OPINION, P6 MARKETS, P9 EDITORIAL To make India a start-up nation,open doors for Indian capital IN DEFENCE DRINKS DEAL Voda-Idea collapse is a warning to investors; they must expect policy uncertainty at all times MOHANDAS PAI & YASH BAID INTERNATIONAL, P8 No error of judgement in PNB Housing Finance deal, says PNB MD PepsiCo to sell Tropicana, other juice brands for $3.3 bn NEW DELHI, WEDNESDAY, AUGUST 4, 2021 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. XLVII NO. 133, 40 PAGES, `8.00 (PATNA `8.00, RAIPUR `8.00) P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E SENSEX: 53,823.36 ▲ 872.73 NIFTY: 16,130.75 ▲ 245.60 NIKKEI 225: 27,641.83 ▼ 139.19 HANG SENG: 26,194.82 ▼ 40.98 `/$: 74.29 ▲ 0.06 `/€: 88.28 ▲ 0.16 BRENT: $72.59 ▼ $0.30 GOLD: `47,850 ▲ `1 IN THE NEWS Joblessness: Urban Maha was worst hit in April-Sept 2020 URBAN MAHARASHTRA was the worst hit by the pandemic in terms of loss of employment, reports fe Bureau in New Delhi. The rate of unemployment in the urban areas of the industrialised state were 35.6% and 22.6%, respectively, in April-June and July-September quarters of last year. Sebi: Payments banks can act as investment bankers TO PROVIDE easy access to investors to participate in public and rights issues by using various payment avenues, markets regulator Sebi on Tuesday allowed payments banks to carry out the activities of investment bankers, reports PTI. RBI norms for outsourcing of activities by PSOs THE RESERVE Bank of India (RBI) on Tuesday laid down a framework for outsourcing of processes by payment system operators (PSOs), excluding functions like risk management, internal audit and compliance from the ambit of outsourcing, reports fe Bureau in Mumbai. MISSING ESTIMATES Bharti net down 63% at `284 cr Airtel RJio `138.4 Operating metrics for Q1 FY22 `146 Arpu Average data usage (per user per month, MB) 15,600 18,932 Total wireless data traffic (million MB) 20,300,000 10,771,051 FE BUREAU New Delhi, August 3 BHARTIAIRTEL,THE country’s second-largest telecom operator,on Tuesday saw its consolidated net profit declining 62.6% on a sequential basis at `284crore,missinganalystestimates, mainly due to higher financecosts.Thecompanyhad alsobookedanexceptionalgain of `440 crore during the preceding quarter. At `4,082crore,net finance costs were up 5.8% on a quarter-on-quarterbasisand30.4% on a year-on-year basis, largely on account of increase in average outstanding borrowings. The company’s consolidated revenueswere,however, above estimates at `26,854 crore,up 4.3% on a sequential basis.ItsconsolidatedEbitdaat `13,189 crore was up 4.82% Low credit score? Six tips to get a home loan yet 300 900 Credit Score per user/month (minutes) 818 1,044 Total voice traffic IBC has strayed from original goals: Panel About 13,200 insolvency cases involving `9-lakh-cr claims awaiting resolution at NCLTs, says House panel report (million minutes) 1,060,000 1,002,263 Try to improve your credit score by clearing outstanding debts even if you get a loan with a higher rate initially so that the risk premium gradually gets lowered during the course of the loan ■ Personal Finance, P7 Bridging the gap between the farm and the table Agri-tech startup Farmers Family, which supplies fresh fruits and vegetables in DelhiNCR, raises funding from promoters of Safex Chemicals; signs MoU with IIM LucknowEnterprise Incubation Centre ■ eFE, P7 QuickPicks Free foodgrain scheme helped reduce hunger, cost `2L cr: PM HAVING COME under attack by Opposition parties on the issue of rising prices, PM Narendra Modi on Tuesday stressed that several schemes have been launched since 2014 to benefit the poor, including the free foodgrain scheme that helped alleviate hunger during the pandemic, reports fe Bureau in New Delhi. Speaking about Pradhan Mantri Garib Kalyan Anna Yojana, he said: “The country is spending over `2 lakh crore on this account. The free rations reduced distress for the poor.” PAGE 2 GST e-way bill generation rises 17% in July, highest in 4 months E-WAY BILL generation for goods transportation under the goods and services tax (GST) system has come in at 6.42 crore in July, the highest in four months and 17% higher than June, indicating a sustained pick-up in economic recovery, reports fe Bureau in New Delhi. Average daily e-way bill generation was 24.3 lakh in the last six days of July, compared with 20.2 lakh in the week ended July 25, 20.4 lakh in the preceding week and 19.24 lakh in the first 11 days of July. PAGE 3 Coal auction Day 2: 76% revenue offered for Jharkhand’s Rauta block TWO COAL blocks were grabbed by private players on Tuesday on Day 2 of the second tranche of commercial coal auctions, reports fe Bureau in New Delhi. Sunflag Iron and Steel turned out to the preferred bidder for the Bhivkund coal mine in Maharashtra by offering 9% revenue share to the state government. Kolkatabased Shreesatya Mines, the winner ofJharkhand’s