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RIL May Sell 8-10% More in Rel Retail Ventures to Fund Expansion – Top Indian Market Updates

Here are some of the major updates that could move the markets on Friday:

RIL may sell 8-10% more in Rel Retail to fund expansion

Reliance Industries is likely to sell another 8-10% stake in Reliance Retail Ventures Ltd (RRVL) to fund expansion, retire debt, and prepare for the initial public offering of its retail business. This process will likely happen in over 12-15 months and will be critical for the proposed IPO by the holding company of Reliance’s retail operations.

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PFC to provide ₹4,528 crore loan for DVC project in West Bengal

Power Finance Corporation (PFC) has entered into a pact with Damodar Valley Corporation (DVC) to provide ₹4,527.68 crore loan to set up a 1,320 MW project at Raghunathpur, West Bengal. The Raghunathpur Phase-II project will contribute significantly to the power generation capacity in the state. With a combined capacity of 1,320 MW, the project marks a key milestone in the region’s energy landscape.

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Suzlon secures 201.6 MW wind energy project order

Suzlon has secured a large order for a 201.6 megawatts (MW) wind energy project from Teq Green Power XI, a part of O2 Power. The company will supply the wind turbines (equipment supply) and execute the project, including erection and commissioning. The project is expected to be commissioned in 2025.

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NCLT approves Ramkrishna Forgings’ bid to acquire Amtek Group arm

The National Company Law Tribunal (NCLT) has approved Ramkrishna Forgings’ bid to acquire Amtek Group’s listed subsidiary JMT Auto through the corporate insolvency resolution process. Ramkrishna Forgings agreed to offer ₹125 crore to acquire JMT Auto against its admitted financial liabilities of over ₹165 crore. The resolution plan was not objected to by any of the stakeholders.

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Garden Reach partners with DEMPO Group to build commercial vessels

Garden Reach Shipbuilders and Engineers Ltd (GRSE) has signed a Memorandum of Understanding (MoU) with DEMPO Group to build commercial vessels in three premier shipyards of DEMPO at Goa and Bhavnagar. This is GRSE’s first attempt to diversify in a big way in commercial shipbuilding to capture a large market share in the construction of commercial vessels, both domestic and international.

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HPCL meets up to 23% of oil needs with Russian grades

Hindustan Petroleum Corp Ltd (HPCL) is meeting up to 23% of its oil needs through discounted Russian grades. HPCL’s Russian oil intake is limited by the configuration of its refineries. The company is maximising the use of these cheaper so-called opportunity crudes. HPCL operates a 190,000 barrel per day (bpd) Mumbai refinery in Maharashtra and a 300,000 bpd Vizag refinery in Andhra Pradesh. 

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Indian Oil to invest $30 billion to achieve 2046 net-zero target

Indian Oil Corporation Ltd (IOCL) plans to spend $30 billion to achieve its net-zero operational emissions target by 2046. The company also plans to invest over ₹1 lakh crore to expand its refining capacity by a third to 107 million metric tonnes per annum. Indian Oil is partnering with Italy-based Snam to explore the possibility of converting the existing natural gas pipelines for hydrogen transportation.

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Lupin gets USFDA approval to market Pirfenidone tablets

Lupin has received approval from the US Food & Drug Administration (USFDA) to market Pirfenidone tablets in the American market. The drug is used in the treatment of lung disease. As per IQVIA MAT data, generic versions of Pirfenidone tablets had estimated annual sales of USD 218 million in the US.

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L&T, HAL could potentially bid on privatisation of India’s SSLV

According to a Reuters Report, Larsen & Toubro (L&T) and Hindustan Aeronautics (HAL) are among companies expected to potentially bid in India’s efforts to privatise its small satellite launch rocket. The Small Satellite Launch Vehicle (SSLV) was developed by the Indian Space Research Organisation (ISRO) as a low-cost means to launch satellites weighing up to 500 kg into low-earth orbit. They serve a booming market to launch clusters of satellites for communications and data that SpaceX and rivals compete in.

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Bata in Partnership Talks With Adidas For Indian Market – Top Indian Market Updates

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Here are some of the major updates that could move the markets tomorrow:

Bata in partnership talks with Adidas for Indian market

According to a CNBC-TV18 report, Bata India is in talks with Adidas for a strategic partnership for the Indian market. This anticipated partnership is focused specifically on the Indian market. The primary objective of this strategic collaboration is to leverage Bata’s extensive and impressive retail network across India. With around 2,100 stores spread across 700 cities throughout the country, Bata India’s retail reach has captured the attention of Adidas India.

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SJVN signs two agreements to supply 1,200 MW solar power to Punjab

Satluj Jal Vidyut Nigam (SJVN) Ltd has signed two pacts with Punjab State Power Corporation Ltd (PSPCL) to supply 1,200 MW of solar power from its projects. SJVN signed two power purchase agreements (PPAs) for 1,200 MW of solar power recently. SJVN Green Energy Limited (SGEL), SJVN’s arm, proposed the rate of ₹2.53 per unit for the supply of 1,000 MW and ₹2.75 per unit for another 200 MW.

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SBI offers relief to loan borrowers in Manipur

The State Bank of India (SBI) has offered to extend relief on loans to its customers in Manipur, who have been affected by the ongoing unrest in the state. The relief package includes a moratorium of up to 12 months on equated monthly instalments (EMIs), interest payments, and other instalments. It will be available to borrowers whose accounts had not turned into non-performing assets (NPAs) as on May 3, 2023.

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NCLT allows GE Power to withdraw insolvency petition as BHEL offers settlement

The National Company Law Tribunal (NCLT) allowed GE Power to withdraw its insolvency petition against Bharat Heavy Electricals Ltd with the liberty to revive if the operational debt is not settled. Counsels for GE Power Akshay Sapre, along with Abhijit Swarup and Aneesha Rastogi from The Guild, a law firm, informed the tribunal that BHEL had sent a letter to GE Power to settle ₹25 crore of debt amount owed to GE Power.

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JSW Steel may pick majority stake in Teck Coal unit

JSW Steel Ltd is looking to form a consortium to bid for a majority stake in Teck Resources Ltd.’s steelmaking coal business. The company’s offer potentially rivals an $8 billion offer from commodities giant Glencore Plc. JSW is seeking partners for an offer to acquire a 75% interest in the asset, known as Elk Valley Resources Ltd. That’s a marked shift in approach from July when Bloomberg News reported JSW was interested in up to 20% of Teck’s coal business.

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ChrysCapital still in race to buy controlling stake in Glenmark Life Sciences

Private equity (PE) firm ChrysCapital remains firmly in the race to acquire Glenmark Pharma’s stake in Glenmark Life Sciences (GLS), with reports about Nirma closing on the deal doing the rounds. Glenmark Pharma’s stake sale is a procedural requirement as per the listing guidelines. Glenmark Pharma’s shareholding in GLS, which is 83% currently, needs to come down to 75% no later than August 2024.

