Government asks ministries to spot new assets for monetisation
The central government has asked ministries to identify fresh assets that could be monetized quickly. The government’s proceeds from asset sales were only Rs 33,443 crore in the first seven months of the current financial year against the target of Rs 1.6 lakh crore under the National Monetization Pipeline. The Centre expects its revenue from asset sales to miss the budget estimate by coming in at Rs 1.24 lakh crore.
Why it’s important: The government is looking to put the monetization process back on track as it has fallen far behind the budget target for the current financial year. It remains to be seen whether it is able to do so.
Vision document in July to follow economic survey in January
Chief Economic Advisor V Anantha Nageswaran is seeking to put his stamp on his first Economic Survey, to be released on January 31, followed by by a similar document in July. This second document will serve as a medium-term vision document for the Indian economy. It is expected to have more of Nageswaran’s views on the global economy, the domestic economy, the various challenges and opportunities over the next 3-5 years.
Why it’s important: The vision document is expected to present a road map for what Prime Minister Narendra Modi has termed Amrit Kaal, or the 25 years leading up to the centenary of India’s Independence.
Adani Enterprises decides to raise up to Rs 20,000 crore in equity
Adani Enterprises is planning a follow-on public offering to finance the group’s expansion in green and digital businesses. The board of the Adani-led firm will meet on Friday to finalize the fundraising. Adani may raise Rs 10,000-20,000 crore through the FPO. Adani has mandated investment banks ICICI Securities and Jefferies to prepare the offer document.
Why it’s important: The conglomerate has recently held road shows in metros, explaining its businesses to investors. The fundraise will improve the company’s float on stock exchanges and also mobilize funds for new businesses such as green hydrogen, data centers and renewables, among others.
Tata Consumer to purchase Bisleri for about Rs 7,000 crore
Almost 30 years after selling soft drink brands Thums Up, Gold Spot and Limca to Coca-Cola, Ramesh Chauhan is divesting Bisleri International to Tata Consumer Products for an estimated Rs 6,000-7,000 crore. The current management will continue for two years as part of the deal. Bisleri is India’s largest packaged water company.
Why it’s important: Talks will Tata has been going on for quite some time. Bisleri was originally an Italian brand that set up shop in Mumbai in 1965. The purchase will strengthen Tata’s presence in bottled water.
TCS and ITI in race to land BSNL 4G network deal
Tata Consultancy Services and Bengaluru-headquartered ITI have submitted their bids for the 4G network roll-out for Bharat Sanchar Nigam. Both TCS and ITI have submitted their bids, and that the process is expected to close in the next fortnight to a month. Although both firms have placed their bids, TCS is the frontrunner with a deal size of Rs 16,000-20,000 crore.
Why it’s important: An impasse on the deal size has delayed the project by at least six to eight months. The winner of the bid is expected to provide both network equipment and solutions to BSNL.
ReNew Energy Global to sell 1GW assets at $ 1 billion enterprise value
ReNew Energy Global Plc is looking to sell 1GW of its operational clean energy capacity at an enterprise value of around $ 1 billion as part of the company’s capital recycling strategy. The assets on offer include solar and wind assets and have an equity value of around $ 300 million.
Why it’s important: ReNew plans to sell existing assets and reinvest the proceeds in building new clean energy assets. It is open to selling a minority stake at the project level, an asset sale if the valuation is good.
Bank credit growth is sustainable, says State Bank chairman Dinesh Khara
The banking sector will not find it challenging to continue growing the credit book at the current pace as long as the risk is understood and well-priced, State Bank of India chairman Dinesh Khara has said. In September last year, Khara highlighted the issue of mispricing in the corporate loan market when interest rates were low. In August, he said mispricing has declined.
Why it’s important: The banking sector has seen learnt from its experience in the past decade and put in place better appraisal systems so that it can tackle a significant pickup in credit growth.
Equity investments in foreign funds decline an annualised 24 per cent
Foreign direct investment equity inflows into India fell nearly a quarter to $ 10.3 billion in the September quarter from $ 13.6 billion a year earlier, data released by the Department for Promotion of Industry and Internal Trade has revealed. Sequentially, inflows were down 37 per cent from June quarter. Total FDI inflows contracted 16 per cent to $ 16.6 billion in the second quarter from $ 19.8 billion a year ago.
Why it’s important: Global uncertainty has dampened the appetite for investments as the Western world braces for an economic recession.
India one of the best performing markets, says TPG’s Jim Coulter
A new generation of Indian entrepreneurs are performing well, TPG Capital’s founding partner Jim Coulter said in an interview, which is one of the key reasons why India has emerged as one of the best-performing markets in the region. San Francisco-headquartered TPG Capital, one of the largest private equity firms managing more than $ 120 billion in assets, has been doubling down on India investments after a cool-off period between 2012-14.
Why it’s important: TPG has placed a slew of interesting bets in Indian start-ups in recent times and is expecting handsome returns. It is set to boost its investments in the country.
Supreme court dismisses Tata Power plea on project award to Adani
In a setback to Tata Power, the Supreme Court has dismissed the utility’s challenge to the Maharashtra Electricity Regulatory Commission´s decision to award a Rs7,000 crore transmission project near Mumbai on a nomination basis to Adani Electricity. The court upheld the order by the Appellate Tribunal for Electricity in this case.
Why it’s important: The judgement will have strong implications for the power market in Mumbai, giving Adani a foothold in the western region.