Greenko Group buys Orange Renewable at billion-dollar valuation
Greenko Group has agreed to buy Orange Renewable from Singapore’s AT Capital Group at an enterprise value of $1 billion, Greenko Group founder Mahesh Kolli said. Greenko, backed by sovereign wealth funds GIC Holdings Pvt Ltd and Abu Dhabi Investment Authority, will make an equity payout of around $300 million, said Kolli, who is also president and joint managing director of Greenko. Once the transaction is completed, Greenko’s total renewable energy operational capacity will increase by 1 gig watt (GW) to 4.2GW, the second largest in India after ReNew Power Ventures Pvt. Ltd.
Insolvency: UltraTech keeps options open for Binani Cement takeover
UltraTech Cement is keeping its options open regarding Binani Cement’s stressed assets, on other than the legal insolvency process. This is despite it becoming the new H1 bidder under the law’s framework, replacing the Dalmia Bharat-led consortium, for a takeover. The Aditya Birla Group Company has deposited Rs 6.52 billion with the lenders, sources told Business Standard. This was after the Committee of Creditors (CoC) to the insolvent entity had issued it a Letter of Intent (LoI).
Air India stake sale: Govt 24% stake may have put investors off
The Centre’s decision to retain a significant minority stake in debt-laden Air India after its privatisation is seen as the primary reason behind the muted response to the proposed disinvestment in the national carrier. “The government decision to retain 24% post-divestment was a non-starter,” said an aviation industry veteran, aware of the discussions around the sale of government equity in the loss-making airline. A government official close to the bidding process also told ET that there was no point in keeping a residual stake.
Sebi notice says Chanda Kochhar violated the code of conduct
India’s capital market regulator has said in a show cause notice that ICICI Bank’s chief executive Chanda Kochhar didn’t adhere to its code of conduct, which required the disclosure of any conflict of interest in the case involving Videocon Group and NuPower Renewables, a firm owned by her husband Deepak Kochhar. The show cause notice also said that the bank indirectly violated the disclosure norms of the Securities and Exchange Board of India (Sebi) by not divulging this information, according to people with knowledge of the matter.
Q4 results: Toplines still weak, profits even weaker
Despite the turnaround in the commodities space, which has seen metals producers swing from losses to profits, India Inc’s performance in the March quarter has been less than ordinary. That’s despite a favourable base effect — Q4FY17 was the first full quarter post-demonetisation. At 13.6%, the operating profit margin for a sample of 1,528 companies was the lowest in at least eight quarters; in Q4FY18, the OPM contracted by 114 basis points. Excluding other income, the net profits for the sample actually fell 2.6% y-o-y compared with an increase of 24% y-o-y in Q3FY18.
Flipkart Deal: Tax Department Will Act Once Walmart Obtains Regulatory Nod
E-commerce major Flipkart has shared some details with the income tax authorities on its $16-billion deal with U.S.-based Walmart, but the Income Tax Department will act only after regulatory approvals have been obtained, an official said. The department is currently studying the details received from the company, the official said, adding that they can issue notices seeking details of taxes withheld once the transactions are completed. Last month, the tax department had written to Bentonville, Arkansas-based Walmart saying that the U.S. Company can seek guidance about the tax liability under Section 195 (2) of the Income Tax Act. Under Section 195 of the Act, anyone making payment to non-residents is required to deduct tax (commonly known as withholding tax).
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