Tag: ruchi soya

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Mukesh Ambani Resigns as Director of Reliance Jio – Top Indian Market Updates

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

Mukesh Ambani resigns as director of Reliance Jio

Mukesh Ambani has resigned from the board of his group’s telecom arm, Reliance Jio Infocomm Ltd. He has handed over the reins of the company to his elder son Akash. In a stock exchange filing, Reliance Jio said its board has “approved the appointment of Akash M Ambani, non-executive director, as chairman of the Board of Directors of the company.”

Read more here.

Tata Steel to ramp up Neelachal Ispat Nigam’s operation to 1.1 MTPA within a year

Tata Steel Ltd (TSL) Chairman N Chandrasekaran said the company will boost the operation of Neelachal Ispat Nigam Ltd (NINL) to a rated capacity of 1.1 million tonnes per annum (MTPA) within the next year. In January 2022, Tata Steel Long Products (a subsidiary of TSL) won the bid to acquire a 93.71% stake in NINL at an enterprise value of Rs 12,100 crore. Tata Steel is expected to complete the acquisition by the end of Q1 FY23.

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Ruchi Soya Industries changes name to Patanjali Foods Ltd

Edible oil manufacturer Ruchi Soya Industries Ltd (RSIL) announced that the company’s name has been changed to Patanjali Foods Ltd with effect from June 24. In 2019, Baba Ramdev-led Patanjali Ayurved acquired Ruchi Soya for Rs 4,350 crore through an insolvency process. Last month, Patanjali Ayurved sold its food retail business to RSIL for Rs 690 crore. The move was part of its strategy to focus on the non-food, traditional medicine, and wellness business.

Read more here.

Indiabulls Real Estate guilty of profiteering Rs 6.46 crore

The National Anti-profiteering Authority (NAA) has found Indiabulls Real Estate Ltd (IREL) guilty of not passing on over Rs 6.46 crore input tax credit benefits to homebuyers after the introduction of GST. The concerned project, named Sierra-Vizag, is situated in Visakhapatnam. The NAA has directed IREL to pass on the profiteered amount to homebuyers within 3 months, along with interest.

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LTTS launches engineering design centre in France

L&T Technology Services Ltd. (LTTS) has launched an engineering design centre in Toulouse, France. The centre will initially focus on developing cutting-edge solutions for the aerospace and defence industries. LTTS also plans to hire over 100 engineers for the centre in the next two years.

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Tata Motors to increase prices of commercial vehicles from July 1

Tata Motors Ltd. has announced a price hike of 1.5-2.5% for its range of commercial vehicles (CVs), effective from July 1. The percentage of hike will depend on the individual model and variant. “The steep rise in overall input costs makes it imperative to pass on a residual proportion via a minimised price hike,” the automaker said in a statement.

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India Cements acquires 100% stakes in Springway Mining

India Cements Ltd has acquired the entire paid-up equity and preference share capital of Springway Mining Private Ltd for Rs 182.89 crore. Springway Mining was in the process of setting up a cement plant in Madhya Pradesh. 

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Glenmark Pharma acquires OTC drugs from Wockhardt

Glenmark Pharma’s US subsidiary has acquired a portfolio of approved over-the-counter (OTC) abbreviated new drug applications (ANDAs) from Wockhardt. The move is part of the pharma company’s strategy to expand its US OTC portfolio. Glenmark Pharma’s current portfolio consists of 175 products authorized for distribution in the US and 48 ANDAs pending approval with the US Food & Drug Administration (USFDA).

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Infosys secures order from Global Express

Australia-based Global Express has selected Infosys Ltd to separate the technology landscape after its divestment from Toll Holdings. The IT major will leverage the blueprints and tools from Infosys Cobalt, a set of services, solutions, and platforms for enterprises to accelerate their cloud journey. Infosys will also migrate Global Express’ applications and services to a sustainable and energy-efficient data centre and public cloud on AWS.

Read more here.

