India business news headlines 5th February 2019
- UPL Ltd may buy back the stakes of Abu Dhabi Investment Authority and TPG Capital in Arysta LifeScience for $4.2 billion. Both invested $1.2 bn for a combined stake of 22% in UPL Corp. to help firm acquire Arysta.
- ONGC Videsh is exploring the option of transfer of its stake in Imperial Energy Corp.’s Siberian deposits to a Russian firm to reduce potential losses from the $2.1-billion acquisition.
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- As per an asset solvency test by the new management, IL&FS believes the group has only 22 fully-solvent entities, which can pay off their combined debt of Rs.6,605 crores. This is just 7% of the group’s estimated debt of Rs.89,393 crores of 173 Indian subsidiaries.
- Essar Steel – NCLT shall decide on Essar Steel insolvency by 11th February. BPCL has sought the liquidation of the assets of Essar Steel. It has objected to ArcelorMittal’s resolution plan. Ruias and Essar Steel directors have also moved NCLT to squash Mittal’s takeover bid.
- Essel promoter entities have raised Rs.1050 crores by selling shares in 6 listed firms.
- SpiceJet will start a daily non-stop flight between Hyderabad and Jeddah from 25th March.
- Bhushan steel case – NCLAT has dismissed Tata Steel’s appeal in Bhushan Power case and has upheld CoC’s right to change, update, supplement, add to, delay or cease resolution process at any time.
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- The board of Future Retail has approved raising around Rs.2,000 crores through the issue of warrants to its promoters on a preferential basis.
- The Government is setting up a panel to solve angel tax issues. The panel will comprise of startups, angel investors and income tax officials.
- TPG Growth shall invest $30 million in API maker Solara Active Pharma.
- IIFL has agreed to sell its Rs.4000 Crore commercial vehicle business to Indostar Capital, promoted by Everstone.
- UK Home Secretary has given his approval for the extradition of Vijay Mallya. ED and CBI have not been officially informed yet. Mallaya said that he will appeal against the decision.
- Amazon, Flipkart, Paytm and Snapdeal are yet to clearly display details of all the sellers on their platform. Morgan Stanley has said that Flipkart may need to remove approx. 25% of its products from its platform to meet new FDI rules. It has also reportedly warned that Walmart may exit Flipkart if it doesn’t see the long term path to profitability.
- Jubilant FoodWorks, which runs Domino’s Pizza chain, has been fined Rs.41.4 Croes for not passing on the GST relief to customers.
- IDBI Bank board has approved a proposal to change of name of IDBI Bank following its takeover by LIC. It could be named as LIC IDBI Bank or LIC Bank.