Govt to sell entire 26.12% stake in Tata Communications
The Indian government will sell its entire 26.12% shareholding in Tata Communications Limited (TCL). It will sell up to 4.59 crore equity shares (forming 16.12% shareholding) of TCL through an offer for sale (OFS) via stock exchanges. The remaining 10% stake will be sold to Tata Son’s investment arm Panatone Finvest Ltd. Tata Sons currently owns 14.1% of TCL, while Panatone Finvest has a 34.8% stake in the company.
SpiceJet introduces 66 new flights in domestic network
SpiceJet Limited has announced 66 new domestic flights to meet the increasing demand for air travel from smaller cities. This includes five additional non-stop flights from Pune to Darbhanga, Durgapur, Gwalior, Jabalpur, and Varanasi. Kolkata–Darbhanga, Chennai–Jharsuguda, and Nashik-Kolkata flights are among others that will be launched on March 28, 2021. The airline will press its Boeing 737 and Bombardier Q400 aircraft into service on these new routes.
Dilip Buildcon gets provisional completion certificate for road project in Maharashtra
Dilip Buildcon Limited has received a provisional completion certificate from the National Highways Authority of India (NHAI) for a road project in Maharashtra. The project involved four/six-laning of the Karodi-Telwadi section of NH 211 in Maharashtra under NHDP Phase IV-B on an engineering, procurement, and construction (EPC) mode. The company is entitled to receive a bonus of Rs 5.08 crore for completing the project 30 days before the scheduled completion date.
Finance Ministry to infuse Rs 14,500 crore in banks under PCA soon: Report
As per reports from multiple sources, the Finance Ministry is likely to infuse Rs 14,500 crore into banks that are under RBI’s Prompt Corrective Action (PCA) framework in the next few days. This will help improve the financial health of stressed public sector banks (PSBs) in the country. Indian Overseas Bank, Central Bank of India, and UCO Bank are currently under the PCA framework. Earlier this week, IDBI Bank was removed from this framework.
Indian Railway’s freight loading for FY21 surpasses that of last financial year
Indian Railways has surpassed freight loading figures of the previous financial year (FY 2019-20) despite challenges faced due to the Covid-19 pandemic. As per government data, Railways achieved a cumulative freight loading of 1145.68 million tonnes (MT) as of March 11, 2021. The figure stood at 1145.61 MT during the same period last year. The loading of iron and steel, cement, and other goods has increased.
Bitcoin has crossed the $60,000-mark to hit a new record high on Saturday. The cryptocurrency is benefitting from optimism in financial markets after US President Joe Biden signed the $1.9 trillion Covid-19 relief package. Bitcoin has surged around 1,000% over the past year and has a market value of $1.12 trillion.
IIFL Finance to close bond issue early on March 18
IIFL Finance Limited said that its bond issue will close on March 18 following better than expected response from investors. The issue of unsecured redeemable non-convertible debentures (NCDs) was scheduled to close on March 23. The NCDs, which offer up to 10.03% yield, have already been subscribed for Rs 468 crore. IIFL Finance is a non-banking financial company backed by the UK-based CDC Group.
India’s FinTech industry valuation estimated at $150-160 billion by 2025: FICCI-BGG report
According to a report from Boston Consulting Group (BCG) and FICCI, India’s financial technology (FinTech) companies are likely to become three times more valuable in the next five years. The report states that the FinTech sector will reach a valuation of $150-160 billion (~Rs 10.9 lakh crore- Rs 11.6 lakh crore) by 2025. India’s dynamic FinTech industry has over 2,100 companies, of which 67% have been set up over the last 5 years alone.
India imposes anti-dumping duty on Chinese antibacterial drug
The Indian government has imposed anti-dumping duty in the range of $0.91-$3.27 per kilogram on the Chinese antibacterial drug- Ciprofloxacin. The Directorate General of Trade Remedies (DGTR) had recommended imposing the duty after it found that the drug was being exported to India at a cheaper rate, which resulted in dumping. The anti-dumping duty has been imposed for a period of five years. This will help protect the domestic pharma industry.
India’s services activity expanded at the fastest rate in a year in February. This was driven by an extended robust recovery in domestic demand. However, employment had fallen further and overall input costs increased last month. The IHS Markit Purchasing Managers’ Index (PMI) for services stood at 55.3 in February, compared to 52.8 in January. PMI is a month-on-month calculation and a value of more than 50 represents an expansion when compared to the previous month.
Tata Power to develop 15 MW solar project for Tata Steel in Jamshedpur
TP Saurya, a wholly-owned subsidiary of Tata Power Ltd, has signed a Power Purchase Agreement (PPA) with Tata Steel Ltd (TSL) to develop a 15 megawatt (MW) solar power project in Jamshedpur, Jharkhand. The energy will be supplied to TSL under the PPA, which is valid for a period of 25 years from the scheduled commercial operation date. The project will be commissioned within 6 months.
SpiceJet partners with WheelTug for reserving electric taxi system production slots
SpiceJet Limited has partnered with WheelTug Plc for reserving 400 production slots for the electric taxi system. This system allows SpiceJet to move an aircraft forward or backward without powering its engines or using external tugs. It will help the airline in saving fuel, cut costs, and also reduce carbon emissions.
MTAR Tech IPO subscribed 3.68 times on first day of bidding
The Rs 596.41-crore initial public offering (IPO) of MTAR Technologies was subscribed 3.68 times on the first day of bidding. The issue received bids for 2.67 crore equity shares against an offer size of 72.60 lakh shares. The portion reserved for retail investors was subscribed 6.93 times. The portion set aside for non-institutional investors (NIIs) witnessed a subscription of 1.02 times.
Infosys secures $500 million deal from Google: Report
As per a report from Economic Times, Infosys Limited has won a nearly $500 million (~Rs 3,640 crore) deal from Alphabet Inc.’s Google to provide customer experience and engineering support for its products. The report states that this is “one of the largest all-digital deals” in customer experience services.
Mahindra Logistics Ltd (MLL) has signed an agreement with Bajaj Electricals Ltd (BEL) to handle its end-to-end logistics network and solutions. The total contract value will be over Rs 1,000 crore over the next 5 years. MLL has developed a fully redesigned and consolidated logistics network for BEL. The network includes storage optimization, transportation management, and inventory movement services.
Power Mech Projects secures multiple orders worth Rs 734 crore
Power Mech Projects Ltd announced that it has received Letters of Award (LoAs) for orders worth Rs 734 crore. The construction firm has won an order worth Rs 401 crore for the operation and maintenance of boilers & auxiliaries and other miscellaneous works of the 4×660 megawatt (MW) Thermal Power Plant of Vedanta Ltd in Jharsuguda, Odisha. The company has also won an order of Rs 198 crore for engineering, procurement, and construction (EPC) works for Kurmitar Iron Ore Mining Pvt Ltd in Odisha.
Kalpataru Power Transmission secures orders worth Rs 1,554 crore
Kalpataru Power Transmission Ltd has secured orders worth Rs 1,554 crore. The orders include those from India, the Commonwealth of Independent States (countries such as Azerbaijan, Armenia, Georgia, etc), and Latin America in the power transmission business. The company’s international subsidiary has also received new power transmission projects in Europe.
