IndiGo, India’s biggest budget airline, has expressed unsolicited interest in Air India Ltd, becoming the first suitor to toss its hat in the ring after the federal cabinet approved a proposal to privatise the state-owned airline. IndiGo, operated by InterGlobe Aviation Ltd, sent in its interest late Wednesday night, minister of state for civil aviation Jayant Sinha said. It came within hours of the cabinet approving the privatisation of Air India and five of its subsidiaries Read more here.
Banks on Wednesday initiated bankruptcy proceedings against Amtek Auto Ltd, Electrosteel Steels Ltd and Jyoti Structures Ltd on, taking the total number of cases filed under the Insolvency and Bankruptcy Code (IBC) to five, said two people aware of the matter. State Bank of India, which is the lead banker, filed the bankruptcy cases against Electrosteel Steels and Jyoti Structures with the National Company Law Tribunal (NCLT). In Amtek Auto’s case, Corporation bank, which led the lending consortium, has filed the case, the people said, asking not to be identified. Read more here.
Vivo sponsorship may make IPL world’s richest sports league
The Indian Premier League (IPL) has become one of the world’s most valuable ones in terms of title sponsorship, with the rights for the next five years (beginning 2018) going to Chinese mobile phone company Vivo Electronics Corp. for Rs2,199 crore. That translates into Rs440 crore a year, higher than the Rs330 crore a year Barclays Plc. paid to be title sponsor of the world’s most watched sports league, the English Premier League, between 2013 and 2016. The popular football league is now sponsored by Mondelez International Inc., but financial details of this deal have not been made public. Read more here.
South Africa’s Naspers Ltd, the second-biggest investor in Flipkart, has indicated that the Indian e-commerce poster boy is the market leader in the country’s $15-billion online retail market—a claim that arch-rival Amazon India has disputed. According to Naspers’ latest annual report, Flipkart’s share of monthly gross merchandise value (GMV) stood at roughly 57% in March, up from 45% in June last year. Naspers’ numbers are based on Flipkart’s estimates. Read more here.
Govt banks devise three-tier plan for bad loan resolution
Public sector banks have devised an informal rule of thumb to resolve stressed asset cases beyond the 12 identified for bankruptcy proceedings by the Reserve Bank of India (RBI). A three-tier strategy is being evolved internally, according to four bankers who spoke on condition of anonymity. Relatively smaller stressed accounts of less than Rs1,000 crore will be sold to asset reconstruction companies (ARCs), mid-sized cases of Rs1,000-5,000 crore will be resolved through the various RBI restructuring schemes and larger cases will be tried at the National Company Law Tribunal (NCLT) in accordance with RBI rules, according to the plan. Read more here.
Delhi HC allows Singh brothers to sell Fortis stake with a rider
The Delhi high court on Wednesday cleared the way for former Ranbaxy promoters Malvinder and Shivinder Singh to potentially sell a stake in Fortis Healthcare Ltd on the condition that the disclosed value of their unencumbered assets will remain unaffected. The order was passed to afford protection to Japanese drugmaker Daiichi Sankyo Ltd in terms of ready realizable value of assets at a later stage. As a result, value of stake in holding companies, namely RHC Holding Pvt. Ltd and Oscar Investments Ltd, would not change. Read more here.
Investors dump defaulter stocks on liquidation fears
Share prices of most of the companies identified by the Reserve Bank of India (RBI) for bankruptcy proceedings have fallen sharply as banks move closer to trying them at National Company Law Tribunal (NCLT). For instance, Amtek Auto Ltd’s share price has fallen 24% since 13 June, the day RBI said its internal advisory committee had identified 12 accounts representing 25% of the gross bad loans in the banking system. The RBI statement was issued post-market hours. In the same period, Alok Industries Ltd and Bhushan Steel Ltd shed around 18% each. Lanco Infratech, which closed at Rs1.7 per share on Tuesday, declined 39%. Read more here.
IHH Healthcare set to seal deal for Fortis, SRL stake
IHH Healthcare Bhd, Asia’s largest private hospital operator, is set to buy a controlling stake in Fortis Healthcare Ltd and SRL Diagnostics from billionaire brothers Malvinder and Shivinder Mohan Singh in a deal that values the two companies at close to $2.9 billion, two people directly aware of the development said. “The final valuation has been agreed upon and an announcement in this regard is expected in the next few weeks,” said one of the two people. Read more here.
BMW to invest Rs120 crore this year to rev up India operations
The Indian unit of German luxury carmaker BMW plans to invest Rs120 crore in 2017, launch the new generation 5-Series sedan, and expand its dealership network to recover ground it had ceded to rivals over the last four years, said Vikram Pawah, president BMW Group India. Having pursued sustainable growth and profitability for the last three years, the company is now ready to move forward with the so-called “power to lead”, strategy which is about being the best in whatever it does, Pawah, the first Indian to head the local business, said in an interview. Read more here.
Patanjali is the most overhyped brand: Marico chairman Harsh Mariwala
After having built Marico Ltd into one of India’s biggest packaged consumer goods companies, Harsh Mariwala started a not-for-profit initiative called Ascent to mentor young entrepreneurs and help them overcome challenges in scaling up their businesses. In an interview at the Mint Wealth Creators Summit 2017, Mariwala spoke about the new generation of entrepreneurs, family-owned businesses and the emergence of Baba Ramdev’s Patanjali Ayurved Ltd. Read more here.