Tag: zeel-sony pictures networks

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NCLT Approves ZEEL’s Merger With Sony – Top Indian Market Updates

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

NCLT approves ZEEL’s merger with Sony

The Mumbai bench of the National Company Law Tribunal (NCLT) has approved the merger scheme between Zee Entertainment Enterprises Ltd (ZEEL) with Culver Max Entertainment (Sony). The tribunal has also dismissed all objections regarding the merger.  This is a key regulatory approval for the mega-merger, aimed at creating a $10-billion media giant.

Read more here.

RBI keeps repo rate unchanged at 6.5%

Reserve Bank of India (RBI) left the repo rate (key policy rate) unchanged at 6.5%. The central bank’s Monetary Policy Committee (MPC) also retained its withdrawal of accommodation stance to ensure that the retail inflation remains within the target of 4%. The RBI retained the GDP growth projection for the current financial year (FY24) at 6.5% and raised the inflation projection marginally to 5.4%

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Grasim Q1 Results: Net profit falls 18% YoY to ₹1,576 crore

Grasim Industries reported an 18% YoY fall in consolidated net profit to ₹1,576 crore for the quarter ended June (Q1 FY24). Its consolidated revenue for the quarter stood at ₹31,065 crore, up 10.7% YoY. The decline in net profit could be attributed to an over 14% YoY jump in its total expenses for Q1 at ₹27,923.38 crore. 

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SBI Card enables RuPay credit cards on UPI

SBI Card and National Payments Corporation of India (NPCI) announced the linking of SBI credit cards on the RuPay platform with UPI. The company’s customers will now be able to make UPI transactions through credit cards issued on RuPay. The facility can be availed of by registering the credit card with third-party UPI apps.

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Samvardhana Motherson Q1 Results: Net profit jumps four-fold to ₹601 crore

Samvardhana Motherson reported a four-fold rise in consolidated net profit to ₹601 crore for the June quarter (Q1 FY24). Its consolidated revenue from operations rose 27% YoY to ₹22,462 crore during the same period. EBITDA stood at ₹1,940 crore, up 69% YoY, driven by operating efficiency, and softening of material and energy prices. 

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Pidilite Q1 Results: Net profit rises 32% YoY to ₹474 crore

Pidilite Industries reported a 31.5% YoY jump in net profit to ₹473.7 crore for Q1 FY24. Its consolidated revenue rose 5.6% YoY to ₹3,275.1 crore during the same period. EBITDA rose 33.5% YoY ₹706.8 crore from ₹529.5 crore in the same quarter last year. EBITDA margin also expanded by 450 basis points (bps) from 17.1%, YoY to 21.6%.

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Godrej Cons to build manufacturing facility in Tamil Nadu

Godrej Consumer Products Ltd (GCPL) announced that it has signed a Memorandum of Understanding (MoU) with the state government of Tamil Nadu. The MoU is for building a manufacturing facility near Chennai. The company will make an investment of ₹515 crore over the next five years. It will serve as a manufacturing hub for brands such as Cinthol, Godrej Expert Rich Crème, Godrej Selfie Shampoo Hair Colour, and Goodknight.

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Hero MotoCorp Q1 Results: Net profit rises 32% YoY to ₹825 crore

Hero MotoCorp reported a 32% YoY increase in net profit to ₹825 crore for Q1 FY24. Its consolidated revenue rose 4.5% YoY to ₹8,767.3 crore during the same period. EBITDA grew 28% YoY ₹1,206 crore in Q1. The company incurred a one-time cost of ₹160 crore towards the voluntary retirement scheme (VRS) offered to certain employees.

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NHPC plans to build pumped hydro storage projects of 22,000 MW

NHPC Ltd is planning to develop around 20,000-22,000 MW of pumped hydro energy storage projects in the coming years. The capacities are being explored in Odisha, Maharashtra, Madhya Pradesh and Andhra Pradesh. However, the detailed project report and the approvals are likely to take a couple of years for at least some of these capacities to start building.

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Vi seeks time till Dec to clear its statutory dues

Vodafone Idea has sought time till the end of December 2023 to clear its remaining statutory dues. The company hopes to close its fundraising from banks and third-party investors in the “near future” and is reiterating that its promoters are “committed” to supporting the company. Replying to a Department of Telecommunications (DoT) show cause notice, the company cited continuing liquidity challenges due to its delayed fundraising.

