Tag: Business news

Tata Communications shares dip 7% as govt to sell stake at discount through OFS

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The share price of Tata Communications fell 7 percent on Tuesday as the government is selling its stake in the company at a discount to the current prices.

The offer for sale to sell the government’s stake in the firm opened for non-retail investors on Tuesday. It will open for retail investors on Wednesday.

The government on Monday said it will sell up to a 16.12 percent stake in Tata Communications Ltd. through an offer for sale starting today.

The government holds a 26.12 percent stake in the company. The floor price has been set at Rs 1,161, a 9.8 percent discount to Monday’s closing price and the sale of a 16.12 percent stake could fetch the government around Rs 5,334 crore.

The stock fell as much as 7 percent to the day’s low of Rs 1,206.30 per share on the BSE.

The government will sell 2.85 crore shares or 10 percent stake held in erstwhile VSNL, with an option to sell an additional 1.74 crore shares or 6.12 percent stake as a greenshoe option.

“The President of India, acting through and represented by the Department of Telecommunications, Ministry of Communications, Government of India, is one of the promoters of Tata Communications Ltd (the “Seller”). The Seller proposes to sell up to 2,85,00,000 Equity Shares of Tata Communications Ltd , representing 10 percent of the total issued and paid up equity share capital of the company…on March 16, 2021 for non-retail investors only,” the government said in the notice for OFS.

The government has reserved a minimum of 25 percent of the offer shares for mutual funds and insurance companies subject to valid bids and 10 percent for retail investors. As per the shareholding pattern of TCL, the promoters hold 74.99 percent of the company. Of this, the Government of India holds 26.12 percent stake while Panatone Finvest holds 34.80 percent and Tata Sons holds 14.07 percent. The remaining 25.01 percent is with the public.

So far this fiscal, the government has mopped up Rs 21,302 crore from CPSE disinvestments. The revised disinvestment target for this financial year has been set at Rs 32,000 crore, substantially lower than the budgeted Rs 2.10 lakh crore.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Tata Consumer may be included in Nifty in place of GAIL: Edelweiss

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The semi-annual review of the Nifty throws up the possibility of inclusion of Tata Consumer and exclusion of GAIL from the benchmark index, a report by Edelweiss Alternative Research stated.

Edelweiss expects index changes to be announced by the second half of February 2021, and the same should take effect on March 26, 2021. The index is reviewed every six months and a four-week notice is given to the market before making changes to the index set.

The inclusion of Tata Consumer in the index would attract $88.7 million worth of inflows to the company, noted the report. However, it added that GAIL’s exclusion may lead to outflows worth $56.7 million from the firm.

It also stated that after the changes, the weightage of Tata Consumer is likely to be increased by 0.59 percent and that of GAIL could be reduced by 0.38 percent.

According to the Nifty index inclusion criteria, the stock should be a part of the F&O segment. Currently, the highest float market capitalization non-Nifty company is D-Mart, however, the stock doesn’t fulfill the criteria for F&O inclusion, the brokerage report further explained.

“The analysis is done as per the set of information available till December 22, 2020, considering the criteria set by the exchange for the Index constituents’ inclusion/exclusion. Any significant changes in market capitalization of companies or modification in exchange criteria may change the expectations,” the brokerage observed.

In the previous semi-annual review of the Nifty50 index in August, the exchange had included Divi’s Laboratories and SBI Life Insurance in the Nifty and excluded Bharti Infratel and Zee. These changes were made effective on September 25.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Andhra Pradesh government asks Divis Labs not to go ahead with facility’s construction

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Andhra Pradesh government on Saturday directed Divis Laboratories not to go ahead with the construction of its new facility near Kakinada in East Godavari district till all concerns of the local people were addressed.

State Industries Minister Mekapati Goutham Reddy held talks, in virtual mode, with the Divis management in the backdrop of an ongoing agitation by local villagers against the new pharmaceutical unit being set up the company.

The agitation took a violent turn two days ago with the protestors barging into the unit and damaging property.

Police arrested more than 20 people in this connection.

The Industries Minister asked the Divis management to withdraw the cases against the protestors and stop work on its new unit.

He asked the management to hold talks with the villagers and resolve the issue amicably.

A release from the minister’s office said Goutham Reddy sought a firm assurance from the management that it would take all steps to ensure no pollution was caused in the region and the livelihood of local fishermen was not affected.

