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NTPC Group Crosses 3 GW Operational Renewable Energy Capacity – Top Indian Market Updates

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

NTPC Group crosses 3 GW operational renewable energy capacity

NTPC Group (including joint ventures and subsidiaries) has crossed 3 gigawatts (GW) of operational renewable energy (RE) capacity. The group achieved this milestone with the commissioning of Phase 1 of the 300 megawatts (MW) Nokhra Solar PV Project at Bikaner, Rajasthan. The company now has 36 operational RE projects spread across 12 states with a cumulative capacity of 3,094 MW.

Read more here.

Delhivery to acquire supply chain solutions provider Algorhythm Tech

Delhivery Ltd will acquire Pune-based supply chain solutions provider Algorhythm Tech (AT) to strengthen its offerings in this space. Post completion of this transaction, AT will operate as a wholly-owned subsidiary of the company. Algorhythm Tech offers end-to-end supply chain planning and execution products to clients across various sectors such as FMCG, pharma, steel, auto, and telecom.

Read more here.

Adani Group company VCPL has picked up 8.27% stake via open offer: NDTV

NDTV has disclosed that Adani Group firm Vishvapradhan Commercial Pvt. Ltd. (VCPL) has acquired an 8.27% stake in the company in the recently concluded open offer. Adani’s total shareholding in the media company has increased to 37.45% with the closure of the open offer. The open offer was triggered after VCPL acquired a 99.5% stake in RRPR Holding Pvt. Ltd. (RRPR), which translated to 29.18% of the shareholding in the TV news company. To learn more about the takeover, click here.

Read more here.

Shyam Metalics enters stainless steel business with Mittal Corp buyout

Shyam Metalics & Energy Ltd (SMEL) seeks to conclude its acquisition of Mittal Corp to strengthen its metal portfolio by entering the stainless steel/wire rod & bar mill business. The company has embarked on a ‘diversification approach’ in the metal space to chart its growth journey and proposes to further invest ₹7,500 crore over the next five years. SMEL aims to increase its capital expenditure (capex) to ₹10,000 crore in the next five years for organic and inorganic expansion.

Read more here.

Banks write off loans worth ₹11.17 lakh crore in last 6 years

Banks have written off bad loans worth ₹11.17 lakh crore from their books in the last six years till the financial year 2021-22, said Minister of State for Finance Bhagwat Karad. The non-performing assets (NPAs), including those in respect of which full provisioning has been made on completion of four years, are removed from banks’ balance sheets by way of write-offs. Banks write off NPAs as part of their regular exercise to clean up their balance sheet, avail tax benefits, and optimise capital.

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Tata Motors migrates dealer management system to Oracle Cloud Infrastructure

Tata Motors announced the migration of its entire Dealer Management System (DMS) to Oracle Cloud Infrastructure (OCI). The move is expected to boost the automaker’s operational efficiencies with deeper business insights, greater security, increased flexibility, and cost optimisation. The DMS supports Tata Motors’ pre-sales, sales, and after-sales market touchpoints across all segments of passenger and commercial vehicles.

Read more here.

Bharti Airtel acquires strategic stake in Lemnisk

Bharti Airtel has acquired a strategic stake in Lemnisk (Immensitas Private Limited) under its StartUp Accelerator Program. Airtel will work towards creating a customer data platform (CDP) across its digital business, including ad-tech (Airtel Ads), Digital Entertainment (Wynk Music and Airtel Xstream) and Digital Marketplace (Airtel Thanks App) through this acquisition.

Read more here.

Capacit’e Infraprojects bags Rs 117 crore order from DLF

Construction firm Capacit’e Infraprojects Ltd has bagged an order worth ₹117.20 crore from DLF Ltd for the construction of a mall in Goa. The contract amount excludes GST and labour cess. The company said the order inflow for the current fiscal, along with the existing order book, gives it confidence to deliver good growth in the coming quarters.

Read more here.

CCI approves Brookfield’s minority stake buy in UPL Sustainable Agri Solutions Ltd

The Competition Commission of India (CCI)  has approved Woodhall Holdings Ltd’s acquisition of a minority stake in UPL Sustainable Agri Solutions Ltd (UPL SAS). The deal has been cleared under the green channel route. Under this framework, a transaction which does not raise any risk of an appreciable adverse effect on competition is deemed to be approved on being intimated to the fair trade regulator.

Read more here.

Care Ratings predicts 12-15% growth in general insurance premium

Care Ratings expects the gross direct premium of general insurance companies to grow by 12-15% in the medium term, with private insurers continuing to outperform government-owned insurers. Lower health insurance payouts post Covid, increase in prices of group insurance and easing of solvency requirements for crop insurance will support growth for general insurance companies in the next financial year, said the rating agency.

