Here are the latest India business news headlines 16th May 2018:
- NCLT has admitted an insolvency plea filed by Sweden’s Ericsson against Reliance Communications. Ericsson had signed a 7-year deal to operate and manage RCom’s Indiawide telecom network in 2014 and is seeking Rs.1,155 crore. This may delay RCom’s plans to sell its assets to pay off its debt.
- Northern Arc Investments has launched its 6th debt fund, IFMR FImpact Income Builder Fund, targeting a corpus of Rs150 crore. The fund has achieved a first close of Rs110 crore. The fund aims to invest in sectors like affordable housing, microfinance, commercial vehicle finance, small business loan finance, agri-business and corporate finance.
- Centre for innovation, incubation and entrepreneurship of IIM Ahmedabad has launched a $25 million ‘Bharat Inclusion Initiative’ to mentor and invest in start-ups in the early stage and seed segment over the next three-four years. The fund will invest in areas like livelihood, education, financial inclusion, health and agriculture.
- Flipkart employees will be able to cash their stock options at $125-129 per share once Walmart completes the acquisition. Employees can liquidate their stock options in three instalments—half on the date of closing the Walmart deal; 25% a year later, and the rest after two years.
- PNB fraud: The board of Allahabad Bank has divested Usha Ananthasubramanian, its MD and CEO, of all powers following a finance ministry’s directive after CBI named her in the charge sheet in PNB fraud case.
- Duff and Phelps Corp., US-based, one of the largest valuation service providers in the world, is setting up its restructuring practice in India, leveraging the business opportunities the Insolvency and Bankruptcy Code has opened up for restructuring advisors.
- Iceland’s long-haul budget airline ‘Wow Air’ has announced its entry into the Indian market offering ultra-low fares for flights from Delhi to North America and Europe. It is offering a one-way economy class fare from Delhi to Iceland, US, Canada and London starting from Rs13,499 inclusive of taxes.
- ICICI Bank has acquired around 18% stake in Gammon Infrastructure Projects through invocation of pledged shares.
- Zee Entertainment has appointed Shariq Patel as CEO for Essel Vision, known for television programmes like Sa Re Ga Ma Pa and Marathi films. Patel will be reporting to Punit Goenka, MD & CEO ZEEL. Patel has previously served as senior VP at Studio18 and at Indian Cricket League (ICL), as also worked with Radio One Bharti Airtel.
- Bhushan Steel case – NCLT has approved resolution plan of Tata Steel, which has offered an upfront payment of Rs35,200 crore to lenders, along with a 12.27% stake.
- Essar Steel case – ArcelorMittal has parked Rs 70 billion, transferred to an escrow account of SBI, to become an eligible bidder for Essar Steel. The payment relates to dues on account of Uttam Galva Steels and KSS Petron, both classified as NPAs for more than a year.
*News as published in Business Standard, Live Mint and Economic Times.