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USFDA’s concerns in Lupin’s Goa, Pithampur units are resolved

Lupin Ltd has received correspondence from the US Food & Drug Administration (USFDA) that it has now addressed the concerns raised in the warning letter for its facilities in Goa and Pithampur Unit-2, Indore. This comes after the satisfactory evaluation of the corrective actions taken by the company in response to the warning letter that was issued on November 6, 2017. On July 12, the USFDA inspected its Nagpur oral solid dosage facility from July 3-11. The inspection closed with the issuance of Form 483, with two observations.

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Inox Wind’s promoters infuse Rs 500 cr for debt repayment

Inox Wind’s promoter and promoter group entities have infused ₹500 crore in the company for debt repayment. The funds were raised by way of equity share sale of Inox Wind through block deals on the stock exchanges. The company will utilise the funds for the repayment of IWL’s existing debt. The company’s strategic move marks a significant milestone in Inox Wind’s journey towards financial sustainability.

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Ramkrishna Forgings secures Rs 145 cr order from European OEM

Ramkrishna Forgings Ltd secured ₹145 crore worth of orders in the European Original Equipment Manufacturer (OEM) sector. The business contract valued at 16 million euros under a long-term agreement will span four years. The new business marks a key achievement for the company as it leverages its proven track record and expertise to venture into a new realm of automotive components.

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NCLT Approves HDFC-HDFC Bank Merger – Top Indian Market Updates

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Here are some of the major updates that could move the markets on Monday:

HDFC-HDFC Bank merger gets NCLT approval

The National Company Law Tribunal (NCLT) has given its approval to the HDFC-HDFC Bank merger. In April 2022, HDFC Bank agreed to take over the biggest domestic mortgage lender in a deal valued at about $40 billion. The proposed entity will have a combined asset base of around Rs 18 lakh crore. The merger is expected to be completed by the second or third quarter of FY24.

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Tata ceases discussions with Bisleri to acquire the packaged water giant

Tata Consumer Products has ended discussions with Bisleri for the potential acquisition of the packaged water giant. In November 2022, owners of Bisleri International said they will divest the company to the Indian conglomerate for an estimated ₹6,000-7,000 crore. Bisleri’s owners were reportedly looking to raise about $1 billion from a deal.

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Bharti Airtel launches unlimited 5G data offer

Bharti Airtel has launched an unlimited 5G data offer to hold on to its higher-paying postpaid users and also push its 4G users to upgrade to its next-gen wireless broadband service. This move comes after Reliance Jio’s new postpaid plans were announced earlier this week. The unlimited 5G data offer will be available to all postpaid customers as well as prepaid ones with data plans of Rs 239 and above.

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Va Tech Wabag secures order worth Rs 800 crore in Bangladesh

VA Tech Wabag has secured a Rs 800 crore project funded by the World Bank and Asian Infrastructure Investment Bank (AIIB) in Bangladesh. The company will design, build and operate a sewage treatment plant with a capacity of 200 million litre per day (MLD) in Dhaka. This project has the potential to be expanded to 600 MLD in the future

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Havells commences commercial production of ACs at Sri City plant

Havells India Ltd has commenced commercial production of air conditioners (ACs) at its Sri City plant. The company manufactures home appliances, lighting for domestic, commercial, & industrial applications, LED lighting, fans, modular switches & wiring accessories, water heaters, etc.

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Zee Entertainment calls report of $10 million repayment ‘speculative’

Zee Entertainment Enterprises Ltd (ZEEL) called the report saying it will repay $10 million to IndusInd to wrap the Sony deal as “speculative”. The media company said it is exploring several strategies related to the ongoing dispute. On Thursday, Bloomberg reported that ZEEL has agreed to repay its dues to the IndusInd Bank to resolve insolvency proceedings against it and get a step closer to completing its merger with the Sony Group.

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GAIL signs MoU with Shell Energy India for exploring ethane sourcing opportunities

GAIL (India) Ltd. signed a Memorandum of Understanding (MoU) with Shell Energy India for exploring ethane sourcing and other energy value chain opportunities. Through this agreement, GAIL expects to dive into the prospects of importing and handling different hydrocarbons that serve as essential chemical and petrochemical precursors. The company said this is a step towards achieving improved sustenance in business operations.

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Unichem Labs gets USFDA approval for chronic angina treatment tablets

Unichem Laboratories Ltd has received approval from the US Food and Drug Administration (USFDA) for its Ranolazine Extended-Release tablet. The drug is prescribed for the treatment of chronic angina (a type of chest pain caused by reduced blood flow to the heart). The product will be commercialised from its manufacturing facility in Goa. 

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Maiden Forgings to launch IPO next week

Steel bars and wires manufacturer Maiden Forgings will launch an Initial Public Offering (IPO) to raise Rs 24 crore. The IPO will open on March 22 and close on March 24. Out of the total 37,84,000 equity shares on offer, not more than 17,97,000 equity shares have been reserved for Qualified Institutional Buyers (QIB). A total of 5,39,100 shares have been reserved for Non-Institutional Investors (NII) and the rest for retail individual investors.

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Adani Group Pre-Pays Over Rs 7,350cr Worth Share-backed Financing – Top Indian Market Updates

Here are some of the major updates that could move the markets tomorrow:

Adani Group pre-pays over Rs 7,350cr worth share-backed financing

Adani Group said it prepaid share-backed financing of ₹7,378 Crores ($901.16 mn) as part of its promoters’ commitment to cut overall leverage backed by shares of its listed companies. The group has been looking to ease concerns about its credit profile after US-based short seller Hindenburg Research noted high debt and alleged improper use of offshore tax havens and stock manipulation.

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Dr Reddy’s Labs recalls over 4,000 bottles of generic drug in US

Dr Reddy’s Laboratories is recalling over 4,000 bottles of a generic drug in the US due to a packaging error. The company is recalling 4,320 bottles of Tacrolimus Capsules, which are used to prevent the body from rejecting a transplanted organ. The affected lot was produced at the company’s Bachupally-based manufacturing plant and marketed in the US by its American subsidiary.

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IGL, Genesis, to invest Rs 110 cr to set up meter manufacturing plant

Indraprastha Gas Ltd (IGL) has signed an agreement with Genesis, an arm of Vikas Lifecare Ltd (VLF), to set up a meter manufacturing plant at an estimated cost of Rs 110 crore. The unit will be set up through a joint venture company. In the joint venture, IGL and Genesis will have equity participation in the ratio of 51:49. The unit is expected to be operational by April 2024 and will have a production capacity of one million meters per annum initially.

