1. Spectrum Auction Likely in Mar-April, May Fetch ₹5 L Cr
India’s largest ever airwaves auction, which could fetch the government over ₹5 lakh crore as telcos bid for 8,300 MHz of 4G and 5G spectrum, is set to take place in March-April 2020 after the Digital Communications Commission (DCC) gave its approval for the spectrum sale on Friday.
Telcos and analysts said the starting price of both frequencies (₹492 crore per unit for 5G and ₹6,568 crore per unit for the 700 MHz band — used for 4G) was too high to attract serious bidding, especially given the financial condition of operators. Loss-making Vodafone Idea and Bharti Airtel are battling a serious financial crisis, facing statutory dues of over ₹53,000 crore and ₹35,500 crore, respectively, which need to be paid by in just over a month.
But analysts said these two companies as well as Reliance Jio will have to again bid for and buy 4G spectrum in circles where their rights over these airwaves are set to expire in 2021. Airwaves in 3,300-3,600 MHz band, earmarked for 5G services, will make their debut in the upcoming sale. The 700 MHz band went unsold in the last sale in October 2016, when government raised ₹65,789 crore by selling only 40% of the 2,300 MHz airwaves on offer.
(Source: Economic Times)
2. Anand Mahindra to Step Down as M&M Chairman
Anand Mahindra will step down from his role as chairman of Mahindra & Mahindra Ltd (M&M) from 1 April next year. Pawan Goenka will helm the automaker as part of a succession plan necessitated by the retirement of some key leaders at the group over the next 15 months.
The succession plan, ratified by the Board of Directors, will see Mahindra transition into the role of non-executive chairman from 1 April 2020.
Goenka will be re-designated as Managing Director and CEO with effect from April 1, 2020 and will remain in that role till his retirement on 1 April 2021.
There will be no change in any reporting relationships as a result of this re-designation. Goenka will continue to retain direct responsibility of Ssangyong Motors as Chairman of its Board till his retirement.
(Source: Hindu BusinessLine)
3. Alphabet CEO Sundar Pichai Receives Hefty Pay Raise
Sundar Pichai is getting a hefty pay raise. The new Alphabet Inc. chief executive officer will receive $240 million in stock awards over the next three years if he hits all of his performance targets, as well as a $2 million annual salary beginning in 2020, the firm said Friday in a filing.
If Alphabet shares outperform the S&P 100 Index, Pichai could receive an additional $90 million in stock grants. It’s the first time the company has bestowed performance-based stock awards. Pichai, 47, was named to the top job this month after Google co-founders Larry Page and Sergey Brin stepped down as leaders of the Mountain View, California-based firm.
(Source: Business Standard)
4. Bharat Bond ETF Oversubscribed 1.7 Times; Garners Rs 12,000 Cr
The ambitious Bharat Bond ETF has closed for subscription on Friday with over-subscription of 1.7 times, garnering Rs 12,000 crore to be utilised for capex of PSUs. The base size of issue of Rs 7,000 crore.
"India's first corporate Bond ETF, Bharat Bond ETF, has received a great response from investors across different segments. The issue was over-subscribed approximately 1.7 times, collecting about Rs 12,000 crore. Information is subject to further update," DIPAM Secretary Tuhin Kanta Pandey said in a late evening tweet.
The exchange-traded fund will invest only in AAA-rated bonds of public sector companies and will have target maturity structures.
(Source: Moneycontrol)
5. Softbank’s $231 M to Boost Lenskart Vision
Japan’s SoftBank has invested $231 million (about ₹1,645 crore) in Lenskart Solutions following months of talks, backing the eyewear solutions company from its second Vision Fund.
ET first reported the financing round — which values the Faridabad-based company at $1.5 billion — on May 27.
SoftBank has also made secondary transactions worth $40-45 million, which include buying out part-stakes from three of Lenskart’s existing backers — TPG Group, PremjiInvest and International Finance Corp.
The investment will be its first in India from Vision Fund-II, and the second globally. It is also SVF’s maiden investment in India this year and comes after SoftBank’s once prized portfolio firm WeWork shelved its IPO plan a few months ago, dealing a blow to the Masayoshi Son-led group’s investment mantra.
Lenskart passed a board resolution on December 12 approving the allotment of 22.9 million Series G compulsorily convertible cumulative preference shares to SVF II (Cayman) Lightbulb Ltd, according to a research note published by paper.vc. SoftBank shelled out ₹714 per share.
(Source: Economic Times)
6. Maharashtra Unearths Huge Fertiliser Adulteration Scam
The Maharashtra government has unearthed large-scale adulteration of complex or mixed fertilisers, which are used for specific crops. These fertilisers caused wrongful gains to the seller syndicate and wrongful losses to farmers, it said.
A senior officer, in an affidavit before the Bombay High Court, said that farmers’ suicides have been due to poor yields. One of the reasons for the poor yield was substandard or bogus fertilisers, spurious organic fertilisers and inferior quality insecticide.
The affidavit was filed in September in connection with litigation before the Aurangabad bench.
Complex or mixed fertilisers contain two or more of the elements of nitrogen, phosphorus and potassium (NPK).
They are essential to promote plant growth and higher crop yields. They are obtained by mixing multiple ingredients either manually or mechanically.
(Source: Hindu BusinessLine)
7. Jet Airways' Insolvency Resolution Extended by 90 Days as Bidders Seek Time
The National Company Law Tribunal (NCLT) on Friday approved extension of Jet Airways insolvency resolution period by 90 days.
The Committee of Creditors (CoC) sought extension of corporate insolvency resolution process (CIRP) of Jet Airways from the Mumbai bench of the NCLT in view of South America's Synergy Group wanting more time for due diligence and two new interests being shown for the grounded airline.
The tribunal, comprising Bhaskara Pantula Mohan and Rajesh Sharma, gave their approval for the extension of time as the 180 days deadline for CIRP period of the grounded airline had ended on 16 December.
(Source: Business Standard)
8. Expect Corporate Tax Sop to Prop up Investments, Says FM
With the government slashing corporate tax rate, Finance Minister Nirmala Sitharaman on December 20 said that she expects new investments from the business houses and reiterated that there has been no interference by government in the operations of public sector banks.
While addressing the annual general meeting of the Associated Chambers of Commerce and Industry of India (ASSOCHAM), Sitharaman called out public sector banks (PSBs) for not passing on benefits of rate cuts to consumers. "We have looked at where liquidity was stuck together with the banks and the Reserve Bank of India, but PSBs must move more liquidity out in the system," she said.
"We have assured banks that they have to be professional on decisions, but there has been no interference by the government in the banks' decision-making process. Hold it against PSBs that they have not passed on the benefits of rate cuts to consumers," she added.
(Source: Moneycontrol)
9. With Fresh Supplies on the Way, the Great Onion Crisis Might Come to an End
India’s rampant onion prices may finally be running out of steam, with fresh supplies of the pungent vegetable set to hit the market next month.
Prices at one of India’s biggest wholesale markets may plunge to about 20-25 rupees per kilogram from mid-January, according to Jaydatta Sitaram Holkar, a director at Agricultural Produce Market Committee, a state-run wholesale market for farm commodities at Lasalgaon in Maharashtra. That’s more than 80% below Tuesday’s record price.
A new onion crop should help ease what has been a catastrophic year for the vegetable in the world’s second-most populous nation. Soaring prices have been blamed for accelerating food inflation and even triggering onion thefts and fist fights, according to some reports.
(Source: Business Standard)
