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Adani’s Firm Plans To Raise 1.8 Bn USD In New Shares

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The issuance for a stock witnessed outsized gains, will test investor appetite, compounded by lower liquidity relative to peers and sparse analyst coverage. Presently, that valuation of Adani Enterprises at which it is being traded is 164 times of its one-year forward earnings

Asia’s richest person Gautam Adani’s flagship firm Adani Enterprises is planning to issue nearly 1.8 billion dollar in new shares, as reported by a media house.

The multi-billionaire business tycoon Gautam Adani’s conglomerate is working with advisers on the follow-on issue and may sell the shares soon in the coming year. The sale may reach nearly 2.4 billion dollar, the report added.

The issuance for a stock witnessed outsized gains, will test investor appetite, compounded by lower liquidity relative to peers and sparse analyst coverage.

Previously, the conglomerate had attributed the small free float to the Adani family holding nearly 75 per cent of Adani Enterprises. Early in this year it said that planning to increase the free float.

The shares in Adani Enterprises have jumped 134 per cent in the year to date, which gave it a market value of around 55.5 billion dollar. India’s NSE Nifty 50 index rose just 5.1 per cent over the same period. It added Adani’s flagship in the gauge during September.

Presently, that valuation of Adani Enterprises at which it is being traded is 164 times of its one-year forward earnings. Nifty, in comparison, is trading at a multiple of about 20 times and Reliance Industries being the largest firm in India by market value is trading at around 21 times, according to the media report.

The details of the fundraise along with the size and timing which may still change and deliberations are ongoing, the report added.

The company will hold board meet on 25 November in order to discuss raising funds, said the company in an exchange filing on 22 November.

Adani’s group planning to raise nearly 10 billion dollar in new debt in the coming year as the conglomerate seeks to refinance its high-cost borrowings and fund projects in the pipeline. The effort may initiate in the ongoing December quarter.

Gautam Adani being the third richest person on planet, has made forays into a diverse array of businesses with dealmaking recently. Adani spearheaded a 10.5 billion-dollar acquisition of Holcim’s local cement assets, making it India’s second biggest deal of the year.

Also, the firm is making a bid to take over New Delhi Television (NDTV), with the disclosure of an indirect 29.2 per cent stake in the broadcaster. This triggered an open offer that launched on 22 November and will run until 5 December.

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InCred Asset Mgmt Raises Rs 300 Cr In Funding

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Expectedly, fund will make 20-25 debt investments at 16-18 per cent rate whereas nearly 10 are already in the pipeline, according to an official. InCred Credit Opportunities Fund I (ICOF-I) is the first alternatives offering from InCred

The InCred Asset Management made announcement of raising of Rs 300 crore from large family offices and high net worth individuals for its maiden credit fund – InCred Credit Opportunities Fund I (ICOF-I). Whereas the intended base fund size was Rs 500 crore.

Along with providing flexible secured debt financing to emerging corporates and financial institutions, ICOF-I is the first alternatives offering from InCred.

During the first close within three months of its launch, the fund crossed 60 per cent subscription, according to the company.

Expectedly, fund will make 20-25 debt investments at 16-18 per cent rate whereas nearly 10 are already in the pipeline, according to an official.

Due to a volatile equity market, the fund offers an alternate investment product for the investors, the official added. Led by a differentiated fund strategy along with growing appetite amongst investors for high yield debt products as an effective diversification play, there is a strong demand for this yield-oriented fund.

NITIN GADKARI

Road Projects In Northeast Worth Rs 3-Trillion To Be Completed By 2024: Gadkari

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Nearly worth Rs 3 lakh crore funds are invested, if the projects that are underway or have been built, along with the upcoming ones. In order to improve connectivity in the region, this came in line with central government’s commitment, said Nitin Gadkari

The union transport minister Nitin Gadkari said that road projects worth around Rs 3 lakh crore will be completed in northeast region by 2024 end, on 11 November. In order to improve connectivity in the region, this came in line with central government’s commitment, he added.

