Carlyle Group leads the race to buy GE Capital’s stake in SBI Card
Global private equity (PE) firm Carlyle Group has emerged as the front runner for GE Capital Corp.’s stake in SBI Card, the credit card joint venture between the US-based company and India’s largest lender State Bank of India (SBI), at least two people privy to the matter told Mint. “Carlyle has emerged as the front runner for GE Capital’s stake in SBI Cards for somewhere around $325 million,” one of the two people cited above said. “The board of SBI settled upon the final bidder in a meeting last Friday,” the second person said, adding, “Carlyle has pipped Warburg Pincus and Credit Saison and emerged as the final bidder though the deal is not closed yet.”
India Poised To Be Third Largest Consumer Economy
In less than a decade, the world’s widget makers, entertainers, and beauty products will be focused on three core economies: the United States and China, of course, and in third place and gaining fast: India. They’re young. They’re the poorest of the big emerging markets, so have lots of momentum on their side. And they’re tech savvy smart. India is the new China. If you have something to sell, India is now an on-radar must. The Boston Consulting Group (BCG) said in a report releasedon Tuesday titled The New Indian that the country will be the third largest consumer market in the world by 2025.
New accounting standards: Firms’ consolidated results may come under SEBI scanner
Suspecting that some of the listed companies are not complying with the new accounting standards the market regulator may start taking a closer look at the consolidated results of these companies, people in the know said. Most Indian companies have moved from old accounting standards (Indian GAAP) to the new accounting standards—Ind-AS since April 2016. However, not many companies have incorporated all the policies and rules that are expected of them under the new accounting standards, people close to the development said.
Deal conclusion, cost synergies challenge for Idea-Voda: Experts
The Idea-Vodafone merger will create a behemoth with unmatched spectrum footprint and market leadership but long timelines on deal conclusion and cost synergies in a hyper-competitive market are likely to pose challenges, say experts. “In our view, upside is restricted by hyper competitive scenario, with Jio expected to remain aggressive in race to gain revenue market share; long-dated cost synergies and lack of debt reduction in medium term,” Emkay said in a latest report. The progress on regulatory approvals would be closely watched as both the entities have a number of pending litigations, it added.
SBI to shut down 47% of associate banks’ offices post-merger
State Bank of India (SBI), which will see five associate banks merge into it on April 1, has decided to shut down almost half the offices of these banks, including the head offices of three of them. This process will start from April 24. “Out of the five head offices of the associate banks, we will retain only two. Three head offices of the associate banks will be unbound along with 27 zonal offices, 81 regional offices and 11 network offices of the associate banks,” SBI Managing Director Dinesh Kumar Khara told IANS in an interview. “We will keep their structure in place till April 24 and, post that, we will start dismantling the associate banks’ controlling offices, which includes head offices, regional offices, zonal offices and network offices,” Khara said.
D-Mart hits bull’s eye on debut; founder Damani leapfrogs in rich list
Avenue Supermarts, owner of retail chain D-Mart, made a historic market debut on Tuesday, with its stock gaining 114 per cent over the issue price of Rs 299 to close at Rs 641 — one of the best listing-day performances. The stellar debut saw the supermarket chain’s market value soar to Rs 39,988 crore, more than the combined market capitalisation of the next three big listed retailers — Future Retail, Aditya Birla Fashion and Trent. Its founder and ace investor, Radhakishan S Damani, and his family, own an 82 per cent stake in the company after the initial public offering (IPO).
Idea-Vodafone merger: $23-bn telecom deal leaves bankers in cold
Investment banking business in India should be enjoying bumper fees after a record year of dealmaking. It’s not, and big banks blame in-house teams of advisors that have proliferated as the country’s top family-owned conglomerates tighten their grip. This week’s $23-billion tie-up between Idea Cellular, controlled by the Aditya Birla Group, and the Indian business of Vodafone Group, is the latest example of a trend that is squeezing major international investment banks.
Nettle Infra to buy 21.6% stake in Bharti Infratel
Mobile tower company Bharti Infratel today said Nettle Infrastructure Investment Ltd will acquire 21.63% stake in the company from parent Bharti Airtel on or after March 27. Nettle Infrastructure, a wholly-owned subsidiary of Bharti Airtel, will buy 40 crore equity shares of Bharti Infratel from the parent for an estimated Rs 12,400 crore. Nettle Infrastructure will acquire stake “at or around the market price prevailing on the date of acquisition, Bharti Infratel said in a BSE filing. “The acquirer confirms that the acquisition price would not be higher by more than 25% of Rs 310.04 per share,” it added. At the price of Rs 310.04, the transaction would be worth Rs 12,400 crore.