Read more here.

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NDTV: Adani’s Toughest Takeover Yet?

Last month, the Adani Group made a surprising announcement: It will indirectly acquire a 29.18% stake in New Delhi Television Ltd (NDTV)! They will also launch an ‘open offer’ to acquire an additional 26% stake in the news media company. Many consider this a hostile takeover, and NDTV claims there had been no discussions or consent regarding the matter.

In this article, we discuss the timeline of events that led to Adani Group’s aggressive proposal to take over NDTV.

The Story…

  • NDTV is regarded as a legacy brand that pioneered independent news broadcasting in India. It is credited with launching the country’s first 24×7 news and lifestyle channel. Way back in 2005, private equity firm General Atlantic (GA) Global Investments acquired an 8% minority stake in NDTV for ₹116 crore in a block deal. 
  • The promoters of NDTV, Prannoy Roy and Radhika Roy, made an offer to buy back shares from the company’s existing investors. Their initial plan was to acquire a 7.73% stake from GA Global Investments. However, this proposal triggered an open offer to other minority shareholders of NDTV.

What is an Open Offer?

Suppose you’re a minority shareholder in a company. You have the right to exit an investment if you believe that a change in ownership structure could harm the company’s future. Thus, the Securities & Exchange Board of India (SEBI) asks promoters/investors to make an additional open offer to minority shareholders when they acquire a sizeable stake in a company from select investors. The open offer will allow you to sell your shares at a specified price and walk away from the investment.

  • Coming back to the story, the Roys’ did not have the money to buy back shares. So they established a firm called RRPR Holding Pvt. Ltd, which borrowed nearly ₹540 crores from Indiabulls Financial Services by pledging NDTV shares as collateral.
  • Unfortunately, their plans got derailed due to the global financial crisis of 2008. NDTV shares crashed, and the collateral backing the loan lost most of their value. 
  • That same year, the promoters took another loan of ₹375 crores from ICICI Bank to repay Indiabulls Financial Services. This loan carried an interest rate of 19%!
  • After the economic slowdown, ICICI Bank settled the loan at ₹350 crore. This amount was funded through a loan RRPR Holding took from Vishvapradhan Commercial Pvt. Ltd. (VCPL) on an interest-free basis. In return, RRPR had to offer convertible warrants to VCPL.

What are Convertible Warrants?

They are financial instruments that will allow you to buy a company’s shares at a fixed price if certain conditions are met. 

  • According to the loan agreement, RRPR had to issue convertible warrants to VCPL representing 99.99% of its share capital when exercised. Thus, VCPL would hold a ~99% stake in RRPR Holding (promoter entity of NDTV).
  • Due to desperate circumstances, Prannoy Roy and Radhika Roy told VCPL that they would hand over RRPR’s entire stake in NDTV (~29%) in the form of warrants. 

This is Where Things Get Interesting…

  • VCPL was established in 2008. The only key transaction they had conducted was the loan made out to NDTV’s promoters! In 2009, VCPL received ₹403.85 crore as an unsecured loan from Shinano Retail Pvt. Ltd. Meanwhile, Shinano received the same amount from various subsidiaries owned by Reliance Industries Ltd (RIL)! So RIL was slyly holding an indirect stake in NDTV as well!
  • In 2012, a firm called Eminent Networks obtained ownership of the loan VCPL took from Shinano Retail. This firm was owned by Mahendra Nahata, a Board Member of Reliance Jio Infocomm! As per company statements in 2012, the new owners of VCPL were NextWave Televenture and Skyblue Buildwell, both firms linked to Nahata.
Source: Tijori Finance Report

Recent Developments

  • On August 23, 2022, AMG Media Networks Ltd, a wholly-owned subsidiary of Adani Enterprises Ltd, acquired VCPL for ₹113.74 crore. Interestingly, AMG Media Networks proceeded to exercise the warrants owned by VCPL to own 29.18% of NDTV! What a tactical move by the Adani Group!
  • AMG Media Networks is obligated to issue an open offer for an additional 26% stake in NDTV at a discount of ₹294 per share. This offer will be launched from October 17 to November 1. This is in compliance with the requirements of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.
  • Meanwhile, Prannoy Roy and Radhika Roy (promoters) still hold a 32.26% stake in NDTV, which was not a part of RRPR. They had recently issued a statement saying that the Adani Group had not sought their consent for the takeover. Now, NDTV and the Roys are definitely fighting back against Adani’s takeover.