The factory work should be taken up only under the direct supervision of experts from the Pollution Control Board.

The minister also wanted the company to provide 75 percent of the jobs to locals only.

“The company responded favourably to the minister’s suggestions,” the release added.

The stir against the Divis bulk drug plant had in fact been continuing for the past few years after the previous Telugu Desam government allotted land under Tondangi mandal for the unit.

As the leader of opposition then, YS Jagan Mohan Reddy had opposed the setting up of the plant saying it would lead to several diseases in people besides destroying the marine wealth and leading to the closure of local hatcheries.

However, after Jagan became Chief Minister, Divis started moving ahead with its plans and commenced the construction work on its new unit early this month.

This triggered a fresh round of protest.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

RIL shares down 5% after MSCI reduces weightage in November review

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The share price of Reliance Industries fell 5 percent on Wednesday after the MSCI reduced the weightage on the stock in its semi-annual index review. The weightage of the stock was cut to 12.35 percent from 14.09 earlier in the MSCI Global Standard Index.

The stock fell as much as 5 percent to the day’s low of Rs 1,979 per share on the BSE. The stock has risen nearly 33 percent YTD but has declined 10 percent in the last 1 month.

MSCI said that it will add 12 Indian stocks and delete two as part of its semi-annual index review of its MSCI Global Standard Index. The changes in constituents for the MSCI Global Standard Indexes will take place as of the close of November 30, 2020.

Additions include ACC, Adani Green, Apollo Hospitals, Balkrishna Industries, IPCA Labs, Kotak Bank, L&T Info, MRK, Muthoot Finance, PI Industries, Trent, and Yes Bank. Meanwhile, Bosch and LIC Housing were removed from the index.

Morgan Stanley had earlier said that India’s stock market will see a net inflow of about $2.5 billion from the next round of changes to MSCI Inc.’s indices.

Disclosure: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Vedanta delisting: We feel Rs 320 is the fair price, says LIC MD

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Life Insurance Corporation (LIC) MD Vipin Anand, in an interview with CNBC-TV18, said that Rs 320 is a fair price for Vedanta delisting. LIC has a 6.37 percent stake in Vedanta. He added, “we won’t tender Vedanta shares below fair value.”

According to Anand, there are enough opportunities in the market and LIC is happy with the individual new business premium growth. He expects the second half to be better than H1 for the insurance business.

He further said that LIC saw good business growth in September and it was a season of healthy returns for investments and added that LIC has invested Rs 260,000 crore in debt and equity combined.

Today is the final day of the reverse book building process in which public shareholders can tender the shares of Vedanta as the company readies to get delisted from Indian bourses.

Media reports suggest share tendering has been tepid so far. The reverse book-building process for public shareholders to tender their shares started on October 5 and will conclude on October 9.

As per BSE data, a total 169 crore shares held by public shareholders are there for tendering, out of which, 134 crore shares should be tendered for the delisting process to take place.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Wipro shares rise 3% on multi-year global agreement with Marelli

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of Wipro gained nearly 3 percent in intra-day deals on Tuesday after the company announced that it has entered into a multi-year global agreement for automotive engineering services with Marelli.

Marelli is one of the world’s leading global independent suppliers to the automotive sector with operational headquarters in Saitama, Japan and Corbetta, Italy.​

As a part of this agreement, Wipro will leverage their strong automotive engineering expertise and the EngineeringNXT framework to establish a software engineering factory for the Japan and Italy based firm, the company said in a press release.

It added that the IT major will also build on Marelli’s operational efficiency to expedite the launch of cutting edge technologies on sustainable mobility solutions and connectivity.

This Marelli-Wipro integration will help Marelli drive speed to value and realise its vision of transforming the future of mobility in partnership with its customers, the press release quoted.

‘We are delighted to be chosen as Marelli’s strategic engineering partner and are looking forward to supporting them in realising their vision. This partnership is a proof point of the value we bring to the automotive industry and builds upon our growing footprint in Europe and Japan, which are strategic markets for us,”​ said Senior Vice President, Industrial & Engineering Services, Wipro Harmeet Chauhan.

