Page 799 - Business Finance
Sebi board to discuss framework for investor accreditation on Innovators Growth Platform
To provide a boost for startups, the Sebi board is likely to discuss this week the framework for accredited investors, including the eligibility criteria for such entities, according to an official. In December, the regulator approved inclusion of Accredited Investors (AI) for the purpose of Innovators Growth Platform (IGP). Any individual with total annual gross income of Rs 50 lakh and a minimum liquid net worth of Rs 5 crore will be considered as an AI. In the case of body corporate, the net worth requirement would be Rs 25 crore. The requirements are part of the framework that is expected to be discussed during the Sebi's board meet on March 1, the official said. An investor, having a demat account, can apply for recognition as an AI and their accreditation would be valid for three years. In case, the financial status changes during this period, then the AI concerned will have to inform stock exchanges and depositories about the same. At the time of application for listing by a ...
Wipro to sell Workday, Cornerstone On Demand business to Alight for up to USD 110 mn
IT services major Wipro Wednesday said it would sell its Workday and Cornerstone On Demand business to Illinois-based Alight for cash consideration of up to USD 110 million. Following the closing of its 10-year agreement that was announced in September last year, Alight and Wipro continue to explore additional strategic opportunities and possible alignment of portfolios based on their respective strengths, Wipro said in a regulatory filing. "The divestiture agreement will result in approximately 350 employees in Wipro's Workday and Cornerstone On Demand teams moving to Alight," it added. The transaction consists of business and employees in the US, the UK, Ireland, Portugal, India and certain other countries. Standalone revenue of the business was USD 49.7 million for 2017-18 (0.6 per cent of Wipro's consolidated revenue for the said fiscal). In September last year, Wipro bagged an over USD 1.5 billion engagement from Alight Solutions LLC, its biggest deal till date. In July, the ...
Delhi govt provides Rs 105 subsidy per KW for farming community
The Delhi government has decided to provide Rs 105 subsidy per kilowatt per month for agriculture electricity connections in the national capital.The farmers will now have to pay Rs 20 per KW on the fixed charge, which was so far Rs 125 per KW. The initiative is expected to benefit at least 11,000 consumers. A provision of Rs 7.5 crore has been made for it.An official statement said on Wednesday the Delhi Cabinet in its meeting chaired by Chief Minister Arvind Kejriwal approved the Department of Power's proposal to provide a subsidy of Rs 105 per KW every month on fixed charges for agriculture consumers (farmers)."The agriculture sector in the country is already under distress, and the Delhi government is committed to the welfare of the farmers of Delhi. Therefore this scheme has been introduced to provide them the much-needed relief," said the statement."Delhi government is of the firm view that electricity is a basic requirement for farming and is required for irrigation through ...
PNB Housing Finance raises Rs 235 cr via NCDs
PNB Housing Finance Wednesday said it has raised Rs 235 crore by issuing bonds with maturity of 1.5 years. The non-banking finance company will allot the secured redeemable non-convertible debentures (series XLIV) on Thursday (Feb 28, 2019), PNB housing Finance said in a regulatory filing. The issue opened on February 27, 2019. The bonds will offer rate of interest at 8.77 per cent. Stock of PNB Housing Finance closed 1.85 per cent up at Rs 927.20 on the BSE.
Maharashtra presents interim budget for 2019-20 with Rs 19,784 cr estimated revenue deficit
Maharashtra Finance Minister Sudhir Mungantiwar presented the interim budget for the fiscal 2019-20 with an estimated deficit of Rs 19,784 crore, here on Wednesday.
Marks and Spencer agrees deal with Ocado to sell food online
UK retailer Marks and Spencer on Wednesday announced a deal with online supermarket Ocado to deliver M&S food direct to homes, as customers increasingly move to internet shopping. M&S, which already sells its clothing online and is shutting stores, is buying 50 percent of Ocado's UK retail business for up to 750 million pounds ($994 million, 874 million euros), the two companies said in statements to the London Stock Exchange. The joint venture will be known as Ocado.com. M&S branded food products will be sold online by September 2020 following the termination of Ocado's current such deal with UK supermarket group Waitrose. "I have always believed that M&S food could and should be online," Marks and Spencer chief executive Steve Rowe said on Wednesday. "Combining the strength of our food offer with leading online and delivery capability is a compelling proposition to drive long-term growth." Ocado said the 50/50 joint venture would "transform online grocery shopping ..
