COMPANIES, P5 MORE COOPERATION ECONOMY, P2 ONGC Videsh, IOC sign pacts with Russia’s Gazprom INTERNATIONAL, P8 CLEARING THE AIR 24TH MEETING COMPLETE TAKEOVER Google says it firmly sees itself as partner to India's financial ecosystem FSDC asks regulators to keep constant vigil on financial sector Taliban co-founder Mullah Baradar to lead new Afghan govt NEW DELHI, SATURDAY, SEPTEMBER 4, 2021 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. XLVII NO. 160, 30 PAGES, `10.00 (PATNA `10.00, RAIPUR `10.00) 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: 58,129.95 ▲ 277.41 NIFTY: 17,323.60 ▲ 89.45 NIKKEI 225: 29,128.11 ▲ 584.60 HANG SENG: 25,901.99 ▼ 188.44 `/$: 73.02 ▲ 0.05 `/€: 86.67 ▼ 0.06 BRENT: $73.28 ▲ $0.25 GOLD: `46,998 ▼ `100 IN THE NEWS Forex reserves hit record high of $633.558 bn THE COUNTRY'S foreign exchange reserves soared by $16.663 billion to touch a lifetime high of $633.558 billion in the week ended August 27, mainly due to an increase in Special Drawing Rights (SDR) holdings, RBI data showed, reports PTI. Shakti scheme: Nod to 3 coal auction windows PROVIDING RELIEF to about 8,500 MW of power plants without PPAs, which rely on auctions conducted under the Centre’s Shakti scheme, the power ministry has agreed to allow generating stations to procure fuel under the scheme through 3 different windows, reports fe Bureau in New Delhi. Snapdeal mulls IPO to raise $400 million E-COMMERCE RETAILER Snapdeal is considering an initial public offering (IPO) that could raise about $400 million, joining a growing list of start-ups preparing to tap capital markets as the nation’s digital economy booms, reports Bloomberg. CLEAN HYDROGEN RIL bets big on green energy Ambani sees cost of green hydrogen coming down to $1/kg in 10 years ■ Current cost of green hydrogen production: $3.6-5.8/kg FE BUREAU New Delhi, September 3 STATING THAT Reliance Industries “will aggressively pursue” the target of bringing down the cost of green hydrogen to under $2 per kg “well before the turn of this decade”, chairman Mukesh Ambani said on Friday“India can set an even more aggressive target of achieving under $1 per kg within a decade”. Currently, the production cost of green hydrogen is around $3.6-5.8/kg,according toareportbyCouncilonEnergy, Environment and Water. The planned reduction in productioncostofthebenignsourceof energy could help the country cut its burdensome oil import ■ RIL has announced `75,000-cr investment in clean energy PM announced National Hydrogen Mission on August 15 ■ Country consumes about 6 m tonne of hydrogen annually ■ IOC, NTPC already working on green hydrogen projects billandhaveasalutaryeffecton the current account. “The rapid fall in the cost of production has made solar energy highly competitive, attracting large-scale investments,”Ambanisaid,addressing International Climate Summit organisedbythePHDChamber of Commerce and Industry. Continued on Page 2 Reliance will create and offer a fully integrated, end-to-end renewables energy ecosystem to India and Indians. —MUKESH AMBANI, CHAIRMAN, RIL FRIDAY FRENZY Sensex claims Mt 58K as bulls charge on Markets byouyed by RIL rally, sustained foreign funds flow PRESS TRUST OF INDIA Mumbai, September 3 SENSEX SCALEDTHE 58,000mark for the first time on Friday,buoyed bya rallyin market heavyweight Reliance Industries as investors remained in risk-on mode amid positive macroeconomic data and sustained foreign fund inflows. Rising for the second straight day, the 30-share benchmark climbed 277.41 points to its lifetime closing high of 58,129.95. It touched an intra-day record of 62,000 How the Amaze became Honda’s largest selling model The Amaze has helped Honda reach small towns; tier-1 markets have contributed to 32% of sales, while the country’s tier-2 and tier-3 markets have contributed 68%. ■ Motobahn, P7 Rights fund to fuel Bharti’s future growth, reduce debt Capex in 5G spectrum, fibre and data centre are priorities; net debt to Ebitda pegged at 2x in near term; Ebitda for FY22/23e down ~3% due to AR updation; TP up to `712; ‘Buy’ retained ■ Investor, P7 QuickPicks Maruti recalls over 1.81 lakh units to replace faulty electrical part MARUTI SUZUKI India (MSI) on Friday said it is recalling 1,81,754 units