In a letter to the stock exchanges, NDTV mentioned that the Roys had been found guilty of insider trading in 2020, and were banned from dealing in financial securities. The ban will be lifted by November 26, 2022. So NDTV believes that VCPL can only acquire its shares by overriding the ban. A pretty complicated situation indeed! They even approached SEBI and the Income Tax Dept. to try and stop Adani Group’s acquisition plans. However, Adani is ready with countermeasures to tackle any issues that may come their way.

What are your views on Adani Group’s strategic takeover of NDTV? Let us know in the comments section of the marketfeed app!

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Market News Top 10 News

Manufacturing PMI at 56.2 in August – Top Indian Market Updates

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

Manufacturing PMI hits 8-month high in August

India’s manufacturing sector activity continued to grow at a robust pace in August, led by a pick-up in demand amid softening input cost inflation. The S&P Global India Manufacturing Purchasing Managers’ Index (PMI) stood at 56.2 in August, compared to 56.4 in July. Both output and new orders grew during the month.

PMI is a month-on-month calculation, and a value above 50 represents an expansion compared to the previous month.  

Read more here. 

Auto sales data for August 2022: Highlights  

Maruti Suzuki India posted a 26.4% year-on-year (YoY) increase in total sales to 1,65,173 units in August 2022. Sales of its compact vehicle segment rose 42% YoY to 93,719 units. Exports rose 4.2% YoY to 21,481 units.

Tata Motors Ltd registered a 41% YoY increase in total sales to 76,479 units in August. The automaker’s commercial vehicle sales rose 6% YoY to 31,492 units. Overall passenger vehicle sales rose 68% YoY to 47,166 units.

Mahindra & Mahindra’s passenger vehicle segment posted total sales of 29,852 units in August, an increase of 87% YoY. M&M’s commercial vehicle sales jumped 142% YoY to 21,492 units. 

Bajaj Auto posted an 8% YoY increase in total sales to 4,01,595 units. Meanwhile, TVS Motor Company’s total sales stood at 3,15,539 units in August, up 15% YoY.

Read more here.

GMDC to study economic viability of rare earth elements processing unit in Gujarat

Gujarat Mineral Development Corp. Ltd. (GMDC) said it would conduct a study to determine the economic viability of setting up a rare earth elements (REE) processing unit in Gujarat. REE is crucial for developing green energy technologies like permanent magnets for electric vehicles, wind turbines, and LEDs. The company also plans to carry out a pre-economic assessment for the deposit at Ambadongar (Gujarat) and test for REE oxide production.

Read more here.

CIL achieves 108% of its annual supply target to power sector during April-August

Coal India Ltd’s (CIL) supplies to the power sector rose to 243.3 million tonnes (MTs) in April-August against the annual action plan (AAP) target of 225.4 MTs. With improved coal supplies, coal stock at power plants rose to 30 MT in August. This is higher than 12.8 MTs of coal stocks at the end of August in FY22.

Read more here.

NDTV says stake sale to Adani needs approval from tax authorities

New Delhi Television Ltd (NDTV) said a major stake sale by its founders to the Adani Group would require clearance from India’s tax authorities. In 2017, the Income Tax Dept. provisionally barred NDTV’s founders, Prannoy and Radhika Roy, from selling a part of their stake as part of a reassessment of their taxes. Last week, the Adani Group unveiled plans to control a majority stake in the news network.

Read more here.

Lux Industries aims to double market share of its innerwear brand in India

Lux Industries Ltd is aiming to double the market share of its brand Lux Venus in the Indian innerwear segment. The company has repositioned Lux Venus and has rolled out a brand-new campaign, “Sabko Maangta Hai”, featuring actor Salman Khan. Currently, Lux Venus has a strong presence in the market due to its high brand recall and enjoys a market share of 15-16% in the men’s innerwear market. 

Read more here.

Zomato shares rise 8% on launching next-day intercity delivery service

Shares of Zomato Ltd were trading more than 8% higher today after the company launched ‘Intercity Legends’, its intercity delivery service for popular dishes. By leveraging Zomato’s vast network of restaurant partners and delivery partners and a deep understanding of food technology, dishes will be delivered from across India, the very next day of ordering. State-of-the-art mobile refrigeration technology preserves food without the need to freeze it or add any kind of preservatives.

Read more here.

HDFC Bank to open 207 branches in Maharashtra

HDFC Bank announced plans to open 207 branches and 80 smart banking lobbies in Maharashtra this financial year (FY23). Of these, 90 branches will be opened in metro and urban areas, while 117 branches will be in semi-urban and rural areas. As part of the expansion plan, the bank said it plans to hire over 3,000 employees across the state. 

Read more here.

