1. Another Bank Fraud Surfaces, This Time Involving Kanishk Gold
Close on the heels of the Rs 12,636 crore PNB fraud case, the Central Bureau of Investigation (CBI) has unearthed another bank fraud to the tune of Rs 824.15 crore, involving Chennai-based jewellery chain Kanishk Gold Pvt Ltd.
On 25 January, just four days before PNB filed a complaint with the agency against jewellers Nirav Modi and Mehul Choksi, a consortium of 14 banks, led by the State Bank of India (SBI), filed a complaint with the agency.
SBI was the first to declare the Kanishk Gold account fraudulent to the Reserve Bank of India (RBI) in November 2017, having extended loans of Rs 215 crore to the jewellery chain.
By January, all other consortium members had declared the account fraudulent to the RBI, following which a complaint was registered with the CBI.
According to senior officials, who did not wish to be identified, Kanishk Gold had “procured the loans and then these loans were diverted elsewhere. The loans were not returned and when the banks realized that these loans had become non-performing assets (NPAs), the complaint was registered”.
(Source: Livemint)
2. SC Asks JAL to Deposit Rs 200 Crore
The Supreme Court on Wednesday directed Jaiprakash Associates (JAL), the parent company of Jaypee Infratech, to deposit Rs 200 crore in two instalments by 10 May and also asked for a project-wise list of home buyers, who want refund of their money. However, it stayed all the demand notices issued by the developer to home buyers who have sought refunds.
JAL will have to deposit the first installment of Rs 100 crore in the SC registry by 15 April and another Rs 100 crore by 10 May. As of now, JAL has deposited Rs 550 crore, out of a total amount of Rs 2,000 crore, as directed by the apex court last year, so as to cover part of JAL’s liability towards 31,000 homebuyers.
A bench led by Chief Justice Dipak Misra told JAL that “you can’t sit with the home buyers’ money. We are concerned with the home buyers… At present we are concerned with the refund of money and will later take up the issue of home buyers who want possession of their flats.”
(Source: Financial Express)
3. Fireside Ventures Raises $52 Mn in Debut Fund, to Invest in Consumer Brand
Fireside Ventures, an early stage venture fund focused on consumer brands, on Wednesday announced that it has closed its debut fund with a corpus of $52 million. Fireside Ventures targets to invest in 20-25 consumer brand businesses from this fund over the next two to three years.
There has been a secular shift in the consumer buying behaviour, Fireside said in a statement. The new consumer class i.e. the millennial shopper is looking for values from their products like authenticity, clean labels, ethical sourcing and production etc.
They are attuned to spending on brands which are unique in catering to their personal preferences. The rise of these young brands can be attributed to the growing modern retail infrastructure and the emergence of the digital universe which is augmenting the discoverability and accessibility of such brands.
Fireside Ventures current portfolio includes Yoga Bar, Samosa Singh, Goodness Beverages, Design Café, Bombay Shaving Company, Mama Earth, Vahdam Teas, Kwik 24, Magic Crate and Frog Bikes.
(Source: Business Standard)
4. With HDFC Merger Failing, Max Life Wants to Be a Digital Organisation
India’s insurance companies are finally coming of age. With the government’s renewed push on insuring citizens, Max Life Insurance is not only marching towards market dominance but is also in the process of reinventing its game.
The process perhaps started with a bid to merge with HDFC Life in August 2016, which would have created an insurance giant even though the merger fell through due to the Insurance Regulatory and Development Authority of India’s reservations about the same.
However, Max Life maintains that even though the merger would have been good for both entities, the company has become stronger than ever and continues to grow organically even as inorganic growth opportunities remain far and few.
(Source: Business Standard)
5. Essel Infra in Talks to Sell 3 Solar Projects
Essel Infraprojects, part of Subhash Chandra-led Essel Group, is in talks with various renewable energy players to sell three of its six solar projects with an aggregate capacity of about 215 mw, even as the company plans to build its solar portfolio by focusing on investments in solar parks.