Rupee rallies to 17-month high, up 6 paise at 65.30
The rupee gained further ground against the US dollar to end at a nearly 17-month high of 65.30 in a fairly volatile trading on increased selling of the American currency by exporters and banks. A weak dollar in overseas markets largely supported the upmove despite a sell-off in local stocks. Strong capital inflows to equity and debt markets also provided support, forex traders said. The greenback was broadly lower through the Asian session spooked by overnight comments from the Chicago Federal Reserve President Charles Evans that the Fed was in no rush to raise interest rates again and may wait until at least June before deciding on another hike.
Govt mulls 100 percent FDI in insurance broking
The government is considering allowing 100 per cent foreign direct investment in insurance broking with a view to giving a boost to the sector and attracting more funds. The FDI policy, at present, allows 49 per cent foreign investment in the insurance sector that encompasses insurance broking, insurance companies, third party administrators, surveyors and loss assessors as defined by the Department of Industrial Policy and Promotion, said a PTI report. An official said that representations have been made to the government that insurance brokers should be treated at par with other financial services intermediaries, where 100 per cent FDI is permitted.
Sahara case: SC refuses to extend deadline for Sebi deposit
The Supreme Court on Tuesday threatened to auction off Aamby Valley if the Sahara India Group does not deposit Rs5,092.64 crore with the Securities and Exchange Board of India (Sebi) by 17 April. “Deposit the money or Aamby Valley will be sold,” the court said in an oral observation, referring to Sahara’s high-end township that has already been attached by the court. The bench of justices Dipak Misra, A.K. Sikri and Ranjan Gogoi asked Sahara in February to sell some of its properties and deposit the money by 17 April. Sahara was expected to raise this money by selling some of its properties.
SBI to tap overseas bond market again; eyes $1.5 bn in dollar debt
State Bank of India has said it will be hitting the overseas debt market with a $1.5 billion dollar bond sale next financial year. SBI, which has a board approval to raise Rs 15,000 crore through multiple routes, however, did not specify when it will tap the dollar bond market. It can be noted that in last June the bank had informed the exchanges about its plans to raise a similar amount in dollar money, but did not proceed with the plan. In a BSE filing, the bank said its “executive committee of the central board will meet on March 24 to examine the issuance of RegS bonds worth $1.5 billion for a tenor not exceeding 5.5 years in fiscal 2018.”
Paytm to give insurance upto Rs 20,000 on e-wallet
Digital payment platform Paytm on Monday announced that it will now provide an insurance on money kept in a user’s Paytm wallet, a media report said. With the rise in theft or loss of devices and hacking of user’s e-wallet, Paytm will provide an insurance of up to Rs 20,000 or the last recorded balance in the wallet of the user, depending on the lower amount, as reported by Live Mint. As per the report, Paytm will refund money, as claimed by the user if the amount is unlawfully debited from the account. The customer or user will have to send notification via an email or call Paytm’s customer care within 12 hours to get the refund amount.
India working with 15 nations for cooperation on cyber crime
India is working with 15 countries for information exchange on cyber crimes and bilateral cooperation on tackling it, Lok Sabha was informed today. In response to a question, Minister of State for Home Affairs Hansraj Gangaram Ahir said, “India is working for bilateral cooperation with around 15 countries for exchange of information and data pertaining to cyber crimes and related cooperation in law enforcement.” There is a steady increase in the number of government websites which have been hacked into since 2014, the government data presented in the Lok Sabha shows.
CL Educate IPO subscribed 77 per cent on second day
CL Educate Ltd., which owns brand Career Launcher, saw its initial public offer (IPO) subscribed 77 percent on the second day of the issue on Tuesday. The IPO received bids for 25,71,053 shares against the total issue size of 33,32,000 shares, data available with the NSE till 5:00 pm showed. The segment reserved for qualified institutional buyers (QIBs) was subscribed 1.97 times, while that of non-institutional investors was subscribed 4 percent. Retail investors category received 40 percent subscription. CL Educate, which operates across segments in the education industry including test preparation and vocational training, last week raised nearly Rs 72 crore from anchor investors. It has fixed a price band of Rs 500-502 for the IPO.
Will auction Aamby Valley if Rs 5,000 cr not paid: SC to Sahara
The Supreme Court today warned the Sahara Group that it would auction its prime property worth Rs 39,000 crore at Aamby Valley in Pune if Rs 5092.6 crore is not paid by the company by April 17 as promised. A bench headed by Justice Dipak Misra also directed the international real estate firm, which had shown willingness to buy Sahara’s stake in New York- based Plaza Hotel for USD 550 million, to deposit Rs 750 crore in the SEBI-Sahara refund account instead of the apex court registry to show its bonafide. “We will auction your (Sahara) Aamby Valley project if the money is not deposited within the stipulated time period as promised,” the bench, also comprising Justices Ranjan Gogoi and A K Sikri, observed.
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