Bank of Baroda has raised Rs 4,500 crore through a qualified institutional placement (QIP). The capital raising committee of the bank’s board has approved the issue and allotment of 55.07 crore equity shares to eligible qualified institutional buyers (QIBs) at Rs 81.70 per share. The issue had opened on February 25 and closed on March 2.
RPP Infra Projects said it has won four work orders worth Rs 1,000 crore. The company has received an order from the Tamil Nadu Water Supply and Drainage Board for Rs 131.14 crore. It has also bagged an order worth Rs 558.66 crore from the Highways Department as part of the Chennai-Kanyakumari Industrial Corridor project. The third order is from the Chennai Municipal Corporation’s Storm Water Drain department, which is worth Rs 187.14 crore. The fourth order is from the Water Resource Department, Tamil Nadu for the renovation, extension, and modernisation of the Lower Bhavani Project main canal in Erode District worth Rs 123.07 crore.
Eicher Motors Q3 Results: Net profit rises 7% YoY to Rs 533 crore
Eicher Motors Ltd reported a 7% YoY increase in net profit to Rs 533 crore for the quarter ended December (Q3 FY21). Its revenue jumped 19% YoY to Rs 2,828 crore during the same period. Sales for Royal Enfield increased by 5% to nearly 2 lakh units in this quarter. Even though both revenue and profits have increased, their operating margin has witnessed a marginal decline from 25% to 24%.
Price Bands in Airfares to be discontinued in the airline industry
Union Aviation Minister, Hardeep Singh Puri, stated today that the price bands will be removed once the flight services reach pre-Covid-19 levels. Due to the pandemic and limited seats, the government placed floor and ceiling prices on airfares. It was done so that the airlines cannot charge hefty amounts from the customers due to restrictions on operating capacity. In May, when flights started to operate, there were only 30,000 passengers. The latest figure of Monday shows about 2,87,000 passengers.
Hindalco Q3 Results: Net profit rises 76% YoY to Rs 340 crore
Aditya Birla group company Hindalco declared a 76% YoY rise in net profit to Rs 340 crore for the quarter ended December (Q3). Its revenue increased by 11% YoY to Rs 11,351 crore from Rs 10,230 crore. The company’s Aluminium division saw its operating income grow by 26%. Another good news for the company came as their margin increased from 12.6% to 15.8%
SpiceJet Q3 Results: Net Loss of Rs 67 crore reported
Low-cost airline, SpiceJet, declared a standalone net loss of Rs 66.77 crore for Q3 FY21. In the same quarter last year, SpiceJet announced a net profit of Rs 78.16 crore. On a positive side, their net loss has decreased on a quarterly basis. In the second quarter, they reported a net loss of Rs 108.53 crore. This recovery can be attributed to the increase in demand in the passenger business.
Titan Q3 Results: Net profit falls by 11% to Rs 419 crore
Titan reported an increase of 17.4% in revenue to Rs 7,287 crore for the quarter ended December (Q3). Even after improved revenues, their net profits fell by 10.9% to Rs 419 crore. In the same quarter last year, their net profits recorded were Rs 470 crore. Their operating margin remained flat at 11.8%. Sales in the jewellery segment accounted for almost 90% of the total revenue.
IRB Infrastructure Developers has entered into a definitive agreement with India Toll Roads. In this agreement, they will be raising Rs 2,220 crore by issuing non-convertible debentures (NCDs). The fund accumulated will be used to repay existing loans of up to Rs 1,600 crore. The rest of the amount will be utilized to meet capex requirements and general corporate purposes.
GAIL Q3 Results: Net profit rises 18.9% YoY to Rs 1,487.3 crore
GAIL India reported a 18.9% YoY increase in standalone net profit to Rs 1,487.3 crore for the quarter ended December (Q3). Its revenue fell by 13% YoY to Rs 15,454 crore during the same period. Even after a fall in top line, their profit numbers increased due to lower tax cost and margin expansion. Taxes paid in Q3FY21 fell to Rs 380.4 crore from Rs 621 crore in the corresponding period.
Polyplex Q3 Results: Net profit increased by 81%, a dividend of Rs 100 per share announced
Polyplex Corporation declared a special dividend of Rs 100 per share after strong performance in the third quarter of FY21. Its consolidated net profit jumped by 81% (YoY) to Rs 224.73 crore in the December quarter. Revenue from operations also rose by 13.3% (YoY) to Rs 1,237 crore. The shares of the company skyrocketed by 17% to Rs 880 in intra-day trade. The record date of this dividend is 19th February, 2021.
Bank of India Q3 Results: Net profit rises five times to Rs 541 crore
Bank of India declared a net profit of Rs 541 crore for the quarter ended December (Q3). Net interest income fell by 9.2% (YoY) to Rs 3,740 crore. Net interest Margin (NIM) stood at 2.81% as on 31st December 2020. It was 3.45% during the same period last year. The bank’s deposits increased by 18.24% (YoY) to Rs 5,36,171 crore. Gross NPAs fell to Rs 54,997 crore as compared to Rs 61,731 crore in the same quarter previous year.
ABB India Q4 Results: Net profit falls by 4% to Rs 62 crore
ABB India declared a net profit of Rs 62 crore which is 4% lower than what is reported in the same quarter last year. The company follows January to December financial year. The total revenue also declined to Rs 1,701 crore from Rs 1,953 crore on a year-on-year basis. The Board of Directors of the company have recommended a dividend of Rs 5 per share.
Tata Elxsi Q3 Results: Net profit rises 39% YoY to Rs 105 crore
Tata Elxsi Ltd reported a 39.49% year-on-year (YoY) increase in net profit to Rs 105.2 crore, for the quarter ended December (Q3). This is the highest-ever quarterly profit achieved by the IT company. The firm’s revenue showed a growth of 12.67% YoY to Rs 477.10 crore. The robust growth in top-line revenue was largely led by Tata Elxsi’s design-led technology services.
Tesla in talks with 5 state governments to begin India operations: Report
As per a report from CNBC-TV18, Tesla is exploring the possibility of setting up manufacturing, R&D centres in India. The report states that Tesla is actively consulting Centre and state governments and is in the process of carrying out a location search for setting up operations. The electric vehicle (EV) manufacturing giant has hired a global consulting firm for the same. The state governments of Maharashtra, Gujarat, Andhra Pradesh, Karnataka, and Tamil Nadu have held talks with Tesla.
CCI finalises investigation report on complaints against Maruti Suzuki
The investigation wing of the Competition Commission of India (CCI) has submitted its report on complaints against Maruti Suzuki for final consideration. The report says that Maruti does not allow dealers to pass on discounts to consumers. It found that the company created a lack of competition between dealers and even sent decoy customers to ensure that they do not give out discounts. Maruti Suzuki would penalize dealers if they were found to be passing on discounts.