“The Marelli-Wipro partnership will allow us to drive leadership in mobility and transform our products to future market needs. We are delighted to have the benefit of Wipro’s experience, capabilities and speed of execution for Marelli,” Detlef Juerss of Marelli said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Total turnover of Amul brand products crosses Rs 52,000 crore: GCMMF

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The consolidated turnover of the Amul brand of products exceeded Rs 52,000 crore during 2019-20, the Gujarat Cooperative Milk Marketing Federation (GCMMF), which sells and produces Amul products, said on Saturday.

The federation said it aims to achieve a group business turnover of Rs 1 lakh crore by 2024-25.

“The group turnover of GCMMF and its constituent member unions, representing consolidated turnover of all products sold under Amul brand is exceeding Rs 52,000 crore or $7 billion. GCMMF aims to achieve a group business turnover of Rs 1 lakh crore by 2024-25,” it said in a statement after the 42nd AGM held at Anand.

The GCMMF said it registered a sales turnover of Rs 38,542 crore in 2019-20, which is 17 percent higher than the previous financial year.

Rapid expansion has helped Amul record a turnover almost five times higher than Rs 8,005 crore in 2009-10, it said.

Daily milk procurement was 215.96 lakh litre per day in 2019-20, GCMMF said, quoting its Chairman Ramsinh Parmar.

“This enormous growth was a result of the high milk procurement price paid to our farmer-members which has increased by 127 percent, from Rs 337 per kg fat in the year 2009-10 to Rs 765 per kg fat in the year 2019-20,” the GCMMF said quoting Parmar.

Parmar further said that during lockdown, when private milk firms stopped procuring from farmers, milk unions of Gujarat procured an additional 35 lakh litres of milk per day, giving around Rs 800 crore extra to the rural milk producers.

India continues to be the world’s largest producer of milk, and is likely to retain its prime position with an annual growth rate of 5.5 percent during the last three to four years as against global growth of 2 percent, GCMMF Vice Chairman Jethabhai Bharwad said.

GCMMF Managing Director RS Sodhi said the Rs 15,000 crore dairy infrastructure fund announced by Prime Minister Narendra Modi and Union Finance Minister Nirmala Sitharaman for setting up supply chain and dairy plants will help Indian dairy industry to build around 4 to 5 crore litres of extra capacity.

“These extra five crore litres of milk collected and processed by the organised dairy industry will provide livelihood to approximately 30 lakh people in rural India.

This is really the need of the hour, when hundreds of thousands of people have migrated back to their villages from urban centres,” he was quoted in the statement as saying.

The Board members also expressed their “heartfelt gratitude” to the Government of India for taking a firm stand during Regional Comprehensive Economic Partnership (RCEP) negotiations that will benefit 10 crore dairy farmers of the country, it said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Coronavirus impact: IRCTC share price falls by half in one month after rising 500% in four

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The IRCTC stock, which was headed towards the Rs 2000-mark, has taken a U-turn and lost more than half its value amid the ongoing coronavirus-induced market selloff and the simultaneous lockdowns across the nation in a bid to contain the contagion.

IRCTC’s stock price has over lost half its value and is down nearly 55 percent from its 52-week high of Rs 1,995 that it hit on February 25, 2020.

The stock is currently trading at about Rs 900 on the BSE. The share price had rallied over 520 percent from its issue price of Rs 320 in just four months of listing.

IRCTC’s market cap has declined to Rs 14,458 crore, over half of Rs 31,200 crore, the firm’s peak in February. The stock has lost 48 percent of its value in March alone.

Indian Railways has cancelled all passenger trains until March 31 in order to prevent further spread of coronavirus. Passenger trains, mail/express trains, premium trains, suburban trains, Kolkata metro, Konkan railways etc. stand cancelled until the end of March.

“No train except goods train will be run up to 2400 hrs of 31.03.2020. However, bare minimum suburban services and Kolkata metro Rail service will continue to run till 2400 hrs on 22.03.2020. Thereafter, these services will also be stopped till 2400 hrs of 31.03.2020,” a Railways spokesperson said Sunday.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Corporate sector raising its guard against new-age risks like cyber attack, phishing

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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With the corporate risk landscape constantly changing with new risks, such as cyber risk and technology risk, creating new threats, companies should work on creating an overall enterprise risk management (ERM) framework for effective management and mitigation of risks.

“Companies must create an overall ERM framework that shows where the organisation stands at a certain point in time and how its risk preparedness has changed. The framework could be updated quarterly or yearly,” Sandeep Goradia, Head, Corporate Solutions Group, ICICI Lombard General Insurance Co said.

