QBiz: 26% in ALT Balaji May Be Sold Soon; Govt Nod for HPCL-ONGC
The Quint brings to you all the important business stories from the previous day.
1. Exclusive: Balaji Telefilms Mulls Selling up to 26% Stake in ALT Balaji
Balaji Telefilms Ltd. is considering selling stake in its subsidiary ALT Balaji Digital Media Entertainment Ltd., people familiar with the matter said.
The Mumbai-based media house is in talks with Zee Entertainment Enterprises Ltd., Reliance Jio Infocomm Ltd., and an international studio for selling up to 26 percent in the subsidiary, one of the people said, asking not to be identified as the information is private.
It will consider fund raising options in Thursday’s board meeting, a company official said on condition of anonymity. The stake sale in ALT Balaji could be used to fund its capital expenditure requirements, the official added.
2. Govt Approves Sale of HPCL Stake to ONGC
The cabinet has given an in-principle approval to sell the government’s entire 51.11 percent stake in Hindustan Petroleum Corp Ltd (HPCL) to Oil and Natural Gas Corp (ONGC) in a bid to create a state-run integrated oil major that can compete with private and foreign players, sources familiar with the matter said.
ONGC will be exempted from making an open offer to other shareholders of HPCL in the transaction, which is expected to be completed in a year. More such integration of oil companies is in the offing, sources said.
3. Airfares in India Projected to Increase by 8.7% in 2018
Domestic demand is increasing, particularly in China and India, putting additional pricing pressure on key markets in both, according to the 2018 Global Travel Forecast report released by travel management company Carlson Wagonlit Travel and GBTA Foundation, the research arm of Global Business Travel Association.
Asia Pacific is expected to see a 2.8% rise in airfares 2018, while airfares in India are projected to increase by 8.7% in 2018 (the biggest increase across all key markets in the APAC region)
According to the report, airlines in the region broadly are partnering with GDSs to display basic economy airfares and grow ancillary fee revenue, also resulting in a move away from manual bookings and toward consistency in fare displays.
4. Discovery May Bid for IPL Media Rights
American broadcaster Discovery Communications on Wednesday said it is interested in bidding for media rights to the Indian Premier League (IPL), which reopens on 21 July.
Both the television and digital media rights of IPL, the premier T20 cricket tournament, will be up for grabs for a five-year period from 2018 to 2022.
We are interested in buying the bid documents for IPL and will evaluate as necessary.Spokesperson, Discovery India
In February, the company launched a new sports channel in India called DSPORT, in a bid to widen its portfolio and expand its reach.
5. Tata Group Mulls Moving All Tech Operations Under TCS
Tata Group, the Indian conglomerate that manages more than 100 operating companies, is weighing a plan to streamline its information technology and infrastructure businesses, people with knowledge of the matter said.
The conglomerate is considering a restructuring that would see several of its IT businesses moved under publicly traded Tata Consultancy Services (TCS), according to the people.
Tata group, which wants to reduce the number of companies it oversees, may sell some smaller units that don’t fit with its strategy, the people said, asking not to be identified because the information is private.
6. Sebi Planning to Tighten Depository Receipt Regulations
The Securities and Exchange Board of India (Sebi) is planning to clamp down on depository receipts (DRs) as part of efforts to check the flow of black money into the stock market.
Sources said Sebi planned to make it mandatory for foreign depositories to reveal details of end-beneficiaries holding DRs issued by Indian companies. The new framework will align know-your-customer (KYC) requirements for DRs with provisions to prevent money laundering.
Many Indian companies issue DRs to raise capital abroad. DRs have shares as an underlying asset and are typically issued by a bank, known as the depository bank, on behalf of a company.
7. IDBI Bank Gets Shareholders' Nod to Raise up to Rs 10,000 Crore
Shareholders of IDBI Bank Ltd. approved plans to raise up to Rs 10,000 crore through various modes like bond sales and share allotment to institutional buyers.
The lender can raise up to Rs 5,000 crore through various modes including a qualified institutional placement and the remaining Rs 5,000 crore through issue of infrastructure bonds in one or more tranches, it said in an exchange filing.
The state-run lender was in talks with Asian Development Bank and International Finance Corporation, along with other investors, to sell stake worth Rs 3,771 crore, a senior finance ministry official had told wire agency PTI earlier this month.
8. Wipro Will Consider Buyback, Says Premji
Wipro Chairman Azim Premji said the company will continue to look at enhancing shareholder value and would consider a buyback.
Addressing investors at its AGM, Premji said the software major has completed a bonus issue and will consider a buyback at its board meeting on 20 July.
We have a philosophy of providing regular and stable payout to investors and prudently evaluate capital allocation decisions, in the interest of building long term stakeholder value.
The founder and chairman along with his family own just over 73 percent in India’s third largest software exporter.
Source: The HIndu Businessline
9. Godrej Agrovet Files IPO Papers With Sebi
Godrej Agrovet Ltd, a seller of animal feed and crop protection solutions, on Wednesday filed draft IPO papers with markets regulator Securities and Exchange Board of India (Sebi).
In a press statement, Godrej Agrovet said the company will sell new shares worth Rs 300 crore in the initial public offering (IPO).
Promoter Godrej Industries Ltd will sell shares worth up to Rs 300 crore, while V-Sciences Investments Pte Ltd (a Temasek investment firm) will sell 12.3 million shares. Shares worth Rs 20 crore will be set aside for employees.
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