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JSW Steel’s Net Profit Falls 20% YoY to Rs 3,343 crore in Q4 – Top Indian Market News

A crane operator lifts up a finished steel coil at the storage and distribution facility of German steel maker ThyssenKrupp in Duisburg, Germany, January 30, 2020. REUTERS/Wolfgang Rattay/Files

JSW Steel Q4 Results: Net profit falls 20% YoY to Rs 3,343 crore

JSW Steel Ltd reported a 20.2% YoY decline in consolidated net profit to Rs 3,343 crore for the quarter ended March (Q4 FY22). Its total income rose 73% YoY to Rs 47,128 crore during the same period. Expenses surged 98.9% YoY to Rs 41,282 crore in Q4. The company recorded an exceptional loss of Rs 741 crore. JSW Steel’s board has declared a final dividend of Rs 17.35 per share.

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Sun Pharma acquires Uractiv portfolio from Fiterman Pharma in Romania

Sun Pharmaceutical Industries Ltd’s subsidiary, S.C. Terapia, has acquired the Uractive portfolio from Fiterman Pharma in Romania. The portfolio comprises food supplements including minerals, vitamins, cosmetics, and medical devices used for maintaining urinary tract health. Uractiv is a leading brand in its category in Romania, with a portfolio of 12 stock-keeping units (SKUs) having annualised revenues of approximately $8.7 million.

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Nykaa Q4 Results: Net profit falls 49% YoY to Rs 8.56 crore

FSN E-Commerce Ventures (Nykaa) reported a 49% YoY decline in consolidated net profit to Rs 8.56 crore for the quarter ended March (Q4 FY22). Its revenue from operations rose 31% YoY to Rs 973.32 crore during the same period. The gross merchandise value (GMV) grew 45% YoY to Rs 179.8 crore in Q4.

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RIL, Jindal Group, HPCL-Mittal Energy in race to buy JBF Petro

Reliance Industries Ltd (RIL), an HPCL-Lakshmi Mittal joint venture, two Jindal Group firms, and three other entities have reportedly shown interest in acquiring bankrupt JBF Petrochemicals. JBF Petro manufactures purified terephthalic acid— a raw material for polyester fibre and PET raisin (used to make jars and bottles for mineral water, carbonated soft drinks). The company has an outstanding debt of Rs 4,700 crore.

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GAIL Q4 Results: Net profit rises 41% YoY to Rs 2,683 crore

GAIL Limited reported a 40.6% YoY increase in net profit to Rs 2,683.11 crore for the quarter ended March (Q4 FY22). Its revenue from operations rose 73.4% YoY to Rs 26,968.21 crore during the same period. The cost of materials consumed jumped 207.4% YoY to Rs 3,171.4 crore in Q4. GAIL’s board declared a final dividend of ₹1 per share.

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Siemens’ board approves transfer of LDA biz to Siemens AG arm for Rs 440 crore

Siemens Ltd’s board has approved the sale of its Large Drivers Application (LDA) business to a subsidiary of Siemens AG for Rs 440 crore. The business will be transferred to Siemens Large Drives India Pvt. Ltd. (a subsidiary of Siemens Large Drives GmbH, which in turn is a subsidiary of Siemens AG). The LDA segment recorded a revenue of Rs 443 crore and an operating profit of Rs 25 crore in FY21.

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Ruchi Soya Q4 Results: Net profit falls 25% YoY to Rs 234 crore

Ruchi Soya Industries Ltd reported a 25.4% YoY decline in net profit to Rs 234.43 crore for the quarter ended March (Q4 FY22). Its revenue from operations rose 37.72% YoY to Rs 6,663.72 crore during the same period. The foods product segment registered a 15% increase in sales over the previous quarter. The company’s board has declared a dividend of Rs 5 per share.

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Adani Enterprises’ arm to acquire 50% stake in General Aeronautics

Adani Defence Systems and Technologies Ltd (ADSTL) will acquire a 50% stake in Bengaluru-based General Aeronautics Pvt Ltd. ADSTL is a wholly-owned subsidiary of Adani Enterprises Ltd. General Aeronautics is an end-to-end agri platform solution provider. It provides robotic drones and drone-based solutions for crop protection, yield monitoring, precision-farming, etc.

