The Shapoorji Pallonji Group is in talks with foreign investors to raise Rs 4,000 crore as debt to repay Indian lenders. The Union Cabinet cleared a Bill to set up a development finance institution with initial paid-up capital of Rs 20,000 crore. Tata Sons will close financial year 2020-21 with acquisitions of stake in subsidiaries. Here is about those headlines.
- Tata Sons, the Tata group’s holding company, is closing financial year 2020-21 with acquisitions of stake in AirAsia India from its Malaysian partner, the defence business of Tata Power, and additional stake in Tata Communications from the government. It will pay $1.2 billion to acquire online grocer Big Basket via a subsidiary.
- Anil Agarwal, billionaire founder of the Vedanta Group, has pledged his stake in a cash-rich Indian unit to help sweeten terms for a takeover attempt that’s key to his debt-repayment plans. London-based Vedanta Resources Ltd. will now seek to buy 17.51% of Mumbai-listed Vedanta Ltd. At Rs 235 ($3.24) a share, it said in an exchange filing.
- The Shapoorji Pallonji (SP) Group is in talks with foreign investors to raise Rs 4,000 crore as debt to repay Indian lenders, scrambling before a March-end deadline ends. SP has placed three assets on the block as is fights a legal battle with Tata Sons over its 18.5 per cent stake in the conglomerate.
- Vinay Dube, former CEO of Jet Airways and GoAir, is considering launching an airline. He has teamed up with his airline colleagues Praveen Iyer and Nikhil Ved and held talks with aircraft manufacturers. The plan is to start operations with five aircraft by yearend.
- The Union Cabinet cleared a Bill to set up a development finance institution (DFI) with initial paid-up capital of Rs 20,000 crore to provide funds infrastructure projects in the country. The new institution would be government-owned and it is expected to raise Rs 3 trillion from the markets in a few years.
- Vodafone Idea added 1.7 million subscribersin January: the first time it do so in 15 months. Bharti Airtel led by adding 5.9 million subscribers and Reliance Jio 1.95 million. Jio ranks number one, with a wireless base of 410.7 million wireless subscribers.
- Some of Europe’s biggest countries including Germany, Italy, Spain, Portugal and France are suspending the use of AstraZeneca Plc’s vaccine amid a health scare related to reports of blood clotting. Venezuela won’t approve the vaccine, and the Africa Centres for Disease Control is reviewing its guidance.
A few links for further reading
Hard path to growth
The signals for the economy are not positive: overall demand is yet to pick up; the share of total exports in India’s GDP is declining, and industrial output pattern remains worrying.
Small savings scheme
Investors breathed a sigh of relief when the government announced that interest rates on these instruments would not be revised for the fourth quarter of the calendar year.
Invest and emigrate
The great Indian dream of settling abroad is achievable if one has a few crores to invest. Rich nations offer a variety of investment options in a quid pro quo arrangement: immigrants get a better quality of life and revenue from them helps these countries’ finances. Wealthy Indians, troubled by polluted cities and the red tape holding up entrepreneurship, may want a quick ticket out of the country. Sanjay Kumar Singh lists a range of options: from a Canadian province’s investor programme to America’s US EB-5 plan.