1. HDFC to Buy 51.2% in Apollo Munich Health for ₹1,347 Crore
Housing Development Finance Corporation (HDFC) on Wednesday announced that it would be acquiring 51.2 per cent stake in Apollo Munich Health Insurance and would be later merging it with its general insurance arm HDFC Ergo.
The two-stage transaction, which is subject to regulatory approvals, is priced at about ₹1,347 crore. HDFC will pay about ₹73.2 per share to Apollo Hospitals for the acquisition.
(Source: BusinessLine)
2. ED Arrests Two Former IL&Fs Executives in PMLA Probe
Making it’s first arrest in the Infrastructure Leasing & Financial Services (IL&FS) case, the Enforcement Directorate on Wednesday arrested Arun Saha and Karunakaran Ramchand. While Saha was the JT MD & CEO, IL&FS Ltd, Ramchand was MD, IL&FS Transportation Networks (ITNL).
Earlier, in February this year, the ED had registered a case under the Prevention of Money Laundering Act (PMLA) against 19 entities including ILFS Rail Ltd, ITNL, former IL&FS chairman and managing director Parthasarathy and former IL&FS director, Hari Sankaran. After registration of the offence, the agency conducted searches in Mumbai and Delhi.
(Source: The Economic Times)
3. NDTV Case: Delhi ITAT Upholds Long-Term Capital Gains Tax on Roys
Prannoy and Radhika Roy, Founders of NDTV, are facing a double whammy for a loan agreement with Viswapradhan Commercial Pvt Ltd (VCPL).
After SEBI action on them regarding the loan agreement, the Income Tax Appellate Tribunal (ITAT) has now upheld addition of Long Term Capital Gains Tax (LTCG) against them for realising share sale consideration ‘in the guise of loan.’
(Source: BusinessLine)
4. NPA Crisis: PNB’s Recovery of Bad Loans Doubled to Rs 20,000 Crore in FY19
State-owned Punjab National Bank (PNB) recovered Rs 20,000 crore of bad loans during the financial year ended March 2019, almost double the recovery amount in the preceding year, its Chairman Sunil Mehta has said. The bank suffered losses allegedly after jewellers Nirav Modi, Mehul Choksi and some bank employees collided to defraud PNB of about Rs 1,000 crore. The scam was unearthed in February 2018.
In the bank’s annual report, Mehta said the financial year 2018-19 started off on a tepid note. “With the biggest financial incident in terms of severity and enormity, the bank had a huge task before it to overcome the crisis and turnaround,” he added.
(Source: Financial Express)
5. ONGC Videsh, Partners to Invest $20 B in Mozambique LNG Project
ONGC Videsh Ltd, the overseas investment arm of ONGC, and its consortium partners have announced the Final Investment Decision (FID) in the Mozambique LNG project.
The Indian consortium is expected to collectively invest $20 billion in the two-train Golfinho/Atum Mozambique LNG Project. The first gas packet is expected in 36-48 months, ONGC said in a statement to the stock exchanges.
(Source: BusinessLine)
6. RBI Slaps Rs 10 Lakh Fine on South Indian Bank
The RBI Wednesday said it has imposed a fine of Rs 10 lakh on South Indian Bank for violating norms regarding bank guarantees.
The penalty follows references from a government department and a private party alleging non-payment of invoked bank guarantees by the lender, the Reserve Bank said in a statement.
The penalty has been imposed through an order dated 13 June.
(Source: The Economic Times)
7. Huawei’s Troubles Open Big Opportunity for Nokia, Ericsson
Over the past two decades, China’s Huawei Technologies Co. has come to dominate the global telecom equipment market, winning contracts with a mix of sophisticated technology and attractive prices. Its rise squeezed Europe’s Nokia Oyj and Ericsson AB, which responded by cutting jobs and making acquisitions. Now, with Huawei at the center of a U.S.-China trade war, the tide is turning.
Nokia and Ericsson—fierce rivals themselves—have recently wrested notable long-term deals from Huawei to build 5G wireless networks, to enable everything from autonomous cars to robot surgery. Analysts say more could come their way as Huawei grapples with a U.S. export ban and restrictions from other governments concerned that its equipment could enable Chinese espionage.
(Source: Financial Express)
8. ArcelorMittal Confirms Italian Arm Raises Concern With Govt for Legal Safeguard
Global steel giant ArcelorMittal confirmed Wednesday that its Italian arm AMI has raised concerns with the government about the Crescita law decree which removes the existing legal safeguards to operate the facility.
The law decree is expected to be ratified into law by June 29. “ArcelorMittal Italia (AMI) has highlighted to the Italian government its concerns about the current text of the Crescita law decree.
(Source: Financial Express)
9. YES Bank ‘Will Be Re-Rated by Next Quarter’, Says CEO
YES Bank’s new Managing Director and CEO Ravneet Gill believes that many of the issues at the troubled private sector lender will be addressed by next quarter and that it would also finalise its capital-raising plans by then.
“When we talk about issues, some of them are perception-based, which are easier to sort out. We are also actively managing a couple of concentrated exposures. So my sense is that in a quarter’s time, the entire organisation would have got re-rated,” he told BusinessLine.
(Source: BusinessLine)
(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)