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Govt May Sell 5-10% Stake In CIL, Hindustan Zinc, Rashtriya Chemicals

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According to a media survey, the sales at the lower end of the range with current prices may yield the government nearly Rs 16,500 crore (2 billion dollar). Earlier, a budget of Rs 65,000 crore for India from such asset sales in the year during March was set

India is planning to sell small stakes in state-run firms along with the biggest coal miner in the world and largest zinc producer in Asia. This will result in a stock market boom and will boost revenue in the final quarter of the financial year, according to a media report.

The government may sell 5 to 10 per cent in Coal India Limited (CIL), Hindustan Zinc, Rashtriya Chemicals and Fertilizers, through offer-for-sale mechanism, the report added. Along with one listed entity under the railway ministry, all five firms could be chosen.

According to a media survey, the sales at the lower end of the range with current prices may yield the government nearly Rs 16,500 crore (2 billion dollar).

Backed by a healthy pace of economic growth, local stocks are reported a record high and the cash raised will boost Prime Minister Narendra Modi’s administration fund and its subsidy bill that has gone up partly due to the war in Ukraine.

Earlier, a budget of Rs 65,000 crore for India from such asset sales in the year during March was set. The amount raised so far could reach just one-third of the target, majorly from the initial public offering of Life Insurance Corporation in May contributing to 2.7 billion dollar.

In order to measure the investor’s interest in the stake sales, roadshows have begun, said the media report.

Coal India registered a surge of around 46 per cent during last year, whereas Rashtriya Chemicals was reported 58 per cent. Leaving behind the benchmark S and P BSE Sensex’s roughly 6 per cent advance.

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Airasia Sells Remaining Stake To Air India

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The Malaysian group received Rs 155 crore from this deal resulting in moving full ownership to the Tata Group. The group CEO of the AirAsia Aviation Group, Bo Lingam said that the decision taken was best suited for AirAsia in order to develop an Asean-only business

The Malaysian multinational airline AisAisa Bhd sold 16.33 per cent, being the remaining stake, in AirAsia India to Air India which is now owned by Tata. This move is followed by the recent acquisition by Tata from AirAsia Berhad of a 32.7 per cent stake for Rs 276.29 crore in December 2020.

The Malaysian group received Rs 155 crore from this deal resulting in moving full ownership to the Tata Group. After the Tata group acquired Air India last year, now it aims to consolidate its aviation businesses. Expectedly, it may merge AirAsia India and Air India Express as part of consolidation.

The group CEO of the AirAsia Aviation Group, Bo Lingam said that the decision taken was best suited for AirAsia in order to develop an Asean-only business.

Various other Malaysian airlines will continue to serve, as India will always remain an important market for AirAsia. The experience gained from the domestic market operations for AseanIndian market’s growth in logistics and passenger services to a far greater extent, will be utilised, he added.

Back in 2014, AirAsia India’s began its journey, when the Tata Group shook hands with Tony Fernandes who was then the owner of the AirAsia Group, in order to enter the low-cost aviation space.

However, the deal could not attract much traction in the competitive Indian market. Apart from this first information report (FIR) was also filed by the Central Bureau of investigation (CBI) filed a in 2018 against Fernandes alleging him having paid bribes to boost permission for international operations.

A working group was formed for evaluation and execution of the integration of Air India Express with AirAsia India, said Air India. Sunil Bhaskaran, CEO and MD of AirAsia India, and Aloke Singh, CEO of Air India Express, lead the group.

Such group will report to a steering committee chaired by Campbell Wilson, CEO and MD of Air India, who will become the chairman of Air India Express and AirAsia India. The Air India group will mark its presence both in full-service and low-cost segments, reported a media house.

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GoI, LIC Together To Sell 60.72% Stake In IDBI Bank

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Sale of 60.72 per cent stake comprises a 30.48 per cent stake of the government of India and a 30.24 per cent stake of LIC.