PE investments witness 36 pc rise in Jan, volume declines: Report
PE investments in India witnessed a 36 per cent growth to USD 1,325 million despite fall in volume on account of increased follow-on investments last month as compared to a year ago, following large-ticket transactions, according to a report. Private equity (PE) funding stood at USD 1,325 million in January 2019, up from USD 976 million in the corresponding month last year, showing a growth of 36 per cent, said the Grant Thornton's monthly PE Dealtracker for January 2019 report. "This also resulted in increased average deal size up from USD 10 million in January 2018 to USD 12 million in January 2019. PE deal activity in January 2019 recorded four deals estimated and valued over USD 100 million each capturing 58 per cent of the total PE deal values compared to only one such investment in January 2018," it said. On the volume front, PE deals stood at 57 in January 2019 against 84 in the year-ago month, a fall of 32 per cent, report said. "The growth in the value of PE/VC investments ...
AAP govt to give electricity subsidy to farmers
The Aam Aadmi Party (AAP) government has decided to give electricity subsidy of Rs 105 per KW per month on fixed charges to farmers in Delhi, an official statement said on Wednesday. The decision was taken at a cabinet meeting chaired by Chief Minister Arvind Kejriwal on Tuesday. "The agriculture electricity subsidy is expected to benefit at least 11,000 consumers. A provision of Rs 7.50 crore has been made for this," the statement said. The subsidy on exiting tariff will be provided on fixed charges to agricultural connections in Delhi for financial years 2018-19 and 2019-20, with effect from April 1, 2018, it said. It said the distribution companies (discoms) will have to ensure that subsidy is released only to genuine agricultural consumers. A special audit of subsidy released to discoms and that passed on to the consumers account may be undertaken by Delhi Electricity Regulatory Commission(DERC), it added.
Competition Comm clears SoftBank's 22.44 pc stake buy in Delhivery
The Competition Commission of India (CCI) Wednesday said it has approved the acquisition of 22.44 per cent stake in logistics firm Delhivery by SoftBank Vision Fund. The deal is worth over Rs 3,200 crore, according to reports. According to a filing to the CCI, the deal involves subscription of 22.44 per cent of the total share capital of Delhivery and consequently "potential subsequent acquisition of shares at a price and on such terms to be agreed." The Japanese company will invest in the logistics firm through its holding company SVF Doorbell. In a tweet, the CCI said it "approves acquisition of 22.44 per cent of the total share capital of Delhivery Pvt Ltd (on fully diluted basis) by SVF Doorbell (Cayman) Ltd". SoftBank Vision Fund is a venture capital fund focused on making long-term financial investments in companies, and Gurugram-based Delhivery is engaged in the market for third-party logistics services in India. In a separate tweet, the fair trade regulator approved the ...
Rupee tumbles 17 paise to 71.24 vs USD as India-Pak tensions flare up
The rupee dived 17 paise to close at 71.24 against the US dollar Wednesday amid a flare up of tensions between India and Pakistan. Firming crude oil prices, month-end dollar demand from oil importers and a weak sentiment at domestic equity markets weighed on the rupee, analysts said. At the Interbank Foreign Exchange (forex) market, the domestic unit opened almost flat at 71.08. It then shuttled between a low of 71.49 and a peak of 70.94, before finally ending at 71.24, showing a loss of 17 paise. The domestic currency had ended 10 paise lower at 71.07 to the US dollar Tuesday. The rupee marked "second day of loss amid escalation of tension with Pakistan and month-end dollar demands from oil importers," V K Sharma, Head PCG & Capital Markets Strategy, HDFC Securities said. The currency failed to take advantage of a weaker US dollar, he added. Meanwhile, foreign investors (FIIs) remained net buyers in capital markets, putting in Rs 423 crore on a net basis Wednesday. Brent crude ...
Sebi plans amending norms pertaining to corporate debt rejig
Regulator Sebi plans to put in place a stricter framework for providing exemption from open offer requirements with respect to corporate debt restructuring activities, a senior official said. The markets watchdog has proposed that relaxation might not be given to entities other than lenders in certain conditions as well as do away with the reference to 'competent authority' in the context of exemptions provided under its takeover regulations. The proposals are expected to be taken up by the Sebi (Securities and Exchange Board of India) board at its meeting scheduled to be held on March 1, the official said. Under the Sebi norms, an entity has to make an open offer in case its shareholding goes beyond a certain threshold. The open offer exemptions under Issue of Capital and Disclosure Requirements (ICDR) regulations as well as under takeover norms could be continued for allotment of shares to lenders pursuant to debt conversion in accordance with RBI norms, the official said. Another ..