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SJVN signs pact to supply 200 MW solar power to discoms in Bihar

SJVN Limited has signed a power purchase agreement (PPA) for the supply of 200 megawatts (MW) from its solar power projects in Bihar to state discoms. The company has bagged this project at a tariff of Rs 3.11 per unit through Open Competitive Tariff Bidding organised by Bihar Renewable Energy Development Agency (BREDA). The project is scheduled to be commissioned by November, 2023.

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ITC’s Net Profit Rises 12% YoY in Q4 – Top Indian Market NEws

itc

ITC Q4 Results: Net profit rises 12% YoY to Rs 4,190 crore

ITC Limited reported an 11.8% YoY increase in net profit to Rs 4,190.96 crore for the quarter ended March (Q4 FY22). Its revenue from operations rose 16% YoY to Rs 16,426 crore during the same period. Revenue from ITC’s cigarette business grew 9.96% YoY to Rs 6,443.37 crore in Q4. Non-cigarette FMCG revenue stood at Rs 4,141.97 crore, up 12.32% YoY. ITC’s board has declared a final dividend of Rs 6.25 per share.

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Ruchi Soya to acquire Patanjali’s food retail business for Rs 690 crore

Ruchi Soya Industries Ltd (RSIL) will acquire Patanjali Ayurved’s food retail business for Rs 690 crore. The business comprises of 21 major products, including ghee, honey, spices, juices, and atta. The company will also get manufacturing plants located at Padartha (Uttarakhand) and Newasa (Maharashtra). RSIL’s board has also approved the change in the name of the firm to Patanjali Foods Ltd.

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Route Mobile Q4 Results: Net profit rises 29% YoY to Rs 45.68 crore

Route Mobile Ltd reported a 29.15% YoY increase in consolidated net profit to Rs 45.68 crore for the quarter ended March (Q4 FY22). Net profit rose 2.61% when compared to the previous quarter. Its total income grew 75.35% YoY (or 11.80% QoQ) to Rs 634.48 crore during the same period. Route Mobile’s board has declared a final dividend of Rs 2 per share.

Sun Pharma to launch first-in-class oral lipid-lowering drug in India

Sun Pharmaceutical Industries Ltd is planning to launch an oral drug, Bempedoic Acid, to reduce low-density lipoprotein (LDL) cholesterol. The pharma company will launch the drug under the brand name Brillo. The drug is indicated for people who have an inherited genetic disorder that causes high cholesterol levels or established heart disease where cholesterol levels remain high.

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ABFRL Q4 Results: Net profit at Rs 43.6 crore

Aditya Birla Fashion & Retail Ltd (ABFRL) reported a consolidated net profit of Rs 43.59 crore for the quarter ended March (Q4 FY22). It had posted a net loss of Rs 137.64 crore in the corresponding quarter last year (Q4 FY21). Its total income grew 25.57% YoY to Rs 2,309.55 crore during the same period. EBITDA stood at Rs 401 crore in Q4, up 58% YoY.

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TVS Motor launches electric scooter iQube

TVS Motor Company Ltd rolled out its latest electric scooter, iQube, equipped with a host of features, including a best-in-class range of 140 km on a single charge. The Chennai-based company has unveiled three variants of the electric scooter. It will have a seven-inch touchscreen, voice assist, iQube Alexa skillset, and Bluetooth connectivity. TVS iQube and TVS iQube S will be available at Rs 98,564 and Rs 1,08,690, respectively.

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IGL Q4 Results: Net profit rises 9% YoY to Rs 361 crore

Indraprastha Gas Ltd (IGL) reported a 9% YoY increase in net profit to Rs 361.6 crore for the quarter ended March (Q4 FY22). Its revenue from operations rose 54.9% YoY to Rs 2,649.77 crore during the same period. EBITDA rose 2% YoY to Rs 500 crore in Q4. Total volumes grew 14% YoY to 697 million standard cubic meters (mscm) in Q4. IGL’s board has declared a dividend of Rs 5.5 per share.

