Singapore’s GIC leads race to buy 40% in DLF Cyber City Developers Limited for Rs 12,000 crores
GIC of Singapore is set to enter into exclusive bilateral negotiations with KP Singh and his family, the promoters of India’s largest real estate firm DLF Limited, to acquire their 40% stake in DLF Cyber City Developers Limited (DCCDL), the company that owns a portfolio of leased commercial assets, including the entire Cyber City complex in Gurgaon. The deal will help the promoters raise about Rs 12,000 crore, valuing the rental arm at nearly Rs 40,000 crore, inclusive of its Rs 10,000-11,000 crore debt, said two persons familiar with the negotiations.
Govt focus on clean economy, bold decisions, says Jaitley
The Modi government’s emphasis is on bold decision making and a clean economy with business friendly environment, the returns of which can be spent on the poor, Finance Minister Arun Jaitley said on Monday. He also said the fundamental problem during the UPA rule was that its Prime Minister (Manmohan Singh) was not a natural leader of the ruling party or the government that committed mistakes in its approach to policy as well as in intention. “But now we have someone who is willing to take courageous decisions in the form of Narendra Modi,” he added.
CPI-based inflation eases to a five-year low of 3.17% in January
Impacted by note ban, retail inflation fell to multi-year low of 3.17% in January mainly on account of declining prices of food items including vegetables and pulses. Retail inflation, measured in terms of Consumer Price Index (CPI), was at 3.41% in December. Last month’s inflation, down from 5.69% in January 2016, was lowest in at least over three years. Inflation in vegetables continued in the negative zone at -15.62% as against (-)14.59% a month earlier, as per the data from the Ministry of Statistics and Programme Implementation.
$11.5 billion NRI investment coming into realty, there is money to be made
Three months back, if someone would have recommended real estate stocks, you would have thought he must be joking. After the demonetisation drive in November, the real estate sector was left in the ruins as the worst casualty of the cash ban. But you will be in for surprise if I tell you that the S&P BSE Realty index, the barometer of the real estate sector, has actually delivered 14 per cent return so far in 2017 and is up nearly 2 per cent since demonetisation.
Source: Economic Times
Niti Aayog prepares model law for contract farmers
Government’s premier think-tank Niti Aayog is preparing a model contract farming law to connect farmers with the food processing industry. “Niti Aayog is preparing a model contract farming law that would connect farmers to the food processing industry,” Niti Aayog Vice-Chairman Arvind Panagariya said on Facebook. Finance Minister Arun Jaitley in his Budget speech had said: “We also propose to integrate farmers who grow fruits and vegetables with agro-processing units for better price realisation and reduction of post-harvest losses. A model law on contract farming would, therefore, be prepared and circulated among the states for adoption.”
Infosys board admits ‘cultural differences’
Infosys Chairman R Seshasayee admitted ‘cultural differences’ with its founders that has led to a public spat and assured that stakeholders would be consulted, even as he maintained that the board would assert its independence. Seshasayee, who has been called to account for “governance lapses” by founder N R Narayana Murthy, would not quit the company as he was elected by shareholders and the board, while pointing that Infosys would continue with the tradition of maintaining gold standard in corporate governance set by the founders.
NBCC might buy four smaller PSUs from government
State-owned construction and real estate company NBCC Ltd might buy four smaller public sector enterprises engaged in similar activities. This could be the first of many mergers and acquisitions by state-owned companies in 2017-18 as the Narendra Modi government looks at consolidation to shore up revenues from disinvestment. The four smaller firms which NBCC, a listed ‘Navratna’ company with a market cap of Rs 16,980 crore as of Monday, could buy are Hindustan Prefab, Engineering Projects India Ltd, NPCC Ltd, and HSCC. The Centre owns a 75 per cent stake in NBCC and a 100 per cent stake in others.
Note ban has hit collections of auto backed securities: Moody’s
The recent exercise to ban certain high-value denominated notes has proved ‘negative’ for the Indian auto asset backed securities (ABS) in the short term, Moody’s Investors Service has said. This has led to 1.3 per cent decline in collections for November 2016 and December 2016 and a 1.9- per cent increase in 30+days delinquencies in December 2016, this international rating agency said in a new report. However, the report highlighted that this negative impact of demonetisation is expected to be short lived. ABS are bonds backed by financial assets and typically these assets consist of receivables such as credit card receivables, and auto loans.
Source: The Hindu Business Line
India not impacted by protectionism talk, global slowdown: FM Jaitley
The rhetoric of protectionism in developed economies and unpredictable global slowdown have not affected India and it is determined to grow with focus on investments, Finance Minister Arun Jaitley said today. “What strikes us today is two important factors – unpredictable global slowdown and the rhetoric of protectionism in developed economies – have not affected India,” he said at ‘Make In India-Karnataka conference’ here. Not a single sound or even ‘a whisper’ of protectionism is being heard in India and such talk is there only in the developed economies, he said, adding that this itself is a tribute to the fact that the country is willing to accept investments and tune its policies.
‘Impact analysis a must before advisory norm amendment’
The Foundation of Independent Financial Advisors (FIFA) represents over 1,400 distributors of financial products, particularly of mutual funds. The combined assets that these distributors advise is over Rs. 70,000 crore. With SEBI intent on investors paying for advice on mutual funds instead of distributors earning commissions, Dhruv Mehta, Chairman, and Roopa Venkatkrishnan, Secretary, FIFA, discuss how the change might be detrimental to the industry.
Source: The Hindu Business Line
NCLT begins hearing on maintainability of Cyrus Mistry firms’ plea
The National Company Law Tribunal today began hearing on maintainability of petitions filed by two firms controlled by Cyrus Mistry’s family against his ouster from Tata Sons, the holding company of Tata Group. Tata Sons opposed the petitions filed by Cyrus Mistry Investment and Sterling Investment Corporation, saying as per a Supreme Court order on Companies Act, the petitioners could not seek a relief against alleged violation of their rights as ‘minority shareholders’.
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