SpiceJet signs MoU with Brussels Airport for transporting Covid-19 vaccines
SpiceJet Ltd has signed a Memorandum of Understanding (MoU) with Belgium’s Brussels Airport for providing seamless transportation of Covid-19 vaccines. As part of the agreement, Brussels Airport would assist SpiceJet with respect to slots, networking, and contracts for the speedy delivery of vaccines. Brussels Airport will be the airlines’ first flight point for Europe.
SpiceJet, on Tuesday, carried India’s first consignment of Serum Institute’s ‘Covishield’ consisting of 34 boxes and weighing 1,088 kilograms from Pune to Delhi. The first consignment of the Covishield vaccine was dispatched from SII in the early hours of Tuesday. India will launch its nationwide vaccination drive on January 16.
PVR to launch QIP in February to raise Rs 800 crore: Report
As per a report from CNBC-TV18, PVR is planning to launch a qualified institutional placement (QIP) by February to raise about Rs 800 crore. The report states that PVR’s Board of Directors has already approved this fundraise. PVR will use the funds to acquire independent multiplexes. Axis Capital and Kotak Investment Banking have been appointed as advisers to take this transaction forward.
Larsen & Toubro Infotech (LTI) said that it would expand its global alliance with IBM to help businesses transform their operations through hybrid cloud adoption. LTI will help clients migrate and modernize core business applications by leveraging IBM Cloud offerings. Under this agreement, L&T Infotech and IBM plan to establish an innovation center in Bengaluru in 2021.
Karnataka Bank Q3 Results: Net profit rises 10% YoY to Rs 135 crore
Karnataka Bank Ltd reported a 10% rise in net profit at Rs 135.38 crore for the quarter ended December (Q3), as compared to Rs 123.14 crore in the year-ago period. The bank’s net interest income (NII) increased by 21% YoY to Rs 614 crore in Q3. [NII is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors] The aggregate provision against the likely impact of Covid-19 as of December 31, 2020, stood at Rs 148 crore.
Tata Chemicals in advanced talks to acquire Archean’s industrial salt unit: Report
As per a report from BloombergQuint, Tata Chemicals Ltd is in advanced talks to acquire the industrial salt unit of Archean Group that could value the business at Rs 450 crore ($61 million) at a minimum. The report states that the board of Tata Chemicals is set to discuss the potential offer later this month. The Archean unit makes industrial salt used as an intermediary in the manufacturing of products such as detergents, textile dyes, plastics, and glass. It has a production capacity of 3 million metric tonnes.
IndiGo plans to add flights connecting 7 more cities
InterGlobe Aviation Ltd (IndiGo) announced that it plans to start new flights connecting Leh, Darbhanga, Agra, Kurnool, Bareilly, Durgapur, and Rajkot from February onwards. The low-cost carrier currently connects 61 domestic cities, and the addition of these new stations will take the number to 68. IndiGo will secure all regulatory approvals, and specific flight schedules will be announced as these approvals are received.
Mahindra Lifespace Developers partners with SBI for faster home loan approvals, discounts
Mahindra Lifespace Developers Ltd has signed an MoU with State Bank of India (SBI) for faster home loan approvals, as well as to offer special discounts to customers and employees of both companies. The agreement also includes co-promotional activities and outreach initiatives. Mahindra Lifespace’s development footprint spans 25.1 million sq ft of completed, ongoing, and forthcoming residential projects across 7 Indian cities.
RPP Infra Projects JV bags order worth Rs 232 crore
RPP-RK JV has received a new work order for Rs 231.77 crore from Highways Department for Chennai-Kanyakumari Industrial Corridor Projects. RPP Infra Projects Ltd holds a 60% share in the JV firm. The company has to execute these orders within 24 months. With this work order, the company is on its way to achieving an order book of Rs 2,000 crore.
Indian automakers fear container shortage to hit parts supply, output
Automakers in India are bracing for a parts shortage and possible production losses over the next 3-4 months due to a global shortage of available shipping containers. The concern was put forth by the Society of Indian Automobile Manufacturers (SIAM). The trade body stated that shipping freight rates have surged since July and companies are now finding it difficult to sustain normal trade operations. Major auto exporters also have to book containers weeks in advance.
Aurobindo Pharma & COVAXX to develop Covid-19 vaccine for India, UNICEF
Aurobindo Pharma Ltd has entered into an exclusive licensing agreement with US-based COVAXX to develop, commercialize, and manufacture UB-612 for India and the United Nations Children’s Fund (UNICEF). UB-612 is the first Multitope Peptide-based vaccine to fight Covid-19. COVAXX is currently conducting a Phase-1 clinical trial for the vaccine candidate. Aurobindo Pharma will manufacture the finished doses of UB-612 at its facilities in Hyderabad.
Adani Power terminates pact to buy 49% stake in Odisha Power Gen Corp
Adani Power, on Thursday, said that the agreement to acquire a 49% stake in Odisha Power Generation Corporation (OPGC) from the affiliates of the AES Corporation has been formally terminated. The Odisha government, which holds a 51% stake in OPGC, had exercised the Right of First Refusal (RoFR) to purchase the 49% stake held by AES. In June 2020, Adani Power had announced a share sale and purchase agreement (SSPA) to acquire a total of 89.3 lakh equity shares (or 49% stake) in OPGC from AES OPGC Holding and AES India Pvt Ltd.
SpiceJet partners with GMR Hyderabad Air Cargo for Covid-19 vaccine delivery
SpiceJet Ltd announced that it has signed a Memorandum of Understanding (MoU) with GMR Hyderabad Air Cargo (GHAC) to provide cargo services to all vaccine manufacturers in the region. SpiceXpress, the cargo arm of SpiceJet, aims to provide the first-mile pickup and last-mile delivery to carry Covid-19 vaccines across the domestic and international markets. Under the MoU, GHAC will provide the required space for SpiceJet’s vaccine shipments and also train its personnel on the handling of the vaccine.
Vodafone Idea, Airtel file segmented offer details to TRAI
Vodafone Idea and Bharti Airtel have both complied with the telecom regulator’s (TRAI) recent directive and filed details of all their segmented offers made between January and November 2020. On December 4, TRAI had directed all telecom companies to submit details of all segmented offers made between January and November 2020, including offer name, tariff rates, terms and conditions, validity spans, and benefits- within 15 days. TRAI stated that such disclosures would need to be made on a monthly basis for each service area.
India challenges Vodafone arbitration ruling in Singapore: Report
According to a report from ET, the Indian Government has challenged the international arbitration court’s ruling in favour of Vodafone Plc in the retrospective tax case. In September 2020, Vodafone had won the long-pending arbitration case against India’s income tax (IT) department that demanded over Rs 22,000 crore on a retrospective basis. The tribunal, in its ruling, had said the government must cease seeking dues from Vodafone and pay more than Rs 40 crore to the company as partial compensation for its legal costs.
