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Tata Group Takes Over Air India – Top Indian Market News

Tata Group takes over Air India after 69 years

The Tata Group has officially taken over Air India from the Indian government on Thursday. A consideration of Rs 2,700 crore has been received by the government as part of the divestment. “We are totally delighted to have Air India back at the Tata group,” said Tata Sons Chairman N Chandrasekaran. At present, Air India controls over 4,400 domestic and 1,800 international landing and parking slots at domestic airports.

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Canara Bank Q3 Results: Net profit jumps 115% YoY to Rs 1,502 crore

Canara Bank reported a 115.8% YoY jump in net profit to Rs 1,502 crore for the quarter ended December (Q3 FY22). Net profit increased 12.6% when compared to the previous quarter. Its net interest income (NII) rose 14.11% YoY (or 10.7% QoQ) to Rs 6,946 crore during the same period. The gross non-performing assets (GNPA) ratio stood at 7.8% in Q3 FY22, compared to 8.42% in Q2 FY22. The bank’s provisions fell 46.7% YoY to Rs 2,244 crore in Q3 FY22.

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BEL signs $73 million contract with US-based Hyperion Global

Bharat Electronics Ltd (BEL) has entered into a contract with Hyperion Global Group LLC to develop, manufacture, and supply Internet of Things (IoT) devices for the US market. BEL will manufacture and supply IoT devices worth $73 million to Hyperion during the first year of commencement of supply. The contract pairs Hyperion’s need to provide advanced connectivity solutions with BEL’s world-class engineering and manufacturing capabilities.

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Route Mobile Q3 Results: Net profit rises 28% YoY to Rs 48 crore

Route Mobile Ltd reported a 28.3% YoY increase in consolidated net profit to Rs 48.27 crore for the quarter ended December (Q3 FY22). Its revenue from operations rose 44.2% YoY to Rs 567.49 crore during the same period. The company’s board has declared an interim dividend of Rs 3 per share.

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LTI partners with IIT Madras for innovation in 5G space

Larsen & Toubro Infotech (LTI) has partnered with the Indian Institute of Technology (IIT) Madras for collaborative research in the field of 5G. The companies aim to innovate in the emerging 5G space, enable 5G frameworks validation, and test various use cases. LTI and IIT Madras will promote research towards the development of a low-cost, low-frequency 5G network setup for better connectivity in rural India.

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PNB Q3 Results: Net profit jumps 123% YoY to Rs 1,126 crore

Punjab National Bank (PNB) reported a 123% YoY jump in net profit to Rs 1,126.78 crore for the quarter ended December (Q3 FY22). Net profit increased by 2% when compared to the previous quarter. Its net interest income (NII) fell 6.1% YoY to Rs 7,803.2 crore during the same period. The gross non-performing assets (GNPA) ratio stood at 12.8% in Q3 FY22, compared to 13.6% in Q2 FY22.  

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Future Enterprises to sell 25% stake in general insurance JV to partner Generali

Future Enterprises Ltd (FEL) will sell its 25% equity in Future Generali India Insurance Company Ltd (FGIICL) to its joint venture (JV) partner Generali Participations Netherlands NV. The transaction is for a cash consideration of Rs 1,252.96 crore. This move is part of Future Group’s asset monetisation plans to reduce debts. Generali has also acquired an option to buy out FEL’s remaining interest in FGIICL.

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L&T partners with HydrogenPro for manufacturing hydrogen electrolysers in India

Larsen & Toubro Ltd has partnered with Norway-based HydrogenPro to access its electrolyser technology to enter the green hydrogen market. As part of the agreement, L&T and HydrogenPro will set up a joint venture company in India to manufacture gigawatt-scale alkaline water electrolysers. The planned joint venture is part of L&T’s strategy to expand its presence across the green energy value chain. 

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Laurus Labs Q3 Results: Net profit falls 44% YoY to Rs 154 crore

Laurus Labs Ltd reported a 44% YoY decline in net profit to Rs 154 crore for the quarter ended December (Q3 FY22). Its revenue from operations fell 20% YoY to Rs 1,029 crore during the same period. EBITDA stood at Rs 290 crore in Q3, down 17% YoY. The pharma company’s Q3 results were impacted by lower sales of active pharmaceutical ingredients (APIs) and formulations due to stocking at channel partners.

