QBiz: Tata Steel Registers Profit, End of Good Times for Mallya
Read the top business stories from around the country in QBiz.
1. Air India May be Listed on Exchanges With Banks Holding Strategic Stake
The government is considering inducting banks as strategic investors in Air India, followed by a listing of the national airline, said two persons familiar with the plan.
Privatization of the airline isn’t on the cards, said the two, who requested anonymity.
In the first step, the government will continue efforts to recast Rs 28,000 crore of working capital debt that Air India owes a consortium of 19 banks led by State Bank of India (SBI). The lenders are being asked to convert this debt into equity.
In the second stage, the government plans to induct professionals with proven financial and strategic management skills into the airline, added the two people.
2. Sebi to Overhaul Governance Norms for Stock Exchanges
The Securities and Exchange Board of India (Sebi) is looking to increase its oversight of the boards of stock exchanges by having a greater say in the appointment of public interest directors, said three people aware of the matter, including an official with the regulator.
To this end, the Sebi board, when it meets on Saturday, will propose amendments to the Stock Exchange and Clearing Corporation (SECC) regulations pertaining to appointment and remuneration of these directors and also ownership and governance norms, these people said.
3. Tata Steel Registers First Profit in 5 Quarters
Tata Steel Ltd on Tuesday posted its first profit in five quarters as a strong performance by its Indian business, a rebound in demand and higher pricing helped counter weak sales in Europe.
The steel maker reported a consolidated net profit of Rs 231.90 crore in the quarter to 31 December, compared with a net loss of Rs 2,747.72 crore a year ago. Revenue rose 14% to Rs 29,391.60 crore from Rs 25,766.89 crore a year earlier.
4. Amazon Spends Top Dollar to Win Prime Spot in Digital Content Race
Amazon’s video streaming service has so far committed at least Rs 500 crore to creating original content in India, outspending its top domestic rivals as it signs up some of the country’s most high-profile production houses.
Amazon Prime Video has invested about one-fourth of its Rs 2,000-crore India budget in local production houses, including those of filmmakers Farhan Akhtar and Anurag Kashyap, according to executives at production firms Amazon has been in talks with.
5. Vodafone-Idea Merger to Create Rs 80,000 Crore Revenue Firm: India Ratings and Research
The proposed merger of telecom operators Vodafone and Idea Cellular will create an entity with revenue of around Rs 80,000 crore and the move will be credit positive for the sector, India Ratings and Research today said.
The proposed merger of Vodafone India and Idea Cellular Ltd (Idea) will be credit positive for the telecom industry by eliminating duplication of spectrum and infrastructure capex. The combined entities’ revenue will be around Rs 77,500-80,000 crore and Ebitda margins of around 28 percent.India Ratings and Research
6. Flipkart to Work With Sellers to Absorb GST Price Hikes
The country’s largest e-commerce player Flipkart is likely to work along with its sellers to absorb any increase in end price for customers once the GST kicks in from July.
The e-commerce company is actively working with its sellers and other stakeholders, rolling out several initiatives ahead of the GST implementation.
We are taking it very, very seriously and are putting all the pieces together so that the sellers and other stakeholders have it very easy when the GST sets in.Anil Goteti, Head, Marketplace for Flipkart
7. It’s the End of Good Times For Vijay Mallya
Former liquor baron Vijay Mallya suffered a serious setback after the Karnataka High Court on Tuesday ordered the winding up of United Breweries (Holding) Ltd, the 102-year-old parent company of the UB Group.
The order follows United Breweries (Holding) Ltd’s failure to pay back creditors, including banks, as per corporate guarantees extended to the now defunct Kingfisher Airlines Ltd (KFA).
Justice Vineet Kothari delivered the verdict in a sitting held through video conferencing from the Dharwad Bench, while allowing petitions filed by unsecured creditors and suppliers like IAE International Aero Engines AG and Rolls-Royce & Partners Finance Limited, as well as the secured creditors — a consortium of 14 banks led by State Bank of India.
Legal experts said the promoter, Mallya, who holds 7.91 per cent in UBHL in his personal capacity, can go on appeal and get the order overturned.
8. Airbus to Spotlight Its Indian Partnerships at Aero India 2017
Airbus’ industrial partnerships with Indian companies under the ‘Make in India’ programme will set the tone for its participation in the Aero India 2017.
The future of Indian aerospace and defence industry rests on the realisation of the ‘Make in India’ vision. I look forward to having conversations around the topic at the Aero India event.Pierre de Bausset, President and Managing Director at Airbus India
“We have partnered with Tata Advanced Systems Ltd (TASL) and Mahindra Defence and are working with a host of other companies to script ‘Make in India’ success stories,” he added.
Airbus’ industrial engagement with India yields over $500 million (about Rs. 3,400 crore) in procurement from India annually for around 45 suppliers, generating local employment for more than 6,000 people.
9. Axis Bank to Sell Stake in Experian India Credit Information Company
Axis Bank will sell its entire 10% stake in credit information company Experian India Credit Information Company to Mauritius based investment firm WestBridge Capital for Rs 64 crore.
In a notice to the stock exchanges the bank said it had signed an agreement for sale of 1.40 crore of equity shares in the company at Rs 45.7 per share. The transaction requires regulatory approvals, Reserve Bank of India (RBI) the bank said.
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