OPINION, P6 COMPANIES, P4 INTERNATIONAL, P8 EDITORIAL AHEAD OF IPO MEDICAL AILMENTS Zomato converts into public company from private limited Bernie Madoff, architect of largest ponzi scheme in history, dies at 82 Allowing global vaccines good, now free up pricing The code of conduct for faculty proposed by IIM-C's Board does the institute great disservice MUMBAI, THURSDAY, APRIL 15, 2021 WWW.FINANCIALEXPRESS.COM FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE READ TO LEAD VOL. LXI NO. 88, 12 PAGES, `7.00 P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E SENSEX*: 48,544.06 ▲ 660.68 NIFTY*: 14,504.80 ▲ 194 NIKKEI 225: 29,620.99 ▼ 130.62 HANG SENG: 28,900.83 ▲ 403.58 `/$^: 75.06 ▼ 0.31 `/€^: 89.34 ▼ 0.45 BRENT: $64.79 ▲ $1.12 GOLD*: `46,391 ▼ `6 MARCH QUARTER IN THE NEWS In world’s first, Denmark ditches AstraZeneca shot ● SAFETY FIRST Infosys reports sedate numbers Gives revenue guidance of up to 14% for FY22 Report card Q3 FY21 (` crore) Q4 FY21 q-o-q (%) Revenue from operations SRINATH SRINIVASAN Bengaluru, April 14 THE FINANCE MINISTRY on Wednesday said fundraising through public and rights issues surged 115% and 15%, respectively, in 2020-21 despite the uncertainty due to the pandemic, reports PTI. In terms of numbers, FY21 witnessed 55 initial public offerings (IPOS) and one follow-on public offer (FPO). Future defaults on payment of interest on NCDs 6,589 FUTURE ENTERPRISES HAS defaulted on payment of interest on NCDs due on April 12, reports PTI. Gross principal amount on which the default has occurred is `300 crore and interest payable was `15,16,48,248. Special Features vivo X60 Pro: A stylish phone, quite a snapper too Available for `49,990, the vivo X60 Pro is a top-notch Android phone and impresses with its sleek design, good display, image clarity, powerful camera performance and good overall running ■ Gadgets, P9 Digital tech makes car buying easy at CARS24 Data science, machine learning and IoT is making online buying and selling of used vehicles smart and efficient, says CARS24’s Naresh Mehta. It now does 20,000 monthly transactions ■ eFE, P9 QuickPicks ‘Need for positive regulatory framework for internet cos’ FACEBOOK INDIA head Ajit Mohan said there is a need for a “forward-looking and positive regulatory framework” for internet companies, and that organisations also need to be more transparent about how they use customer data, reports PTI. He noted that India has seen an “explosive shift” in terms of access to the internet and this expanded access gas-driven the emergence of entirely new models, a feat that no other country has managed to do so much in such a short period of time. PAGE 4 ‘Auto fuel rates seen rising post elections to aid OMC margins’ RETAIL PRICES of auto fuels is seen to rise again after the polls are over as state-run oil marketing companies (OMCs) will likely want to improve their marketing margins amid rising global crude and product prices, analysts feel, reports fe Bureau in New Delhi. The marketing margin of around `3.5 a litre in Q4 is the lowest encountered by OMCs in the last nine quarters and with production cuts by OPEC+ and vaccine rollout supporting demand, the margin will fall further if retail prices are raised. PAGE 2 Allow deliveries of all products: Amazon urges Maha govt AMAZON ON Wednesday urged the Maharashtra government to allow deliveries of all products to customers amid new restrictions to curb Covid cases, saying it was challenging to define a static essentials list, reports PTI. "Customers trust Amazon to safely deliver all products according to their respective needs. Currently, we are enabling deliveries of essential products in the state of Maharashtra in line with new guidelines set by the government," an Amazon India spokesperson said. slowinginthevaccinationdrive —itreachedahighof4.5million onApril 5 — is due to the shortage of vaccines or whether it is duetovaccine-hesitancy,which is thereluctanceofpeopletoget vaccinated.Whiletheexactdata isdifficulttoascertainsincethe central government insists stateshaveenoughvaccinesupplies — till April 13, the Centre said states had 1.7 crore vaccines and 2.0 crore were in the pipeline — vaccination centres have been reporting zero supplies invarious states. THE GOVERNMENT ON WednesdaycancelledtheCBSE's class 10 board exams and postponeditsclass12examsfollowing an exponential surge in Covid-19 cases, a decision that willaffectover21lakhstudents across the country. This is the first time that theCentralBoardofSecondary Education has completelycancelled the board exams conducted by it. Last year, the examswere partiallycancelled in the wake of riots in northeast Delhi and Covid-19 cases. ThedecisiononWednesday wastakenatahigh-levelmeeting chaired by Prime Minister Narendra Modi. A total of 21.5 lakh students had registered for class 10 and 12 CBSE exams. The CBSE will review the situation on June 1 to decide on the class 12 exam schedule while objective criteria will be decided for class 10 results. The CICSE, which is