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M&M records 1 lakh bookings of XUV700, bills 14,000 units

Mahindra & Mahindra Ltd has clocked almost one lakh bookings of its latest sports utility vehicle XUV700 besides billing the first 14,000 units of the vehicle by January. In a statement, M&M said it is focusing on meeting its committed delivery timelines to customers despite dynamic supply chain issues.

In other news, Mahindra Electric Mobility has launched its new electric three-wheeler e-Alfa Cargo, priced at Rs 1.44 lakh. The launch marks the company’s entry into the rapidly growing e-cart segment.

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Coforge Q3 Results: Net profit rises 51% YoY to Rs 183 crore

Coforge Ltd reported a 51% YoY increase in net profit to Rs 183.7 crore for the quarter ended December (Q3 FY22). Net profit increased by 34.4% when compared to the previous quarter. The IT company’s revenue from operations rose 39% YoY (or 5.7% QoQ) to Rs 1,658 crore during the same period. EBITDA stood at Rs 246.7 crore, up 14.8% QoQ. Coforge Ltd’s board has declared an interim dividend of Rs 13 per share.

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The Failed Carlyle-PNB Deal: Explained

In early 2021, Punjab National Bank Housing Finance announced plans to raise Rs 4,000 crore through the allotment of preferential shares and convertible bonds. PNB Housing Finance would alot these shares to private equity firm Carlyle Group-led investment vehicles, Aditya Puri’s family investment arm, and a bunch of other shareholders. However, SES, a proxy advisory firm, raised concerns with SEBI, which eventually led to the deal being stalled. An investment vehicle is a non-bank financial institution that manages assets on behalf of investors with the goal of increasing their value in the future. In this piece, we explore what the PNB-Carlyle deal was all about and what led it to its failure. 

The Story

In June 2021, the Board of Directors of PNB Housing Finance approved a decision to raise a capital of Rs 4,000 crore by allotting ‘preferential shares’ to a bunch of its shareholders. Private equity firm Carlyle Group-led investment vehicle would lead a majority of the investment round. This would mean that the Carlyle Group would gain greater control over a Public Sector Undertaking (PSU) due to a greater shareholding in the company. The group would invest Rs 3,185 crore out of the Rs 4,000 crore investment plan. After the deal, the total shareholding of Punjab National Bank (PNB) would eventually reduce from ~32% to ~20%.

Proxy advisory firm Stakeholder Empowerment Services (SES) raised concerns with the Securities and Exchange Board of India (SEBI), opposing the fundraising plan. A proxy firm provides services to shareholders to vote their shares at shareholder meetings of, usually, quoted companies. The firm also provides data and recommendations to institutional investors on management and shareholder proposals voted on at a company’s annual meeting.

SES raised the following concerns with SEBI regarding the Rs 4,000 crore capital raising plan:

  • PNB Housing Finance’s preferential shares were unfairly priced. Since the company holds a ‘Public Sector Undertaking’ status, it holds a much lower ‘PE Ratio’ than its private counterparts. The fact hasn’t been taken into consideration while pricing the equity shares. 
  • A preferential allotment was being made to select shareholders to ensure that the resolution is passed. This move could jeopardise the interests of minority shareholders. 

After SES raised concerns about the deal, SEBI ordered PNB Housing Finance to stall the Emergency General Meeting where the voting for the capital raise was going to take place. Thereafter, PNB Housing Finance moved the Securities Appellate Tribunal (SAT) against SEBI.

The Securities Appellate Tribunal gave a very mixed verdict on the issue. The split verdict contained some statements that were in favour of SEBI and a few in favour of PNB Housing Finance. SEBI then appealed to the Supreme Court against PNB Housing Finance. In October 2021, PNB Housing finance announced that it had terminated the preferential stake sale to Carlyle. 

Conclusion

While there is no right or wrong in this scenario, Punjab National Bank had announced the company had no intentions of diluting its stake in PNB Housing Finance. After the deal was terminated, CEO and MD, PNB Housing Finance, Hardayal Prasad said that the company had no plans on ‘going legal’. Instead, the company would focus on growing its business. The Rs 4,000 crore deal was extremely crucial for PNB Housing Finance. The company wanted to finance the housing debt market due to increased demand for housing and low-interest rates. While a lot of ‘unfair’ deals sneak through right under the nose of SEBI, firm action against this particular deal signifies greater responsibility by SEBI. 