The government in a notification said that it is planning to sell a 60.72% majority stake in IDBI (Industrial Development Bank of India) Bank and invites expressions of interest, on Friday.

Secretary, Department of Investment and Public Asset Management in a tweet on 7 October said, “Expression of Interest is invited for Strategic Disinvestment of specified government of India (GoI) and LIC (Life Insurance Corporation) stakes in IDBI Bank along with transfer of management control. Details are at dipam.gov.in.”

State-owned LIC of India will also be reducing its holding in IDBI Bank as part of the state’s divestment process.

Sale of 60.72 per cent stake comprises a 30.48 per cent stake from the government of India and a 30.24 per cent stake from LIC. The government of India held 45.48 per cent stake in IDBI bank while LIC held 49.24 per cent at the end of June.

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LIC Stake In Dr Reddy’s Laboratories Rises To 7.7%

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Purchase of 33,86,486 shares of DRL was made between 15 June 2022 and 30September 2022 by LIC.

Dr Reddy’s Laboratories Ltd said Life Insurance Corporation of India (LIC) has increased its stake in the pharmaceutical firm to 7.7 per cent. The stake increased through purchase of 33.86 lakh shares from open market over a certain period of time, said the firm on 3 October.

Dr Reddy’s Laboratories (DRL) during a regulatory filing said that earlier LIC held around 5.65 per cent stake in the company.

Purchase of 33,86,486 shares of DRL was made between 15 June 2022 and 30September 2022 by LIC. It aggregates to 2.034 per cent stake from the open market, it added. 

Afterwards, LIC’s holding in the company stands at 7.7 per cent, it added further.

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Adani Grouo To Acquire Additional 26 Per Cent Stakes Of NDTV

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Under an open offer, the Adani Group will acquire 1.67 crore equity shares. For this the share price has been fixed at Rs 294 per share. If the offer is fully subscribed, its total value at Rs 294 per share would be Rs 492.81 crore

According to the advertisement issued by JM Financial, which is managing this offer, this offer will probably close on November 1. The Adani Group will make an open offer on October 17 to acquire an additional 26 per cent stake in media company NDTV.

Under an open offer, the Adani Group will acquire 1.67 crore equity shares. For this the share price has been fixed at Rs 294 per share. If the offer is fully subscribed, its total value at Rs 294 per share would be Rs 492.81 crore.

The Adani Group on 23 August acquired Vishwapradhan Commercial Pvt Ltd. (VCPL) through acquisition of 29.18 percent stake in NDTV. VCPL holds 99.99 per cent stake in RRPR Holding. Subsequently, Adani group companies – VCPL, AMG Media Networks and Adani Enterprises – had proposed to acquire an additional 26 per cent stake in NDTV i.e. 1.67 crore equity shares.

Days after this announcement, the founders of NDTV had said that the deal could not go ahead without the approval of the Securities and Exchange Board of India (SEBI). SEBI, through an order passed on November 27, 2020, had banned NDTV founders Radhika Roy and Prannoy Roy from trading in the securities market for two years. This period of moratorium ends on 26 November.

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Vodafone In Talks To Sell 5% Stake In Indus Towers: Report

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Vodafone currently holds about 28 per cent in Indus Towers.

British telecom giant Vodafone is in discussions to sell around five per cent stake in Indus Towers to Bharti Airtel, according to industry sources.

When contacted, Vodafone refused to comment on the matter.

Vodafone currently holds about 28 per cent in Indus Towers.

The industry sources said that Vodafone is in talks to sell its about five per cent stake in Indus Towers, valued at over Rs 3,300 crore, to Bharti Airtel. The proceeds will be pumped into the Indian entity Vodafone Idea, they added.

Indus Towers Limited, formerly Bharti Infratel Limited, provides passive telecom infrastructure. It deploys, owns and manages telecom towers and communication structures for various mobile operators.

The company’s portfolio of over 1,84,748 telecom towers makes it one of the largest tower infrastructure providers in the country with presence in all 22 telecom circles. Indus Towers caters to all wireless telecommunication service providers in India.

