Top headlines: Fitch predicts growth at 9.5% in FY22, AGR hearing, and more

From S&P retaining India's sovereign rating and outlook, SC relief to Amrapali homebuyers to HUL's crorepati club shrinking, here are top news of the day

The Supreme Court will  decide on Thursday if the telcos can pay their adjusted gross revenue of Rs 1.43 trillion over a period of 20 years. In a shock move, US PE firm Apollo Global Management has decided to end partnership with ICICI Venture in their JV AION Capital, that specialises in stressed assets. Fitch Ratings in a positive outlook for India has predicted that the country will see a sharp growth of 9.5% in FY22 after a a year of contraction due to the ongoing pandemic. Here are the top headlines of the day.


Tata Sons may dip into overseas debt markets to meet fund requirements
 

With Tata Sons, the Tata group’s holding firm, ruling out the possibility of monetising assets, it might tap international debt markets and issue debentures to local banks to meet its fund requirements for financial year 2020-21, say bankers. The size of the international fund offering has not been decided as yet and it is one of the options on the table, said a banker close to the development. It had previously exercised this option in FY18, when Tata Sons raised $1.5 billion through overseas debt for the first time. Read More...

S&P doesn't do a Moody's: Retains India's sovereign rating and outlook

Global rating agency Standard & Poor's (S&P) has affirmed its rating on India's long-term foreign and local currency sovereign credit at the lowest investment grade with a stable outlook, saying the country's economy remains “a long-term outperformer versus peers at a similar level of income”. The rating action by S&P has come days after Moody’s Investors Service downgraded India's rating by a notch. S&P, however, said the impact of the Covid-19 outbreak posed a significant challenge to the country’s economic growth trajectory. It said the economic growth and the fiscal situation of the Centre and states would improve by next year, and hoped the reforms initiated by the government would bear fruit in the long run. Read More...

Apollo Global Management, ICICI Venture to end joint venture AION Capital

In a sudden move, US private equity giant Apollo Global Management has parted ways with ICICI Venture in their joint venture AION Capital Partners, which specialises in stressed assets. The two firms will continue with AION fund 1, which had raised $850 million, till their investments are redeemed and the fund wound up in the next few years. Apollo and ICICI Venture, a subsidiary of ICICI Bank, will pursue their future business opportunities in special situations and credit independently from each other. Read More...

Supreme Court to hear case on adjusted gross revenue on Thursday

The matter of adjusted gross revenue (AGR) will be heard by the Supreme Court on June 11 (Thursday). The hearing may include the government's application that telecom companies be allowed to spread the payment of their dues over 20 years or less. A bench headed by Justice Arun Mishra will hear the matter tomorrow. Read More...

Release stalled loans to Amrapali Group homebuyers: SC tells banks

Coming to the rescue of thousands of hassled home buyers of Amrapali who saw loans being stalled by banks after the realty group ran into trouble, the Supreme Court Wednesday directed all financial institutions to disburse their balance funds and restructure the amounts. The top court said that since the projects of now- defunct Amrapali Group have been stalled for last several years, the home buyers who obtained loans from banks and financial institutions could not enjoy the fruits of their investment. A bench of Justices Arun Mishra and U U Lalit said, At the same time, if projects are not completed and home buyers are not sure of handing over of flats, it would be difficult for them to pay bank dues till eternity and it is in the interest of home buyers as well as banks and financial institutions as they can recover money when projects are completed in an effective manner. Read More...

Covid-19 crisis: Test for steel industry as domestic demand shrinks

Steel is one industry that has high potential to generate exportable surpluses, because of rich local endowments of iron ore and non-coking coal required in sponge iron-making and scope for significant enhancement of domestic ferrous scrap supply once a favourable scrappage policy is in place. In fact, the 2017 national steel policy (NSP) acknowledges the country’s “potential to export sufficient quantities of steel to become a major player in the global market.” Read More...

Indian economy to bounce back with growth of 9.5% in next fiscal: Fitch

After a contraction in the current financial year, India's economy is forecast to bounce back with a sharp growth rate of 9.5 per cent next year provided it avoids further deterioration in financial sector health, Fitch Ratings said on Wednesday. The coronavirus pandemic will lead to shrinking of the already slowing economy in 2020-21 that started in April. Fitch Ratings forecast a 5 per cent contraction in the GDP in the ongoing financial year, news agency PTI reported. "The pandemic has drastically weakened India's growth outlook and laid bare the challenges caused by a high public-debt burden," Fitch Ratings said in its APAC Sovereign Credit Overview released on Wednesday. Read More...

Covid-19 crisis: Hindustan Unilever's crorepati club shrinks by 10% in FY20

As many as 129 employees took home a remuneration of Rs 1 crore and above at Hindustan Unilever (HUL) in financial year 2019-20 (FY20), which is nearly 10 per cent lower than the number last year, data from the company’s latest annual report shows. The shrinkage in the crorepati club comes as the company fights the Covid-19 crisis. The company has seen its top line and bottom line grow 1.62 per cent and 11.63 per cent, respectively, in FY20 versus a year ago. Read More...

Independent kin can't be recategorised as public shareholders: Sebi

The Securities and Exchange Board of India (Sebi) has held that a promoter’s kin cannot be recategorised as public shareholders, even if they live independent lives or are uninvolved in the affairs of the company. The view was issued by the market regulator in the form of an informal guidance sought by shoe manufacturer Mirza International. Read More...

Central ministries bat for work from home after rise in office infections

Several ministries have raised concerns on the current work format and pitched for greater flexibility to work from home (WFH) during an inter-ministerial meeting, as several number of Covid-19 cases were reported across government offices recently. Several officials from over 80 ministries strongly advocated that government offices switch to a clear WFH format, in view of the pandemic, at a meeting called by the Department of Personnel and Training on Tuesday to ascertain the level of of current functioning, The Economic Times said.