BEL signs MoU with Smiths Detection to manufacture high-energy scanning systems in India

Bharat Electronics Ltd (BEL) has signed a Memorandum of Understanding (MoU) with Smiths Detection to offer advanced, high-energy scanning systems to the Indian market. UK-based Smiths Detection is a threat detection and security inspection technologies company. The MoU will leverage the high-end technological capabilities of both firms to meet India’s domestic security needs.

Read more here.

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Market News Top 10 News

Adani Group to Acquire 29.2% Stake in NDTV – Top Indian Market Updates

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

Adani Group to acquire 29.2% stake in NDTV

Adani Group’s media arm announced it will indirectly acquire a 29.18% stake in New Delhi Television Ltd (NDTV) and launch an open offer for another 26% stake in the media house. Three firms, Vishvapradhan Commercial Pvt. Ltd., AMG Media Networks, and Adani Enterprises Ltd, will acquire up to 1,67,62,530 fully paid-up equity shares of NDTV (having a face value of Rs 4) at Rs 294 per share from the public shareholders.

Read more here.

India’s crude oil production falls 3.8% in July

India’s crude oil production fell 3.8% YoY in July on lower output from fields operated by state-owned ONGC and private sector firms. Production of crude oil fell from 2.54 million tonnes (MT) in July 2021 to 2.45 MT in July 2022. ONGC’s total production fell 1.7% YoY to 1.63 MT due to lower output from western offshore. The country’s 22 oil refineries processed 10.52% more crude oil at 21.43 million tonnes as demand for fuel picked up.

Read more here.

Godrej Agrovet signs MoU with 3 states on oil palm cultivation

Godrej Agrovet Ltd has signed Memorandum of Understandings (MoUs) with the governments of Assam, Manipur, and Tripura for the development and promotion of oil palm cultivation under the National Mission on Edible Oils-Oil Palm scheme. The company will be allotted land in the three states for developing sustainable palm oil plantations in the region. In August 2021, the Indian govt launched the National Mission on Edible Oils-Oil Palm scheme with a planned outlay of Rs 11,040 crore.

Read more here.

NHPC signs pact with BEL to set up solar equipment manufacturing facility

NHPC Ltd has signed a pact with Bharat Electronics Ltd (BEL) to set up a large-capacity solar equipment manufacturing facility. State-owned hydro power giant NHPC has an installation base of 7071.2 megawatts (MW) from 24 power stations. It is engaged in the construction of 11 projects aggregating to a total installed capacity of 7,539 MW.

Read more here.

SpiceJet plans to raise funds worth $251 million: Report

As per a report from ET Now, SpiceJet Ltd is looking to raise funds worth $250.53 million (~Rs 1,998 crore). The low-cost airline is pursuing multiple ways to raise funds, including government lending schemes or equity sales. SpiceJet has been under the scanner lately, following incidents of technical snags that prompted India’s aviation regulator to order a reduction in its approved fleet by 50% for eight weeks.

Read more here.

Ramco Systems partners with Australian freight and distribution service provider

Ramco Systems Ltd will implement its Logistics ERP Software at Freight Specialists to automate company-wide operations and services. The software will include modules for transportation, warehouse, and invoice management. It will offer superior user experience, end-to-end visibility, and control while enabling real-time operational excellence. Freight Specialists is a leading freight and distribution services provider based in Sydney, Australia.

Read more here.

India to become world’s number one producer of steel: Jyotiraditya Scindia

Union Minister Jyotiraditya M Scindia said India will become the number one producer of steel in the world in the days to come. He was of the view that our country has moved from becoming the net importer of steel to the net exporter of steel. Currently, India is the world’s second-largest producer of crude steel after China. The per capita steel consumption has increased from 57.8 kg in 2013-14 to 78 kg. The government intends to achieve 300 million tonnes (MT) of steel production target by 2030.

Read more here.

GMDC to hire consultants to set up modular lignite washery

Gujarat Mineral Development Corporation (GMDC) has invited requests for proposals (RFPs) for technology consultants for the dry beneficiation technology sulphur removal plant. The company aims to set up a modular lignite washery to remove pyrites/sulphur from lignite produced from the company’s Surkha (North) mines in Bhavnagar, Gujarat. This will help reduce sulphur dioxide emissions and improve boiler efficiency for the end users.

Read more here.

Tata Motors signs PPA with Tata Power to develop onsite solar project

Tata Motors has signed a Power Purchase Agreement (PPA) with Tata Power to develop a 7.25 megawatt-power (Mwp) onsite solar project at its commercial vehicle manufacturing facility in Jamshedpur. With this project, the onsite solar plant capacity of the facility will reach 14 MWp, which will generate 442 million units of green electricity having the potential to reduce carbon emission by 3.5 lakh tonnes.