Rauta closed mine, offered a revenue share of 75.5% to the state government, highest bid received yet in the commercial auctions. Nykaa eyes `525 cr through fresh equity Files papers for IPO; promoters, investors to sell up to 43.11 m shares via OFS IBC sharply reduced haircuts for lenders, says IBBI chief Sahoo compared with the preceding quarter and once again above estimates.Ebitdamarginstood at 49% against 48.9% in the preceding quarter. The company’s India revenues were also up 2.7% sequentially at `18,828 crore whilemobile revenueswereup 1.6% q-o-q at `14,306 crore. The average revenue per user (Arpu) was almost in line withestimatesat`146against `145 in the preceding quarter. Thecompany’sArpucontinues to be the best in the industry, remaining ahead of Reliance Jio's `138. With the recent hikes in postpaid tariffs for corporatecustomersandentry level plans for prepaid users, Bharti’s Arpu is expected to further improve in the subsequent quarters. Continued on Page 2 ONLINE BEAUTY PRODUCTS platform Nykaa plans to raise up to `525 crore through fresh issue of shares in its upcoming initial public offering (IPO), according to the preliminary documents filed with capital markets regulator Sebi. The offeralsocomprisesanofferfor sale(OFS)ofupto43.11million shares by a clutch of existing shareholders and promoters. Thoughthecompany’sdraft red herring prospectus (DRHP) didnotmentionthetotalsizeof theIPO,sourcesawareofthediscussionssaiditisestimatedtobe around `3,500-4,000 crore. Majorityofthefundsraisedwill be driven by the OFS component.TheIPOislikely to value Nykaa at an estimated$5-5.5billion,sources said. The Sanjay THE AVERAGE DUES of troubled firms were AFTER ABOUT HALF a dozen nearly five times of their asset amendments in five years, the KEY PROPOSALS value when the Insolvency and Insolvency and Bankruptcy Bankruptcy Code (IBC) was Need to have benchCode (IBC) seems to have deviinvoked to resolve their stress, mark for haircuts, a ated from its original objectives, MS Sahoo, chief of the insolprofessional code thanks to inordinate delay in vency regulator, told FE, ofconduct for CoC and ICAIresolution and the low recovery staunchly defending the type self-regulator for IPs ratewith haircuts running up to five-year-old law that has To curb frivolous 95% in few cases, the Parliacome under criticism for turnlitigation, element mentary Standing Committee ing out to be a “tool for haircut” of finality with regard on Finance said in a report. for lenders. to key provisions needs As many as 13,170 insol“It is axiomatic that a comto be ensured within vency cases involving claims of panycoming to the IBC does not the IBC timeframe `9 lakh crore are awaiting haveadequateassetstorepayall resolution before the National its creditors.On an average,the POTENTTOOL Company Law Tribunal (NCLT), companies, which have been Assetvalue of the report, tabled in the rescued through the IBC till firms rescued Lok Sabha on Tuesday, said. March 2021, had assets valued cases closed, was only About 71% of these cases have at 22% of the amount due to before or after been pending beyond 180 days, admission; agai- creditorswhen theyentered the it said,as it called fora reviewof IBC,” Sahoo said. “This means oftheir dues nst this backthe NCLT’s performance. the creditors were staring at a drop, no. of liqwhen they The IBC sets a time frame uidation minimal haircut of 78% to start with. entered IBC of 180 days to resolve stress of The IBC not only rescued these a firm, which can be extended companies but also reduced the by another 90 days with the NCLT approval. haircut to 61% for financial creditors.” Continued on Page 2 19,000 22% THE MUCH-AWAITED escooter by Ola Electric will be launched on August 15, the company’s founder-CEO BhavishAggarwal said onTuesday. “Thanks to all who have reserved ourscooter! Planning a launch event for the Ola Scooter on August 15. Will share full specs and details on product and availability dates. Looking forward to it!”Aggarwaltweetedalongwiththepicture of the scooter. Though the company started taking bookings for the scooter in July, much is not known till now about its specificationsandpricing.Ithadsaid lastmonththatthescooterhad received1lakhbookingswithin thefirst24hours,makingitthe most pre-booked scooterin the world.Industrysourcessaidthe January-Junetwo-wheelerelectric vehicle (EV) sales in India Bhavish Aggarwal @bhash (Ola CEO) Planning a launch event for the Ola Scooter on 15th August. Will share full specs and details on product and availability dates. Looking forward to it! were about 30,000 units. So, even if 30% dropped off from the reservations, Ola would have double the sales of the entireEVtwo-wheelerindustry combined in one shot. Continued on Page 2 Focus on rollout of flex-fuel vehicles in a year, Gadkari tells automakers TRANSPORTAND highways minister Nitin Gadkari on Tuesdayemphasisedtherolloutofflex-fuelvehiclesinthe Indian auto market within a year,reportsPTI.