(PTI)

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Reliance Takes 26% Stake In Delivery Firm Dunzo For $200 Mn

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Billionaire Mukesh Ambani-owned Reliance Industries said on Thursday its retail arm led a $240 million funding round in Bengaluru-based Dunzo which offers lightning fast delivery of groceries and medicines and even offers to pick up and drop off documents and other items.

Reliance Industries Ltd’s (RELI.NS) retail arm has invested $200 million for a 25.8% stake in Indian online delivery platform Dunzo to get a foothold into the rapidly growing market of superfast dispatch of household goods.

Billionaire Mukesh Ambani-owned Reliance Industries said on Thursday its retail arm led a $240 million funding round in Bengaluru-based Dunzo which offers lightning-fast delivery of groceries and medicines and even offers to pick up and drop off documents and other items.

“Our merchants will get access to the hyperlocal delivery network of Dunzo to support their growth,” said Isha Ambani, Director, Reliance Retail Ventures Ltd, adding the partnership will help them take advantage of the shift in consumption patterns towards online services.

Demand for services like Dunzo and SoftBank-backed Swiggy’s Genie boomed during the pandemic when people were ordered indoors and only delivery of essential items was allowed. This massive demand has also led players to intensify their battle in ensuring users are able to get their orders in 15 minutes or less.

Reliance has been ramping up its JioMart e-commerce arm in an effort to stave off competition from Amazon.com and Walmart Inc’s (WMT.N) Flipkart in an e-retail market India forecasts will be worth $200 billion by 2026.

“Reliance is getting into every key form of online retail. It is still early to gauge how this may pan out, but it looks like they aim to replicate their offline omnipresent dominance to online now,” said Bharat Birla, director at Anand Rathi Advisors in Mumbai.

Dunzo, which counts Alphabet Inc’s (GOOGL.O) Google and Lightrock among its backers, will use the funds to expand to 15 cities from its current seven-city operation.

Founded in 2006, Reliance retail owns brands across segments panning groceries, neighborhood convenience stores, electronic goods, clothes, jewellery, furniture and medicines.

(Reuters)

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Reliance Becomes Promoter In SWREL, Holds Over 40% Stake

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Earlier RNESL (acquirer), Reliance Industries Ltd (RIL), and Reliance Ventures Ltd (RVL) had made an initial payment of Rs 259 crore for the acquisition of 49,13,791 shares or 25.90 per equity stake in the SWREL, showed a BSE filing.

Sterling and Wilson Renewable Energy Ltd (SWREL) on Monday said that Reliance New Energy Solar Ltd (RNESL) has become its promoter post payment of balance Rs 1,583 crore for acquisition of 25.90 percent equity in it.

With this transaction, RNESL and other group firms together hold over 40 percent stake in SWREL.

Earlier RNESL (acquirer), Reliance Industries Ltd (RIL), and Reliance Ventures Ltd (RVL) had made an initial payment of Rs 259 crore for the acquisition of 49,13,791 shares or 25.90 per equity stake in the SWREL, showed a BSE filing.

Consequent to the allotment of the subscription shares and in accordance with the terms of the SSA and the SEBI (SAST) Regulations, the acquirer (RNESL) has been classified as a promoter of the target company (SWREL) along with the existing promoter and promoter group of the target company with effect from December 30, 2021, it stated.

On December 30, 2021, the acquirer deposited an additional over Rs 1,583 crore in the cash escrow account, opened by the acquirer, which together with the initial cash deposit of Rs 259.26 crore, made by the acquirer, “is equivalent to 100 percent of the offer consideration payable under the open offer, assuming full acceptance of the open offer”, it said.

It further stated that the target company, after the receipt of shareholders’ approval on November 2, 2021, fulfillment of other conditions precedents under the SSA and in accordance with the articles of association of the target company, issued and allotted the subscription shares to the acquirer on December 30, 2021.

