stated that its aluminum and copper businesses have seen a sharp demand recovery to pre-Covid levels.

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Wipro wins five-year contract from ThoughtSpot

Wipro Limited announced that it has won a five-year contract for software engineering services from ThoughtSpot. As per the agreement, Wipro will improve ThoughSpot’s Search and Analytics platform to help scale future development. US-based ThoughtSpot is an Artificial Intelligence-driven analytics platform.

Raymond Q2 Results: Net Loss stands at Rs 136 crore

Raymond Ltd. reported a net loss of Rs 136 crore, for the quarter ended September (Q2). The textile firm had posted a net profit of Rs 86 crore in Q2 of the previous financial year. The company’s revenue declined by 64.2% YoY to Rs 674.21 crore in Q2 FY21.

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GAIL Q2 Results: Net Profit declines 8.5% YoY to Rs 1,068 crore

GAIL (India) Limited reported an 8.5% year-on-year (YoY) decline in net profit to Rs 1,068.16 crore, for the quarter ended September (Q2). The company’s revenue declined by 24.3% YoY to Rs 13,809.86 crore, during the same period. The Board of Directors of GAIL has approved a plan to raise Rs 10,000 crore through different forms of borrowings.

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TTK Prestige Q2 Results: Net Profit falls 19% YoY to Rs 65 crore

TTK Prestige Ltd. reported an 18.54% year-on-year (YoY) decline in consolidated net profit to Rs 65.44 crore, for the quarter ended September (Q2). The kitchen appliances firm posted a 5.17% YoY increase in total income to Rs 644.22 crore, during the same period. The company’s board has announced an interim dividend of Rs 20 per share.

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