the other prominent national boardforschoolexaminations, said it is reviewing the situation and will come up with a decision soon in this regard. Several principals and educationists hailed the decision while others demanded that the criteria be decided in consultation with stakeholders. Parents also expressed concerns about the delayin schedule saying either the board exams should be cancelled for class 12 or a schedule should be announced soon to ease the students’anxiety. Continued on Page 2 Continued on Page 2 ● NEW STRUCTURE SLOWER PACE Net profit Patients with breathing problems wear oxygen masks as they wait inside ambulances in a queue to enter a Covid-19 hospital, amid the rising number of coronavirus cases, in Ahmedabad on Wednesday -2.33 5,197 6,440 5,076 (earnings before interest and tax) came in at `6,440 crore. The Street should,however,be satisfied with the company’s outlook for FY22. Continued on Page 2 Infosys announces `9,200-cr buyback INFOSYS ON WEDNESDAY announced share buyback of up to `9,200 crore at `1,750 per share, reports fe Bureau in Bengaluru.That is a premiumof25%overTuesday’s closing price of `1,402.85. The shares will be bought back in the open market. Breathless « -2.26 « Fundraising via IPOs more than doubled in FY21 1.48 26,311 EBIT PRESS TRUST OF INDIA New Delhi, April 14 « 25,927 INFOSYS ON WEDNESDAY reported a sedate set of numbers for the March quarter with net profits coming in at `5,076 crore, a decline of 2.4% sequentiallyand slightly short of analysts’estimates. Revenues of IT services company grew 2% sequentially to `26,311 crore, on a constant currencybasis,again a shade lower than estimates and much belowTata Consultancy Services’ revenue growth of 4.2%. Infosys’ ebit margin of 24.5% was lower by 100 basis points sequentially the result of wage hikes while the ebit Govt cancels CBSE class 10 board exams, defers class 12 exams « DENMARK ON WEDNESDAY became the first country to stop using AstraZeneca’s Covid vaccine altogether, following news of its possible link to very rare blood clot cases, reports Reuters. The decision will push back the scheduled conclusion of Denmark’s vaccination scheme to early August from July 25. *April 13 ^April 12 Infosys completed its first buyback of `13,000 crore comprising11.3croreequity sharesatapriceof`1,150per shareinlate2017.In2019,it bought back 11.05 crore shares, at an average price of `747.38 per share, for `8,260 crore. ● NEW ENERGY Green hydrogen auctions, purchase obligations in the offing ANUPAM CHATTERJEE New Delhi, April 14 THE GOVERNMENT IS planning to use 2,000 mega-watt (MW) solar and wind power capacity for hydrogen production. It will also hold green hydrogen auctions as part of a broader plan to curb greenhouse gas emissions. Apart from industrial use, hydrogen technology can also be used to store electricity and potentially to run vehicles. Sources said plans were also afoot to make it mandatory for user industries like fertilisers and petroleum refineries to purchase 10% of their hydrogen requirements from domestic green hydrogen sources. The country currently consumesabout5-6milliontonne of hydrogen annually. The Union ministry of new and renewable energy (MNRE) is currently charting the ‘National Hydrogen Energy Mission’ to create a hydrogen value-chain in the countryand bring down the costs of hydrogen production. Continued on Page 2 COVID-19 Tika Utsav doesn’t do the trick, vaccination levels remain low VACILLATING VACCINATION Vaccine shortage, Poor momentum Poor coverage or hesitancy, keeps (number of doses, in mn) (population over 45 years, in mn) average jabs at under 5.0 Total 255 4.5 4.0 3 million a day 3.5 FE BUREAU New Delhi, April 14 PRIME MINISTER NARENDRA Modi’s call for a four-day Tika Utsav where an all-out effort was to be made to vaccinate as many of those above the age of 45doesn’tseemtohaveworked with just about a third in the target group cumulatively getting vaccinated till the end of the special drive. Though the number of vaccination shots rose to 2.9 million on Wednes- Mar 15 Apr 14 daycomparedto2.5millionthe day before, the average for the four days from April 11 to 14 was2.9millionshots;ironically, inthefourdayspriortotheTika Utsav,the dailyaveragewas 3.3 million based on data sourced from the CoWIN site. It is not clear whether the Total population Total vaccinated Bharti does a Jio, gives digital primacy PRASANTA SAHU New Delhi, April 14 FE BUREAU New Delhi, April 14 THE GOVERNMENT HAS started inter-ministerial consultations to draft the legislative changes required for privatisation of public sector banks (PSBs). The plan,according to official sources, is to opt for amending the relevant laws in one go, so that the process of PSB privatsiation is not hindered by legal hurdles. Deliberations are taking place within the government onwhetherto repeal the Banking Companies (Acquisition andTransferof Undertakings) Acts of 1970 and 1980 (nationalisation Acts). The voting rights cap of 10% for a non-government shareholder