According to people close to the development, the company has had several rounds of deliberations with three prospective buyers – Greenko Group, ReNew Power and IL&FS Energy – but has not entered into a final agreement on the sale yet.
When contacted, the company spokesperson said, “We do not comment on market speculation.” Emails and SMSes sent to Greenko, ReNew and IL&FS Energy on the subject did not elicit any response till the time of going to the press. However, a source in IL&FS Energy denied any immediate interest in the asset.
(Source: Financial Express)
6. We Will Have 1,000 mw Solar Module Capacity in 5 Years: MD of Jakson Group
Jakson Group, which has been a familiar name in the genset manufacturing business, is diversifying into solar manufacturing and electrical EPC segments.
The company plans to invest Rs 700 crore in the next three years in building solar module and cell manufacturing capacities. It is also keeping a track of developments in the high-potential power storage market.
Anupam Chatterjee and Sandeep Gupta, vice-chairman and MD, Jakson Group, believe that the contemporary convolution in the solar industry would soon pass, bringing a conducive business environment for domestic manufacturers.
“As of now, our solar module manufacturing base stands at 80 mw. In the next three to five years, we plan to increase the panel-making capacity to 1,000 mw and have a solar-cell production capacity of 500 mw. We are positive that the current confusion would be resolved, and the government would come up with a mechanism to promote domestic manufacturing,” Chatterjee and Gupta told Financial Express.
(Source: Financial Express)
7. Lenders Restart Essar Steel Auction, After Rejecting Numetal, ArcelorMittal Bids
Lenders to Essar Steel Ltd have decided to reopen bidding for the debt-ridden steel maker after declaring ArcelorMittal and Numetal Mauritius Ltd ineligible, said two people aware of the matter.
The committee of creditors of Essar, which met on Wednesday, took this decision. Bidding will be open to all six companies which had submitted expressions of interest in Essar Steel in the first round of bidding, said these people. ArcelorMittal and Numetal can also bid provided they take “corrective action”. The tentative deadline for fresh bids is 2 April.
On Wednesday, Essar’s committee of creditors cited section 29 (a) of the insolvency and bankruptcy code to reject ArcelorMittal’s and Numetal’s bids. The clause bars wilful defaulters, defaulters whose dues had been classified as non-performing assets (NPAs) for more than a year, and all related entities of these firms from participating in the resolution process. The defaulters can become eligible for bidding if they pay up the amount outstanding.
(Source: Livemint)
8. Output Under Discovered Small Field Policy to Start by Year End
Production of oil and natural gas production from the first set of onshore fields auctioned off under the so-called discovered small field policy (DSF) will commence by the end of this year, while offshore ones will go on stream by 2020-2021, according to Atanu Chakraborty, director general of hydrocarbons (DGH).
In the first round of bidding, out of 134 e-bids received, 30 contracts were signed which includes 23 onshore and seven offshore, and 20 companies were awarded individually firms or in consortia, he said.
According to the official, blocks offered have potential to generate hydrocarbon worth Rs 46,440 crore during the lifetime of these fields. The figure includes Rs 9,300-crore royalty to the government through taxes. Another Rs 5,000 crore is to be shared between the states and the central government.
(Source: Financial Express)
9. Midhani IPO Subscribed 0.26 Times on First Day
The initial public offering (IPO) of Mishra Dhatu Nigam (MIDHANI) was subscribed by 0.26 times on Wednesday, the first day of the three-day offer with investors bidding for 1.25 crore shares of the 4.87 crore shares reserved for them.
Qualified institutional buyers bid for 0.46 times the shares offered to them, high net worth individuals bid for 27,750 shares against 70.25 lakh shares allotted to them, retail investors 0.11 times and employees 0.03 times.
The government-owned ‘Miniratna’ company, which is engaged in the manufacturing of special steels, superalloys and titanium alloys, has priced its initial public offering (IPO) in a band of Rs 87-90 per share.
(Source: Financial Express)
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