Also, the minster said that the government was prepared for the allocation of projects worth another Rs 2 lakh crore for the region. However, this may happen only if timely solution is given to the issues related to land acquisition and forest clearances by the state governments.

While addressing the press meet Gadkari said that nearly worth Rs 3 lakh crore funds are invested, if the projects that are underway or have been built, along with the upcoming ones. All these projects will be completed by 2024″.

Apart from the major road projects, there are various other projects being undertaken in the region for ropeways, bridges, logistics and wayside amenities, he added.

rupee

Rupee Rises 43 Paise To Settle At 81.43 Against US Dollar

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Forex traders attributed a steady inflow of foreign funds to support the local currency

The Indian rupee rose 43 paise on Wednesday to close at 81.43 against the US dollar due to broad weakness in the dollar and improving global risk sentiments.

The Indian rupee opened at 81.36 on Wednesday and traded between 81.21 and 81.62 during the day. It had closed at 81.91 against the greenback on Monday.

The forex market was closed on Tuesday on account of Gurunanak Jayanti.

Forex traders attributed a steady inflow of foreign funds to support the local currency.

They said that FPI inflows are returning to domestic equities, aiding the local currency.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets as they purchased shares worth Rs 1,948.51 crore on Monday, according to exchange data.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.01 per cent to 109.64.

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CarDekho To Introduce 100 Million Dollar In Rupyy

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IPO-Bound company is keeping a focus on EV Financing as part of its initial rollout plan. It is in the process of setting up pan India tie-ups with OEMs (original equipment manufacturer) in the space. It raised 250 million dollar in October last year. It took its valuation to 1.2 billion dollar making the company the 31st unicorn of 2021 in the country

The IPO-Bound car search platform CarDekho Group said it aims to introduce 100 million dollar in its Fintech entity called Rupyy keeping a mix of debt and equity, on 7 November.

During September, Rupyy crossed over Rs 500 crore of monthly disbursal volume of car loans. The brand planning to achieve Rs 10,000 crore annualised disbursals by March 2023.

The company is keeping a focus on EV Financing as part of its initial rollout plan. It is in the process of setting up pan India tie-ups with OEMs (original equipment manufacturer) in the space.

Co-Founder and CEO, Rupyy, Namit Jain said that the infusion coming from the parent company will provide a boost to the processes’ manifolds. With the company expanding in various verticals and enter new regional markets, it aims to represent 35 to 40 per cent of the segment’s market share.

CarDekho raised 250 million dollar in October last year. It took its valuation to 1.2 billion dollar making the company the 31st unicorn of 2021 in the country. In order to scale up the NBFC Business, and technology and launch new product categories, the infusion has been planned, said CarDekho.

Recently, Rupyy released the largest QR code-based loan platform in India. It is made available to more than 2,200 vehicle dealerships and distributors nationwide. Also, it launched the new car loan category levelling it up to a Rs 50 crore monthly disbursals rate within few months.

Co-Founder and CEO, CarDekho Group, Amit Jain said that being on a strong path of growth, Rupyy with this infusion is ready to disrupt the entire used-car finance business of the country and take it to a whole new level.

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Go First May Avail Rs 600 Cr Loan Under ECLGS

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The promoters of the airline have introduced nearly Rs 2,800 crore in the last 15 months. In the last month, the government altering the ECLGS had raised the limit of loan that can be availed by an organisation from Rs 400 crore to Rs 1,500 crore

The low-cost airline Go First is planning to get a loan of Rs 600 crore under the Emergency Credit Line Guarantee Scheme (ECLGS) soon. The funds, if availed, will be utilised for its operations considering the rise in air travel demand, reported a media house.

Also, also the promoters of the airline have introduced nearly Rs 2,800 crore in the last 15 months. It helped the carrier deal with multiple headwinds, which include those occurred due to the pandemic, travel curbs and higher fuel costs, the report added.

In the last month, the government altering the ECLGS had raised the limit of loan that can be availed by an organisation from Rs 400 crore to Rs 1,500 crore. This move was taken to extend a help to the airline industry, which was majorly disturbed by the pandemic, and is now on the path of recovery.