Govt of Himachal Pradesh allots three hydro projects to SJVN
The Government of Himachal Pradesh has allotted three hydro projects of 501 MW capacity in Chenab Basin to SJVN Ltd. In a Cabinet meeting held today (which was chaired by CM Jai Ram Thakur), SJVN was allocated 104 MW Tandi, 130 MW Rashil, and 267 MW Sach Khas Hydro Electric Projects in the Chenab Basin. With the allocation of these three projects, SJVN has now secured six projects with a total capacity of 1279 MW in the Chenab Basin.
Lupin gets tentative nod from USFDA for toenail fungus topical treatment solution
Lupin Ltd announced that it has received tentative nod from the US Food & Drug Administration (USFDA) to market generic Efinaconazole topical solution 10%. The solution is used for treatment of fungal infections of toenails. The product is a generic version of Bausch Health Americas Inc’s Jublia topical solution of the same strength. According to IQVIA MAT September 2020 data, Efinaconazole topical solution 10% had an estimated annual sales of $222.9 million (~Rs 1,640 crore) in the US.
Central Bank to exit housing finance business; to sell JV stake for Rs 160 crore
Central Bank of India will exit its housing finance joint venture, CBHFL, by selling its entire stake of over 64% to Centrum Housing Finance. Centrum Capital, which is the parent of Centrum Housing, stated that the cost of the acquisition is about Rs 160 crore. Centrum Capital said the deal is expected to be closed in about 2-3 months. CBHFL is a financing and mortgage company jointly promoted by four public sector institutions – Central Bank of India, National Housing Bank, Specified Undertaking of Unit Trust of India (SUTTI), and Housing and Urban Development Corporation (HUDCO).
Caplin Point receives approval from USFDA for anesthetic injection
Caplin Point Laboratories stated that its subsidiary, Caplin Steriles, has received final approval from the USFDA for etomidate injection USP. Etomidate is a general anesthetic, used for the induction of general anesthesia and for the supplementation of sub potent anesthetic agents. According to IQVIA (IMS Health), etomidate injection USP had US sales data of approximately $9 million (~Rs 66.16 crore) for the 12-month period ending October 2020.
Delhi HC declines Future Retail’s plea against Amazon
The Delhi High Court, on Monday, declined to grant Future Retail Ltd’s (FRL) plea for an interim injunction to restrain Amazon from writing to SEBI, CCI, and other authorities about the arbitral order against its asset sale. Kishore Biyani-led FRL had approached the court to direct Amazon to refrain from interfering with the approval process for the Rs 27,513-crore deal between Future Retail and Reliance Retail Ventures Ltd.
The High Court noted that Future Retail and Amazon have already made their representations and counter representations to the statutory authorities or regulators. It is now up to these authorities to make their decision.
India bans all flights from UK amid fears of new Covid-19 variant spread
The Indian Government, on Monday, decided to suspend all flights from and to the United Kingdom between December 23 to 31, amid fears of a new and more infectious coronavirus variant found in the country. Passengers arriving from the UK before the suspension deadline will be mandatorily tested for Covid-19 on arrival at Indian airports. The new variant of Covid-19 is up to 70% more transmissible and has spread from the UK to Denmark, Netherlands, and Australia.
Antony Waste Handling Cell IPO subscribed 2 times on Day 1
The initial public offering (IPO) of Antony Waste Handling Cell has been subscribed 1.97 times on December 21, the first day of the bidding. The Rs 300-crore public issue has received bids for 1.32 crore equity shares, as against an offer size of 66.66 lakh shares. The retail portion was subscribed 3.56 times and that of non-institutional investors 0.083 times. The portion set aside for qualified institutional buyers (QIB) was subscribed 0.63 times.
Tata Motors to hike prices of commercial vehicles from January 2021
Tata Motors announced that it will hike prices of its commercial vehicle (CV) range, effective from 1 January 2020. The price increase is expected across the portfolio of Medium & Heavy Commercial Vehicles, Light & Intermediate CV, Small CV & buses. The actual change in price will depend on the individual model, variant, and fuel type. The company stated that the steady rise in material and other output costs has escalated the cost of manufacturing vehicles.
M&M to hike prices of its tractors from January 2021
Mahindra & Mahindra (M&M) Ltd said that it will hike prices of its range of tractors from January 1, 2021, in order to partially offset the impact of rising input costs. The company further said that details of the price increase across different tractor models will be communicated in due course. Last week, M&M had announced that it will hike prices of its entire range of passenger and commercial vehicles from next month.
In other news, M&M’s Korean subsidiary- SsangYong Motor Company (SYMC) has filed for bankruptcy. The troubled automaker has also applied for an autonomous restructuring support (ARS) programme, which is a court designed process. This development comes a week after SYMC missed the repayment of a loan worth Rs 480 crore to JP Morgan Chase, South Korea.
Glenmark Pharma receives tentative approval for blood thinning drug
Glenmark Pharma, on Monday, said it has received tentative approval from the US Food & Drug Administration (USFDA) for anticoagulant Dabigatran Etexilate capsules. The approved product is a generic version of Boehringer Ingelheim Pharmaceuticals’ Pradaxa capsules. Pradaxa is used to prevent blood clots from forming because of certain irregular heart rhythms.
Ramco Systems to implement aviation software for Iberia Maintenence
Ramco System Ltd announced that it will implement its flagship aviation software, Ramco Aviation M&E MRO Suite, for Spain-based Iberia Maintenance (Iberia MRO). Ramco Aviation Software will replace multiple systems to unify operations across Airframe Maintenance, Engine Shops, Component Shops & Supply Chain. The technology transformation program will enable Iberia Maintenance to future-proof its business growth while offering a simplified user experience driving better user adoption, increase process automation, and self-service.
L&T Finance Holdings dissolves Middle East subsidiary
L&T Finance Holdings (LTFH) said that its subsidiary, L&T Capital Markets (Middle East) Ltd (LTCM-ME) has been dissolved and ceased to exist. On July 17, LTFH had informed about the voluntary winding-up of one of its wholly-owned subsidiaries incorporated in Dubai to carry on the off-shore wealth management business, subject to applicable laws of the United Arab Emirates. The company stated that the arm was not a material subsidiary of the company. [A Material Subsidiary refers to a subsidiary whose income or net worth exceeds 10% of the consolidated income or net worth of the parent company].
SpiceJet Ltd has sought a one-time debt restructuring, apart from ₹500-crore in a working capital loan, from Yes Bank. The airline company has submitted a revival plan and its financial documents to the private bank. The stressed low-cost airline requires these temporary funds to tide over the pandemic-related disruptions.
L&T Defence gets ‘Green Channel Status’ from Defence Ministry
The defence arm of Larsen & Toubro (L&T) has been awarded the coveted ‘Green Channel Status’ for major naval weapon delivery systems from the Directorate General Quality Assurance (DGQA), under the Ministry of Defence. The status provides L&T Defence deemed registration status and waiver of pre-dispatched inspections. L&T Defence was awarded the status after stringent audits of its production facilities, quality systems, and products carried out by the DGQA.