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Zydus Cadila to Supply 1 crore Doses of Covid-19 Vaccine in October – Top Indian Market News

Cadila Healthcare to supply 1 crore doses of Covid-19 vaccine next month: Report

According to a report from Mint, Cadila Healthcare Ltd will supply 1 crore doses of its Covid-19 vaccine ZyCoV-D in October 2021. The vaccine has received approval to be administered to adolescents between the ages of 12 and 18. ZyCoV-D is the world’s first plasmid DNA vaccine for Covid-19. India is expected to achieve the 100-crore vaccination mark by the first week of October.

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IDFC’s board approves divestment of mutual fund business

The Board of Directors of IDFC and IDFC Financial Holding Company Ltd (IDFC FHCL) have approved the divestment of its mutual fund business— IDFC Asset Management Company (IDFC AMC). IDFC AMC is the direct subsidiary of IDFC FHCL and an indirect subsidiary of IDFC. As of March 31, 2021 (FY21), IDFC held 99.96% stake in IDFC AMC. The divestment is subject to requisite regulatory approvals.

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Biocon unit plans 15% stake sale to Serum Institute for access to vaccines

Biocon Limited’s biologics unit will sell a 15% stake to a subsidiary of Serum Institute of India (SII) for access to 100 million doses of vaccine annually for 15 years. The 15% stake in Biocon Biologics is valued at more than $730 million (~Rs 5,370 crore). As part of the deal, the Biocon unit and SII’s subsidiary will make and distribute vaccines and antibody treatments. They will solely focus on Covid-19 vaccines in the initial years. 

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PNB cuts repo-based lending rate by 25 bps to 6.55%

Punjab National Bank (PNB) has reduced the repo-linked lending rate (RLLR) by 25 basis points (bps) to 6.55%. RLLR is a floating rate-based personal or retail loan that is linked to external benchmarks such as the repo rate of the Reserve Bank of India (RBI). Repo rate is the rate at which the RBI lends money to commercial banks for their short-term requirements.

In other news, IIFL Home Finance has entered into a co-lending agreement with state-owned PNB.

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Rajesh Exports secures deal worth Rs 691 crore from Germany

Rajesh Exports Ltd has secured an order worth Rs 691 crore for its designer range of jewellery from Germany. The company will be executing the order from its manufacturing facility, which has a processing capacity of 250 tons of jewellery and gold products per annum. It expects significant orders for its new range of jewellery from international markets. Rajesh Exports is a leading gold retailer in India that refines, designs, and sells gold and jewelry. 

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Dynamatic Tech to manufacture aerostructure assemblies for Boeing’s fighter aircraft

Dynamatic Technologies Ltd has secured a contract for manufacturing aerostructure assemblies for Boeing’s latest F-15EX Eagle II fighter aircraft. The company will supply the assembly requirements to Boeing from the financial year 2021-22 (FY22) onwards. The aerostructures will be manufactured at Dynamatic Tech’s facility in Bengaluru. Dynamatic Technologies designs and builds highly engineered products for automotive, aerospace, hydraulic, and security applications.

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Marine Electricals secures order from Adani Data Center’s Chennai Project

Marine Electricals (India) Ltd has received an order worth Rs 6.25 crore for the supply of HT Panels and RMU Panels for Adani Data Center’s Chennai Project. HT Panels are used to supply power to various electrical devices and distribution boards. Ring Main Unit (RMU) panels are used to ensure an uninterrupted power supply. Marine Electricals is an integrated technical services provider in the fields of electrical automation & information and communication technology solutions.

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Matrimony.com completes acquisition of 100% stake in Boatman Tech

Matrimony.com Ltd has completed closing conditions with regard to the acquisition of a 100% stake in Boatman Tech Pvt Ltd. Boatman Tech is the promoter of ShaadiSaga.com, a Delhi-based online wedding services company. It has over 40,000 vendors across multiple services and caters to customers across 15 major cities. This acquisition will enable Matrimony.com to scale up its presence in the north and west regions and strengthen its product capabilities.

