Weekly Capsule of India Business News Headlines (21st – 26th) May 2018

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Weekly India Business News from 21st to 26th May 2018.


india business news from 21st to 26th may 2018




– Jet Airways’ posted a huge Rs 1,036 crore net loss for the fourth quarter due to rise in oil prices and the weaker rupee. Jet Airways’ auditors said the financial statement was prepared on a “going concern basis”.


– The share of Patanjali Dant Kanti in the toothpaste market has more than doubled to 6.7% from a year ago, dropping the share of the top three brands such as Colgate, Pepsodent and Dabur—to 86.8% from 92% in 2012.


– India’s largest renewable power company ReNew Power Ltd is in discussions to obtain around 700 megawatts (MW) of renewable assets. The company will raise Rs2,600crore in fresh capital, while its private fairness investors will sell a collective of 94.37 million shares.


– NCLAT refuses to allow the second round of bidding for Bhushan Power and Steel.


– According to BSNL chairman and MD Anupam Shrivastava, “market disruption” and fall in tariffs have dashed hopes of clocking profit in 2018-19.


– Banks’ credit raised by 12.64% year-on-year to Rs8,551,099crore in the fortnight ended 11 May 2018, according to Reserve Bank of India (RBI) data.


– State-run Hindustan Copper has entered a JV with Chhattisgarh Mineral Development Corporation for exploration and mining of copper and associated minerals in Chhattisgarh. Chhattisgarh Copper has become a subsidiary of Hindustan Copper with a shareholding pattern in the ratio of 26% and 74% respectively.


– The Government has waived off Rs 1,077 crore penal interest on loans to Paradip Port Trust, which is one of the 12 major ports of India. PPT had availed loan of Rs642.69 crore under various heads at different points of time between 1967 to 2002 to finance its various infrastructure projects.


– Hyatt Hotels has introduced Hyatt Centric, its seventh brand in India by rebranding its Bengaluru MG Road property. Hyatt Centric brand target millennial travellers looking for new experiences and are located in prime cities like New York, Miami and Tokyo.


– Air India divestment – The government will shortlist qualified bidders by 15th June and also set a reserve price by June end.


– One of the oldest tea producers Warrer Tea is likely to expand its hospitality business with substantial capital expenditure over the next 3 years. Maple Hotels and Resorts, a company in which Warren Tea owns 46.92% stake, will be spending at least Rs60 crore to expand operations.


– Drugs Technical Advisory Board may constrain the use of fluoride to 1,000 ppm (parts-per-million) in toothpaste. Companies will now have to mention the fluoride content for each tube and the expiry date.


– Reliance Industrial Investments and Holdings will give a loan to Reliance Jio Estonia unit amounting to Rs12.20 crore to begin operations.


– After the NCLT accepted insolvency plea made by Ericsson against Rcom for settlement of dues, Rcom has challanged the NCLAT order along with its two other subsidiaries—Reliance Telecom and Reliance Infratel.


– Delhi HC has rejected the plea of Indian Hotels Company Ltd, against tender process to auction TajMahal Hotel by NDMC. IHC argued that tender document fails to take into account its ‘blemish-free’ record.


– Tata Steel is said to raise Rs16,500crore through debt instruments to fund the acquisition of Bhushan Steel for Rs 32,500 crore.


– The CCI has approved buyout of Monsanto, by Bayer AG subject to compliance of ‘certain modifications’. Monsanto will then become a subsidiary of Bayer. It was earlier reported that Bayer would acquire Monsanto for $66 billion.


– Due to the changing market dynamics and evolution of its design language, Tata Motors has decided to phase out the models Indica and Indigo CS.


– Facebook has said that it wants to draw a line between “news” and “misinformation” and hence wants to label the election advertising as “Political”.


– Tata Steel has completed acquisition of 72.65% shares of Bhushan Steel for Rs. 36,400crores and has emerged as the winner of the insolvency auction.


– The interim stay on acquisition of Bhushan Steel by Tata Steel, pleaded by the former has been declined by NCLAT on Monday hence approving Tata Steel’s resolution plan for the debt-ridden company.


– UltratechCement, on Monday, has bagged the Deora-Sitapuri-Udipyapura limestone mining block in MP.


– Soon after resignation of a director, Tejinder Singh Shergill, from Fortis Board on Sunday, two more directors, Harpal Singh and Sabina Vaisoha, have resigned a day prior to the EGM to be held for removal of directors.


– Fortis Sale: The proxy advisory firms have questioned Fortis’s board on choosing financial investors over those firms that are experienced with running hospital/s. Shriram Subramanian, founder and MD of InGovern Research Services Pvt. Ltd said that the Munjal-Burman offer was not in best interest of the investors.


– Tata Sky plans for its growth among customers by being a supplier of Netflix, Hotstar and Amazon Prime, says CMD HaritNagpal.


– Ultra Tech Cement Ltd will acquire Century Textiles and Industries Ltd in an all-stock transaction. For every eight shares of Century Textiles, the shareholders of UltraTech Cement will receive one share. Century Cement is valued at Rs 8,561 crore and Ultra Tech will absorb a debt of Rs 3,000 crore.


– Vijaya Bank has declared that its Board has deferred the fund raising plan for 2018-19, and the Board shall meet again on 20th May, to discuss its Capital Raising plan under Basel III. The bank has not made any further disclosure.