Reliance & BP begin gas production from R Cluster, Asia’s deepest offshore field
Reliance Industries Ltd (RIL) and BP announced the start of gas production from the R Cluster, an ultra-deep-water gas field in block KG-D6, off the east coast of India. The two companies are developing three deepwater gas projects in block KG-D6 — R Cluster, Satellites Cluster, and MJ. These three projects are expected to meet 15% of India’s gas demand by 2023. The peak gas production from the three fields is expected to be around 30 mmscmd (1 billion cubic feet/day) by 2023- which is about 25% of India’s domestic production. This will help reduce the country’s dependence on imported gas.
RIL is the operator of KG-D6 with a 66.67% participating interest and BP holds a 33.33% stake. BP plc is a multinational oil and gas company headquartered in London, England. It is one of the world’s seven oil and gas ‘supermajors’.
A total of 63.54 lakh domestic passengers travelled by air in November, which is 51% lower than the corresponding period in 2019. IndiGo carried 34.23 lakh passengers in November, thus securing a 53.9% share of the total domestic market. SpiceJet flew 8.4 lakh passengers, which is a 13.2% share of the market. The data was released by the Directorate General of Civil Aviation (DGCA).
Govt proposes ethanol-blended gasoline as automobile fuel to curb pollution
The Union Ministry of Road Transport & Highways has proposed the adoption of E20 fuel- a blend of 20% of ethanol with gasoline- as automobile fuel. This is part of India’s attempts to reduce harmful emissions from vehicles and curb pollution. The ministry has also proposed the adoption of mass emission standards for E20 fuel and has sought comments from relevant stakeholders for the same.
In other news, Union Food Minister Piyush Goyal announced that the government cannot reduce the minimum price at which sugar mills buy canes from farmers. He has asked the sugar industry to be more efficient, profitable, and diversify its product portfolio with less dependence on the central subsidy.
Steel Ministry finalises plan on PLI for specialty steel: Report
According to a report from CNBC-TV18, the Steel Ministry has finalised a plan for specialty steel manufacturing under the Production Linked Incentive (PLI) scheme. The ministry has proposed a three incentive slab of 3%, 6%, and 9% for each grade of specialty steel. The PLI for each company will be subject to a ceiling of Rs 200 crore and the outlay for specialty steel is marked Rs 6,322 crore for a five-year period.
Borosil Renewables raises Rs 200 crore through QIP
Borosil Renewables Ltd (BRL) said that it has raised Rs 200 crore by issuing 1.58 crore at Rs 126.55 per share, through a qualified institutional placement (QIP). The issue opened on December 14 and closed on December 17. Post the QIP issue, the holding of promoter and promoter group will be 61.92%. The funds raised will be utilised by BRL to more than double its solar glass production capacity- from 450 tonnes per day (TPD) to 950 TPD.
HG Infra receives LoA from NHAI for Rs 1,198 crore project
HG Infra Engineering Ltd has received a Letter of Acceptance (LoA) from the National Highways Authority of India (NHAI) for a project in Rajasthan worth Rs 1,198.93 crore. The company will construct an eight-lane carriageway on an engineering, procurement, and construction (EPC) mode. The length of the project is 45.64 kilometers. The project will be completed within 2 years.
KNR Constructions’ board approves issue of bonus shares
The Board of Directors of KNR Constructions Ltd has approved the issue of bonus shares in the ratio 1:1. This means that a shareholder will get one bonus share for each existing share held by them. KNR Constructions is a multi-domain infrastructure development company and has conducted technically complex and high-value projects across segments such as national highways, flyovers, bridges & viaducts, etc.
Ansal Properties to raise Rs 100 crore, to focus on completion of existing projects
Ansal Properties and Infrastructure Ltd said it will raise Rs 35 crore through the issue of warrants to non-promoters, as part of its plan to raise Rs 100 crore in the next few months. The company’s board has approved the issue and allotment of around 5 crore Warrants to Non-Promoter (Public) investors, which would eventually be converted into equity shares. Ansal Properties will utilise the funds to pay off its debts and fast-track the completion of its current projects.
Strides Pharma gets USFDA approval for general Oxybutynin Chloride tablets
Strides Pharma Science Ltd said that its Singapore-based arm has received approval from the US Food and Drug Administration for generic Oxybutynin Chloride tablets. The tablets are used to treat symptoms of overactive bladder and urinary incontinence (loss of bladder control). The product will be manufactured at the company’s flagship facility at Bengaluru and will be marketed by Strides Pharma Inc in the US.
RITES secures project management consultancy work worth Rs 62 crore
RITES Limited has secured an order to provide Project Management Consultancy services for the development of a greenfield port at Machilipatnam in Andhra Pradesh. The contract is worth Rs 62 crore. Rail India Technical and Economic Service (RITES) Ltd is a Gurugram-based engineering consultancy firm that specializes in the field of transport infrastructure.
Aviation Industry was pushed into one of its gloomiest times by the coronavirus. Almost every country suspended any kind of commercial flights for a brief amount of time. Even a restart wasn’t helpful as costs increased cost due to additional safety and several other restrictions. To know more about how the Indian airline industry performed during the pandemic, check out this article. One airline which managed to survive was IndiGo.
The Indian airline industry has been in stress for a while now. As this business is highly leveraged(high debt), often the airlines find it tough to survive due to price war. One airline which has pushed all the concerns aside is IndiGo. InterGlobe Aviation’s IndiGo is looking very strong under the leadership of their CEO Rono Dutta. The recent news and commentaries have certainly boosted the sentiments of its shareholders. Here, we bring you the details about India’s largest airline and how it has performed lately.
IndiGo on the Road of Recovery
IndiGo is running at 70% of its pre-covid capacity already. They expect that before the end of this year, they will take this number to 80%. They also expect to reach 100% of normal domestic capacity by the early part of 2021. By the end of the previous quarter, IndiGo reported a robust cash balance of Rs 20,400 crore. This is a great number keeping in mind that airlines often find themselves under a huge pile of debt.
In July, IndiGo asked some of its staff to take mandatory leave without pay (LWP) for 10 days.Last month, they reduced this mandatory LWP to 3 days. At the start of December, the company announced that they will be removing the LWP program for senior employees from 1st January 2021. This comes as they anticipate business to move on a measured recovery path, at least when it comes to domestic aviation business.
Maintaining Customer Loyalty
IndiGo has committed that they will be refunding all the customers for flight ticket cancellations before 31st January 2021. Since restarting its operations, IndiGo is rapidly returning the amount owed to customers whose flights were cancelled during the lockdown implemented in March. Till date, the airline has processed refunds worth Rs 1,000 crore. This is equivalent to almost 90% of the total amount owed. This shows how well the biggest Indian airline is treating its customers.
In the aviation business, a customer’s loyalty has huge importance. Thus, giving customers a refund easily without forcing them to do a million things will help IndiGo to earn their loyalty points. Probably, this is one of the reasons why IndiGo deals with virtually very less number of complaints. The graph below shows the number of complaints per ten thousand passengers. Indigo has this number to almost a 0 in comparison to Air India and Spicejet who have 7.5 and 0.5 complaints respectively.