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Manappuram Finance Q4 Results: Net profit falls 44% YoY to Rs 261 crore

Manappuram Finance Ltd reported a 44% YoY decline in net profit to Rs 261 crore for the quarter ended March (Q4 FY22). Its net interest income (NII) fell 10.2% YoY to Rs 986.5 crore during the same period. [NII is the difference between the interest income earned on loans and the interest paid to depositors.] The gold loan financier’s assets under management (AUM) stood at Rs 30,300 crore in Q4, up 11.2% YoY.

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Union Cabinet amends biofuels policy, advances ethanol blending target to 2025-26

The Union Cabinet approved advancing the target of blending 20% ethanol in petrol by five years to 2025-26. Currently, ~10% of ethanol is blended in petrol. The Cabinet has also approved a proposal to allow more feedstocks for the production of biofuels. These decisions will help India cut its reliance on oil imports.

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Editorial

How Patanjali Bought Ruchi Soya For Free

Ruchi Soya Industries is a company that was technically valued at zero for a while but was soon valued at thousands of crores. The company faced extreme financial doldrums and was dragged to insolvency court by its creditors. Two companies placed bids to buy Ruchi Soya— Patanjali and Adani Wilmar. Patanjali won the bid and virtually bought the company for free. After the turbulent takeover, the company’s share price soared at unimaginable rates, filling the pockets of all investors. It is pretty rare to see such a comeback in the Indian business world. The story of the takeover is controversial and is a test case for SEBI. 

In this article, we discuss the story behind Ruchi Soya and why it has been in the news lately. 

Ruchi Soya and its Controversial Takeover By Patanjali

Ruchi Soya Industries manufactures oils, vanaspati, bakery fats, and soya. The company’s oil business faced problems because of cheaper imports from foreign countries and competition from other local players. There are dozens of reasons as to why Ruchi Soya faced a financial crunch. 

Moving on, Ruchi Soya’s lenders (the banks) dragged Ruchi Soya to bankruptcy court and was taken off the stock exchanges. The banks were unsure if Ruchi Soya would be able to pay back its dues. Therefore, they wanted to liquidate the company to clear the pending dues. Two companies were frontrunners in the bidding process— Adani Wilmar and Baba Ramdev’s Patanjali. Patanjali won the bid, acquiring Ruchi Soya for ~Rs 4,350 crore. 

Here’s the twist: out of the ~Rs 4,350 crore, around Rs 3,200 crore were lent to Patanjali by the very same banks that lent money to Ruchi Soya initially. Around Rs 1,200 crore from SBI, Rs 700 crore from Punjab National Bank, Rs 600 crore from Union Bank of India, Rs 400 crore from Syndicate Bank, and Rs 300 crore from Allahabad Bank.

Shares Rally 8,000%!

After Patanjali’s takeover, the company relisted on the exchanges and its shares rallied by nearly ~8,000%! One of the reasons for such strong inflation in price is because only ~1% of the total shareholding is public, the rest being with Patanjali and other promoters. A small group of traders could have pumped the price of Ruchi Soya. Many investors questioned the sudden rally and accused Patanjali of foul play and manipulation. They demanded a SEBI probe. 

Now, Patanjali has a debt that it has to repay for having borrowed money to acquire Ruchi Soya. Ruchi Soya’s business continues as usual, but the company’s valuation has skyrocketed. This is when Patanjali decides to dilute its shareholding through a follow-on public offer (FPO) at a discount of around 30%. Patanjali decided to reduce its shareholding to around ~80% through the FPO, offloading around 18-19% stake for Rs 4,300 crore. This is practically the same amount it bought Ruchi Soya for. 

Crackdown by SEBI

Around the time of the FPO, suspicious emails and texts started circulating, nudging Patanjali consumers to invest in the FPO. In one of his speeches, Baba Ramdev stated that the secret to being a ‘crorepati’ was to invest in Ruchi Soya’s FPO. This didn’t go down well with SEBI. The market regulator stalled the FPO, allowing investors a window of three days to withdraw their bids from the FPO. They also asked Patanjali to put out advertisements in national newspapers, discrediting the SMS and e-mails. Nearly 97 lakh bids were withdrawn from the FPO in the meantime. 

