General Awareness

BUSINESS AND ECONOMY - February 2017

Feb 2017

May 26, 2019

Seshasayee Paper Goes for Stock Split

The board of directors of Seshasayee Paper and Boards Ltd. recommend a stock split of its equity shares of face value of Rs. 10 each into five equity shares of face value of Rs. 2 each, subject to the approval of shareholders at the annual general meeting to be held in July.
For the fourth quarter ended March 2019, the firm reported a 41.62% increase in its standalone net profit to Rs. 62.26 crore from the Rs. 43.96 crore registered during the corresponding quarter 2018.

Vistara to Diversify Fleet

Vistara, the joint venture airline of Tata Sons and Singapore Airlines, decided to add multi-type aircraft to its fleet, which may lead to higher cost of operations.
The full-service airline, which already has a fleet of 22 Airbus A320 family aircraft, decided to take on lease an additional six aircraft, four Boeing 737-800 NG aircraft and two Airbus A320neos.
These four Boeing aircraft were once part of the Jet Airways fleet. After de-registration, these will be delivered to Vistara by the end of May.
This is for the first time that Vistara is diversifying its fleet, an indication that it could be capitalising on Jet Airways' grounding.

May 25, 2019

HDFC Sells Stake in Subsidiary Gruh

HDFC sold 6.10% stake in its subsidiary Gruh Finance, to comply with the RBI requirement for facilitating the proposed merger of the housing finance arm with Bandhan Bank.
The sale was carried out through stock exchanges at the prevailing market price.
The average price was Rs. 260.07 apiece for shares sold in March and Rs. 310.126 apiece for shares sold in May.

Larsen & Toubro Buys Mindtree shares

Infrastructure major Larsen & Toubro (L&T) acquired over 24.9 lakh shares of Mindtree from the open market, taking its shareholding in the IT services firm to 28.45%.
After the latest transaction, L&T's shareholding in Mindtree stands at 28.45%. The latest stock purchase was made at Rs. 980 apiece.
Earlier in May, L&T purchased around 20% stake of V.G. Siddhartha and Cafe Coffee Day in Mindtree through a block deal for about Rs. 3,210 crore, and has since topped that up with share purchases from the open market.

Heinz-Zydus Merger Gets Nod

Consumer healthcare firm Zydus Wellness said that the National Company Law Tribunal (NCLT) approved a scheme of amalgamation between two subsidiaries, Heinz India Pvt. Ltd. with Zydus Nutritions Ltd., post which, Heinz India will cease to exist.
In January, Zydus Wellness had completed its Rs. 4,595-crore acquisition of Heinz India's consumer wellness business.
In October, the company agreed to buy Heinz India's business comprising Complan, Glucon D, Nycil and Sampriti Ghee brands, along with its two large manufacturing facilities.

TPG Growth to Sell CTSI to Varian Medical Systems

TPG Growth, the middle market and growth equity platform of alternative asset firm TPG, signed a definitive agreement to sell Cancer Treatment Services International (CTSI) to Varian Medical Systems for $283 million (approximately Rs. 1,980 crore).
CTSI is part of Asia Healthcare Holdings (AHH), a healthcare operating platform founded by TPG Growth. The transaction is expected to close in June and is subject to customary closing conditions.
CTSI owns and operates a network of cancer treatment facilities across India and south Asia, including several brands.
CTSI is one of the largest and leading providers of high-quality oncology services across the country and broader South Asia.

Facebook Plans to Launch Its Own Cryptocurrency

Facebook has been in contact with U.S. and British financial regulators with a view to launching its own cryptocurrency in 2020.
The cryptocurrency is internally referred to as GlobalCoin. The company would work with a new digital payments system in about a dozen countries, starting in the first quarter of 2020.
As per reports, Facebook had already spoken to Bank of England Governor Mark Carney and to officials at the U.S. Treasury.
Facebook's currency would be ''stablecoin'', a digital unit pegged to the dollar in contrast to more anarchic means of virtual payment such as bitcoin.
With more than two billion users across its platforms, it could have the clout to take a cryptocurrency mainstream and emulate the likes of WeChat in China, where the U.S. site is banned.