Source: DGCA Report
“The sudden onset of Covid-19 and the resulting lockdown, brought our operations to a complete halt by the end of March of this year. As our incoming cash flow dried up, we were unable to immediately process refunds for cancelled flights and had to create credit shells for the refunds that were due to our customers. However, with the resumption of operations and a steady increase in demand for air travel, our priority has been to refund the credit shell amounts in an expedited manner.” said Ronojoy Dutta, Chief Executive Officer, IndiGo.
Source: DGCA Report | Reasons for Passenger Complaints
Not Shy to Invest in a Pandemic!
Airlines worldwide, and not only in India, have halted to take deliveries of new planes to cut costs. IndiGo is on a completely different tangent. On 9th December, IndiGo stated that they will continue to take delivery of Airbus SE A320neo planes. They even gave a positive commentary that they have “no plans” to slow down their deliveries. This can only come when the company has strong financial protection and robust management to back in any situation.
Last month, marketfeed reported that IndiGo is buying more engines even when the European markets were being hit with the second wave of the coronavirus. Both of these are examples of how IndiGo has fared in the pandemic. Between July to September, they added eight new aircraft and retired around 10 older aircraft to save maintenance cost. Rather than focussing on just surviving like other airlines, IndiGo has concentrated on development and growth.
IndiGo is speeding up recruitment and training processes while also addition to existing employees being called back to work.
Where is IndiGo’s Competition?
Apart from IndiGo, there are several other airlines present in the Indian aviation business. You all must be familiar with the names like Air India, Air Asia, GoAir, SpiceJet and Vistara. IndiGo’s business model is different from other players. They put a lot of focus on their pricing strategies. They aim to deliver high-quality services at a lower cost. None of IndiGo’s flights has business-class or first-class seating arrangements.
As a low-cost carrier, they offer only economy class seating. Also, they don’t offer complimentary meals in any of its flights, unlike Air India. This is where they save their cost and sell tickets at a cheaper price to the customers. They focus on having a high passenger load factor % so that they can service a larger number of customers at the same fixed cost. (Passenger load factor % measures the capacity utilization of the flights.)More the customers, higher the revenue which results in larger profits.
Source: Author’s own creation | Data as of October 2020
Air India
Air India has been badly very hit by the pandemic. A major chunk of revenue for Air India comes from the international commercial flights which are suspended till 31 December 2020. Vande Bharat has helped the airline to do some business, yet it is way far from being satisfactory. There’s a little hope that commercial flights will be allowed fully till the mid of 2021. Government is also planning to sell its stake, and Tata Sons may return as the owners after 61 years.
AirAsia
Air Asia is another low-cost carrier present in India. But, the airline has failed to generate profits in good numbers as fluctuations in fuel cost and increase in service cost keep on hurting Air Asia’s financials. AirAsia is planning to exit its Indian arm, and end its joint venture with Tata Sons. Tata Sons is also supposedly bidding for Air India through AirAsia India.
SpiceJet
SpiceJet offers good competition to IndiGo but the airline is operated between a very limited number of destinations. The airline flies to a total of 64 destinations whereas IndiGo covers almost 90 destinations. Thus, the market at which SpiceJet is trying to fight becomes smaller. This gives IndiGo a better and bigger brand name which helps in gaining people’s trust. The following chart depicts the market share percentage (as of Q2 FY21). As we can see, IndiGo is clearly the market leader with almost 60% of the market share. The closest airline to IndiGo is SpiceJet with a market share of just 14.1%. This shows IndiGo’s dominance in the current aviation market.
Source: Author’s own creation
A Quick Look at the Financials of IndiGo
Only three of the major airlines are listed on the Indian stock markets. They are IndiGo, SpiceJet and Jet Airways. IndiGo and SpiceJet are still operating but Jet Airways halted its operations on April 17, 2019. A detailed analysis of why Jet Airways failed is done by marketfeed. You can read about it here. This leaves us with only two options; IndiGo and SpiceJet.
The chart given below shows the operating profit margin (OPM). OPM shows the efficiency of the company in converting revenue to operating profits. The blue and orange line indicates OPM% for IndiGo and SpiceJet respectively. IndiGo has managed to do better than its competitor when the Indian airline industry has not been doing great. Apart from 2019, IndiGo has managed to maintain an OPM% of 10% and above.
Source: Author’s own creation
Since 2008, IndiGo’s revenue has constantly increased. This year that pattern might break but the only reason behind it will be the lockdown implemented due to pandemic. This constant uptrend says a lot about their work. FY19-20 proved to be IndiGo’s most profitable year as they recorded profits worth Rs 4,064 crore. Their profit has grown at a CAGR of 5.43% from 2016 to 2020.
Source: Author’s own creation
Is IndiGo a Good Buy?
With news of vaccines coming out daily, it will be fair to say that the industry which struggled the most will be the preferred destination for the investors. IndiGo’s dominance in the aviation market and weak competition from other players gives them more opportunity to shine. Also, Indigo’s major chunk of revenue comes from domestic flights and not international flights. Thus, an international ban, which is expected to stay for a few months more won’t be affecting the company massively.
They are trying to improve their operations and invest in their growth during a pandemic. At the same time, their competitors are focussing on survival in these difficult times. A huge market share speaks volumes of their dominance.
What are your views on IndiGo? Let us know in the comment section. Until next time.
Whistleblower accuses UPL promoters of financial fraud
According to a report by ET Prime, a whistleblower has alleged that UPL’s promoters have siphoned off money. The whistleblower stated that UPL entered into rent deals with a shell company, which was owned by its employees. The report also states that the company paid crores in rent for properties owned by the shell company. The whistleblower was reported to be a board member of the listed agrochemical company.
UPL has denied claims made in the report and has stated that the whistleblower is not a member of the board. The company said that none of the entities mentioned in the article were wholly or partially owned by promoters or employees.
Snowman Logistics, SpiceJet sign MoU for vaccine distribution
Snowman Logistics has signed a Memorandum of Understanding (MoU) with SpiceJet Ltd for jointly distributing Covid-19 vaccines across India. The cold chain logistics firm will handle ground services such as transportation to/from manufacturers, packing, and storage. SpiceJet will provide air connectivity for temperature-controlled distribution of the Covid-19 vaccine across India, as well as internationally.
CCI initiates probe into cartelisation of cement companies
The Competition Commission of India (CCI) has initiated an investigation against cement companies regarding alleged anti-competitive behaviour. The CCI also conducted raids at the offices of ACC, Ambuja Cements, and UltraTech Cement. The investigation comes after Roads and Highways Minister Nitin Gadkari hinted at possible cartelisation and “black marketing technique” in the cement industry in September.
Mrs. Bectors Food Specialities is all set to open its Rs 541 crore initial public offering (IPO) on December 15. The price band for the IPO has been set at Rs 286-288 per share. The company plans to use the proceeds from the IPO for financing its Rajpura expansion project. Mrs. Bectors Food manufactures a range of products such as biscuits, bread, and buns. It is the exclusive supplier of buns for Burger King India.
