QBiz: IITs Blacklist 6 Start-ups; Flipkart in Talks to Sell Stake
The Quint brings to you a collection of business stories from the previous day.
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1. IITs Blacklist Six Start-Ups From Campus Placements
All IIT Placement Committee held in Mumbai on Friday has decided that six start-ups who went back on hiring graduates from the Indian Institutes of Technology (IITs) will be barred from hiring from IITs in 2016-17, reports Livemint.
Other start-ups that cited business environment to slash salaries they had originally committed to paying IIT graduates, also face the risk of being blacklisted if they do not accept the students at the originally promised package, said Babu Viswanathan, placement advisor at IIT-Madras.
In another report published in The Economic Times, Professor Kaustabha Mohanty, convenor of the All IIT Placement Committee has revealed that Flipkart has assured the IITs that it will absorb all the candidates as interns from June-July and pay them a monthly stipend of Rs 50,000.
2. Flipkart in Talks to Sell Small Stake to Times Group: Livemint
E-commerce giant Flipkart has plans to sell undisclosed stakes to Bennett, Coleman and Co in a Rs 500 crore deal that will be funded partly by cash and partly by ads, four people familiar with the matter said.
According to a report published in Livemint, the proposed deal will see Flipkart issue shares to BCCL in return for cash and ads over several years in its media properties such as The Times of India and The Economic Times newspapers and ET Now and Times Now channels.
3. Why Everyone Wants a Piece of India Post’s Payments Bank: Livemint
India Post Payments Bank (IPPB) is yet to start operations but has already become a hot property.
Banks, insurance firms and asset management companies have already tabled their offers of equity partnerships, joint ventures and other mutually beneficial arrangements.
A report published in Livemint discusses the factors responsible for such heightened interest in India Post’s new property.
4. FM Arun Jaitley Backs 30 Percent Local Sourcing Rule for Single-Brand Retail: ET
Finance Minister Arun Jaitley on Friday said that India can’t be a nation of traders as he sought to defend the 30 percent local sourcing requirement for single-brand retailers in place. But during his defence of the policy, Jaitley seemed to leave the door open for a final word on Apple’s application to set up its own stores, reports The Economic Times.
He also said that the Foreign Investment Promotion Board (FIPB) won’t be abolished as long as government approvals were needed for overseas investment proposals.
FIPB, which comes under the Finance Ministry, has said the iPhone maker can set up stores but will have to comply with the sourcing rule.
5. RBI Clears Decks for War on Bad Loans; Proposes Two Funds by Banks: ET
The Reserve Bank of India is readying plans for the formation of dual funds which will throw lifelines to debt-laden companies and give high-street lenders, saddled with sticky loans, some breathing space.
In a letter sent on Tuesday to the Indian Banks’ Association, the Reserve Bank has proposed that lenders may set up two different funds. One to infuse equity into stressed companies and another to give working capital finance, reports The Economic Times.
The move comes as a result of the government, banks and the regulator trying to find a quick solution to resolve the bad debts of banks.
6. HDFC ERGO to Buy Out L&T General Insurance for Rs 551 Crore: Livemint
HDFC ERGO General Insurance Co Ltd, the non-life insurance joint venture between HDFC Ltd and ERGO International of Germany, on Friday revealed that it will acquire L&T General Insurance Co Ltd in an all-cash deal worth Rs 551 crore.
Promoter Larsen & Toubro Ltd will exit the general insurance business via the deal.
L&T General Insurance, which began operations in October 2010, sells auto, business, home and health cover.The company, with a paid-up share capital of Rs 705 crore, saw a gross written premium of Rs 483 crore during the year ended 31 March, which is 40 percent higher compared with the previous year, reports Livemint.
7. RBI May Not Cut Rates Next Week: India Ratings
According to a report by India Ratings, Reserve Bank of India Governor, Raghuram Rajan will go for a status quo in rates at the upcoming policy review on Tuesday, and focus on inflation and transmission of past rate cuts.
Meanwhile, global brokerage firm HSBC also said that Rajan will go for holding rates at the review and may do a final 0.25 percent cut in August.
India Ratings said rather than cutting rates, Rajan will focus on inflation control, liquidity management and the pending policy transmission in the near-term.
Read more here.
8. EPFO May Have Rs 1600 Cr Surplus by Year-End: Bandaru Dattatreya
Union Labour Minister Bandaru Dattatreya has revealed that the Employees Provident Fund Organisation (EPFO) is likely to have a surplus of Rs 1,600 crore by the end of this year.
Read more here.
9. Tata Steel in Talks With UK Govt to Keep Britain Operations
Tata Steel is close to finalising a deal with the UK government to retain the loss-making operations in the country, and as a result, will secure the jobs of about 11,000 workers, reports Business Standard.
The steel maker is said to be in talks to secure a loan worth £1 billion and restructure the British Pension Scheme after no potential bidder could guarantee to keep the plants running for more than three years, UK media reports said.
Earlier last month, Tata Steel had shortlisted seven bidders for its 5.5-million tonne British facility. Sajjan Jindal-led JSW Steel, Indian-origin businessman Sanjeev Gupta’s Liberty House and London-based investment firm Greybull Capital were among those in the running.
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