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PowerGrid’s board approves investments of Rs 4,071 crore

Power Grid Corporation’s Board of Directors has approved investments of nearly Rs 4,071 crore for two transmission projects in India. The board has approved the transmission system for Kurnool Wind Energy Zone/ Solar Energy Zone (AP) at an estimated cost of Rs 3,546.94 crore and the Eastern Region Expansion Scheme at a cost of Rs 524.04 crore. These projects are scheduled to be commissioned by November 2024 and Nov 2025, respectively.

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NCLT approves Suraksha plan for Jaypee Infratech

The Delhi bench of the National Company Law Tribunal (NCLT) has approved Suraksha Asset Reconstruction Company’s (ARC) takeover of the debt-laden Jaypee Infratech. A two-member principal bench of NCLT headed by president Ramalingam Sudhakar approved the resolution plan, more than three months after concluding the hearing and reserving the order in Nov 2022.

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Credit card outstanding rises 29.6% to reach record high level in Jan

The credit card outstanding in January rose 29.6% to an all-time high of Rs 1.87 lakh crore on back of increased digitisation and rising consumer confidence in the post-Covid period. As per the latest data of the Reserve Bank of India (RBI), the credit card outstanding has recorded a growth of over 20% in the 10 months of the current fiscal. June recorded the highest growth of 30.7%.

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Blue Star to take up expansion at Dadra, Sri City manufacturing facilities

Blue Star Ltd will undertake capacity expansion plans at its facilities in Dadra and Sri City. In Jan, the company commenced production at its unit in Sri City in Andhra Pradesh, which was set up at an investment of Rs 350 crore. Blue Star has manufacturing plants in Himachal Pradesh, Ahmedabad, Dadra, Wada (Maharashtra) and Sri City.

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Jindal Stainless to invest Rs 120 crore to set up two rooftop solar projects

Jindal Stainless Ltd (JSL) will invest Rs 120 crore to set up rooftop solar capacities at its Jajpur and Hisar facilities. While a project of 21-megawatt peak (MWp) will be set up in Jajpur, another 6 MWp rooftop solar capacity will be installed at the company’s unit in Hisar. Both projects are scheduled to be completed by March 2024.

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HAL and L&T sign deal with India defence for 70 HTT-40 trainer aircraft and cadet training ships

The Ministry of Defence signed a contract with Hindustan Aeronautics Ltd (HAL) for the procurement of 70 HTT-40 trainer aircraft worth over Rs 6,800 crore. It has also entered into agreements with Larsen & Toubro Ltd (L&T) for the acquisition of three Cadet Training Ships worth more than Rs 3,100 crore. These deals come as a big boost to India’s efforts to achieve ‘Aatmanirbharta’ in the defense sector.

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Vedanta to buy 6% more stake in Hindustan Zinc for Rs 7,900 crore: Report

Vedanta, which currently owns 64.9% stake in Hindustan Zinc Ltd (HZL), is reportedly planning to acquire an additional 6% stake in the company as and when the government sells its holdings. The Indian govt is planning to sell its 15% stake in HZL by March-end. Sources say Vedanta is looking to raise about $1 billion from three foreign banks to fund the acquisition.

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ONGC to Invest $2 Billion in Mumbai Offshore – Top Indian Market Updates

ONGC market updates | marketfeed

Here are some of the major updates that could move the markets tomorrow:

ONGC to invest $2 billion in Mumbai offshore to raise oil, gas output

Oil & Natural Gas Corporation (ONGC) is set to invest over $2 billion (₹16,500 crore) to drill a record 103 wells on its main gas-bearing asset in the Arabia Sea. The company plans to add 100 million tonnes to its overall production. ONGC has three main assets off the west coast– Mumbai High, Heera and Neelam, and Bassein and Satellite, which contributed the bulk of 21.7 million tonnes of oil and 21.68 billion cubic metres of gas it produced in 2021-22.

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NSE gets SEBI approval to launch Social Stock Exchange as separate segment

The National Stock Exchange (NSE) has received final approval from the Securities & Exchange Board of India (Sebi) to set up a Social Stock Exchange (SSE) as a separate segment of the NSE. The SSE aims to provide a new avenue for social enterprises to finance social initiatives, give them visibility, and increase transparency in fund mobilization and utilisation by social enterprises.

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ZEEL CEO challenges NCLT’s insolvency order before NCLAT

Zee Entertainment Enterprises Limited (ZEEL) MD & CEO Punit Goenka has moved the National Company Law Appellate Tribunal (NCLAT) seeking relief from the order passed by the National Company Law Tribunal (NCLT). The NCLT allowed IndusInd Bank’s plea to admit ZEEL under the Corporate Insolvency Resolution Process (CIRP) on Wednesday. The NCLAT hears appeals against the orders passed by NCLT.

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Tata Motors seeks investors for stake in EV business

Tata Motors has begun discussions with sovereign wealth funds and private equity investors such as UAE-based Abu Dhabi Investment Authority (ADIA) and Mubadala Investment Company to sell a significant minority stake in its EV division. Tata Motors plans to raise up to $1 billion through the equity sale and will use the bulk of proceeds to retire a part of its outstanding debt.

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Jio-BP to sell bio-CNG, compressed biogas

Jio-bp will shortly begin retailing compressed biogas (CBG) and bio-CNG (B-CNG), both of which can be used in place of compressed natural gas in CNG-powered vehicles. The company will retail CBG and B-CNG at its outlets in western India initially and later expand to other outlets. Jio-bp is a fuel retail joint venture between Reliance Industries and British oil major BP. 

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Domestic oil demand growth to fall to 5% in FY24: Govt forecast

Domestic oil demand growth will slow to 5% in 2023-24 after a scorching expansion of nearly 10% in this financial year, said the Petroleum Planning and Analysis Cell (PPAC). India will consume 233.8 million metric tonnes (MMT) of refined products in 2023-24, compared to the estimated consumption of 222.9 MMT in the current financial year (FY23) according to the forecast.

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ZEEL, Jio TV extend content partnership for two years

Zee Entertainment Enterprises Ltd (ZEEL) has renewed its content partnership with Jio Platforms-owned live TV aggregation app Jio TV for two more years. ZEEL’s suite of over 60 SD and HD channels will continue to be available on the Jio TV app. The company also distributes news broadcaster Zee Media’s channels. 

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Adani Group invests $442 million in cash-strapped Sri Lanka

Sri Lanka’s Board of Investment has approved the commissioning of two wind power plants by Adani Green Energy Limited for a total of $442 million. According to Reuters, Adani Group officials are in Colombo to evaluate future projects, including a $700 million port terminal at Sri Lanka’s largest port. 