In the end, Ruchi Soya managed to go debt-free and profitable from a once bankrupt company. Retail investors, who might have lost hope during the insolvency proceedings, earned humongous returns from the share. Patanjali managed to buy Ruchi Soya at virtually little to no cost, and creditors went back home with their respective money. Seemed like all in a day’s work!

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Editorial

What is Happening Between SEBI and Ruchi Soya?

The share price of Ruchi Soya Industries Ltd has been highly volatile lately. The Patanjali-owned company’s Follow on Public Offer (FPO) has come under the scanner of India’s stock market regulator. In this article, we discuss the recent developments surrounding Ruchi Soya’s FPO and why SEBI has taken strict action against the FMCG firm.

Ruchi Soya Industries – A Brief Profile

Ruchi Soya Industries Ltd (RSIL) is a fast-moving consumer goods (FMCG) company that has evolved as an integrated player in India’s edible oil sector. It also produces and markets textured soya protein, honey, atta, biscuits, noodles, and wellness products. The company owns and operates numerous palm plantations across our country.

Over a decade ago, Ruchi Soya started facing massive hurdles due to high input costs and low margins. The company was competing with cheap imports, and its seed extraction business was failing. Moreover, they used to offer generous credit terms to customers, which they ultimately could not retrieve. RSIL faced an unfortunate debt crisis to the tune of Rs 9,000 crore! 

In 2017, a consortium of banks dragged RSIL to the bankruptcy court. The lenders agreed to resolve the bankruptcy proceedings by selling Ruchi Soya to another FMCG firm. This is when Baba Ramdev’s Patanjali Ayurved Group stepped in. They acquired a ~99% stake in RSIL and settled ~Rs 4,000 crore in dues.

The FPO

As per SEBI’s current shareholding norms, Patanjali has to bring down its stake in Ruchi Soya to 75%. Earlier this month, Ruchi Soya announced the launch of a Follow on Public Offer (FPO) to raise Rs 4,300 crore and bring down Patanjali’s (promoter) stake to 81%. The company fixed Rs 615-650 as the price band for the FPO. Through this offer, RSIL will introduce new shares to the public and dilute its current shareholding pattern. 

The offer opened on March 24 and received an overall subscription of 3.59 times as of March 28. During this period, SEBI noticed that unsolicited SMSes were being circulated amongst Patanjali’s customers:

The market regulator said the content of the SMS appeared to be misleading and fraudulent. It directed Patanjali and the lead managers of the FPO to issue a notice to all investors in the form of advertisements to caution them about the circulation of such messages. Ruchi Soya claimed the messages were not issued by them or by any of their directors, promoters, or group companies.

Special Window to Withdraw Bids

To highlight their non-tolerance policy on such affairs, SEBI instructed RSIL to offer investors a special window to cancel their bids in the FPO! A notice was sent to all applicants that submitted bids, informing them about a window till March 30 to withdraw their bids. As per reports, foreign portfolio investors (FPIs) have cancelled 97% of bids during the two-day withdrawal period. However, demand from high net-worth individuals (HNIs) and small retail investors saw only a minor pullback. Many would have come under pressure and felt subscribing to the FPO would now be a risky bet. 

The overall subscription of the FPO declined from 3.6 times to 3.4 times on March 30. The finalisation of the basis for allocation of new shares will be declared on April 5. Will those who have been allotted new shares lose money? Or will the news surrounding RSIL and its FPO simply die down? Let us look forward to seeing how the situation unfolds in the days to come. 

Have you invested in Ruchi Soya Industries or applied for its FPO? Let us know in the comments section of the marketfeed app.

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Lok Sabha Passes The Finance Bill, 2022 – Top Indian Market News

budget 2022
The Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman departs from North Block to Rashtrapati Bhavan and Parliament House, along with the Minister of State for Finance and Corporate Affairs, Shri Anurag Singh Thakur and the senior officials to present the General Budget 2021-22, in New Delhi on February 01, 2021.

Lok Sabha passes the Finance Bill, 2022

The Lok Sabha has approved the Finance Bill 2022 completing the budgetary exercise for FY 2022-23. The Finance Bill 2022 contains provisions that tighten the norms for taxation of Virtual Digital Assets (VDAs) or cryptocurrencies by disallowing set off of any losses with gains from other virtual digital assets. 