L&T Technology Services wins $100 million project from global oil & gas major
L&T Technology Services (LTTS) said that it has been selected as a primary engineering partner by a global oil & gas major. The company will help to support two integrated refining and chemical manufacturing facilities in the United States. LTTS stated that the five-year engagement has a potential value of more than $100 million (~Rs 737 crore). Under the contract, LTTS will provide multi-discipline plant engineering activities for both facilities of the O&G major.
NSE to launch derivatives on Nifty Financial Services Index from Jan 11
The National Stock Exchange (NSE) will launch derivatives on the Nifty Financial Services Index from January 11, 2021. Currently, the NSE offers index derivatives on only two equity indices- Nifty 50 Index and Nifty Bank Index. The Nifty Financial Services Index consists of 20 stocks and is designed to reflect the behavior of banks, financial institutions, housing finance, and insurance companies.
Nokia ties up with Vodafone Idea to offer tech solutions for enterprises
Nokia has partnered with Vodafone Idea Ltd (VIL) to offer technology solutions for VIL’s enterprise division customers. Under this collaboration, Nokia will provide fixed wireless and private wireless technology solutions to VIL’s customers. The partnership will help enterprises to use technologies to increase operational efficiency and improve the security of their infrastructure.
Equitas Small Finance Bank launches 3-in-1 account
Equitas Small Finance Bank has launched a 3-in-1 account which allows its customers to invest in a wide variety of financial products. The lender stated that a 3-in-1 account (savings+trading+demat) can help customers to keep all their banking and financial investments under one umbrella entity. The bank provides stock broking and demat services through a referral arrangement with brokerage firms for trading and depository services.
Wipro Infrastructure to acquire industrial automation firm PARI
Wipro Infrastructure Engineering has signed a definitive agreement to acquire Precision Automation and Robotics India (PARI). PARI is a prominent player in industrial automation in India and has a significant overseas presence. The combined capabilities of both companies would help strengthen its ability to forge deeper customer relationships in India and overseas.
Ircon International secures NHAI road project in Haryana
Ircon International Ltd has received an order from the National Highways Authority of India (NHAI) to upgrade a section of the NH-352W in Haryana. The value of the order has been estimated at Rs 900 crore. Ircon International is an engineering and construction firm established by the Government of India.
SpiceJet plane undershoots runway in Guwahati; DGCA grounds 2 pilots
A SpiceJet plane undershot the runway while landing at the Guwahati airport on Friday. The Directorate General of Civil Aviation (DGC) has grounded the two pilots who were operating the Bengaluru-Guwahati flight. Officials stated that none of the passengers was hurt in the incident. The DGCA is investigating the incident.
Covaxin efficacy can be determined only after 2 doses, says Bharat Biotech after Haryana Minister tests positive
Haryana Home Minister Anil Vij, on Saturday, tested positive for Covid-19 despite taking a Covaxin trial shot. The vaccine’s developer, Bharat Biotech, clarified that Covaxin’s efficacy can only be determined after 14 days of the second dose. The minister was only administered the first trial dose two weeks ago. The company further said that 50% of the trial participants received the vaccine, while others were administered a placebo.
Tata Consumer Products’ subsidiary to sell MAP Coffee Business for Rs 6 crore
Tata Consumer Products Ltd (TCPL) said that its Australian subsidiary, Earth Rules, is selling MAP Coffee Business to Buccheri Group Pty Ltd for Rs 6.74 crore. MAP Coffee supplies Australian cafes, restaurants, and bars with a range of Italian roasted coffee. It joined TCPL in 2014. Post completion of the transaction, Earth Rules will continue to be a step-down subsidiary of TCPL.
All states accept Centre’s borrowing plan to meet GST shortfall
All the 28 states and 3 Union Territories have accepted the Central Government’s Option-1 to meet the revenue shortfall arising out of GST implementation. The Centre has already borrowed an amount of Rs 30,000 crore on behalf of the states in five installments and has passed it on to the states and UTs. The next installment of Rs 6,000 crore will be released to the states/UTs on December 7.
The National Stock Exchange has revised the circuit limits of 302 stocks with affect from Monday (December 7). The circuit limit of Adani Gas, Angel Broking, Arvind Fashions, Central Bank of India, Emkay Global, and Snowman Logistics has been revised to 20% from 10%. The circuit limits of Reliance Communications, Reliance Infrastructure, Reliance Home Finance and Shree Renuka Sugars has been revised to 10% from 5%.
Petrol price hits two-year high of Rs 83 a litre, diesel at Rs 73.32
Petrol price on Saturday crossed the Rs 83 per litre mark in Delhi for the first time in more than two years. The diesel price went up to Rs 73.32 per litre. The rally in international oil prices has forced the rates to increase for the 13th time in 2 weeks. The oil companies had resumed daily revision of fuel prices on November 20, after a break of 2 months.
Oil and Natural Gas Corporation (ONGC) announced that its overseas subsidiary, ONGC Videsh, struck commercial oil in one of its Colombian blocks. This is the fourth commercial find in the block by ONGC Videsh Ltd. The company’s oil well ‘Indico-2’ is flowing under short term testing for further evaluation.
Tata Motors Ltd has delivered 26 all-electric buses to Brihanmumbai Electric Supply and Transport (BEST). These were delivered as a part of the larger order of 340 electric buses from BEST, under the Government of India’s FAME II initiative. The company stated that the rest of the units will be delivered in a phased manner as per schedule
Sobha Ltd to invest Rs 1,000 crore in Delhi and Gurgaon to develop 2.76 million sq fr
Sobha Ltd said it will invest close to Rs 1,000 crore in Delhi and Gurgaon to develop 2.76 million sq ft, to expand its presence in the Delhi-NCR region. The company recently entered into a joint development agreement with a Delhi-based builder to develop 1 million square feet in Delhi’s Badarpur. They are also in talks with developers to build 1.73 million sq ft in Gurgaon.
Burger King India IPO subscribed more than 3 times on Day 1
The initial public offering (IPO) of Burger King India was subscribed more than three times on the opening day of the issue. The Rs 810-crore issue has received bids for 23.32 crore equity shares, which was 3.13 times the total issue size. The IPO consists of a fresh issue of Rs 450 crore and an offer for sale (OFS) of up to 6 crore shares, aggregating Rs 360 crore. The price band of the issue has been fixed at Rs 59-60 per share.
BPCL receives three preliminary bids, says Oil Minister Dharmendra Pradhan
India’s Oil Minister Dharmendra Pradhan announced that state-owned Bharat Petroleum Corporation Ltd (BPCL) has received three preliminary bids, as part of its stake sale. Earlier, Vedanta had confirmed putting in an expression of interest (EoI) for buying the government’s 52.98% stake in BPCL. The other two bidders are said to be global funds, one of them being Apollo Global Management.
Infosys, Rolls-Royce enters into strategic partnership for aerospace engineering in India
IT major Infosys Ltd and Rolls-Royce have entered into a strategic partnership for sourcing engineering and R&D services for Rolls-Royce’s civil aerospace business. As part of the partnership, Rolls-Royce will transition a significant part of its engineering centre capabilities for civil aerospace in Bengaluru to Infosys. The engineering centre will strengthen Infosys’ existing capabilities in Turbomachinery and Propulsion.