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LIC Q1 Results: Net profit jumps 14x to ₹9,544 crore

Life Insurance Corporation of India (LIC) reported a 14x YoY increase in net profit to ₹9,544 crore for Q1 FY24. Its net premium income was flat at ₹98,363 crore during the same period. Income from investments rose 30% YoY to ₹90,309 crore in Q1.

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Hindalco, Texmaco to make aluminium rail wagons, coaches

Hindalco Industries and Texmaco Rail & Engineering have entered into a strategic alliance and announced a ₹200 crore investment to develop and manufacture aluminium rail wagons and coaches that will help the Indian Railways achieve emission goals and boost operating efficiency. Texmaco is the flagship of the Adventz Group.

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Market News Top 10 News

India Cuts Windfall Tax on Crude, Aviation Fuel – Top Indian Market Updates

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

India cuts windfall tax on crude, aviation fuel

The Central govt cut the windfall profit tax on domestically produced crude oil and also reduced the levy on aviation turbine fuel exports. The revised tax rates become effective from December 16, 2022. The tax on crude oil produced by local firms has been reduced from the existing ₹4,900 per tonne to ₹1,700 per tonne. The windfall tax on aviation turbine fuel has been reduced from ₹5 per litre from to ₹1.5 per litre.

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TVS Motor launches RR 310 and RTR 200 at Expo Moto in Mexico

TVS Motor Company on Friday announced the launch of the RR 310 and RTR 200 4V motorcycles at the Expo Moto in Mexico. The company claims these motorcycles are designed for racing enthusiasts. They are equipped with features such as Throttle-by-Wire technology, a 5-inch Vertical TFT Multi-Information Race Computer with Control Cubes, Bluetooth-enabled SmartXonnect, and four ride modes.

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India’s textile industry faces tough times as consumers cut spending

According to an Economic Times report, India’s textile and apparel industry is facing a crisis as consumers in the United States, Europe, and other markets have cut spending on clothing following a surge in inflation. Exports (which constitute ~22% of the industry) have fallen for five months in a row— declining over 15% YoY to $3.1 billion in November. Domestic sales have declined due to high costs and cheap imported garments.

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Deepak Fertilisers to demerge mining chemicals, fertiliser biz

Deepak Fertilisers & Petrochemicals Corp Ltd (DFPCL) announced the demerger of its mining chemicals and fertilisers businesses. The board of Smartchem Technologies (STL), a wholly-owned subsidiary of DFPCL, approved a corporate restructuring plan that will help unlock the growth potential of each of the businesses. The move will help create strong independent business platforms within the larger DFPCL brand umbrella.

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IndiGo seeks DGCA approval for wet leasing Boeing 777 aircraft

InterGlobe Aviation (IndiGo) has sought approval from the Directorate General of Civil Aviation (DGCA)  to wet lease Boeing 777 aircraft, which will be used for operating flights on the Delhi-Istanbul route. This will be the first time the airline will be inducting wide-body planes into its fleet. The move also comes against the backdrop of global supply chain issues impacting aircraft deliveries.

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Phoenix Mills completes acquisition of 7-acre land parcel in Surat

Phoenix Mills has completed the acquisition of a 7.2-acre city-centric land parcel in Surat, Gujarat, to develop a premium retail destination with a gross leasable area of 1 million square feet. The company has paid around ₹510 crores to acquire the plot through its indirect subsidiary (Thoth Mall & Commercial Real Estate). It expects to complete the development by FY2026-27.

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IDBI Bank object to ZEEL-Sony merger

IDBI Bank Ltd. has informed the National Company Law Tribunal (NCLT) of its intention to file objections against the merger of Zee Entertainment Enterprises Ltd. (ZEEL) with Culver Max Entertainment Pvt. Ltd. (previously known as Sony Pictures Network India). On Wed, ZEEL disclosed that an application has been filed by IDBI Bank in the insolvency court claiming to be one of the creditors of the company. The application has been filed for the resolution of a claim of ~₹150 crore.

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India all set to become $5 trillion economy by FY25: Nitin Gadkari

Union Minister Nitin Gadkari said India is the fastest-growing major economy in the world and is all set to achieve a $5 trillion gross domestic product (GDP) by 2024-25. He said the central government is aiming to boost growth and employment to achieve sustainable development. The minister also added that India’s automobile industry is worth ₹7.5 lakh crore and wants to take it to ₹15 lakh crore.