Read more here.

Airtel prepays Rs 8,815 crore worth spectrum dues linked to 2015 auction

Bharti Airtel has prepaid Rs 8,815 crore to the telecom department, clearing a major chunk of its dues relating to spectrum auctions in 2015. The prepayment is for installments due in FY 2027 and FY 2028. Over the last four months, Bharti Airtel has cleared Rs 24,334 crores of its deferred spectrum liabilities much ahead of scheduled maturities

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HDFC sells over 2% stake in private oil explorer HOEC

HDFC Ltd has sold over 28.89 lakh shares or nearly 2% stake held in Hindustan Oil Exploration Ltd (HOEC). The total consideration for the sale of28,89,638 equity shares is Rs. 61.04 crores. HOEC was the first private as the first private company in India to enter into the field of oil and gas exploration

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Ruchi Soya FPO subscribed till 37% on Day 2

Ruchi Soya’s Follow on Public Offer (FPO) was subscribed till 37% on its second day. The largest number of bidders for the Rs 4,300 crore FPO were its employees who subscribed 3.15, followed by Qualified Institutional Buyers who subscribed 41% of their allotted quota and Retail Investors at 39% of the allotted quota. 

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IndusInd Bank to sell Future Retail loans to Edelweiss ARC

IndusInd Bank Limited sold off Rs 247 crore worth principal loans of Future Retail and Asian Hotels (North) to Edelweiss Asset Reconstruction Company for a consideration of Rs 195 crore. The loan will be restructured on a 15:85 basis where IndusInd shall get 15% of the amount upfront while the remaining 85% will be security receipts which would be redeemed as Edelweiss recovers dues from Future Retail and Asian Hotels. 

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Special CBI court denies bail to Anand Subramanian in NSE Co-location Scam

A special CBI court has denied bail to the NSE former MD Anand Subramanian for his involvement with the former NSE chief executive Chitra Ramkrishna in the alleged co-location scam. You can learn more about the scam here.

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Future Enterprises defaults on Rs 93.99 crore payment to PNB and Canara Bank

In a regulatory disclosure, Future Enterprises Ltd. has disclosed that it has defaulted on a Rs 93.99 crore payment to PNB and Canara Bank under the one-time restructuring (OTR) plan. After the disclosure, the company’s share price tanked by nearly 5%. 

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UN cuts India growth forecast to 4.6% in 2022

The United Nations Conference on Trade and Development had cut down India’s projected economic growth for 2022 by over 2%. The new projected economic growth is 4.6%. The ongoing war in Ukraine is likely to reinforce the monetary tightening trend in advanced countries following similar moves that began in late 2021 in several developing countries due to inflationary pressures, with expenditure cuts also anticipated in upcoming budgets, said the UNCTAD report. 

Read more here.

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Aramco, RIL in Advanced Talks for $25 billion Deal – Top Indian Market News

Saudi Aramco in advanced talks with Reliance for $25 billion deal: Report

According to a report from Bloomberg, Saudi Aramco is in advanced talks for an all-stock deal to acquire a stake in Reliance Industries Ltd’s (RIL) oil refining and chemical business. Aramco is discussing the purchase of a nearly 20% stake in the Reliance unit for about $20-25 billion (Rs 1.48 – 1.85 lakh crore) worth of Aramco shares. The report further states that RIL could reach an agreement with Suadi Aramco as soon as the coming weeks.

RIL had announced the sale of a 20% stake in its oil-to-chemicals (O2C) business to Aramco for $15 billion in 2019. However, the deal stalled after oil prices and demand crashed last year due to the Covid-19 pandemic.

Read more here. 

India’s WPI inflation eases to 11.16% in July

The inflation based on the Wholesale Price Index (WPI) eased to 11.6% in July 2021, compared to 12.07% in June. Inflation in manufactured products stood at 11.2% in July, compared with 10.88% in June. The inflation in food articles remained flat against a 3.09% annual rise in June. The fuel and power index rose 26.02% annually in July, compared to an increase of 32.83% in June. The data was released by the Ministry of Commerce and Industry.