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Infosys partners with Microsoft to accelerate enterprise cloud transformation

Infosys Ltd will partner with global tech giant Microsoft to accelerate the adoption of cloud solutions across the globe. The partnership will see Infosys onboard its set of cloud services, solutions, and platforms for enterprises to Microsoft’s various cloud-based platforms like Microsoft Azure. Microsoft’s cloud clients will also be able to take advantage of the Infosys Cobalt suite of solutions.

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Thales picks L&T Technology Services for 5G-driven connectivity solutions

French IT major Thales has selected L&T Engineering Services Ltd. (LTTS) to offer 5 G-driven next-gen connectivity solutions for urban railway operators in collaboration with Qualcomm Technologies. The solution leverages LTTS’ chip-to-cloud expertise as well as a technology portfolio of connected IoT devices and 5G small cells based on Qualcomm Technologies.

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Reliance’s Net Profit Falls 15% YoY in Q3 – Top Indian Market Updates

Here are some of the major updates that could move the markets on Monday:

RIL Q3 Results: Net profit falls 14.8% YoY to ₹15,792 crores

Reliance Industries Ltd (RIL) reported a 14.8% year-on-year (YoY) decline in consolidated net profit to ₹15,792 crores for the quarter ended December (Q3 FY23)— missing street estimates. Profit declined due to higher finance costs and depreciation. Its revenue from operations rose 15% YoY to ₹2.20 lakh crore on the back of improvement in Oil-to-Chemicals (O2C) and the exploration & production (E&P) businesses and retail performance. EBITDA stood at ₹38,460 crore, up 13.5% YoY.

Meanwhile, Reliance Jio Infocomm’s standalone net profit rose 28.3% YoY to ₹4,638 crore in Q3. Its total revenue increased nearly 19% YoY to ₹22,998 crore.

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Dr. Reddy’s Labs completes clinical studies of its proposed rituximab biosimilar candidate

Dr. Reddy’s Laboratories Ltd has successfully completed the full set of clinical studies of its proposed rituximab biosimilar candidate ‘DRL_RI’ for filing in highly regulated markets such as the US, Europe, and other regions. The biosimilar is used in the treatment of adult patients with rheumatoid arthritis, non-Hodgkin’s lymphoma, and chronic lymphocytic leukemia. ‘DRK_RI’ has already been approved for marketing in India and over 25 emerging markets.

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JSW Steel Q3 Results: Net profit falls 90% YoY to ₹474 crore

JSW Steel Ltd reported a 90% YoY decline in consolidated net profit to ₹474 crore for the quarter ended December (Q3 FY23). Its revenue from operations rose 3% YoY to ₹39,134 crore during the same period. EBITDA stood at ₹4,547 crore, down 50% YoY. The combined crude steel production of JSW Steel stood at 6.24 million tonnes (MT) in Q3, up 10%.

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NCLT admits Union Bank’s insolvency plea against Rolta

The Mumbai Bench of the National Company Law Tribunal (NCLT) admitted military-focused software developer Rolta India for the corporate insolvency resolution process (CIRP), allowing a petition filed by state-owned Union Bank of India. Union Bank approached the bankruptcy court in February 2020 after the Mumbai-based company defaulted on dues of over ₹1,413 crore to the lender.

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LTIMindtree Q3 Results: Net profit falls 4.7% YoY to ₹1,000 crore

LTIMindtree reported a 4.7% YoY decline in net profit to ₹1,000 crore for the quarter ended December (Q3 FY23). Its revenue from operations rose 25.3% YoY to ₹8,620 crore during the same period. The combined entity (after the merger of LTI and Mindtree) has started out a robust order inflow of $1.25 billion. The IT company’s board declared an interim dividend of ₹20 per share.

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Canara Bank sells entire stake in Russian joint venture to State Bank of India

Canara Bank has entered into a share sale agreement with State Bank of India for the sale of equity shares held by it in Moscow-based Commercial Indo Bank LLC (CIBL) for a consideration of $14.67 million. CIBL is a joint venture between SBI and Canara Bank in a ratio of 60:40. The transaction is expected to complete by the end of the current financial year (FY23).

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KPI Green commissions 25 MW solar power project for Greenlab Diamonds

KPI Green Energy has commissioned a 25 megawatts (MW) solar power project for Greenlab Diamonds LLP in Surat. The new project is part of its captive power producer (CPP) segment. The company also announced the appointment of Salim Suleman Yahoo as the new Chief Financial Officer (CFO).

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RBL Bank Q3 Results: Net profit rises 33% YoY to ₹209 crore

RBL Bank reported a 33% YoY increase in net profit to ₹209 crore for the quarter ended December (Q3 FY23). Its net interest income (NII) rose 14% YoY to ₹1,148 crore during the same period. The gross non-performing assets (GNPA) ratio improved from 3.8% in Q2 FY23 to 3.61% in Q3 FY23. The bank’s net advances grew 15% YoY to ₹66,684 crore in Q3.

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GPT Infraprojects secures project worth ₹270 crore in UP

GPT Infraprojects Ltd has secured an order worth ₹270 crore from Bridge and Roof Company Ltd, a Government of India enterprise. The company will construct a railway interchange (flyover) between Allahabad and Bamrauli in Uttar Pradesh. Earlier this week, GPT Infra secured an order worth ₹216 crore from Maharashtra Rail Infrastructure Development Corporation Ltd for the extension of the Ghatkopar Cable Stayed Road interchange in Mumbai.

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HDFC Life Q3 Results: Net profit rises 15% YoY to ₹315 crore

HDFC Life Insurance Company Ltd reported a 15% YoY increase in net profit to ₹315 crore for the quarter ended December (Q3 FY23). Its net premium income (NPI) rose 19% YoY to ₹14,379 crore during the same period. First-year premiums grew 29% YoY to ₹2,724.87 crore. HDFC Life’s total assets under management (AUM) stood at ₹2.33 lakh crore in Q3, compared to ₹1.95 lakh crore a year ago.

Read more here.

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Retail Inflation Eases to 5.72% in Dec – Top Indian Market Updates

Here are some of the major updates that could move the markets tomorrow:

Retail inflation eases to 5.72% in December

India’s retail inflation, measured by the Consumer Price Index (CPI), eased to a one-year low of 5.72% in December 2022. CPI stood at 5.88% in November and 6.77% in October 2022. Food inflation came in at 4.19% in December, compared to 4.67% in Nov. Inflation in the fuel & light segment was 10.97% last month.

Factory output, measured by the Index of Industrial Production (IIP), rose to a five-month high of 7.1% in Nov 2022. IIP had contracted (-)4% in Oct.