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HDFC Bank allots 7.84% bonds on a private placement basis

HDFC Bank has issued and allotted 7.84%, unsecured, fully paid-up, non-convertible bonds on a private placement basis. The issue proceeds will be used for strengthening its capital adequacy and enhancing its long-term resources amounting to ₹5,000 crore. [The capital adequacy ratio (CAR) is a measurement of a bank’s available capital expressed as a percentage of its risk-weighted credit exposures (loans).]

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Market News Top 10 News

Jio to Launch 5G Services Tomorrow – Top Indian Market Updates

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

Jio to start 5G services from Dussehra in 4 cities with a free welcome offer

Reliance Jio will start 5G services in India with a “free welcome offer” from Dussehra. The telecom operator will commence a beta trial of its True-5G services on the auspicious occasion in four cities– Mumbai, Delhi, Kolkata, and Varanasi. Jio will send an invite to customers under Jio True 5G Welcome Offer to try its 5G services. Subscribers will get unlimited 5G data with up to 1 gigabit per second speed.

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Bank of Baroda looks to ramp up wealth management business

State-run Bank of Baroda is hiring more than 850 relationship managers and executives to strengthen its wealth management business as it seeks to tap into the growing segment across India. The bank aims to nearly triple its assets under management (AUM) to more than ₹85,000 crore (from Rs 30,000 crore at present) in the next five years by cross-selling to about 2.5 lakh wealthy customers who already have accounts with it.

Auto sector to witness the best festive season of the decade: FADA

The Federation of Automobile Dealers Associations (FADA) anticipates that October will be the best festive in a decade for the passenger vehicle (PV) segment due to higher sales. In September, the automobile sector witnessed an 11% YoY growth in total retail vehicle sales as better supplies from manufacturers allowed dealers to ramp up customer deliveries amid the ongoing festive period.

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Mahindra Finance reports 110% YoY growth in September

Mahindra Finance Ltd continued its momentum with the disbursement of approx. ₹4,080 crore, delivering a 110% YoY growth in September 2022. In the first half of FY23, the company is estimated to report loan disbursements of ~₹21,300 crore. Healthy disbursement trends during the first half have led to a strong gross asset book of ₹73,900 crore, a growth of nearly 16% YoY.

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UPI payment crosses ₹11 lakh crore milestone in Sept

Payment through Unified Payments Interface (UPI) crossed a milestone of ₹11 lakh crore in September, according to data released by the National Payments Corporation of India (NPCI). The platform saw 678 crore transactions last month. Payment through UPI had crossed ₹10 lakh crore in May 2022. [UPI is an instant real-time payment system that facilitates inter-bank peer-to-peer (P2P) transactions.]

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RIL’s subsidiary, Sanmina Corp to set up electronics JV

Reliance Industries’s arm RSBVL and US-based Sanmina Corporation have set up a joint venture to manufacture 4G and 5G hardware for Indian and overseas markets. The JV was set up at a total enterprise valuation of ~₹3,300 crore. It will manufacture hardware products at Sanmina’s 100-acre campus in Chennai. Reliance Strategic Business Ventures Ltd (RSBVL) will hold a 50.1% stake in the JV, while Sanmina will hold 49.9% stake.

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Lupin gets USFDA approval for generic HIV drug

Lupin Ltd has received approval from the US Food & Drug Administration (USFDA) to market Darunavir Tablets in the US market. The drug is used to treat Human Immunodeficiency Virus (HIV) infection. As per IQVIA MAT data, Darunavir tablets had estimated annual sales of $343 million in the US during the 12 months ended June 2022.

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CCI approves Sony-ZEEL merger with conditions

The Competition Commission of India (CCI) conditionally approved the proposed merger of Zee Entertainment Enterprises Ltd. (ZEEL) and Culver Max Entertainment Pvt. Ltd. (formerly known as Sony Pictures Networks India). The approval was granted after the CCI accepted the voluntary remedies proposed by the parties to allay possible anti-competitive concerns. To learn more about the merger, click here.

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Total trade volume at IEX falls 8% in September

Indian Energy Exchange (IEX) registered an 8% YoY decline in total trade volume to 8,160 million units (MU) in September. On a month-on-month (MoM) basis, IEX registered a 5% growth last month. The average clearing price in the Day-ahead market rose to ₹5.63 in Sept, up 28% YoY and 9% MoM. 