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Tata Motors partners with Bank of Maharashtra for car loan scheme

Tata Motors has partnered with the Bank of Maharashtra to offer car loan facilities for its ‘New Forever’ range of passenger vehicles. Under the partnership, the bank will provide loans to Tata Motors’ customers at an interest rate starting from as low as 7.15% linked with Repo Linked Lending Rate (RLLR). The ‘Maha Super Car Loan scheme’ will offer a maximum of 90% financing on the total cost of the vehicle (on-road pricing) for salaried employees, self-employed people, and businessmen.

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HDFC Bank to raise funds by issuing AT-1 bonds in overseas market

HDFC Bank has announced plans to raise capital by Additional Tier-I (AT1) bonds in the overseas market to fund its business growth. The bank is expected to raise up to $1 billion (~Rs 7,420 crore) from the dollar-denominated bonds. An offering memorandum (OM) has been prepared and will be available to prospective investors in relation to the contemplated issue of debt instruments.

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Tyre industry body ATMA urges government to allow duty-free import of natural rubber

The Automotive Tyre Manufacturers Association (ATMA) has asked the government to allow the duty-free import of natural rubber. The shortage of the commodity in India has become a major obstacle for the tyre industry to support domestic manufacturing. According to ATMA, natural rubber consumption is likely to increase further, and the annual demand is expected to cross 13 lakh tonnes in FY22. The tyre industry accounts for over 70% of natural rubber consumed in India.

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Tata Steel lays out capital expenditure of Rs 3,000 crore for European operations

“Tata Steel has laid out a capital expenditure of Rs 3,000 crore for its European operations as its focus is to make the business stronger”, said CEO and Managing Director T.V. Narendran. The company’s operations in Europe are being separated into Tata Steel Netherlands and Tata Steel UK, which would help in cost efficiencies and management focus. Tata Steel’s CEO further stated that the European business will be cash positive in terms of EBITDA and Profit After Tax (PAT) in the current financial year (FY22). 

Ruchi Soya gets SEBI approval to launch Rs 4,300 crore FPO

Ruchi Soya Industries Ltd has received approval from market regulator SEBI to sell fresh shares worth up to Rs 4,300 crore through a follow-on public offer (FPO). The FPO is being launched to meet SEBI’s minimum public shareholding norm of 25% in a listed entity. Ruchi Soya’s promoters will dilute a 9% stake in the company through the FPO. According to reports, the proceeds from the FPO will be used for reducing the company’s debt and meet working capital requirements. Ruchi Soya is owned by Baba Ramdev’s Patanjali Ayurveda.

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Rules on retro tax to be framed soon: Nirmala Sitharaman

Finance Minister Nirmala Sitharaman has stated that the rules that will lead to the scrapping of the retrospective tax demands made on companies such as Cairn Energy plc and Vodafone plc will be framed soon. Earlier this month, the Parliament had passed a bill to scrap all tax demands made using the 2012 retrospective tax legislations. The Finance Ministry officials are conducting discussions with Cairn and Vodafone on the closure of retro tax cases, refund, and settlement. You can learn more about retrospective taxation here.

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Olectra Greentech secures order worth Rs 70 crore for 50 e-buses

Olectra Greentech Ltd has received a Letter of Award (LoA) from Gujarat State Road Transport Corporation (GSRTC) for the supply of 50 nine-meter electric buses. The supply will be on a Gross Cost Contract (GCC) basis for a period of ten years. The order is valued at Rs 70 crore. The buses will be delivered over a period of 12 months. Hyderabad-based Olectra Greentech is a leading manufacturer of e-buses and insulators in India.

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Ramkrishna Forgings wins order worth €20 million

Ramkrishna Forgings Ltd has secured a multi-year order from a European Tier-1 customer in the auto segment worth €20 million (~Rs 174 crore). The order is to be implemented over a period of four years. Ramkrishna Forgings is a leading manufacturer and supplier of open and closed die forgings of carbon and alloy steel, micro-alloy steel, and stainless steel.

Read more here. 

