QBiz: Weak Business Environment, EU Woes, IPO’s Galore & More
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1.IndiGo, Infibeam, Teamlease Eye IPOs Over Rs 3k cr - PTI
It’s a big day for IPOs as at least three companies -- low-cost carrier IndiGo, staffing firm Teamlease and e-retailer Infibeam -- have lined up public offers to raise an estimated over Rs 3,000 crore from investors.
Merchant banking sources said the draft papers for all the three Initial Public Offers (IPOs) were being submitted to capital markets regulator Sebi.
InterGlobe Enterprises, which runs the country’s biggest airline by market share under ‘IndiGo’ brand, is looking to raise Rs 2,000-2,500 crore through the IPO, sources said, while Teamlease is looking to raise Rs 450-500 crore and Infibeam about Rs 400 crore.
2.Core Sector Grows 4.4% in May, Fastest In 6 Months – TOI
Core sector growth revived in May, clocking fastest pace in six months, led by a turnaround in electricity, oil refining, steel and cement sectors, bringing some cheer for policymakers who have been battling a sluggish industrial sector.
Government data showed on Tuesday the core sector, which spans electricity, coal, steel, cement, refinery production, natural gas, crude oil and fertilizers, rose an annual 4.4% compared to a contraction of 0.4% in April.
3.Fitch Lowers India Growth Forecast, says Biz Environment Weak -PTI
Lowering its growth forecast for India to 7.8% this fiscal, global rating agency Fitchon Tuesday said the country’s business environment is relatively weak compared with peers and will take time to turn around.
Still, India would grow faster than China this year.
Fitch’s view assumes significance as it follows another global giant Moody’s warning earlier today that there were growing concerns about risk of policy stagnation in India and “some disappointment” has emerged over the pace of reforms under the Modi government.
4.Tata Chemicals Mulls Selling Fertiliser Biz for $1 billion – ET
Tata Group Chairman Cyrus Mistry has initiated a plan to hive off and sell the fertiliser business, housed in Tata Chemicals, in his first major restructuring move after becoming chairman in 2012.
Tata Chemicals (TCL) has asked Kotak Mahindra Bank to help find strategic buyers for the business at a valuation of close to a billion dollars, said multiple sources aware of the developments. Long considered a drag on Tata Chemicals’ profitability, a divestment will help trim debt and focus on the high-growth consumer and industrial chemicals businesses.
Tata Chemicals owns one of the most energy-efficient urea units in the country at Babrala, Uttar Pradesh, as well as a phosphatic fertiliser unit at Haldia, West Bengal.
5.Benefits from Fall in Re May Outweigh EU Woes – ET
Will investors in IT and pharma stocks look at the deteriorating state of Eurozone or the depreciating rupee? The companies from the two sectors have a substantial exposure to Europe with the region accounting for 10-25% of their overall sales. The Greece crisis has created nervousness in the markets, but investors are looking beyond the prevailing negatives to possible benefits, such as from the rupee’s depreciation.
Technology and pharma companies derive most of their revenue from the US. Hence, deprecation of the rupee against the dollar will boost earnings in the local currency for pharma companies, whereas for technology companies, they will be able to negate any cross-currency headwinds from possible currency decline, said Kohli.
6.Looking at an Alibaba-Like Organisational Structure: Rahul Yadav
Media reports on Tuesday said Quikr is buying Housing.com in a distress sale. Rahul Yadav, chief executive officer, Housing.com, denies the reports.
This is again baseless. I don’t know who is spreading such rumours and why? I was out of the country when this news was floated again. We have time and again said that we would be recruiting more CEOs to take care of the divisions that we have as we are assuming the structure of a group of companies.
No, I am not quitting Housing. We are looking at an organisational structure like that of Alibaba’s and I would assume a different position.
– Rahul Yadav, CEO, Housing.com
7.Demand for India-made Auto Parts at all-time High – BS
Exports of automobile components grew 10 per cent to an all-time high of $11.2 billion in 2014-15 as the country’s overall exports declined. The growth of automobile component exports was helped by demand from the US, Turkey and Italy. In rupee terms, exports grew 11 per cent to Rs 68,500 crore, data released on Tuesday by the Automotive Component Manufacturers’ Association (ACMA) showed.
The industry’s turnover grew 11 per cent to Rs 234,800 crore in 2014-15 against a decline of two per cent in 2013-14. The fortunes of the component industry are linked to vehicle sales. Passenger vehicles sales grew nearly four per cent in 2014-15 against a decline of six per cent in the previous year. Medium and heavy commercial vehicle sales grew 16 per cent in 2014-15 and two-wheeler sales grew eight per cent.
“The consistent growth in exports is an indication of the growing credibility of India-made components,” said Ramesh Suri, president, ACMA. He said he expected the industry to grow eight to ten per cent this year. The bulk of exports are to Europe (37 per cent), Asia (25 per cent) and North America (23.2 per cent). The key components exported are engine and transmission parts, brake systems, and body parts.
8.Tata Realty Takes Unitech to HC Over Loan Default – BS
A controversial loan granted by Tata Realty & Infrastructure (TRIL) to Unitech has landed in the Bombay High Court with the Tatas suing the Delhi-based real estate company after it defaulted on its repayments. Tata Realty had lent close to Rs 1,700 crore to Unitech in 2007 for investment in a large track of non-agricultural land in Gurgaon.
In 2008, the transaction was re-negotiated for a smaller size of land and Unitech refunded Rs 1,008 crore back to TRIL and sold land worth Rs 602 crore. However, due to a slowdown in the real estate sector, coupled with its own liquidity issues, Unitech was unable to return the balance amount of Rs 90 crore.
9.Flipkart Offers 24-week Maternity Leave, Flexi Hours - TOI
An extended maternity leave of 24 weeks plus four months of flexi-working hours with full pay, and, if needed, one-year career break without pay: Flipkart has rolled out these and several other incentives to attract and retain women employees. Perhaps the first e-commerce player to roll out such incentives that go beyond the statutory requirement, Flipkart has joined a growing list of progressive brick-and-mortar companies that seek to make the workplace more attractive for women.
With a growing customer base of women who shop online, Flipkart seeks to prop up its gender diversity. And it has introduced women-centric policies with the hope that it will benefit young and expecting mothers who can continue with the same job after a maternity break or a post-maternity career break.
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