As per the report, till date, the airline has availed Rs 400 crore in total under the ECLGS and it will be applying for Rs 600 crore in coming few days. Banks such as Central Bank, Bank of Baroda and IDBI would be among lenders and will be approached in the first place to avail the funds.

The airline now can avail only up to Rs 600 crore from the remaining Rs 1,100 crore funds available under the scheme. The remaining amount can be availed after being approved by the government. It will include the clarity on the quantity of equity that has been introduced by the promoters, the report added. 

Currently, the company in total has a cumulative working capital loan of Rs 2,650 crore. The Go First carried around 8.15 lakh domestic passengers with a market share was at 7.9 per cent, in September. 

Early in this week, Centre for Asia Pacific aviation, an aviation consultancy firm, had estimated that Indian airlines’ losses may exceed USD 2.5 billion in this fiscal. Its current projection exceeds the earlier one of USD 1.4-1.7 billion for the same period.

indian rupee

Enforcement Directorate Freezes Rs 46.67 Cr Funds

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The assets have been frozen under the anti-money laundering law. The pursuits were sent off on September 14 at various premises of the denounced in Delhi, Mumbai, Ghaziabad, Lucknow and Gaya

The Enforcement Directorate on Friday said it has frozen funds worth Rs 46.67 crore kept in with Easebuzz, Razorpay, Cashfree and Paytm. The ED carried raids this week against these Chinese-controlled payment apps and investment tokens. The assets have been frozen under the anti-money laundering law. The pursuits were sent off on September 14 at various premises of the denounced in Delhi, Mumbai, Ghaziabad, Lucknow and Gaya.

16 premises of banks and payment passages in Delhi, Gurugram, Mumbai, Pune, Chennai, Hyderabad, Jaipur, Jodhpur and Bengaluru in regard of an examination connected with an application based token named HPZ and related substances were likewise covered, the government organisation said in an explanation. The tax evasion case originates from an October, 2021 FIR recorded by the cyber crime unit of Kohima Police in Nagaland, it said.

However Cashfree Payments’ spokesperson said, “We continue to extend our diligent co-operation to the ED operations. We were able to provide the required and necessary information within a few hours on the day of enquiry. The operations and on-boarding processes of Cashfree Payments are fully compliant with existing regulations.”

While EaseBuzz spokesperson said, “We, at Easebuzz, would like to clarify that none of the parties mentioned in the ED’s statement belonged to our merchant base. The mentioned entities by authorities were only the counterparties of the merchant, who was using our payment gateway and this merchant had been proactively identified and blocked by us much before the investigation had started, as per our internal risk and compliance process. We intend to fully co-operate with the investigation authorities, as we are committed to ensure that our business operations comply with the existing regulations.”

money

Piramal For A Change In Compensation Structures

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Piramal said a finance sector professional needs to have highest integrity, deep knowledge of the sector and understanding of technology and also humility to be open to flags of concern being raised by someone

Piramal Finance chairman Ajay Piramal on Friday pitched for a need to change the compensation and incentive structures in the financial services space.

Piramal, whose business interests straddle various sectors, said an executive is rewarded upfront for writing a long-term loan which can also go awry by becoming a non-performing asset in the future. Piramal said a finance sector professional needs to have highest integrity, deep knowledge of the sector and understanding of technology and also humility to be open to flags of concern being raised by someone.

He said the higher cost of funds does not allow the non-bank lender led by him to compete with banks, and hence it has chosen to play in tier-II and III markets where rates are not so important. Piramal said there is a need for more banks to be allowed into the country, pointing out that even though licences have been put on tap by RBI, no single entity has received those since 2015.

The US has 45,000 banks despite having lower population, while India has only 45 banks in comparison, he said, underlining the credit flow will have to grow to achieve ambitions like having a USD 10 trillion economy by 2030.

