QBiz: Mallya May Have Revised Settlement Offer, Infosys Q4 Results
Latest business stories from across India’s newspapers.
1. Lafarge India Sale Stuck as CCI Role Comes Under Lens in COMPAT: ET
Controversy threatens the revised sale of Lafarge’s cement assets in India after an appeals body stayed the process for at least three weeks
following a complaint from a rival. The Competition Commission barred two private equity
firms from bidding for the French giant’s assets.
According to an Economic Times report, the Competition Appellate Tribunal (COMPAT) has stayed the divestment after competing cement maker Dalmia approached it, just a day after preliminary, non-binding bids for Lafarge India’s entire 11-million-tonne capacity were submitted.
2. Moody’s Turns Negative on RCom as Asset Sale Gets Delayed: BS
Moody’s Investor Service has changed Reliance Communications’ ratings to
negative from stable on 7 April, reports Business Standard.
The ratings agency believes that the expectation of a material improvement in the Indian telecommunications company’s leverage, liquidity and refinancing pressure is unlikely to materialise over the next six to nine months, even if the company announces a binding tower sale transaction this quarter.
The outlook change comes after a persistent delay in the company’s planned non-core asset sales, which underpin its deleveraging strategy.
Moody’s expects the valuation of the tower transaction could be 20-25 percent lower than its earlier estimates of $3.4 billion.
3. Lending for Small Companies Is a $300 Million Business: ET
While bigger SME lending players like Lending Kart and Capital Float aim to close
their next funding rounds, a slew of smaller players have emerged in the last year
viewing the space as a segment where at least 10 strong players can coexist, according to Economic Times.
Amongst the new players, Puneet Dalmia-backed CoinTribe, which was launched in February, uses a proprietary algorithm to link up multiple data sources ranging from the credit bureau to social media determining the credit worthiness of an SME within minutes.
The startup has tied up with private sector banks that use their platforms to process SME loans.
4.Five Things to Watch out for in Infosys Q4 Results: Livemint
Infosys’ remarkable transition from a company that seemed to have hit rock-bottom
in June 2014 to end this financial year with industry-leading growth is one heartening
story from corporate India in the last 20 months.
According to Livemint, the IT major will likely report sequential revenue growth of at least 2 percent for the three months ended 31 March, when it submits its fourth-quarter report card on Friday.
This means for the fourth successive time, Infosys’s quarterly growth will likely be higher than that of its larger rival Tata Consultancy Services, which at best is seen clocking 1.7 percent sequential revenue growth (in dollar terms).
5. Vijay Mallya May Make Revised Rs 6,000 Crore Settlement Offer to Banks: ET
Vijay Mallya may make a revised Rs 6,000-crore settlement offer to banks looking to
recover Rs 9,000 crore in dues stemming from loans to Kingfisher Airlines founded
by the businessman, who faces the threat of having his passport cancelled, reports Economic Times.
The new offer is said to involve staggered payments through to September, as per two people quoted in the report. The banks though want the Rs 4,900 crore principal immediately followed by the interest being repaid in staggered amounts, banking executives said.
The Supreme Court had asked Mallya last week to disclose all his assets after the banks rejected previous settlement offers as being too little and overladen with conditions.
6. Markets Cheer Monsoon Forecast; Analysts Advise Caution: BS
From a closing level of 6,987 on 29 February when the government presented the Union Budget for FY17, the markets have gained ground steadily with the Nifty rallying over 800 points, or 12 percent, to reclaim 7,800 levels.
This is the first time that the index
has hit the 7,800 mark since 6 January, reports Business Standard.
Government sticking to its earlier fiscal deficit target projection of 3.5 percent of GDP (gross domestic product) for FY17, interest rate cut by the Reserve Bank of India (RBI), fall in consumer price inflation (CPI) to a six-month low; and interest rate outlook by the US Federal Reserve for calendar year 2016 (CY16) at the global level are some of the factors that have aided sentiment.
7. RBI Cuts Maturity of Masala Bonds to Three Years to Raise Their Appeal: Livemint
The Reserve Bank of India (RBI) has reduced the minimum tenure of such bonds that an
Indian company can issue offshore to three years from the previously stated five years,
to make masala bonds more attractive, reports Livemint.
“It has been decided to reduce the minimum maturity period for the rupee-denominated bonds issued overseas to three years in order to align with the maturity prescription regarding foreign investment in corporate bonds through the foreign portfolio investment (FPI) route,” as per the central bank statement.
Money raised through masala bonds overseas will be counted in the overall investment limit for FPIs in corporate bonds, which now stands at Rs 2.44 trillion. FPI investment limit in corporate bonds will be expressed in rupees instead of dollars, bringing it on par with limits in government bonds.
8.Govt Likely to Invite Bids for Rural BPO Scheme This Month: ET
The government is likely to float ‘request for proposals’ for its rural BPO scheme
later this month as the Department of Electronics and IT (DeitY) is in process of
getting the necessary approvals to invite bids, a department official was quoted by the
Indian BPO Promotion Scheme (IBPS) is an ambitious programme of the Communications and IT Minister Ravi Shankar Prasad as a part of the Prime Minister Narendra Modi-led government’s ‘Digital India’ plan. The programme aims at making available job opportunities to youth in semi-urban areas.
9. Investors Richer by Over Rs 10 Lakh Crore Post Budget Rally: BS
An over 2,500-point rally in Sensex during past one-and-half months, post Budget,
has made investors richer by more than Rs 10 lakh crore, reports Business Standard.
The total investor wealth, measured in terms of cumulative market capitalisation (m-cap) of all listed companies rose by Rs 11.07 lakh crore to Rs 96.90 lakh crore. It was Rs 85.83 lakh crore on Budget day, 29 February 2016, according to data from the BSE.
The Bombay Stock Exchange (BSE) benchmark S&P BSE Sensex, which closed at 25,627, has gained 11.4 percent or 2,625 points from 23,002 on 29 February.
Strong inflows from foreign investors, moderating inflation, better-than-expected index of industrial production (IIP) data and projection of a normal monsoon this year by Indian and foreign forecasters – Indian Metrological Department (IMD) and Skymet, have helped the market to rebound sharply.
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