RBI to Infuse in June via OMO

The Reserve Bank of India would inject Rs. 15,000 crore into the financial system in June through purchase of government bonds via the auction route.
The government securities will be bought under open market operations (OMO). The decision was taken in view of the evolving liquidity situation.
Based on a review of the evolving liquidity conditions and assessment of the durable liquidity needs going forward, RBI decided to conduct purchase of government securities under OMO for Rs. 150 billion in June 2019.

Ashok Leyland eyes 5-7.5 tonne LCV space

With an eye on strengthening its presence in the light commercial vehicle (LCV) space, Ashok Leyland Ltd., (ALL), the flagship company of the Hinduja Group, is planning a foray into the 5 to 7.5 tonne LCV category under a project codenamed Phoenix.
ALL will be launching products under 'Project Phoenix' by 2020.
Project Phoenix would fill the gap in the 5 to 7.5-tonnes category and help us grow our business better.
Gopal Mahadevan, chief financial officer said that the LCV business is very crucial for the company to explore new markets in Africa and southeast Asian countries.
The LCV is a big market in most countries.

Infosys Completes Acquisition of Stake

Infosys completed the acquisition of 75% shareholding in ABN AMRO Bank's wholly owned Stater NV.
ABN AMRO would continue to hold the remaining 25%.
The Bengaluru-based firm said the deal would enhance its strategy to help clients navigate their digital transformation journeys.

Changes to FPI Rules

As part of its attempts to streamline the regulations to encourage foreign inflows in the Indian market, the Securities and Exchange Board of India (SEBI) proposed fast track on-boarding procedure for such investors, apart from a simplified registration process.
The capital markets regulator released the report of the working group formed under the chairmanship of former RBI deputy governor HR Khan in 2018.
Against this background, the group's primary objectives were consolidation, simplification, rationalisation and liberalisation.
Among other things, the group also recommended pension funds to be considered for Category I FPIs registration, removal of opaque structure and the review of broad-based conditions for appropriately regulated entities.
The committee further proposed a liberalised investment cap under a review of prohibited sectors for foreign investment for FPIs, restriction on Sovereign Wealth Funds (SWFs) for investment in corporate debt securities, and permitting FPIs for off-market transactions.

May 24, 2019

Continental Warehousing Acquires Stake in Kribhco Infra

Continental Warehousing Corporation (Nhava Seva) Ltd., (CWCNSL), a 90%-owned subsidiary of Hindustan Infralog Pvt. Ltd. (HIPL), acquired 76% stake in Kribhco Infrastructure Ltd.
(KRIL), an integrated multi-modal logistics operator for an unspecified amount.
Hindustan Infralog is a joint venture between DP World and the National Investment and Infrastructure Fund (NIIF).
KRIL operates three major inland container depots/private freight terminals in Haryana, Uttar Pradesh and Gujarat.
It has container train operations with a pan-India outreach. KRIL has a presence in the National Capital Region, which is India's largest import-export market with a population of over 46 million, including a terminal located on a notified double stack route.
The acquisition of KRIL will augment DP World's existing business in terms of the business model and geographic footprint, offering an integrated portfolio to the entire logistics value chain.

Reliance Capital Exits Mutual Fund

Anil Ambani-controlled Reliance Capital is all set to exit the mutual fund business by selling its entire stake in Reliance Nippon Life Asset Management Ltd.(RNAM) to its foreign partner Nippon Life Insurance.
Reliance Capital Ltd. signed binding definitive agreements with Nippon Life Insurance of Japan to exit its stake in Reliance Nippon Life Asset Management Ltd.
Both Reliance Capital and Nippon Life currently hold 42.88% in the asset management company with the balance held by public shareholders.

Cipla to Buy 26% stake AMPSolar

Drug firm Cipla signed a pact to acquire 26% stake on a fully diluted basis in AMPSolar Power Systems Pvt Ltd. for Rs. 12.90 crore.
AMPSolar Power Systems is a wholly-owned subsidiary of AMPSolar Technology Pvt Ltd. and is a special purpose vehicle formed for setting up a captive solar power project in Maharashtra.

