QBiz: Anil Ambani’s Defence Plan, Twist in Vedanta-Cairn Merger

Here are the top business stories from across the country today.

File image of Anil Ambani. (Photo: Reuters)

1. Anil Ambani Goes big on Defence, Raises 11 new Companies

The Economic Times reports on Anil Ambani’s big plans for the defence industry after acquiring the Pipavav shipyard. Reliance Defence Limited (RDL) is reportedly creating a cluster of 11 companies targeting a potential market of at least Rs 10,000 crore. They have applied for over a dozen licences in the past weeks to design, develop and manufacture military equipment ranging from UAVs and spacecraft to submarine systems.

2. Vedanta’s Cairn Merger as per Script, With a Little Twist

The climax in this merger script was known, but for a small twist, as reported by Mint. Cairn India Ltd’s shareholders will get one share of Vedanta Ltd for one share of Cairn, but with a Rs.10 face value preference share thrown in as a sweetener. The business daily reports,

Unlike a share swap, this will involve a cash outflow eventually, albeit a relatively small one, of Rs.752 crore (based on the face value of these shares).

3. Tata Motors Commercial Vehicle Strategist Vinod Sahay Heads for M&M

Tata Motors is witnessing its first high-profile exit in the commercial vehicles division. Vinod Sahay, head of sales and marketing for intermediate and medium and heavy commercial vehicles, is set to take up a senior position at Mahindra & Mahindra’s two-wheelers division, people familiar with the matter said.

4. US Goes Tough on Indian IT Outsourcing; Deals With Disney, Fossil Under Lens

After reports that the US government is investigating an outsourcing contract involving utility firm Southern California Edison and India’s largest software exporters, Tata Consultancy Services and Infosys, similar pacts signed now or recently are coming under the scanner, reports Economic Times The latest contract to be scrutinised is one with Walt Disney, which recently signed a deal with US-based Cognizant Technology Solutions. Read the full report here.

5. You Have Enough Spectrum, Address Call Drops: Prasad to Telcos

Doing some plain speaking on call drops, Union Telecom Minister Ravi Shankar Prasad on Sunday asked mobile operators to walk the extra mile to reinforce their systems as they have enough spectrum to provide services without interruption.

The point is, as of now, let me tell you as a minister that I would like all the telecom operators to reinforce their system, to avoid call drops, to properly run their operations. Once we are willing to walk the extra mile, they also walk the extra mile
- Ravi Shankar Prasad

6. Early Showers Better Than Expected

The start of monsoon rains has not been as bad as feared earlier. The years 2012 and 2014 had deficient rain and this year’s southwest monsoon is officially projected as likely to be a deficient one. There have been good showers in eastern, northeastern and some areas of western India. It is a laggard in the central and northern parts. Read the full Business Standard report.

7. Housing.com may get $100 mn From China’s Fosun

Fosun International Ltd, the investment arm of China’s biggest closely held conglomerate, is in initial talks to invest about $100 million in Locon Solutions Pvt. Ltd, the owner of property website Housing.com, reports Mint.

8. Markets Keep an ear to the Ground

Writing for Business Standard, Devangshu Datta suggests,the market’s technical picture seems bearish as of now.

There might be a hiatus in political news flow for a while since the Monsoon session of Parliament is not due to start till August. By then, the monsoon scenario will have clarified and so, one hopes, will Greece. The Fed may also have come through with a timetable for its next hike by then. The pattern of Q1 corporate earnings will also be clearer. A recovery may also be on the cards by then if the monsoon is kind.

9. Anshu Jain to Work for Free in Deutsche Bank Advisory Role

Deutsche Bank co-chief executive Anshu Jain will receive no severance pay and no compensation for working as an adviser to the bank in the six months after his departure, German media reported on Sunday. Jain did not want to financially burden the bank with his own, personal decision to quit, which followed a hailstorm of investor criticism, scandals, fines and investigations, reported the Frankfurter Allgemeine Sonntagszeitung.