irrespective of his/hershareholding is among the keyconstraints identified, the sources say. The stipulation in the Hey Siri! ■ Siri prematurely revealed plan to hold an event nextTuesday ■ Virtual assistant is known for stonewalling fans quizzing about new products, upcoming events ■ Apple typically launches new hardware in March Cupertino, California, the US tech giant added. Continued on Page 2 (Number of daily cases) 2,00,000 1,85,294 1,50,000 1,00,000 50,000 Centre to amend key PSB privatisation laws Come April 20, Apple may launch new iPad Pro models APPLE SAID ON Tuesday it was holding a special event on April 20,with manyexpecting the tech giant to launch new iPad Pro models and other products ahead of its annual developers’ conference in June. Apple’s cryptic invitation for the media did not give much away and read: “Spring Loaded”.The eventwill be livestreamed on the company’s website from its campus in 88 MONSOON SESSION ● SIRI REVEALS REUTERS April 14 3.0 2.5 2.0 1.5 1.0 0.5 0 Covid cases surge Bank Nationalisation Acts of 1970 and 1980 may be repealed Banking Regulation Act, 1949,that no shareholder of a banking company — PSB or private sector bank — can exercise voting rights more than 26%, is also being reviewed, they add. BHARTI AIRTEL HAS followed theJiomodelbyunveilinganew corporate structure wherein Airtel Digital will fold into the listedentity.Whatthismeansis thatAirtelDigitalwillnowsiton top of the telecom business — the latter will become a unit of the digital business — quite similar to Jio Platforms under which Reliance Jio sits. All the telecom businesses ofthecompany,mobile,broadband and enterprises,will now be housed in a newly created entity, Airtel Limited, which will sit belowAirtel Digital. Bharti said in a statement on Wednesday that the new structure is expected to sharpen the focus of the companyin drivingtherapidlydigital opportunity while enabling it to unlock value. Continued on Page 2 Continued on Page 2 This would mean removal of voting cap of 10% for PSBs Voting cap of 26% under Banking Regulation Act for all banks also being reviewed 0 1 Jan 30, ‘20 Apr 13, ‘21 Banks’ non-food credit growth slips below 6% FE BUREAU Mumbai, April 14 THE RATE OF growth in nonfoodcreditcontinuedtoshrink in March, falling to 5.54% year-on-year (y-o-y) for the fortnight ended March 29 from 6.44% in the previous fortnight.Theslowergrowthin credit coincides with a fresh surgeincoronavirusinfections across India and associated restrictions by state governments. Deposits crossed the `150-lakh-crore mark during the fortnight under review. As on March 29, outstanding non-food credit stood at `108.9 lakh crore, showed data released by the Reserve Bank of India (RBI). Commercial paper (CP) issuances in March 2021 were `2.23 lakh crore, 5.7% higher than the correspondingmonthlastyear and 41.7% higher sequentially, according to CARE Ratings.Total CPissuances during the fiscal stood at `17.4 lakh Credit & deposit growth 14 12 (%, y-o-y ) 11.39 7.93 10 Deposit 8 6 4 6.06 Credit March 27, ‘20 Source: RBI 5.54 March 29, ‘21 crore, almost 21% lower than the previous year.“The decline so far this year can be attributed to the pandemic led lockdown and the consequent lower requirement of shortterm funds by corporates,” analysts at CARE said in a recent note. The fall in corporate borrowing has also beenweighing on loan growth. Continued on Page 2 UNDER FIRE Toshiba CEO steps down amid buyout controversy MAKIKO YAMAZAKI Tokyo, April 14 TOSHIBA CEO NOBUAKI Kurumatani resigned on Wednesday amid controversy over a $20-billion buyout bid from CVC Capital Partners and the conglomerate’s shares surged on reports that KKR & Co and Brookfield are also planning offers. Satoshi Tsunakawa, who previously led the company before Kurumatani and until Wednesdaywas chairman,will ■ Kurumatani resigns comes amid controversy over a $20-bn buyout bid from CVC Capital Partners ■ Conglomerate’s shares surged on reports KKR and Brookfield are also planning offers once again assume the helm. Kurumatani had been under fire over the bid from CVC, his former employer, as ■ Satoshi Tsunakawa, who previously led the company, will once again assume the helm ■ Kurumatani had been under fire over the bid from CVC, his former employer well as damaging allegations that management pressured investors before a shareholder meeting to support desired board nominations. CVC Capital Partners’offer to take the scandal-hit Japanese conglomerate private and retain incumbent management was perceived as designed to shield Kurumatani and other managers from pressure from activist shareholders who have successfully pushed for an independent probe into the allegations, sources familiar with the matter have said. Continued on Page 2
The Financial Express (FE) is a business paper that’s closest to the people who are in the business of business. From business policies to market trends to new developments, The Financial Express comes packed with incisive news on every relevant issue.