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Infosys Q3 Results: Net profit rises 13% YoY to ₹6,586 crore

Infosys Ltd reported a 13.4% year-on-year (YoY) increase in consolidated net profit to ₹6,586 crore for the quarter ended December (Q3 FY23). The IT company’s revenue from operations rose 20.2% YoY to ₹38,318 crore during the same period. It won deals worth $3.3 billion in Q3, the strongest in the last eight quarters. Infosys added 1,627 employees during the quarter.

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Jio launches True 5G services in Ujjain

Reliance Jio has set up its 5G services in Ujjain, Madhya Pradesh. With the launch, Jio has now become the first and the only operator in MP to launch 5G services across all prominent large cities in the state, including Bhopal, Indore, Gwalior, and Jabalpur. Users will be able to enjoy Unlimited 5G Data with up to 1 Gbps+ speed at no additional cost.

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HCL Tech Q3 Results: Net profit rises 19% YoY to ₹4,096 crore

HCL Technologies Ltd reported a 19% YoY (or 17% QoQ) increase in consolidated net profit to ₹4,096 crore for the quarter ended December (Q3 FY23). The IT company’s revenue from operations rose 19.5% YoY to ₹26,700 crore during the same period. The total contract value of new deal wins stood at $2.35 billion, up 10% YoY. HCL Tech’s board has approved an interim dividend of ₹10 per equity share. 

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NCLT grants approval to PVR-Inox merger scheme

The Mumbai bench of the National Company Law Tribunal (NCLT) has sanctioned the scheme of arrangement between cinema chains PVR and Inox Leisure. Once the NCLT issues the detailed order copy, the two companies will file it with regulatory authorities like the Registrar of Companies (RoC) and stock exchanges. The allotment of shares is likely to be completed in the next few weeks.

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ONGC to rely more on advanced tech: Sushma Rawat

Oil & Natural Gas Corporation (ONGC) will increase reliance on advanced technologies and tech-savvy younger minds to boost chances of making major discoveries, said Sushma Rawat (ONGC’s exploration chief). The company will acquire more exploration acreage and bring in new technologies to enhance the quality of seismic surveys and data interpretation. 

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Zydus Lifesciences gets final USFDA approval for Brexpiprazole tablets

Zydus Worldwide DMCC (a subsidiary of Zydus Lifesciences Ltd) has received final approval from the US Food & Drug Administration (USFDA) to market Brexpiprazole tablets. Brexpiprazole is an antipsychotic drug used along with antidepressants to treat major mental conditions like depression and schizophrenia. The drug will be manufactured at the group’s formulation facility at Ahmedabad Special Economic Zone (SEZ), Gujarat.

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Apax Partners likely to sell 4.63% shares in Shriram Finance via block deal: Report

According to a CNBC-TV18 report, private equity fund Apax Partners is planning to sell its shares in Shriram Finance Ltd via a block deal tomorrow. APAX’s subsidiary, Dynasty Acquisition, would sell up to 1.73 crore shares or 4.63% stake in the non-banking finance company (NBFC). The size of this deal is ₹2,250 crore.

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SEBI allows exchanges to launch multiple contracts in same commodity

The Securities and Exchange Board of India (SEBI) has allowed stock exchanges to launch multiple contracts in the same commodity to encourage broader participation of investors in the commodity derivatives market. Exchanges have been demanding multiple contracts on a single commodity to ensure that all market players across the value chain are catered to. Currently, all commodities (except gold, silver, and precious metals) have a single contract, which limits investors’ and traders’ participation.

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Adani Group to Get Control of NDTV – Top Indian Market Updates

Here are some of the major updates that could move the markets tomorrow:

Adani Group to get NDTV control as promoters decide to sell bulk of their stake

New Delhi Television Ltd’s (NDTV) founders Prannoy Roy and his wife Radhika Roy have decided to transfer most of their shares in the company to the Adani Group. This will give Gautam Adani’s conglomerate control of about 65% of the news broadcaster. The founders will sell a 27.26% stake of their remaining 32.26% shareholding in NDTV to an entity owned by Adani.

Read more here.

Puravankara, Purva Real Estate Fund acquires 100 acres of land in Chennai

Puravankara Ltd and Purva Real Estate Fund have acquired more than 100 acres of land for plotted development in a deal valued around ₹200 crore in Chennai. The proposed project at Guduvanchery is expected to have a total revenue potential of over ₹900 crore. Guduvanchery is an upcoming real-estate hub for Chennai. Puravankara plans to launch three more plotted development projects by March 2023.

Read more here.

Tata Power secures ₹450 crore sustainable trade finance from Japan’s MUFG

Japan’s MUFG Bank has executed a ₹450 crore sustainable trade finance facility for Tata Power. This credit facility was extended for solar projects under TP Kirnali Limited (TPKL). TPKL is a wholly-owned subsidiary of Tata Power Renewable Energy Ltd (TPREL), a clean energy platform.

Read more here.

Godrej Properties to develop residential project on 14.27 acres in Gurugram

Godrej Properties Ltd (GPL) has entered into an agreement to develop 14.27 acres of land in Gurugram, Haryana, with an estimated revenue potential of ₹3,000 crore. The development will comprise predominantly premium residential apartments. This will be one of GPL’s largest residential developments in Gurugram and significantly strengthen its presence in the city.

Read more here.

Vedanta declared as preferred bidder for Bicholim mineral

Vedanta Ltd has been declared as the preferred bidder for the Bicholim mineral block in Goa. The iron ore mines had resources of 84.92 million tonnes. Goa government has earlier invited tenders to participate in the electronic auction for granting mining leases in respect of iron ore mines in the state. 

Read more here.

NCLT approves merger of Jindal Stainless and Jindal Stainless (Hisar)

Jindal Stainless has received regulatory approval for its merger with Jindal Stainless (Hisar) from the National Company Law Tribunal (NCLT). The two companies had been demerged in 2015 as part of a financial and operational restructuring exercise to bring down the cost of borrowing. Jindal Stainless had a debt of over ₹8,500 crore, which prompted the restructuring.

Read more here.

Bharat Highways InvIT files draft papers with SEBI for IPO

Bharat Highways InvIT has filed a draft prospectus with the capital markets regulator SEBI to raise ₹2,000 crore through an initial public offering. Proceeds of the issue will be used to repay certain loans obtained by the project special purpose vehicles (SPV) and for general corporate purposes. As per the draft papers, Bharat Highways InvIT would issue units aggregating up to ₹2,000 crore.

Read more here.

2,613 air incidents reported in India during five years; IndiGo tops the list: Govt

The Ministry of Civil Aviation (MoCA) said there has been a long list of air incidents reported in the last five years involving domestic airlines and added that 12 of these airline companies are presently operating in India. There were a total of 2,613 air incidents reported due to technical snags in the five years in which IndiGo airlines topped the list. IndiGo reported 215 incidents so far in 2022 and 885 incidents over five years.