Earlier in October this year, RNESL had executed definitive agreements with Shapoorji Pallonji and Company Private Ltd (SPCPL), Khurshed Daruvala, and Sterling & Wilson Solar Ltd (SWSL) to acquire 40 percent stake post-money in SWSL through a series of transactions.

Sterling & Wilson Solar Ltd is now known as Sterling and Wilson Renewable Energy.

Last week, SWREL also approved the allotment of 2.93 crore equity shares for Rs 1,099 crore to Reliance New Energy Solar Ltd.

Post this transaction, RNESL held 15.46 percent paid-up equity share capital of SWREL.

“The board of directors of the company at its meeting held on December 30, 2021, approved the allotment of 2,93,33,333 equity shares of face value rupee one each fully paid-up in a dematerialised form by way of preferential allotment for cash consideration, to RNESL at a price of Rs 375 per equity share aggregating to Rs 1,099.99 crore,” a regulatory filing had stated.

(PTI)

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Amazon To Acquire Full Stake In JV Prione Business Services

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In August, Amazon and NR Narayana Murthy’s Catamaran had announced that they will not continue their joint venture, Prione Business Services, beyond May 2022.

E-commerce major Amazon on Wednesday said it will acquire Prione Business Services – its joint venture firm with Catamaran, subject to requisite regulatory approvals.

In August, Amazon and NR Narayana Murthy’s Catamaran had announced that they will not continue their joint venture, Prione Business Services, beyond May 2022.

“Prione Business Services Pvt Ltd – the joint venture between Catamaran and Amazon – will be acquired by Amazon subject to requisite regulatory approvals…Amazon will acquire Catamaran’s shareholding in Prione in compliance with applicable laws including all assets and liabilities,” Amazon said in a statement on Wednesday.

The businesses of the JV will continue under the leadership of the current management and on receipt of regulatory approvals, the board of Prione and Cloudtail will take steps to complete the transaction in compliance with applicable laws, it added.

 Prione Business Services was formed in 2014 and was coming up for renewal on May 19, 2022. Amazon and Catamaran had not disclosed the reason behind the decision.

In 2018, the government had introduced stricter norms for e-commerce marketplaces with foreign investments, mandating that they do not sell products of their group companies on their platforms. Following that, Prione Business Services was restructured.

While the companies did not divulge details, sources had said Amazon’s holding came down from 49 per cent to 24 per cent stake post the restructuring.

(PTI)

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RBI Grants Approval To LIC To Up Stake In IndusInd Bank To Nearly 10%

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The RBI approval is subject to compliance with the direction on ‘Prior Approval for Acquisition of Shares and Voting Private Sector Banks’ as well as regulations of the Sebi and any guidelines or regulations.

Private bank IndusInd Bank on Friday said the RBI has given approval to Life Insurance Corporation to increase stake in the bank to nearly 10 percent. The bank has received an intimation from the RBI on December 9, 2021, that it has granted its approval to Life Insurance Corporation (LIC), a shareholder of the bank to acquire up to 9.99 percent of the total issued and paid-up capital of the bank, the bank said in a regulatory filing on stock exchanges. 

The state-run insurer holds 4.95 percent of the total issued and paid-up capital of the bank. The RBI approval is subject to compliance with the direction on ‘Prior Approval for Acquisition of Shares and Voting Private Sector Banks’ as well as regulations of the Sebi and any guidelines or regulations.

The Reserve Bank last month had accepted most of the recommendations of its working group on corporate ownership of private sector banks, by allowing unrestrained promoter shareholding in the first five years of operations. It recommended hiking the same to 26 percent after 15 years from the extant 15 percent and also the new capital requirements. This was deemed beneficial for banks like Kotak Mahindra Bank and IndusInd Bank. The said approval is valid for a period of one year i.e., up to December 8, 2022, the bank said.

IndusInd Bank shares were marginally up at Rs 947 on BSE in afternoon trade.

(PTI)

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