Bajaj Holdings’ board declares interim dividend of Rs 90 per share

The Board of Directors of Bajaj Holdings & Investment Ltd (BHIL) has declared an interim dividend of Rs 90 per share. The company has fixed September 29, 2021, as the record date for determining the members eligible to receive the interim dividend. BHIL operates as a non-banking financial company (NBFC) in India. It acts as a primary investment company and focuses on new business opportunities. 

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India’s Industrial Output Grew by 7.2% in July – Top Indian Market News

India’s industrial output grew by 7.2% in July

The growth in India’s industrial output continued to pick up in July. The Index of Industrial Production (IIP) increased by 7.2% to 131.4 in July 2021 over the preceding month. On an annual basis, the index rose by 11.5% in July. Manufacturing output rose 8.2% on a monthly basis, compared to a rise of 7.4% in June. Mining output declined by 0.9% month-on-month (MoM), from a decline of 2.3% in the previous month. Meanwhile, electricity generation increased by 9.2% MoM in July, compared to a rise of 4.4% in June.

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Automobile wholesales fall 11% in August as chip shortage continues: SIAM

Automobile wholesales in India declined 11% year-on-year (YoY) in August, as the global semiconductor shortage weighed down production. The total wholesales across automobile categories (excluding commercial vehicles) fell to 15.86 lakh units in August 2021, compared to 17.90 lakh units in August 2020. The total dispatch of passenger vehicles rose 7% YoY to 2.32 lakh in August. The data was released by the Society of Indian Automobile Manufacturers.

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Punjab National Bank to raise Rs 6,000 crore through bonds

The Board of Directors of Punjab National Bank (PNB) has approved a proposal to raise up to Rs 6,000 crore by issuing bonds. The lender will issue Basel-III compliant Additional Tier-I (AT-1) bonds and AT-II bonds or a combination of both. Meanwhile, PNB has waived all service charges and processing fees on its retail products as part of its festival season offering.

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IndiGo aims to operate domestic flights at full capacity from December 2021: Report

According to a report from Bloomberg, InterGlobe Aviation Ltd (IndiGo) is aiming to operate domestic flights at full capacity by December 2021. The budget carrier’s current load factor is around 70%. IndiGo is also targeting just over two-thirds of capacity in international routes as the Covid-19 pandemic eases and people start traveling more. In August, the Ministry of Civil Aviation allowed domestic airlines to increase flight capacity from 65% to 72.5%.

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JioPhone Next launch postponed, to be available before Diwali

The launch of the low-cost 4G-compatible JioPhone Next, made by Reliance Jio and Google, has been delayed due to the global semiconductor shortage. It was supposed to be launched today, September 10. Both companies have begun testing the JioPhone Next with a limited set of users for further refinement. They are actively working to make the smartphone available in time for the Diwali season.

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Manyavar-owner Vedant Fashions files draft papers for IPO

Vedant Fashions, the owner of ethnic wear brand Manyavar, has filed a Draft Red Herring Prospectus (DRHP) with market regulator SEBI to raise funds via an initial public offering (IPO). The issue will consist of an offer for sale (OFS) of up to 3.63 crore shares by promoters and existing shareholders. Vedant Fashions’ Manyavar brand is a market leader in the branded Indian wedding and celebration wear market. Twamev, Manthan, Mohey, and Mebaz are some of its other brands.

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BHEL extends footprint in HVDC-based power transmission with Raigarh-Pugalur UHVDC link

Bharat Heavy Electricals Ltd (BHEL) has played a key role in the successful implementation of the ultra-high voltage direct current (UHVDC) link between the western and southern region grid. The +800 kilovolts (kV), 6,000 megawatts (MW) UHVDC link is between Raigarh in Chattisgarh and Pugalur in Tamil Nadu. The project aims to bring relief to the power deficit southern grid. 

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Govt extends last date for filing ITR till December 31

The government has once again extended the deadline to file Income Tax Return (ITR) for the financial year 2020-21 (FY21) by three months to December 31, 2021. The deadline has been extended due to glitches on the new income tax portal, which had made it difficult for taxpayers to complete their ITR filing process. With regard to the resolution of glitches in the tax portal, the Finance Ministry on Wednesday said it is continuously engaging with Infosys to ensure a smooth filing experience for taxpayers.

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