He also pitched for more NBFCs to be allowed into deposit accepting, and pointed out that there is a freeze on such licences now. The financial sector’s credit growth has to be over 16 per cent for a real GDP growth of 8 per cent, he said, adding that if we as a country are not able to meet growth aspirations, we cannot leverage on the demographic dividend. 

PTI

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I Wish Company & Board A Speedy Recovery, Says Ashneer Grover

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BharatPe Board on Wednesday, in a statement, accused Grover and his family of engaging in extensive misappropriation of company funds

Hours after BharatPe Board’s statement on Wednesday, which stated misappropriation of funds by Ashneer Grover and his family members, Grover has hit back at the board on the allegations.

“I am appalled at the personal nature of the company’s statement but not surprised. It comes from a position of personal hatred and low thinking,” Grover said.

The company, in a statement on Wednesday, said, “The Grover family and their relatives engaged in extensive misappropriation of company funds, including, but not limited to, creating fake vendors through which they siphoned money away from the company’s account and grossly abused company expense accounts to enrich themselves and fund their lavish lifestyles.

He raised questions on the external auditors who were tasked to carry out the governance review. “I would also want to learn who among Amarchand, PWC and A&M has started doing an audit on ‘lavishness’ of one’s lifestyle? The only thing lavish about me is my dreams and ability to achieve them against all odds through hard work and enterprise.” Grover said while speaking to BW Businessworld.

The company also stated that it reserves the right to legal action against the embattled cofounder who quit yesterday as managing director and board director hours after an extensive late night board meeting.

“I think the board needs to be reminded of $1 million of secondary shares investors bought from me in Series C, $2.5 million in Series D and $8.5 million in Series E,” Grover stated.

He urged the board to get back to working soon and expressed concerns over the company’s value destruction. “I hope the board can get back to working soon. I, as a shareholder, am worried about the value destruction. I wish the company and the board a speedy recovery,” Grover said.

IPO

LIC Sits On Over Rs 21,500 Cr Unclaimed Funds

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As per the Draft Red Herring Prospectus (DRHP) filed by the Life Insurance Corporation of India (LIC), the unclaimed amount was at Rs 18,495 crore at the end of March 2021 and Rs 16,052.65 crore at the end of March 2020

State-owned insurance behemoth LIC had unclaimed funds to the tune of Rs 21,539 crore as of September 2021, according to draft prospectus filed for IPO with market regulator Sebi.

This includes interest earned over the outstanding unclaimed amount.

As per the Draft Red Herring Prospectus (DRHP) filed by the Life Insurance Corporation of India (LIC), the unclaimed amount was at Rs 18,495 crore at the end of March 2021 and Rs 16,052.65 crore at the end of March 2020.

The total unclaimed amount stood at Rs 13,843.70 crore at the end of March 2019.

Every insurer is required to display information about any unclaimed amount of Rs 1,000 or more on their respective websites (to continue even after completion of 10 years) and a facility is to be provided on the website to enable policyholders or beneficiaries to verify unclaimed amount due to them.

Further, it said, the unclaimed amounts circular by Insurance Regulatory and Development Authority of India (IRDAI) prescribes the procedures relating to the mode of payment of the unclaimed amount, communication to the policyholders, accounting, utilization of investment income etc.

The SCWF Act mandates the transfer of unclaimed amounts of the policyholders held beyond a period of 10 years to the Senior Citizens’ Welfare Fund (SCWF).

The Senior Citizens’ Welfare Fund Rules, 2016 (SCWF Rules) specifies the entities that are required to transfer the amounts into the SCWF and contains provisions pertaining to administration of the SCWF, it said.

The Unclaimed Amounts Circular prescribes that the unclaimed amount, on completion of 10 years, be treated in accordance with SCWF Rules, it said.

“All insurers must adhere to the accounting procedure issued by Budget Division, Department of Economic Affairs, the Ministry of Finance for transfer of the unclaimed amounts into the SCWF,” it said.

Every financial year the process laid down in the SCWF Rules read with the accounting procedure for transfer of the funds into the SCWF must be followed, it said, adding all insurers must make transfers to the SCWF on or before March 1 every year. 

(PTI)

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