Adani group, Reliance Industries, Tata lead race to buy bankrupt firms
Better credit metrics and a zero default track record with banks is helping large conglomerates, led by Adani group, Mukesh Ambani’s Reliance Industries (RIL), and Tata group, snap up bankrupt companies. They are fast emerging winners under the Insolvency and Bankruptcy Code (IBC), 2016. The Sajjan Jindal-owned JSW Group is also in the race to buy stressed assets, but so far it has had limited success. After Tata Steel took over Bhushan Steel by paying Rs 352 billion to banks, Tata Power, in a joint venture (JV) with ICICI Ventures, is leading the race to bag Prayagraj Power by offering Rs 60 billion and 15 per cent equity to banks, say bankers.
Physical settlement in F&O to attract 0.10% STT: CBDT tells HC
The Central Board of Direct Taxes (CBDT) today told the Bombay High Court that 0.10 per cent securities transactions tax (STT) would be levied on physical delivery of shares in the equity derivatives segment. A division bench of justices B R Gavai and M S Karnik had last week sought clarity from the CBDT on the STT rate after the Association of National Exchange Members of India (ANMI) filed a petition claiming anomalies on the issue. The ANMI had challenged a July 17 circular issued by the National Stock Exchange (NSE) directing the members in the equity derivatives segment to collect the STT on physical settlement of stock derivatives at the rate of 0.10 per cent with effect from July 26.
RBI circular: Gencos to move SC after HC refuses to give relief
Independent Power Producers Association of India (IPPI) is likely to move the Supreme Court on Wednesday, challenging the Allahabad High Court’s order that denied any immediate relief to power companies against the Reserve Bank of India’s (RBI) February 12 circular on bad loans. Sources told FE that many power companies are also contemplating moving the SC for a stay on the HC order. Some may also move the HC individually for seeking interim relief, as the HC itself granted them liberty to do so. “IPPA or APP (Association of Power Producers) are at liberty to apply for urgent interim relief if need so arises, placing the requisite factual details on record,” the HC said while refusing interim relief.
Flipkart-Walmart deal: No smooth sailing ahead? CAIT moves NCLAT against CCI’s approval of acquisition
Traders’ body CAIT today said it has filed a petition in National Company Law Appellate Tribunal (NCLAT) against the Competition Commission of India’s decision to approve Walmart-Flipkart deal. Confederation of All India Traders (CAIT) in its appeal said, the body has prayed for reversing the order of CCI as no opportunity of hearing was given to them. The CCI on August 8 has said that it has approved US retail giant Walmart’s acquisition of Flipkart. The traders’ body said it had filed detailed objection against this deal before the CCI on several grounds.
12 GW stressed power assets may find buyers in 15 days
Around eight power projects totalling 12,000 MW and Rs 70,000 crore in outstanding debt are likely to find buyers in the next 15 days after the Allahabad High Court asked the government to expedite resolution of stressed power assets. According to the report of the standing committee on power, bids for eight power projects have been floated where firms have shown interest. Analysts believe these projects have strong potential to find buyers in the next 15 days. Another 8,800 MW of projects with Rs 36,300 crore of outstanding loans have been resolved, while 6,100 MW assets with Rs 24,400 crore worth of loans have been referred to the NCLT.
UTI MF case: T Rowe withdraws petition from Bombay High Court
US-headquartered T Rowe Price International, the single largest shareholder of UTI Mutual Fund, has withdrawn a petition filed in the Bombay High Court against the Centre and four other shareholders — SBI, LIC, Punjab National Bank and Bank of Baroda. The withdrawal of petition follows the public sector entities assuring T Rowe that they will abide by SEBI norms and bring down their stakes before the March 2019 deadline. SEBI has also taken a view that T Rowe need not reduce its stake in UTI Mutual Fund.
I-Sec row: ICICI Prudential books 97-crore loss, repays investors
To comply with market regulator SEBI’s direction, ICICI Prudential Mutual Fund has booked a loss of 97 crore by selling 4.61 million shares of ICICI Securities (I-Sec) stocks below its IPO subscription price of 520 a share and repaid investors with 15 per cent interest last Friday. The country’s largest asset management company had sold I-Sec shares at between 325 and 330 apiece earlier this month. The regulator had advised the AMC to repay 240 crore with interest of 15 per cent a year to investors of five schemes from the date of allotment to the date of actual payment, said an official spokesperson of the AMC.
Bhushan Power: Liberty House not keen on price war with JSW Steel
The UK-based Indian billionaire Sanjeev Gupta-owned Liberty House will not engage in a bidding war with JSW Steel in the insolvency-driven resolution process for Bhushan Power and Steel. The company will wait for the NCLAT (National Company Law Appellate Tribunal) hearing on September 6 to understand whether revision of bids is allowed at the last moment. “The court will decide if JSW Steel is qualified to revise the bid late. We are unlikely to enter into a price war as our bid is already very high reflecting our strategic desire to enter the Indian market. We do not see any logic in revising our bid higher but will decide after the court hearing,” said sources close to the company.
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