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India’s WPI Inflation Jumps to 1.48% in October – Top Indian Market News

India’s WPI inflation at 8-month high of 1.48% in October

The inflation based on India’s Wholesale Price Index (WPI) rose to an eight-month high of 1.48% in October. The WPI inflation was at 1.32% in September and zero percent in October of last year. According to data released by the Ministry of Commerce and Industry, the prices of manufactured products have increased sharply. The prices of food items rose 6.37%, after growing 8.17% in September.

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Finance Ministry invites bids from actuarial firms for valuing LIC ahead of IPO

The Finance Ministry invited bids from actuarial firms for arriving at the embedded value of Life Insurance Corporation (LIC), ahead of its stake sale. The embedded value is the sum of the net asset value and the present value of future profits of a life insurance company. Actuarial firms provide statistical and risk-management services to insurance companies. The government plans to sell a minority stake in LIC and list it on the stock exchanges. It has already appointed Deloitte and SBI Caps as pre-IPO transaction advisors.

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Initial bids for BPCL privatisation closes today

The process of receiving initial bids for the privatisation of state-run Bharat Petroleum Corporation Ltd. (BPCL) will end today. The government has been trying to offload its entire 52.98% stake in BPCL, which is the country’s second-largest oil refining and marketing company. BPCL’s privatisation is essential for the government to meet its record Rs 2.1 lakh crore goal for disinvestment in 2020-21.

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Equitas SFB launches unique savings account for women

Equitas Small Finance Bank, on Monday, announced that it has launched a new product that is aimed at women. The product, termed as ‘Eva’, will provide a 7% interest on the savings account of women. The bank’s program also offers free health check-ups and unlimited teleconsultation with doctors and mental health experts. Equitas SFB has also announced that Indian woman cricketer, Smriti Mandhana, will be its new Brand Ambassador.

Indian economy may be recovering faster than anticipated: Oxford Economics

The global forecasting firm Oxford Economics has stated that the Indian economy is seen to be recovering faster than expected. It also stated that the Reserve Bank of India may soon arrive at an end-of-the-rate easing cycle. The firm has said that inflation is expected to average significantly above 6% in the fourth quarter of the current financial year. 

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Wipro enters into partnership with SNP SE

Wipro Limited said it has partnered with Schneider-Neureither & Partner (SNP) SE to help customers accelerate their enterprise transformation journey. Both companies will also build a ”Transformation Competence Center’, that will train and certify Wipro consultants to use SNP’s CrystalBridge data transformation platform. The SNP Group has around 1,500 employees worldwide and is headquartered in Heidelberg, Germany.

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Maruti Suzuki sells over 2 lakh cars through online channel

India’s largest carmaker, Maruti Suzuki India, said that it has sold over 2 lakh cars through its online channel since April 2019. The company had initiated its online sales platform in 2018, and covers nearly 1,000 dealerships across the country. The company has also stated that its dealership websites are seeing a much larger traffic flow amidst the prevailing Covid-19 scenario.

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Ruchi Soya to launch FPO next year: Baba Ramdev

Baba Ramdev has announced that Ruchi Soya, which is owned by Patanjali Ayurved, will launch a follow-on public offer (FPO) next year. He has stated that the FPO has been planned to bring down the promoters’ shareholding in the company. A Follow-on Public Offer is a process by which a company, which is already listed on an exchange, issues new shares to investors or the existing shareholders. Ruchi Soya Industries Ltd. is one of the largest manufacturers of edible oil in India. 

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Vodafone Idea may raise tariffs by 15-20% towards the end of 2020: Report

As per a report from ET, Vodafone Idea (Vi) is considering to increase tariffs by 15-20% by the end of the year or early 2021. The telecom company is currently trying to make a financial recovery and reduce losses in its customer base. The report also states that Bharti Airtel may also keep a close watch on Reliance Jio’s moves, and change its rates accordingly.

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GAIL completes Kochi-Mangalore natural gas pipeline

Gail India Limited has completed the natural gas pipeline stretch between Kochi and Mangalore. The 444-km long pipeline was launched in 2009 at an estimated cost of Rs 2,915 crore. The testing of the pipeline will be completed within the next few days. With the commissioning of the pipeline, gas demand in Kerala will touch 80-90 million cubic metres per annum.

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