NCC Limited announced that it has received four external orders totaling Rs 3,905 crore. One order of Rs 848 crore is for NCC’s water division and the remaining four orders pertain to its building division. It has received these orders from central and state government agencies. These orders will be executed over the next 24 to 42 months.
Wipro Ltd announced that it has won a multi-year contract from Verifone, a global leader in payments and commerce solutions. The IT major will develop new features, capabilities, and interfaces for Verifone’s Cloud Services offerings. By leveraging its global engineering support team, Wipro will assist Verifone to transform its customer partnerships.
L&T to sell UK marine automation platform to Rolls-Royce
Larsen & Toubro (L&T) has signed a pact with Rolls-Royce for the divestment of its UK-based integrated marine automation solutions provider, Servowatch Systems. L&T stated that this move is aimed at unlocking value within the existing business portfolio by divesting non-core units. Servowatch Systems has grown into an internationally recognized provider of marine automation platforms over the past eight years of L&T’s ownership.
SpiceJet to provide logistical support for Covid-19 vaccine delivery
SpiceJet announced that it will provide logistical support for the delivery of Covid-19 vaccines. The airline’s cargo arm, SpiceXpress, will be transporting the vaccine through a specialised service called Spice Pharma Pro. The company stated that it has the ability to transport extremely sensitive drugs and vaccines in controlled temperatures ranging from -40°C to +25°C.
IndiGo achieves 70% of its pre-Covid capacity, operating 1,000 flights daily
Interglobe Aviation Ltd (IndiGo) stated that it has reached 70% of its pre-Covid capacity and is operating 1,000 daily flights to and from 65 destinations. This includes 59 domestic and 6 international destinations. The company expects the growth to continue into 2021. IndiGo, which is India’s largest airline, operated around 1,500 daily flights before the pandemic hit.
Dabur and other top brands sell adulterated honey: CSE
An investigation by the Centre for Science and Environment (CSE) claims that several brands of honey, including those sold by Dabur India Ltd, Patanjali, and Zandu, are adulterated. CSE had sent samples from 13 brands to a German lab for testing the purity of their honey. The tests reveal that most brands sell honey that is laced with sugar syrup.
Phoenix Mills and GIC to set up mixed-use retail platform
Phoenix Mills Ltd (PML) and its subsidiaries have entered into a non-binding term sheet with GIC Private Equity, for the formation and development of a retail-led mixed-used platform. PML will contribute retail assets such as Phoenix Marketcity Mumbai and Phoenix Marketcity Pune as a part of the platform. GIC is Singapore’s sovereign wealth fund. It will invest in 3 PML subsidiaries- Offbeat Developers Pvt Ltd, Graceworks Realty & Leisure Pvt Ltd, and Vamona Developers Pvt Ltd. GIC will use a combination of primary infusion and secondary purchase of equity shares.
Kerala moves SC against leasing out TVM airport to Adani Group
The Kerala Government moved the Supreme Court seeking a stay on the Centre’s decision to lease out the Thiruvananthapuram International Airport to Adani Enterprises Ltd. Adani had won the rights for the operations of the airport in an auction held in August. The petition filed by Kerala in the apex court argues that Adani Group does not have prior experience in the field and is therefore unfit. The petition also claims that the decision goes against “public opinion”.
RBI rejects Muthoot Finance’s proposal to buy IDBI Mutual Fund
Muthoot Finance, on Tuesday, announced that the Reserve Bank of India has rejected its proposed acquisition of IDBI Mutual Fund. The company’s request for a no-objection certificate was not accepted by the RBI. The central bank stated that “the activity of sponsoring a Mutual Fund or owning an Asset Management Company is not in accordance with the activity of an operating NBFC”.
Karvy Stock Broking expelled from NSE’s membership, declared as defaulter
The National Stock Exchange (NSE) has scrapped Karvy Stock Broking Ltd. from its membership and declared it as a defaulter. The move was taken as the broker failed to comply with NSE guidelines. In November 2019, Karvy had transferred securities worth Rs 2,300 crore into its account by misusing the power of attorney given by its clients.
Maruti Suzuki extends vehicle subscription service to 4 new cities
Maruti Suzuki Ltd. announced that it will be extending its subscription services to Mumbai, Chennai, Ahmedabad, and Gandhinagar. The Maruti Subscribe program was launched four months ago, and will now operate in a total of 8 cities. India’s largest automaker has plans to expand its subscription service to 40-60 cities by 2023.
Goa government issues demand notice to JSW Steel to pay Rs 156 crore
The Goa government has issued a demand notice to JSW Steel Limited to pay Rs 156.34 crore for the transportation of coal. The company has to pay the amount towards the Goa Rural Improvement and Welfare Cess within 15 days. The notice said that the company representative may face punishment with imprisonment of two years or a fine of Rs 25,000 if the cess is not paid.
Gayatri Projects receives Rs 208 crore arbitral award
Gayatri Projects Ltd. said that it has received Rs 208 crore under the Government of India scheme of monetisation of ‘under litigation arbitral award’ against bank guarantees. The company, along with its joint venture (JV) partner, had been awarded an arbitration claim worth Rs 703 crore (including interests) for its road project in Nagaland. The construction company has now received 75% of the claim.
Infibeam Avenues collaborates with Bank Muscat for digital payment services
Infibeam Avenues has tied up with Bank Muscat to offer payment processing services. The company is set to offer next-generation payment processing services under the flagship brand CCAvenue to merchants in Oman’s e-commerce sector. Infibeam has also expanded its operations to the UAE, Saudi Arabia, and the US this year.
SpiceJet Limited has launched a mobile testing laboratory to conduct Covid-19 tests in Delhi. The lab will conduct tests at Rs 499 and can process up to 3000 test reports per day. SpiceHealth (an initiative of SpiceJet) has tied up with GeneStore to establish diagnostic testing facilities across the country as a ‘Make in India’ initiative.
Adani Ports & Special Economic Zone Ltd. has been ranked 14th in the global transportation and infrastructure sector of the Dow Jones Sustainability Emerging Markets Index 2020. The index is based on long-term environment, social & economic, and governance criteria. APSEZ said that it has ranked in the top 20 of every single dimension of the three criteria.
Tata Group to infuse $50 million into AirAsia India: Report
As per a report from Mint, the Tata Group is planning to invest $50 million (~Rs 370 crores) as emergency funding in the loss-making AirAsia India. The report states that fund infusion will be through a mix of debt and equity instruments. Thus, Tata Group’s stake in AirAsia India Ltd will go beyond the current 51%. Last week, Malaysia-based AirAsia Group said it was reviewing its India operations run in partnership with Tata Group. It had also indicated a possible exit from the country.
EdgeVerve Systems, a wholly-owned subsidiary of Infosys Ltd., has bagged a contract from Mongolia-based XacBank. Infosys Finacle’s core banking, treasury, and corporate banking solutions will be used to accelerate the bank’s digital transformation. The partnership will help XacBank to standardize business processes, simplify enterprise architecture, and offer tailored services.