Goradia was speaking at the Bengaluru chapter of Risk Masterclass as part of the India Risk Management Awards (IRMA) organised jointly by ICICI Lombard General Insurance and CNBC TV 18.

Besides cyber risks, new threats are emerging from global warming, geopolitics and changing regulatory frameworks on data protection. “As an insurer, we are seeing that the entire fabric or risk is completely changing,” Goradia said.

However, awareness of cyber threats is rising. “Many companies which thought they are unlikely to face cyber attacks are rethinking. On January 1, 2020, one of the largest steel and power sector companies took a huge cyber program which was independent of their normal material damage and business interruption covers. This is just a start,” he said.

Debasish Kar, Vice President, Corporate Solutions Group, ICICI Lombard General Insurance echoed Goradia’s views. “For ages, we have been discussing risks but over the last few years, it has changed towards new-age risks. Cyber and technology risks are becoming important. When we meet CXOs of companies, they are coming forward and discussing ways to mitigate risks,” Kar said.

Goradia pointed out the rising ferocity and frequency of floods in India with 13 floods in 7 months due to global warming. Also, regulations similar to the European Union’s GDPR, (Global Data Protection Regulations) are soon to come in India having a far-reaching impact on those who store and share data. Companies breaching data protection norms could face huge financial penalties once the regulations come about.

On geopolitics, Goradia pointed US-Iran tensions led to marine cargo premiums shooting up 50-100 times. “Normally we see the premiums increase by some percentage, but this increase was multiple times,” he pointed out.

Speaking at the Risk Masterclass, Venkaraman G S, CFO, Subex, felt regulations like GDPR could be a huge risk. “We access and manage a lot of data for our customers. The issue is how we have our systems secured which can protect that. As a company, there are areas like cyber risk. However, once you start making employees aware you will be able to address some of those risks,” he said.

Milan Khurana, Executive Director, HR, Admin & IT, Prestige Estates Projects, stressed on employee fidelity in handling new-age risks. “We have access to huge amounts of customer data since we have thousands of customers buying into our properties. Hence employee fidelity becomes a big risk for us as they are handling customer data. We have IT systems in place and we have experts like ICICI Lombard and other such companies guiding us. We mitigate these risks taking their advice,” Khurana said.

N Ravichandar, Advisor, Treasury, Secretarial and Taxation and Insurance, Praxair India Pvt Ltd (part of Linde Group), said his company has taken steps to check the damage caused by cyber-attacks and phishing. “Since our plants are automated and interconnected any attack can cripple the system. So firewalls are built and if any events or accidents happen, they are confined to the particular location and not spread,” he said.

Vikas Goel, CFO, Sansera Engineering, said automation, robotisation and digitalization have opened up a new series of risks. “While on one side automation is inevitable for survival or growth of the business, we also need to be conscious of how are we managing those new facets of risk,” Goel said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Wockhardt shares jump 14% after DGCI approves two new antibiotics

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of pharma firm Wockhardt surged 14 percent in intra-day deals on Thursday after Indian regulatory Drug Controller General of India approved its two new antibiotics.

The stock rose as much as 14 percent to Rs 295.50 per share on the BSE. At 12:15 pm, the stock was trading 6.5 percent higher at Rs 276 per share as compared to a 0.05 percent or 23 points fall in the BSE Sensex at 41,849.

“DCGI has approved Wockhardt’s 2 new antibiotics, EMROK (IV) and EMROK 0 (Oral), for acute bacterial skin and skin structure Infections including diabetic foot infections. The new drug will target superbug like Methicillin-resistant Staphylococcus aureus (MRSA), which is a leading cause of rising antimicrobial resistance (AMR),” the company said in a BSE filing.

It added that the size of the Indian antibiotic market is approximately Rs 16,000 crore, growing at 7 percent and is one of the largest therapeutic segments, with a 12 percent market share of the Indian pharmaceutical market.

“By virtue of its broad-spectrum activity against widely prevalent pathogens, including MRSA, superior safety over the currently available anti-MRSA agents and its unique properties, I believe EMROK/EMROK-O has a strong potential to effectively address the unmet medical need of the clinicians in the country,” said Dr Habil Khorakiwala, founder-chairman, Wockhardt Group.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow