1. Ousted by Lenders, Naresh Goyal Tries to Re-Enter Jet Cockpit
Jet Airways founder Naresh Goyal filed an expression of interest (EoI) for a stake in the ailing carrier just as the deadline for submissions was coming to an end on Friday, 12 April, said two people with knowledge of the matter. The move is said to have flummoxed lenders, who have put the equity on sale as part of a rescue plan for the airline. They have asked for legal advice on how to respond to the move by Goyal, who recently quit as chairman and director and had previously said he was ready to sacrifice control of the carrier to ensure its survival.
Until this late development, Goyal’s departure had been seen as a key element of any revival strategy, having been unable to prevent the airline’s slide.
Goyal and Jet officials couldn’t be reached for comment. Details of Goyal’s EoI weren’t available.
(Source: The Economic Times)
2. Vedanta Raises $1 Billion via Bond Issue
Vedanta Resources, through its wholly owned subsidiary Vedanta Resources Finance II plc, has raised $1 billion (about ₹6,900 crore) through bonds sold in two tranches, resulting in a blended average cost of 8.75 percent. The average maturity is 5.8 years.
The bonds consist of $400 million of 8 percent bonds due April 2023 and $600 million of 9.25 percent bonds due April 2026. The issue attracted interest from global investors across Europe, North America and Asia.
The fund raised will extend the average tenor of its outstanding debt from 3.2 years pre-transaction to about four years. The company intends to use the net proceeds primarily to repay existing debt.
(Source: The Hindu Business Line)
3. Inflation at Five-Month High Shows Oil Is Back to Haunt the Indian Economy
A rebound in oil prices poses a risk to India’s benign inflation expectations that last week allowed the central bank to deliver its second rate cut of 2019.
With crude at a five-month high, many investors are turning less confident about the Reserve Bank of India’s pace of monetary easing, though a slowdown in economic growth and subdued inflation still support an easing bias.
The low headline print gave Governor Shaktikanta Das and the rate-setting panel the space to cut rates by 25 basis points each in February and April to support the economy. Some economists see room for one more reduction provided food and fuel costs don’t spike. Data on Friday showed headline inflation quickened to a five-month high of 2.86 percent in March from 2.57 percent in February.
(Source: Livemint)
4. Feb Factory Output Growth at 0.1 Percent, Slowest in 20 Months
Industrial growth fell to its lowest in 20 months in February, barely rising from a year ago as manufacturing contracted following muted consumer demand, and public investment slowed toward the fiscal year-end.
The index of industrial production (IIP) rose 0.1 percent, the slowest since a 0.3 percent contraction in July 2017, data released by the statistics office showed. This was well below the consensus estimate of about 2 percent for February. January growth was revised down to 1.4 percent from 1.7 percent estimated initially. It was 6.9 percent in February 2018.
“Industrial growth at 0.1 percent came as a shock… all sectors have failed to deliver,” said Madan Sabnavis, chief economist, CARE Ratings.
(Source: The Economic Times)
5. Maruti Suzuki Celerio Achieves 1 Lakh Unit Sales in FY2018-19: 4.7 Lakh Units Sold Till Date
Maruti Suzuki India (MSI) on Friday, 12 April, said its compact car Celerio sold 1,03,734 units in 2018-19, joining the club of company's models with sales of more than one lakh units in a year. The model has cumulatively sold 4.7 lakh units since its launch in 2014, MSI said in a statement.
The sales of the model grew by 10 per cent in 2018-19, it added. Celerio was "the first car to democratise the two-pedal (auto gear shift) technology and the recent upgrade in its safety features has significantly enhanced its appeal as the perfect city car", MSI Senior Executive Director - Marketing and Sales RS Kalsi said.
(Source: The Financial Express)
6. Essar Case: Apex Court Asks ArcelorMittal Not to Deposit Bid Amount
The Supreme Court has ordered status quo in the long-drawn Essar Steel insolvency case and directed the winning bidder ArcelorMittal not to deposit the bid amount of ₹42,000 crore on Friday, 12 April.
Hearing a petition filed by the committee of creditors (CoC) and operational creditors, the two-member Bench headed by Justice Rohinton F Nariman directed the National Company Law Appellate Tribunal (NCLAT) to decide on the pending appeals in the case expeditiously.
In a hearing that lasted for a few minutes, the apex court told ArcelorMittal not to deposit any money in the lenders’ account towards settlement in the case.
The decision of the Supreme Court would further delay ArcelorMittal’s plan to gain a foothold in the fast-growing Indian steel industry.
(Source: The Hindu Business Line)
7. More PSU Bank Mergers in Offing? RBI Bats for Further Consolidation
After the recent merger of Bank of Baroda with Vijaya Bank and Dena Bank, the Reserve of Bank of India has suggested further consolidation in the banking sector as larger banks are more labour cost efficient.
RBI researchers also noted that the overall labour cost efficiency across the banking sector in India hasn’t improved during 2005-2018 because of the acute risk aversion during 2011-2016 — a period characterised by severe stress in the banking sector.
“Our results point to larger banks being labour cost efficient relative to their smaller counterparts as the former can reap the benefits of economies of scale,” RBI said in the research paper.
“This finding provides an additional rationale for recent mergers of banks, both amongst PSBs and PVBs (Private Banks) and suggests that further avenues of consolidation in the banking sphere may be explored,” it further added.
(Source: The Financial Express)
8. Delhi HC Seeks Bidvest's Reply on Mumbai Airport Stake Sale to Adani
The Delhi high court on Thursday, 11 April, asked South African investor Bidvest Group Ltd to respond to an injunction filed by Mumbai-based conglomerate GVK to stop Bidvest from selling its stake in Mumbai International Airport Ltd (MIAL).
Bidvest counsel Amit Sibal told the court that the company “will not take steps to sell the shares. Will maintain the status quo."
The court directed Bidvest to file its reply in a week and said arguments will begin on 29 April. The two companies were given time to reach a settlement but failed to do so.
GVK had filed an injunction in the Delhi high court to block its South African partner Bidvest from selling its stake in MIAL to a third party, Adani Group, as reported by Mint on 23 March 2019.
(Source: Livemint)
9. TCS Fires on All Cylinders but Infosys Cuts Guidance
Tata Consultancy Services led the way with a record performance as India’s two largest software exporters announced strong revenue growth for the fourth quarter of 2019 financial year, with the Mumbai-based IT giant remaining bullish on continued growth this year.
Infosys, India’s second biggest IT company, however forecast slower-than-expected growth and lowered profits in the current fiscal year as it invests more on training and hiring locally in the US, its largest market.
In a first, both companies announced their annual financial results on the same day. TCS announced a final dividend of ₹18 per share. Infosys said it will pay a final dividend of ₹10.5 per share.
Strong growth in revenue from banking and financial services boosted TCS’ performance as it powered ahead with its best show in 15 quarters.
(Source: The Economic Times)
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