Read more here.

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Market News Top Crypto News

Wipro Reports 21% YoY Decline in Net Profit in Q1 – Top Indian Market Updates

Here are some of the major updates that could move the markets tomorrow:

Wipro Q1 Results: Net profit falls 21% YoY to Rs 2,563 crore

Wipro Ltd reported a 20.9% YoY decline in net profit to Rs 2,563 crore for the quarter ended June (Q1 FY23). Its revenue from operations grew 17.9% YoY to Rs 21,528.6 crore during the same period. Compared to last quarter, its operating margin in the IT services segment fell by 200 basis points (bps) to 15% in Q1.

Read more here.

India cuts windfall taxes on fuel exports as global prices fall

The Central Govt has reduced windfall tax and exports levy after the oil prices softened in the international market. It has reduced the windfall tax on domestically produced crude to Rs 17,000 per tonne and also cut the levy on exports of diesel by Rs 2 and aviation-fuel exports by Rs 2 per litre. The move will offer relief for top fuel exporters like Reliance Industries and state-run Oil & Natural Gas Corp.

Read more here.

IndusInd Bank Q1 Results: Net profit rises 64% YoY to Rs 1,603 crore

IndusInd Bank Ltd reported a 64% YoY increase in net profit to Rs 1,603.29 crore for the quarter ended June (Q1 FY23). Its net interest income (NII) grew 16% YoY (or 4% QoQ) to Rs 4,125 crore during the same period. The gross non-performing assets (GNPA) ratio stood at 2.35% in Q1 FY23, compared to 2.88% in the previous quarter (Q4 FY22). Provisions fell 30% YoY to Rs 1,251 crore.

Read more here.

NCLT admits Bank of India’s insolvency plea against Future Retail

The Mumbai bench of the National Company Law Tribunal (NCLT) has allowed the initiation of insolvency proceedings against Future Retail Ltd (FRL). In April 2022, Bank of India moved the tribunal seeking to initiate insolvency resolution proceedings against FRL, which has defaulted on loan repayments. FRL has defaulted on payments of Rs 5,322.32 crore to its lenders amidst the ongoing litigations with Amazon and other related issues.

Read more here.

Gland Pharma Q1 Results: Net profit falls 35% YoY to Rs 229 crore

Gland Pharma Ltd reported a 35% YoY (or 20% QoQ) decline in net profit to Rs 2,563 crore for the quarter ended June (Q1 FY23). Its revenue from operations grew 26% YoY to Rs 857 crore during the same period. Core markets of the US, Europe, Canada, and Australia accounted for 82% of revenue during Q1. These markets posted a de-growth of 6% YoY.

Read more here.

About 13 lakh electric vehicles registered in India: Nitin Gadkari

Union Minister Nitin Gadkari said more than 13 lakh electric vehicles (EVs) are registered in India, excluding those in Andhra Pradesh, Madhya Pradesh, Telangana, and Lakshadweep. Around 2,877 public EV charging stations have been sanctioned in 68 cities and 1,576 EV charging stations across 9 expressways and 16 highways. 

In other news, state-controlled Convergence Energy Services Ltd. is planning a $10-billion tender for 50,000 electric buses that will drive India’s plans to decarbonize public transport and help meet its goals for net zero emissions.

Read more here.

Tata Steel, BHP to jointly explore ways to cut emissions in iron and steel production

Tata Steel Ltd has signed a Memorandum of Understanding (MoU) with Australia-based mining company BHP to jointly study and explore ways to reduce carbon emissions in iron and steelmaking. The two entities will work on ways to reduce emissions from blast furnaces. About 60% of the steel produced in India uses the blast furnace route for making iron. The technologies explored by the two entities could cut emissions of integrated steel mills by up to 30%.

Read more here.

ITC to revive restructuring plans for its hotel business

ITC Ltd is reviving plans to create an alternative structure for the hotel business due to improvement in the hospitality industry recovery post-Covid. The company runs India’s second-largest hotel chain with 113 properties. ITC has adopted an ‘asset-right’ strategy that provides greater thrust on management contracts through three brands— Welcomhotel, Mementos, and Storii. 

Read more here.

DoT clears Jio, Airtel, Vi, Adani as final bidders for 5G spectrum auction

The Department of Telecommunications (DoT) has approved Reliance Jio, Bharti Airtel, Vodafone Idea, and Adani Data Networks as the final participants in the first ever auction of 5G spectrum in India, scheduled to start on July 26. The Centre plans to auction 72 gigahertz (Ghz) of spectrum valid for 20 years worth Rs 4.3 lakh crore at base price. Jio has submitted an earnest money deposit (EMD) of Rs 14,000 crore, the highest among all the companies bidding for 5G airwaves.

Read more here.

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Editorial

The ABG Shipyard Bank Fraud: All You Need to Know

The Central Bureau of Investigation (CBI) has unearthed what is deemed to be India’s largest-ever case of bank fraud. The agency has booked ABG Shipyard Ltd, its former chairman, and other officials for allegedly defrauding a consortium of banks of over Rs 22,842 crore! In this article, learn all about the ABG Shipyard Ltd bank fraud case.

The Story

ABG Shipyard Ltd (ABGSL) is one of India’s largest firms engaged in shipbuilding and ship repair. It operates shipyards at Dahej and Surat in Gujarat. The company has the capacity to build vessels up to 18,000 dead weight tonnage (DWT) at Surat Shipyard and 1,20,000 DWT at Dahej Shipyard. The Mumbai-based firm has built over 165 vessels over the past 16 years.

  • ABG Shipyard’s loan account was first declared as a non-performing asset (NPA) in July 2016. An NPA is a loan for which the principal or interest payment remained overdue for a period of 90 days.
  • A January 2019 forensic audit report by EY revealed that ABGSL was involved in a number of illegal activities. The audit looked at transactions between April 2012 and July 2017 conducted by ABG Shipyard, its subsidiaries, and vendors. A review of ledgers showed that funds were being transferred between ABG Group companies.
  • The National Company Law Tribunal (NCLT) had ordered the liquidation of ABGSL in April 2019 under the Insolvency & Bankruptcy Code (IBC). In November 2019, State Bank of India (SBI) filed its first complaint against ABGSL.