Adani to Set Up Container Terminal in Myanmar

Adani Ports and Special Economic Zone (APSEZ) will set up its container terminal in Myanmar, first outside India, at an estimated cost of $290 million (over Rs. 2,000 crore).
The company signed an agreement to develop and operate a container terminal at Yangon Port in Myanmar.
Construction for Phase-1 of the project will commence in June and will be completed by June 2021. It is a two-phase project.

May 23, 2019

SEBI Mulls Buy-back Norms' Review

Regulator SEBI proposed changes to share buy-back norms for companies having non-banking financial companies and housing finance companies as subsidiaries.
A discussion paper was issued to seek suggestions relating to the review of conditions for buy-back of securities.
According to the discussion paper, the committee had proposed that post buy-back, debt to capital and free reserves ratio of 2:1 should be considered on consolidated basis, excluding subsidiaries that are regulated and have AAA ratings.

U.K. and Japan Begin to Turn Away from Huawei

Google's decision to cut off support to Huawei, the Chinese telecommunications giant blacklisted by the Trump administration, is rippling across the globe as companies suspend ties to the handset-maker.
In Britain, where Huawei is one of the most popular cellphone brands, two of country's biggest mobile networks, EE and Vodafone, announced they would stop offering Huawei phones to 5G customers as a result of Google's decision.
In Japan, the three largest cellphone companies also said that they were reconsidering plans to sell a new series of Huawei smartphones.

May 22, 2019

Nepal Bans Chinese Digital Wallets

Nepal banned popular Chinese digital wallets Alipay and WeChat to prevent the loss of foreign currency earnings from tens of thousands of Chinese tourists.
Over 1,50,000 Chinese holidaymakers visited Nepal in 2018, many using digital wallets to pay in hotels, restaurants and shops in tourist areas, especially in Chinese-run businesses.
Laxmi Prapanna Niroula, a spokesman for the central bank, said that Nepal was losing out since the actual transactions took place in China.

Reliance Topples IOC

Reliance Industries has toppled State-owned Indian Oil Corp. (IOC) to become the country's biggest company by revenue.
Reliance, in the 2018-19 fiscal year that ended March 31, reported a turnover of Rs. 6.23 lakh crore.
In comparison, IOC posted a turnover of Rs. 6.17 lakh crore for the fiscal.
It was also the most profitable company in the country with a net profit of more than double that of IOC in FY2019.

Reliance Retail Set to Disrupt Amazon, Walmart-Flipkart

Reliance Retail's upcoming entry into the online retail sector is the biggest challenge for Amazon and Walmart-Flipkart as the Mukesh Ambani-led behemoth is well positioned to create massive disruption in the market.
According to the global market research firm Forrester, the online retail sales in India will grow at a five-year CAGR of 25.8 per cent to reach $85 billion by 2023, despite the hiccups of demonetization in 2016, GST in 2017 and the governmental changes in e-Commerce policy announced in December 2018.
The time is ripe for Reliance Retail, which operates 10,415 stores in more than 6,600 cities, with 500 million annual footfalls - giving the company the kind of scale required to swiftly launch India-based operations.
One of the things that will trouble Amazon and Flipkart is Reliance's history of launching operations via massive discounts.

Indian Terrain Plans European Foray

As per reports, Indian Terrain Fashions Ltd. (ITFL), a leading player in branded, men's casual wear, is toying with the idea of foraying overseas.
According to V. Rajgopal, founder-chairman, ITFL, to start with, one outlet in Denmark would be seeded to see the results.

PNB Likely to Take Control of Small State-run Banks

India's Punjab National Bank is looking to merge with two or three government owned banks that could include Oriental Bank Of Commerce, Andhra Bank and Allahabad Bank, as New Delhi tries to cut the number of state-owned lenders.
This could be one of the first decisions to be taken by the new government after election results to be announced.
Banking sector reform is unfinished business from the last five year term of Modi's government as banks struggle under a huge debt pile than of more than 9 trillion Indian rupees ($130 billion), or nearly 5% of the nation's gross domestic output.

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