QBiz: Spectrum Auction Ends Off Target; Orient-Jaypee Cement Deal
Read The Quint’s compilation of top business stories from dailies across the country.
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1. Spectrum Auctions Over, Only Rs 65.800 cr in Govt Kitty
India's largest spectrum auctions closed on Thursday, with the government getting a lower-than-expected Rs 65,789.12 crore against an expectation of Rs 5.6 lakh crore. Vodafone India and Bharti Airtel emerged as the biggest buyers of 4G airwaves, followed by new comer Reliance Jio Infocomm and Idea Cellular.
All seven mobile phone operators in the fray for the record over 2300 MHz of airwaves, however, gave the expensive 700 MHz band - considered the best for 4G services - a miss, blaming the high starting price and called on the government to reduce prices and put it up for sale again. 60 percent of airwaves were left unsold.
“The government has sold 964.8 MHz of spectrum. The industry has bought spectrum as per its needs,“ Telecom Minister Manoj Sinha said
(Source: The Economic Times)
2. Brookfield, Hiranandani in India's Largest Commercial Property Deal
In the largest commercial property deal in the country, Mumbai-based Hiranandani group has signed an agreement with Canada's Brookfield Asset Management to sell its 4 million sq ft of office and retail space in Powai. The deal is estimated at about $1 billion (Rs 6,700 crore), said a source.
"It is part of succession planning in the family as brothers are pursuing their own interests," the sources said. Hiranandani group, a 50:50 partnership between Niranjan and Surendra Hiranandani, still owns 0.5 million sq ft of office space in Powai and is developing 3,000 apartments in the suburb.
(Source: Business Standard)
3. Govt to Retain Majority to Push IDBI Stake Sale
The government, looking to get state-run IDBI Bank's stalled disinvestment plan moving again, has instructed the lender's management to bring its stake down to 52 percent. Retaining a majority, the government hopes, will allow the asset-sale programme smoother passage and eventually help achieve the ambition of transforming IDBI Bank along the lines of Axis Bank.
“The bank has asked how much government stake can fall,“ said a senior government official who did not want to be named. “We have apprised them that the government holding can go down to 52 percent.“ The Centre currently holds 73.98 percent and has not announced any capital support to the bank for this fiscal.
(Source: The Economic Times)
4. Orient Cement Buys Jaypee Cement Units for Rs 1,950 Cr
Orient Cement, a firm owned by the Chandra Kant Birla group, on Thursday agreed to acquire 74 per cent stake in Bhilai Jaypee Cement and Nigrie cement grinding unit in Madhya Pradesh from Jaypee group companies at an enterprise valuation of Rs 1,950 crore.
While the transactions would help beleaguered Jaypee group in reducing its Rs 67,500 crore of consolidated debt as on March this year, it would increase Orient Cement’s presence in central and eastern India.
Orient Cement, a relatively smaller player in the Indian cement sector, is aiming to become a pan-national player and with this acquisition.
(Source: Business Standard)
5. NSE Secures Board Clearance To Launch IPO Via Offer For Sale
Ahead of its IPO, leading stock exchange NSE's board has decided that the public issue will be in the form of an offer for sale by shareholders while the directors have approved issuance of bonus shares, stock split and a dividend payout for the existing investors.
NSE plans to get listed in India as well as abroad. It will file IPO papers with market regulator SEBI for the domestic public issue by January 2017 while the same will be done for overseas listing by April next year.
The exchange has already formed a listing committee to expedite the process. It has roped in four merchant bankers - Citigroup, Morgan Stanley, JM Financial Institutional Securities and Kotak Mahindra Capital Company - to manage its upcoming initial public offer (IPO).
(Source: BloombergQuint)
6. State Bank of India May Sell up to 5% in SBI Life
State Bank of India Ltd (SBI) is holding talks with private equity funds to sell as much as 5 percent in SBI Life Insurance Co. Ltd, said three people aware of the development, including an SBI official.
The names of the private equity funds the bank has approached could not be immediately ascertained.
SBI Life is a joint venture between State Bank of India and BNP Paribas Cardiff. SBI owns 74 pecent in the life insurer.
The stake sale could fetch the bank as much as Rs1,950 crore, according to a second person cited above.
(Source: Livemint)
7. Breather for Niche Banks on Capital, Borrowings
The Reserve Bank of India has relaxed rules for equity capital and inter-bank borrowings, taking note of concerns of small finance banks and payments banks. A year after issuing licences in principle for niche banks, the RBI has changed the rules on equity capital.
These banks were required to maintain 7.5 percent Tier-I equity capital, which now has been changed to 6 percent till 31 March and 7 percent after that. They have been allowed to raise additional Tier-1 capital up to 1.5 percent of risk weighted assets.
(Source: Business Standard)
8. Demand For Commercial Vehicles Will Rise Before New Emission Norms Kick In: Ashok Leyland
Commercial vehicle manufacturer Ashok Leyland Ltd sees demand for commercial vehicles rising before April when Bharat Stage-IV emission norms would be mandatory for all vehicles across the country, Managing Director Vinod Dasari told BloombergQuint in an exclusive chat on Thursday.
While the Indian automobile industry at large has seen a revival in demand in the current financial year after its worst slowdown ever from 2012 through 2015, sales of heavy commercial vehicles are yet to see a pick-up. Ashok Leyland’s total sales contracted by 18 percent year-on-year during September, according to a company press release. But Dasari is hopeful for the remainder of the fiscal as he expects sales to pick up before April.
(Source: BloombergQuint)
9. 7th Pay Commission: Finance Ministry to Vet Revised Pay of Govt Staff, Recover Excess
The controller general of accounts has instructed its officials to examine if revised salaries of government employees are in line with the recommendations of the 7th Pay Commission and recover any excess amount paid.
The government has implemented the 7th Pay Commission recommendation of a hike of 2.57 times in basic salary of employees with effect from 1 January. It has paid about Rs 56,000 crore as wage arrears in August salary of employees.
While implementing the award, the finance ministry had asked the controller general of accounts (CGA) that Pay Commission arrear claims may be paid without pre-check of the pay fixation statement in revised scales to expedite the disbursement.
(Source: Livemint)
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