Amid cash crunch, Jet Airways to face safety audit by aviation regulator
The Directorate General of Civil Aviation (DGCA), the aviation regulator, has decided to conduct an audit of Jet Airways, which is facing a severe liquidity crisis. Sources said the audit would focus on whether the financial stress was affecting the airline’s operations and maintenance. Jet said it was aware of the proposed inspection. “The airline is prepared for it (audit). At Jet, safety is of paramount importance,” a source said. A senior DGCA official said the audit was necessitated according to the guidelines of the International Civil Aviation Organization (ICAO), which recommends the regulator to check security and safety standards of airlines.
Sebi plans to cap investors’ equity exposure in line with net worth
The Securities and Exchange Board of India (Sebi) is planning to limit investors’ exposure to shares and equity derivatives in line with their net worth, said three people with knowledge of the development. The move is aimed at preventing individuals from going overboard on equity investments, considered riskier than bonds. Sebi has sounded out stock brokers on the proposal, according to market participants. It wants investors’ assets certified by chartered accountants and brokers, who will decide the extent of their equity exposure, said one broker. The proposal is similar to the concept of accredited investors in some developed markets.
SBI to sell NPAs Bombay Rayon Fashions, Shivam Dhatu worth Rs 2,490 cr
SBI will sell two non-performing assets (NPAs) worth about Rs 2,490 crore and has invited bids for them. In terms of the bank’s revised policy on sale of financial assets in line with the regulatory guidelines, “we place these accounts for sale to ARCs/banks/ NBFCs/FIs”, State Bank of India said in the bid documents. The two accounts on sale are — Bombay Rayon Fashions Ltd which owes Rs 2,260.79 crore to the bank. The second account, Shivam Dhatu Udyog Pvt Ltd, has to repay Rs 229.32 crore. The loan dues from Bombay Rayon exclude equity investment. As per data from BSE, Bombay Rayon has 61.65 per cent public shareholding.
BPCL gets green nod for Rs 747 crore ethanol project in Odessa
State-run Bharat Petroleum Corp Ltd (BPCL) has been given green nod for setting up a second-generation ethanol plant in Odessa that would entail an investment of Rs 747.46 crore, according to a senior government official. The ethanol bio-refinery with a capacity of 100 kilo litre per day (KLPD) will be set up at Baulsingha village in Bargarh district in an area of 58.44 acres. The project is in line with the government’s national bio-fuel policy, which mandates 5 per cent blending of ethanol with petrol. “Last month, the Environment Assessment Committee (EAC) vetted the BPCL’s proposal and gave a recommendation that the environment clearance (EC) be given to the ethanol project.
PVR to buy SPI Cinemas for Rs 850 cr in cash & stock
Bringing years of speculation to an end, India’s largest theatre chain PVR on Sunday announced that it is acquiring Chennai-based SPI Cinemas in a cash-cum-stock deal valued at over Rs 850 crore. Under the terms of the proposed acquisition, PVR will acquire a 71.7 per cent stake in SPI Cinemas, a significant player in South India, for Rs 633 crore and issue 1.6 million equity shares of PVR constituting 3.3 per cent of the diluted paid-up equity share capital of the company valued at around 212 crore. With a network of 76 screens (68 operational and eight expected to commence shortly) across 17 properties in 10 cities, SPI expects to roll out 100 more screens over the next five years.
Wipro, ITC, Cadila take lead in race to acquire Complan
ITC Ltd, Wipro Consumer Care & Lighting Ltd and Cadila Healthcare Ltd are readying to submit binding offers to buy Kraft Heinz India’s popular nutritional drink brand, Complan, two people directly aware of the development said. All three bidders are expected to submit binding bids by 15 September, the deadline set by the investment bankers—JP Morgan and Lazard—managing the transaction, the people cited above said, requesting anonymity as the discussions are private. “The bids are expected to be in the range of $700-800 million,” one of the two people cited above said. Complan has around 8% share of the Rs 5,500 crore nutritional drink market in India.
FinMin unlikely to heed RBI’s demand for greater power over PSU banks
The finance ministry may not accede to the Reserve Bank of India’s demand for greater regulatory and supervisory powers over state-run banks. After the government criticized the central bank for its failure to detect the massive Rs 14,356 crore frauds at the Punjab National Bank (PNB), RBI had requested the government to stop issuing regulatory instructions applicable only to public sector banks, given that “dual regulation” is discriminatory. The central bank also said that it should be the sole regulator for banks and the regulations should be uniformly applicable to all commercial banks.
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