“MetadelegationofCEOsofSiaminNew Delhi today. Emphasised on (` in million) .6% 40,459.8 : 56 GR CA 26,849.2 16,500.8 Falguni Nayar, founder & CEO, Nykaa Continued on Page 2 FY19 FY20 FY21 Revenue from operations (` in million) .2% : 48 24,408.96 GR CA 17,675.33 11,113.94 FY19 FY20 FY21 Source: Nykaa DRHP Nayar Family Trust, TPG Growth, Lighthouse India Fund III, Lighthouse India III EmployeeTrustandSunilKant Munjal are among the selling shareholders, according to the DRHP.The promoterand promoter group will, however, continue to hold more than 51% of the company’s shares. Continued on Page 18 ● NITI REPORT Ola’s e-scooter ride begins August 15 FE BUREAU Chennai, August 3 GMV FE BUREAU New Delhi, August 3 BANIKINKAR PATTANAYAK New Delhi, August 3 FE BUREAU New Delhi, August 3 CHARGED UP! Special Features Home Loan Average voice usage IPO-READY FALLING SHORT theneedforaquickroll-outof Flex-Fuel Vehicles (FFVs) capable of running on 100% ethanolandgasolineintothe Indian auto market within a year’time,”the minister said in a tweet. ■ Report on Page 4 Discoms’ FY21 losses seen at `90,000 cr FE BUREAU New Delhi, August 3 LOSSES OF STATE-RUN power distribution companies (discoms) are estimated to have surged to `90,000 crore in FY21,a report released by NITI Aayog onTuesday. Union power minister RK Singh recently said discoms’ losses were down 38% on year at `38,000 crore in FY20, mainlyduetocorrectiveactions like timely tariff revisions and improvementinbillingandcollection efficiency. The losses were expected to have risen againinFY21owingtothepandemic disrupting the reform process that induced a certain disciplineamongtheseentities. The report, co-authored by NITI Aayog and energy think tankRMI,recommendedahost of measures, including providinggreaterautonomytothediscoms, timely tariff revisions, increasing competition in the business and larger involvement of the private sector to improve the health of these perennially distressed entities. “Arobustandlong-lastingsolution to the woes of the discoms requires changes in policy as wellasorganisational,managerial and technological reforms,” RMI MD ClayStrangersaid. PROTESTING FUEL PRICES Bicycles with placards demanding a roll-back of fuel price hikes near Parliament House. Several Opposition MPs on Tuesday cycled to the House premises to highlight the issue Recovery hopes FE BUREAU Sensex, Nifty scale new peaks Sensex soared 873 points to a fresh closing record of 53,823.36, while Nifty finished above the 16,000-mark for the first time on Tuesday as economic recovery hopes triggered across-the-board buying. 54,000 53,800 Sensex 53,823.36 23.36 Intra-day, Aug 3 16,100 53,600 Previous close : 52,950.63 53,400 16,030 52,800 Nifty50 Intra-day, Aug 3 16,130.75 Previous close : 15,885.15 15,960 53,200 53,000 16,170 15,890 53,125.97 Close Open 15,820 15,951.55 Open Close Continued on Page 18 $60-BILLION WIPEOUT Tencent tumbles after Chinese media calls online gaming‘spiritual opium’ BRENDA GOH & SAMUEL SHEN Shanghai, August 3 CHINA’S TENCENT HOLDINGS said on Tuesday it would further curb minors’ access to its flagship video game, hours after its shares were battered by a state media article that described online games as “spiritual opium”. Economic Information DailycitedTencent’s‘Honorof Kings’ in an article in which it said minors were addicted to online games and called for more curbs on the industry. The outlet is affiliated with China’s biggest state run news agency,Xinhua. The broadside reignited investor fears about state intervention in China after Beijing had already targeted the property, education and technologysectors to curb cost pressures and reassert the primacyofsocialismafteryearsof runaway market growth. Economic Information Daily cited Tencent’s ‘Honor of Kings’ in an article in which it said minors were addicted to online games China's biggest social media and gaming firm saw almost $60 billion wiped off from its market capitalisation Tencent said it will introduce more measures to reduce minors' time and money spent on games “They don’t believe anything is off limit andwill react, sometimes overreact, to anything on state media that fits the tech crackdown narrative,” EtherYin,partneratTrivium,a Beijing-based consultancy. China’s largestsocialmedia and video game firm saw its stock tumble more than 10% in early trade, wiping almost $60 billion from its market capitalisation. The stock was on track to fall the most ina decade before New Delhi trimming losses after the article vanished from the outlet’s website and WeChat account on Tuesday afternoon. The article laterreappeared laterin the daywith the historically loaded term “spiritual opium” removed and other sections edited. The CSI300 index lastweek fell more than 5% for its biggest monthly loss since October 2018. Continued on Page 2
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