ICRA's re-rating of commercial papers not merit-based: DHFL
Dewan Housing Finance Corporation Ltd (DHFL) Wednesday expressed concerns over ICRA's re-rating of its commercial papers (CPs) citing it is not merit-based and is unwarranted. In a statement, DHFL clarified that ICRA "chose to go ahead" with rating action without considering the company's intent of extinguishing CP outstanding by the end of March which was well-acknowledged by ICRA in their press release "The company is surprised that ICRA did not even consider DHFL's steadfast commitment towards its obligations through sustained efforts including asset sale and reduced CP exposures. "Also, DHFL's progress towards fundraising transactions was not taken into cognisance," it said. ICRA has revised its credit ratings for DHFL CP programme to 'ICRA A1+' (placed upon watch with negative implications) from 'ICRA A2+' (under rating watch with negative implications). DHFL Chairman and Managing Director Kapil Wadhawan said he was surprised with ICRA's rating action for DHFL's CPs which is not
Iron ore prices in India may rise 3-4 pc in 2019: Report
Domestic iron ore prices are likely to rise by three to four per cent in 2019 on account of global supply glitch, rating agency Crisil said Wednesday. "We foresee domestic iron ore prices rising three to four per cent during 2019. This would have a direct bearing on 62 per cent of the steel production that is based on supply from merchant miners," Crisil Research Senior Director Prasad Koparkar said in a statement. Further, domestic steel prices are likely to soften following global cues, he said. "This would heap pressure on margins of steel makers who lack captive iron ore supply - especially long steel players - impacting their gross spreads by two-four per cent," he added. Global iron ore prices, the rating agency said, have surged 30 per cent to USD 90 per tonne as of February 2019 from USD 69 per tonne in December 2018 because of supply disruption at Vale's mines in Brazil, which account for 90 per cent of the country's production of high-grade ore. Given that China sources ...
Max India shares drop 13.5 pc on exiting health insurance biz
Shares of Max India dropped 13.5 per cent Wednesday after the company said it has sold its entire 51 per cent stake in Max Bupa Health Insurance Co Ltd (Max Bupa) to private equity firm True North Fund VI LLP for over Rs 510 crore. The company's shares slumped 13.52 per cent to close at Rs 71.35 apiece on the BSE. During the day, it tumbled 15.57 per cent to Rs 69.65. At the National Stock Exchange (NSE), shares plunged 13 per cent to close at Rs 71.60 apiece. On the traded volume front, 4.44 lakh shares were traded on the BSE and over 56 lakh shares on the NSE during the day. The stake has been sold either directly or through its affiliates, Max India said in a regulatory filing Tuesday. The board of directors of the company at its meeting held on Tuesday considered and approved a proposal related to divestment of the entire shareholding of the company in its material subsidiary -- Max Bupa Health Insurance Company Limited (Max Bupa) (equivalent to 51 per cent of Max Bupa's total ...
Odisha sanctions additional Rs 1,000 cr for Basudha scheme
Odisha Chief Minister Naveen Patnaik on Wednesday sanctioned an additional amount of Rs 1,000 crore for various drinking water supply projects under the Basudha scheme.
Quick Wrap: Nifty Media Index declines 0.88%
Powered by Capital Market - Live News
Stand by spectrum pricing, industry decides tariff: Trai Chairman
Telecom regulator Trai will stick to its recommended price for spectrum including that for 5G services, its Chairman R S Sharma said after leading telecom operators complained about high base prices for the sale of frequencies. Trai Chairman R S Sharma said that the regulator, however, has recommended various measures to lower levies on the sector to help improve the financial health of stressed operators. "We have given reserve price recommendation and we stand by that. In fact, we have reduced prices of 700 MHz band," Sharma told reporters here. Bharti Airtel and Vodafone Idea have said that spectrum prices for proposed auction are too high and companies will be unable to participate if radio waves are sold at prices recommended by Trai. The auction is key to start the rollout of 5G services. Bharti Airtel Chairman Sunil Bharti Mittal on Tuesday said that the government needs to extend support to the industry for early 5G rollout by pricing spectrum at a reasonable level. "This is ..
Full-frame mirrorless cameras to click our next India story: Canon
Japanese camera maker Canon which registered double-digit growth in India in 2018 is set to lead the market with its full-frame mirrorless camera range, Kazutada Kobayashi, President and CEO, Canon India, said here on Wednesday.
Nifty February futures at small discount
Turnover in F&O segment spurts
Rs 19,784 cr revenue deficit budget tabled in Maha Legislature
Maharashtra finance minister Sudhir Mungantiwar Wednesday presented an interim budget for 2019-20 which has an estimated revenue deficit of Rs 19,784 crore and has provision of special fund for farm loan waiver. The state's outstanding debthas increased to Rs 4,14,411 crore, which is 14.82 per cent of the Gross State Domestic Product (GSDP), he said, but maintained that the state's economy was "sound". The debt level of Maharashtra, leading industrialised state, is among the highest in the country. The budget also provides for Rs 90 crore towards a skill development scheme named after late BJP leader Pramod Mahajan. As per the budget provisions for 2019-20,revenue receipts of Rs 3,14,489 crore and revenue expenditure of Rs 3,34,273 crore is estimated, he said. Maharashtra government's annual plan has been fixed at Rs 99,000 crore for the financial year 2019-20. Presenting the vote-on-account, which will have budget provisions for the first four months of 2019-20 (April to