– Adani Group commits initial capital of Rs.500 crores for Adani Capital which shall focus on semi-urban locations of Gujarat & Maharashtra to finance farm sector, CV & business loans.


– Performance wear products get a new ‘stadium inspired’ retail format from Adidas. Saturday, the 19th of May saw the launch of Adidas’s first such store in Delhi and the company has plans to open at least 4 more in the country during 2019.


Policies & Practices:


– The draft of a new charter has been released by civil aviation ministry, which, if passed, shall relieve the air-travelers from paying penal charges to Government, in case they cancel or schedule their air tickets within 24 hours.


– PM Narendra Modi meets Russian President Mr. Vladimir Putin, to thank him for the major role played by him, to help India get a permanent membership in the Shanghai Cooperation Organization.


– India’s rural consumption surges in boost for FMCG firms. India overtook urban intake by the widest margin in five years. It is encouraged by good rainfall and an increase in government spending on infrastructure.




– The government has allowed the merged entity of Vodafone India Ltd and Idea Cellular Ltd to clear dues related to range charges and licence fees. Telecom department’s earlier stand that the merger will be approved subject to the payment of all dues.


– More than 430 employees have joined TCS at Florida as part of its deal with Transamerica, signed in January 2018.


– Aditya Birla Group firm Grasim Industries will invest over Rs13,000crore in its textile and cement businesses over the next 24-36 months. According to the officials, the company likes to increase capacity and modernize production.


– Suzuki and Toyota, have firmed up their discussion on tie-up between the two companies by the end of 2018-19. They shall be exchanging, rebadging and selling each other’s car in the country.


– Sony buys 60% holding of an Abu Dhabi based investment firm, Mubadala, giving the Japanese firm an indirect stake of approximately 90%.


– Cedar Support Services has sold its 13.64% stake in Future Enterprises for Rs.242.78 Crores.


– The director of Barclays India, Mr. BhavinShukla, resigned from his post and is all set to join JP Morgan.


– JNPT is planning to buy out the smaller cash-strapped port, to utilize its sizeable cash reserves and ramp up the capacity.


– Fortis Deal- While Yes Bank has sent two letters through its lawyers to urge the board to consider other bids even when the Munjal-Burman offer was accepted; resignation from the board by a Director has been submitted due to personal reasons. This would be in line with the institutional investors demand the removal of four independent directors, Brian Tempest, Harpal Singh, Sabina Vaisoha and Tejinder Singh Shergill, in April 2018.




– China has begun large-scale mining operations in Lhunzecounty, close to Arunachal Pradesh. Huge trove of precious minerals has been found in the region, which is valued at $60 billion.


– JPMorgan sells AIRRO to RohatynGroup, and exits infrastructure investment space in India.


– Ather Energy Pvt. Ltd, a start-up electric scooter maker, expects to have 60 charging points in the city by year-end. Source said that that the charging points will be installed at cafés, malls, gyms and tech parks. It is backed by India’s largest two-wheeler maker Hero MotoCorp Ltd and Tiger Global Management.


Ongoing cases:


– Fortis case: The Manipal-TPG combine has said it has extended the validity of its modified offer for Fortis Healthcare to 6 June for acceptance by FHL board and for recommendation to the shareholders of FHL.


– PNB Bank updates: ED files charge sheet against Nirav Modi, to approach Interpol in PNB case.


– The charge sheet has named 24 as accused in the case, including 18 individuals and six companies.PNB’s total exposure to the objects involved in the fraud now stands at Rs14,356 crore.


– PNB scam- CBI alleged that the ex CEO of PNB was aware of the “fraudulent dealing” with Nirav Modi but kept misleading RBI.


– PNB fraud- CBI is going to approach Interpol for a red corner notice against Nirav Modi and MehulChoksi.


– CBI filed charges against Vikram Kothari, the promoter of Rotomac Pens and his son Rahul, for defaulting on payment of loans worth Rs3,695 crore taken from nationalized banks.


– Fortis case – The investors of Fortis Hospital have voted out the fourth director from the hospital’s Board expressing their displeasure over handling company’s investment offers.


– Fortis case – Fortis Board is likely to meet today to decide on the future course of action with regards to the offer made by Sunil Munjal- Anand Burman to acquire Fortis.


– Bhushan Steel update – Pursuant to the sale of Bhushan Steel to Tata Steel, Yes bank claims to have been able to recover Rs 184 crore against the original claim of Rs 325 crore.


– Binani Cement update – NCLAT has refused to put stay orders on the insolvency proceedings against Binani Cement.


– Flipkart-Walmart deal – SoftBank ends the long-held suspense and confirms selling off its entire stake of 20% holding in Flipkart to Walmart for an estimated amount of $4 million.




– Airtel Payments Bank appointed former ICICI Bank senior executive AnubrataBiswas as the new MD &CEO. His appointment comes five months after the exit of Shashi Arora. Anubrata is the first MD and CEO of Airtel Payments Bank.


– Sunil Lulla has been appointed as the group CEO of Balaji Telefilms Ltd, in place of Sameer Nair who left the company after a three-year stint in July last year.


Here we cover the essential weekly India business news from 21st to 26th May 2018, hope it is helpful for you. Don’t forget to give your feedback.


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