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Market News Top 10 News

ZEEL, Sony Sign Definitive Merger Agreement – Top Indian Market News

ZEEL, Sony sign definitive merger agreement

Sony Pictures Networks India Pvt Ltd (SPNI) and Zee Entertainment Enterprises Ltd. (ZEEL) have signed definitive agreements to merge the two firms and combine their linear networks, digital assets, and program libraries. SPNI will hold a majority stake of 50.86% in the merged entity. The promoters of ZEEL will hold 3.99%, and other ZEEL shareholders will hold a 45.15% stake in the merged entity.

Under the terms of the agreement, SPNI will have a cash balance of $1.5 billion to enable the combined entity to drive sharper content creation across platforms and strengthen its footprint in the rapidly evolving digital ecosystem.

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L&T Construction secures significant order to build township in Bengaluru

Larsen & Toubro (L&T) Ltd’s construction arm has secured a significant order from a reputed developer to build one of the largest residential townships in Bengaluru. The scope of work consists of the design and construction of the entire civil structure, including waterproofing, masonry, plastering, and electrical conduiting. The project involves the construction of 6,768 apartments spread across 39 towers.  

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Gujurat Flurochemcials to foray into battery business for EVs

Gujarat Fluorochemicals Ltd (GFCL) has announced plans to foray into the battery business for electric vehicles (EVs). The company has set up GFCL EV Products Ltd, a wholly-owned subsidiary, for this purpose. The subsidiary will provide solutions for the entire value chain of all types of batteries, battery components, and products for EVs.

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Quess Corp’s Monster.com raises Rs 137.5 crore in latest funding round

Monster.com, a Quess Corp company, has raised Rs 137.5 crore in its latest funding round. The round was led by Akash Bhanshali of Volrado Venture Partners and Mohandas Pai of Meridian Investments, with participation from Quess Corp. Monster.com is valued at close to $100 million after the funding round. Quess Corp Ltd is a provider of technology and business services based in Bangalore.

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Zydus Cadila gets USFDA approval to market Pimavanserin tablets

Zydus Cadila has received approval from the US Food & Drug Administration (USFDA) to market Pimavanserin tablets in the US market. Pimavanserin is used to treat symptoms of a certain mental or mood disorder (psychosis) that might occur with Parkinson’s disease. The drug will be manufactured at the pharma company’s formulation facility at Special Economic Zone (SEZ), Ahmedabad.

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ABB India’s board approves creation of arm to divest turbocharger business for Rs 310 crore

The Board of Directors of ABB India Ltd has decided to incorporate a wholly-owned subsidiary to which it will sell its turbocharger business for Rs 310 crore. In June 2021, the company had announced a proposal to divest/sell its turbocharger business in the Process Automation business segment. The slump sale will be completed by February-end 2022. 

PNC Infratech secures order worth Rs 369 crore from NHAI

PNC Infratech Ltd has received a Letter of Acceptance (LoA) for an order worth Rs 369 crore from the National Highways Authority of India (NHAI). The contract is for the collection of user fees at the 135 km long Eastern Peripheral Expressway Fee Plazas in Haryana and Uttar Pradesh for one year. PNC Infratech operates as an infrastructure construction, development, and management company in India.

Apollo Hospitals, IIM Lucknow launch executive programme in healthcare management

Apollo Hospitals Ltd has partnered with IIM Lucknow to launch an executive programme in healthcare management (EPHM). The program aims to develop appropriate managerial capacities for the fast-growing health sector in India. The EPHM has been designed by taking inputs from both the public and private health sectors of India.

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Indiabulls Real Estate to raise up to Rs 1,500 crore via QIP 

The Board of Directors of Indiabulls Real Estate Ltd approved raising funds up to Rs 1,500 crore through one or more Qualified Institutions Placements (QIPs). The funds will be used to augment the long-term resources of the company. It will also be used to maintain sufficient liquidity for meeting funding requirements for existing/new projects and future business growth.

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Tata Steel’s UK plant helps build world’s largest offshore wind farm

Tata Steel Ltd announced that its Port Talbot plant in Wales is working on the world’s largest offshore wind farm project— Dogger Bank Wind Farm. The wind farm will make use of steel processed into hollow sections at Tata Steel’s Corby and Hartlepool sites in north-east England and fabricated to build the first two phases. Tata Steel said hundreds of tonnes of its products will be used for the giant wind farm project, which is due to be completed by 2026.

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Editorial

The ZEEL-Sony Pictures Networks Merger Explained

We are about to witness one of the biggest mergers in India’s media and entertainment industry. Zee Entertainment Enterprises Ltd (ZEEL) will merge with Sony Pictures Networks India to form the largest entertainment network in terms of revenue. In this article, we dive into the details of the proposed merger and find out how it would be beneficial for the companies involved.