Recent Developments

  • The CBI acted on SBI’s second complaint (filed in August 2020) after scrutinising for over one and a half years on the complaint’s FIR on February 7, 2022. 
  • On February 12 (Saturday), the CBI booked ABG Shipyard Ltd and its directors for allegedly defrauding 28 banks to the tune of Rs 22,842 crore. The company has been accused of criminal conspiracy, cheating, and criminal breach of trust. The agency also alleged that ABGSL’s directors have abused their official position under the Indian Penal Code (IPC) and the Prevention of Corruption Act. This could be the biggest bank fraud case in the history of India.
  • It was noted that funds received as bank loans were diverted and misappropriated. They had breached terms of its corporate debt restructing. As per reports, ABG Shipyard owes Rs 7,089 crore to ICICI Bank, Rs 3,639 crore to IDBI Bank, Rs 2,925 crore to SBI. It also owes Rs 1,614 crore to Bank of Baroda and Rs 1,244 crore to Punjab National Bank, among others.
  • The CBI conducted searches at the premises of the private company and its directors at Surat, Bharuch, Mumbai, and Pune. This led to the recovery of incriminating documents.

What Next?

India’s public and private sector banks, which continue to give loans to large corporates and wealthy entities, end up incurring huge losses. People also tend to forget that it is common taxpayers’ money that has been deposited or infused into these banks. We find that there is no sense of accountability or transparency in their activities.

ABGSL has now been referred to the Ahmedabad bench of the NCLT by ICICI Bank for Corporate Insolvency Resolution Process. The investigation related to the scam is underway. We would be able to receive more clarifications from the CBI in the days to come. Will the accused be lawfully punished for their fraudulent activities or will they be able to escape from all charges? Let us wait and watch.

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Jargons

What is Insolvency? How Do Companies Go Bankrupt?

We often come across reports of companies being declared bankrupt or ‘insolvent’. We also see large investment firms or business groups entering into tough competition to acquire these insolvent companies. Recently, Piramal Capital acquired debt-ridden DHFL for Rs 34,250 crore! Let us have a detailed understanding of what insolvency means and look into the insolvency procedure followed in India.

What is Insolvency?

At some point in time, a company or an individual may not be in a position to pay off their debt or other financial obligations. This may be due to a variety of factors such as a sharp decline in revenue (or income), increase in competition, poor market conditions, bad financial management, lack of proper budgeting, high debt, and failure of debt recovery procedures. The state of being unable to make repayment of debts by a person or company is known as insolvency. Those entities that are in a state of insolvency are said to be insolvent. In most cases, the insolvent company or person has to convert their assets into cash to pay off their lenders.

Types of Insolvency

1. Cash-flow insolvency – This is when a person or a company has enough assets to pay what is owed, but does not have an appropriate form of payment. For example, a person (the debtor) may own a large house or other valuable properties, but may not have enough liquid assets to pay his debts when it falls due. [A liquid asset is anything that can be converted into cash easily, within a very short period of time. Eg- cash, stocks, savings account in banks, etc]

2. Balance sheet insolvency – This is when a person or a company does not have enough assets to pay all of their debts. In most cases, these entities might enter bankruptcy, which is a legal process through which they may seek relief from some or all of their debts. Once a loss is accepted by all creditors (or lenders), the parties would negotiate and resolve the situation.

The Insolvency & Bankruptcy Code, 2016

Until 2015, an insolvency resolution in India took an average of 4.5 years to complete. There were constant delays in court proceedings and a lack of clarity. The entities involved in these cases used to incur very high legal costs. Thus, Indian lawmakers wanted to introduce a more structured and time-bound procedure for completing the entire insolvency process. 

The Insolvency and Bankruptcy Code (IBC) was brought into effect in 2016. It is the one-stop solution for resolving insolvency cases in a very economical manner. The code protects the interests of small investors and makes the process of doing business more efficient. The IBC has over 255 sections and 11 Schedules.  When a default in repayment occurs, creditors (lenders) gain control over the debtor’s assets and must make decisions to resolve insolvency within a 180-day period. The code also provides a framework for creditors and debtors to have detailed discussions on how to resolve the issue.

Insolvency Procedure

Let’s say a company- ABC- is in a poor financial state and is unable to pay off large debts. The lenders of the firm submit a plea for insolvency to the National Company Law Tribunal (NCLT). The NCLT is the adjudicating authority for insolvency proceedings in the case of corporate entities. It looks into the financial records and information provided by the lenders of ABC and must reject/accept their plea within 14 days.

  • If the plea is accepted, the tribunal has to appoint an Interim Resolution Professional (IRP), who will draft a resolution plan for ABC within 180 days (this can be further extended by 90 days).
  • A resolution plan is a proposal that seeks to resolve the company’s insolvency by finding methods to pay off creditors. During this period, the Board of Directors of ABC will be suspended. The promoters do not have a say in the management of the company.
  • The IRP will manage ABC’s assets and provide information to its creditors and assist them in decision-making.
  • The insolvency professional forms a committee of creditors (CoC) who lent money to ABC. The CoC will decide the future of the outstanding debt owed to them. They may choose to revive ABC’s debt by changing the repayment schedule or by selling (liquidating) the assets of the company.

In case the Corporate Insolvency Resolution Procedure (CIRP) fails to revive the company within 180 days, the liquidation process is initiated. This means that all of ABC’s assets will be converted into cash through auctions or direct acquisitions. Proceeds from the sale of these assets will be distributed to the creditors, priority shareholders of ABC, and equity shareholders. The IRP will also receive remuneration for his contribution to the insolvency proceedings.

A Recent Example

Dewan Housing Finance Corporation Ltd (DHFL) was the first financing company in India to go through insolvency proceedings. It had been facing liquidity issues (cash crunch) and had defaulted on loans. Upon further investigation by the Enforcement Directorate (ED), it was found that DHFL had diverted thousands of crores illegally. In November 2019, the Reserve Bank of India (RBI) filed for an insolvency proceeding to be initiated against DHFL. The financial creditors of DHFL submitted claims worth Rs 86,892 crores against the company! The share price of DHFL, which was trading at ~Rs 600 levels in 2018, fell to Rs 15 within a year

The Committee of Creditors (CoC) of DHFL failed to formulate a resolution plan within 180 days. It was decided that the financing company and its assets would be put up for auction. In October 2020, several reports stated that Adani Group, Piramal Enterprises, US-based Oaktree, and Hong Kong’s SC Lowy had placed bids for acquiring DHFL. After months of negotiations and counter-bidding, Piramal Capital emerged as the successful owner of DHFL.

Now, you may wonder why these firms had shown interest in acquiring a company that was poorly managed and involved in illegal activities. The main factor is the cost of the acquisition. Buying a company in the same industry is often time-consuming and expensive. When these investment firms and large corporations want to expand, it is easier and more economical to acquire distressed companies at very discounted prices. Moreover, Piramal took a risk and found value in the DHFL brand- which has a great hold in semi-urban and rural markets. 