Details of the Merger

  • The Board of Directors of ZEEL has given in-principal approval for the company’s merger with Sony Pictures Network India (SPNI). The companies have entered into a non-binding term sheet to combine linear networks, digital assets, production operations, and program libraries. The term sheet offers an exclusive period of 90 days, during which ZEEL and SPNI will finalise definitive agreements.  
  • The merged entity will be a publicly listed company in India. Sony’s shareholders will infuse $1.575 billion (~Rs 11,610 crore) and hold a 52.93% stake in the merged entity. Meanwhile, the shareholders of ZEEL will hold a 47.07% stake.   
  • The majority of the Board of Directors of the merged entity will be nominated by the Sony Group. Meanwhile, Punit Goenka will continue as the Managing Director and CEO of the merged entity. However, Goenka’s appointment will be subject to approvals from the board and shareholders of the merged entity. According to the term sheet, the promoter family of ZEEL can increase its shareholding from the current 3.99% to up to 20%.
  • The deal is subject to approvals from the Competition Commission of India (CCI) and market regulator SEBI.

How Will This Merger Benefit Sony Pictures?

Over the past few years, Sony Pictures Networks has been looking for a local partner in India. They aim to compete with the Disney-Star India collaboration, which has been dominating the Indian content market. SPNI had first approached Reliance Industries-owned Viacom for a potential merger. However, the deal did not go through as the companies could not agree on certain merger clauses.

The partnership with ZEEL could be a game-changer for Sony Pictures. Currently, Zee Entertainment derives most of its strength from regional general entertainment channels (GECs) and movies. It holds a larger market share in terms of overall network viewership when compared to Sony Pictures. ZEEL is present across broadcasting, movies, music, digital, live entertainment, and theatre businesses in India and overseas. It has more than 2.6 lakh hours of television content and holds the world’s largest Hindi film library. They also have rights to more than 4,800 movie titles across various languages. The company’s OTT platform, ZEE5, is the largest domestic non-sports platform with ~8 crore monthly average users. 

Meanwhile, SPNI has a stronghold in Hindi GEC and sports segments. It reaches out to over 70 crore viewers in India and is available in 167 countries. The partnership with ZEEL will allow Sony Pictures Networks India to boost its presence in India. If the deal goes ahead, the merged entity will have the potential to secure a market share of 25-26% in terms of viewership. Moreover, the combined market share of SonyLIV and ZEE5 could place them in the third position in the Indian OTT market (after Netflix and Amazon Prime Video).

How Will it Benefit ZEEL?

As we know, ZEEL has been all over the news lately. The company has found itself in the midst of a boardroom battle. Two of its largest investors have called for an Extraordinary General Meeting (EGM) of shareholders to pass resolutions, including the removal of CEO Punit Goenka and the appointment of six new independent directors. According to analysts, the merger with a large international company like Sony could help ZEEL mitigate some of the concerns recently raised by shareholders with respect to corporate governance issues. 

Conclusion

The merger does seem to benefit both entities. ZEEL’s strong expertise in content creation and deep consumer connect, along with SPNI’s success across entertainment genres, will add significant value to the merged entity and its management team. The synergies drawn from both entities could boost business growth and also enable shareholders to benefit from its future successes. The merger will create a media giant that will cut across linear channels, video streaming, and film production. Moreover, the Sony-ZEEL entity would compete with Star India and Viacom18 for acquiring broadcasting rights for IPL, BCCI, and ICC tournaments.

However, the deal has raised a lot of questions— especially with regard to its timing and pace. The merger just happened to develop overnight. ZEEL’s largest shareholders, Invesco Developing Market Funds, are trying to throw out Punit Goenka as CEO and MD due to corporate governance failures. Now, it is surprising to see that he will be leading the merged entity. Many argue that Invesco’s actions to “remove” Goenka could have been aimed at pushing ZEEL’s management and forcing them to accept the merger deal with Sony. Market participants have also raised red flags on the exit of Manish Chokhani and Ashok Kurien from ZEEL’s board ahead of its AGM, and Rakesh Jhunjhunwala investing 1% in the company just days before the merger announcement.

We will have to wait patiently and find out whether ZEEL and Sony Pictures Networks actually go ahead with the merger. It could exceed all expectations and potentially become the largest media house in India.  

What are your thoughts on the merger? Let us know in the comments section of the marketfeed app.