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Editorial

How Cox & Kings Promoters Trapped Investors

Cox & Kings Limited (CKL) used to be one of India’s largest tour and travel operators. Many people in India and abroad would have used their services for land, air, and cruise bookings, hotel bookings, visa processing, and passport solutions. The Mumbai-based company was also a pioneer in outbound tourism, business travel, conferencing, trade fairs, foreign exchange, and insurance services. Cox & Kings had a strong presence in almost every state in India and had major subsidiaries across the United States, United Kingdom, UAE, and Australia.

The company that once had a great reputation and legacy has collapsed due to certain fraudulent activities committed by its promoters. The share price of CKL, which was trading at Rs 200 levels in 2018, is now at a mere Rs 1.30. Let us have a detailed understanding of what led to the downfall of Cox and Kings.

What Led to the Fall of Cox & Kings?

Leveraged Buyouts

The shares of Cox & Kings got listed on the Indian stock exchanges in December 2009. It was showing constant growth in revenue and profit during this period. At that point, the company initiated a massive expansion plan. They acquired US-based East India Travel Company for around $22 million, Tempo Holidays for $25 million, LateRooms Limited for £8.5 million, and Holidaybreak plc for £323 million. The company even entered into certain businesses they had no prior experience with (such as NBFCs, education business, etc). CKL used a method known as leveraged buyout to acquire most of these firms.

A leveraged buyout (LBO) refers to when a company borrows a significant amount of money from banks to acquire another company. The assets of the company being acquired are often used as collateral for these loans. 

High Debt Obligations and Cash Crunch

Things started to go downhill for Cox & Kings immediately after the acquisitions. The company was burdened with very high debt as a result of its highly ambitious expansion plan. The firm had borrowed thousands of crores from commercial banks in India and abroad. On top of this, their newly-acquired subsidiaries were performing poorly and started to incur heavy losses. They also found it difficult to manage those businesses in which they had no prior experience. As compared to competitors, CKL failed to adapt to the changes in technological advancements in the field of travel and tourism. The company began to face a severe cash crunch, which meant that it did not have sufficient funds to cover normal business expenses. 

Thus, CKL started to sell off many of its assets/subsidiaries from foreign countries from 2014 onwards. Given below is a list of business units or subsidiaries that were sold:

YearName of Business UnitAmount
June 2014Camping division Holiday BreakRs 892 crore
Dec 2015Explore Worldwide Limited£25.8 million
March 2016LateRooms£20 million
March 2016Superbreak business£9.25 million
2018Education businessRs 4370 crore

Manipulation of Financial Records

The company began to default on its loans in 2019. In April 2019, CKL announced that it would not be able to declare its financial results for the first quarter (Q1) of FY 2019-20. The firm did not repay two sets of loans of Rs 150 crore and Rs 50 crore, respectively.

During this period, many found irregularities in the firm’s books of accounts. In the balance sheet dated 31 March 2019, the company had Cash & Cash Equivalents of Rs 1,830 crore and Receivables (ie, amount due to CKL) of over Rs 2,000 crore. With such a significant amount of cash in their books, many wondered why the firm was unable to pay off its loans. Moreover, it was found that only a part of the net proceeds from the sale of various business units was used for meeting debt obligations. The remaining amount could not be traced in the company’s financial records. 

Many shareholders lodged a formal complaint against Cox & Kings and its management to the Serious Fraud Investigation Office (which is under the Ministry of Corporate Affairs) around this time. CKL’s stock price started to fall heavily.

Source: TradingView

The Forensic Audit 

Yes Bank was one of the biggest lenders of Cox & Kings. The company owed around Rs 2,267 crore to the private sector lender. The bank approached PricewaterhouseCoopers (PWC) and asked them to conduct a forensic audit on CKL (as it had defaulted on loan repayments). 

The results of the audit were quite alarming. It was found that Cox & Kings had been illegally transferring money and falsifying its financial records between 2014-2019. The company did not take board approvals for loans worth Rs 6,071 crore extended to at least 20 ‘related parties’.

Bankrupt firm Alok Industries received a loan of Rs 1,100 crore from Cox & Kings. The Chief Financial Officer (CFO) of this firm was Sunil Khandelwal, the brother of Anil Khandelwal— the CFO of Cox and Kings!

The audit also revealed that the company made sales of over Rs 9,000 crore to 160 fake customers between 2014 and 2019. Physical verification of the addresses of these ‘customers’ showed that they were residential addresses, and no travel agencies ever operated in those places. Most of the amount received from sales could not be traced in its bank accounts. This was because Cox and Kings never really received any of this money.

Another major observation was in the company’s debt status. For the financial year 2018-19, CKL reported a total (consolidated) debt at Rs 2,000 crore. However, its standalone debt by itself was Rs 3,600 crore. There was also a credit card debt of Rs 750 crore that was not disclosed to the company’s lenders. Ultimately, the company was declared bankrupt and insolvent. [Insolvency means a state of financial trouble when the company is unable to pay its bills. An insolvent company would have to convert all its assets to cash and pay off its lenders]

Recent Developments

Cox & Kings began to shut down many of its branches across the country. It stopped all operations (including ticketing services) without any fair warning. Most of their customers who had booked slots for domestic or international tour packages did not receive their tickets. There were instances of tickets getting cancelled at the last minute. Most of their customers have not received refunds for the same. Franchisee owners did not get any commission from the company. Moreover, CKL failed to pay its employees for several months. Many angry customers and franchisee owners filed police complaints against the company. Private sector lenders including Kotak Mahindra Bank, HDFC Bank, Axis Bank, IndusInd Bank also filed separate FIRs against CKL for defaulting on loans.

ED, CBI Investigation of Cox and Kings

Towards the end of 2019, the Enforcement Directorate (ED) and CBI began their investigation into the alleged fraudulent activities of CKL and its promoters. It was estimated that the company owed a total of more than Rs 5,800 crore to banks and financial institutions. Between 2019 and 2020, both investigation agencies (and even local police) filed numerous cases against Cox & Kings Group entity, its promoters, and other related parties for alleged fraud involving thousands of crores. CKL’s promoter Peter Kerkar, other senior officials, and employees were arrested.  Recently, ED named Kerkar as the mastermind behind this large-scale fraud.

The insolvency proceedings of Cox & Kings are now underway. The Insolvency Resolution Professional (IRP) of CKL, appointed by the National Company Law Tribunal (NCLT), had initially sent recovery notices to 57 debtors of the company that owes Rs 1,775 crore. Out of these, notices to 11 debtors— including two connected to the promoters and employees of Cox & Kings that owe Rs 479 crore— were returned undelivered. Four debtors have denied any liabilities and four others asked for more documents from the IRP. 

Let us look forward to seeing how the concerned parties are held accountable for their actions.