of petrol trims of various models to replace faulty motor generator unit, reports PTI. This is the company's largest vehicle recall till date. As a responsible corporate, keeping in mind customer safety, the company has announced to proactively undertake a recall of some petrol variants of Ciaz, Ertiga, Vitara Brezza, S-Cross and XL6, Maruti said in a regulatory filing. PAGE 4 `10,683-cr textile PLI scheme to get Cabinet nod soon: Goyal TEXTILE MINISTER Piyush Goyal on Friday said a proposed `10,683-crore production-linked incentive (PLI) scheme for technical textiles and man-made fibre products will be approved by the Cabinet soon, which will bolster domestic manufacturing as well as exports, reports fe Bureau in New Delhi. The government and the industry have set an export target of $44 billion for the textiles and garment sector for FY22, up 33% from a year before. PAGE 2 Shareholders of JSPL approve `7,401-cr Jindal Power stake sale JINDAL STEEL & Power (JSPL) has received the shareholders’ nod to divest 96.42% stake in its subsidiary Jindal Power for `7,401 crore to Worldone, reports fe Bureau in Mumbai. The resolution was approved by 97.12% of the total votes at the EGM on Friday, JSPL said in a BSE filing. Of the total `7,401 crore, Worldone, a company owned by the Jindal family, will pay `3,015 crore in cash and takeover of liabilities worth `4,386 crore of ICDs and capital advances paid by JPL to JSPL, it said. PAGE 4 Sensex climbed 13% in the last 6 months to take its YTD gains to 21.7% Three firms - Infosys, RIL andTCS - contributed over a third to Sensex’ gains in last 6 months M-cap of BSE listed firms rose by `66 lakh crore in 2021 to a record `254 lakh crore Continued on Page 2 ■ RIL m-cap goes past `15 lakh crore, Page 6 58,129.95 54,000 50,000 Sensex 46,000 March 01, 2021 PRESS TRUST OF INDIA New Delhi, September 3 September 03, 2021 HDFC Life snaps up Exide’s insurance arm for `6,687 cr The cash-and-stock deal among the biggest in the sector BIG PURCHASE PRESS TRUST OF INDIA Mumbai, September 3 `726 crore HDFC LIFE INSURANCE on Friday said it will acquire a 100% stake in Exide Life Insurance from Exide Industries in a deal amounting `6,687 crore. The board of directors of HDFC Life Insurance, Exide Industries and Exide Life Insurance, at their respective meetings held on Friday, approved the transaction involving the sale of Exide Life Insurance to HDFC Life,HDFC Life said in a statement. HDFC Life managing director and CEO Vibha Padalkar said, “While we continue to grow faster than the overall life insurance market,we have always been actively taking opportunities to supplement that with inorganic growth.” She added that in line with this thought process,the company is pleased to announce the acquisition of 100% stake in Exide Life Insurance from Exide Industries. Acquisition to be done via issuance of 87 million shares at an issue price of `685 per share and cash payout of ■ Transaction expected to be a two-step process with merger of Exide Life into HDFC Life being initiated on completion of acquisition ■ As ofJune 30, Exide Life’s assets under management stood at `18,780 cr ■ Transaction to bring down HDFC Life's solvency margin to 180% from current level of 222% “The acquisition is being donevia issuance of 87 million sharesatanissuepriceof`685 per share and the cash payout of `726 crore, aggregating to `6,687 crore,”she said. Continued on Page 2 ● COVID SHOT Bio E gets DCGI nod for Ph 2/3 trials on kids, adults FE BUREAU Pune, September 3 New framework The percentage that needs to be invested depends on the risk level of the scheme Risk levels categorised into low, low to moderate, moderate, moderately high, high and very high Investment to be maintained till the completion of tenure or till the scheme is wound up The new rules will come into force on the 270th day from the date of notification. Continued on Page 2 RIL deal: SC to hear Future plea soon THE SUPREME COURT on Friday agreed to an early hearingoftheFutureGroup’s appeals against the Delhi High Court’s single judge’s orders, reports fe Bureau in New Delhi. The high court had restrained Future Group from going ahead with the Latest 5,000 points rally of Sensex came in just 23 sessions 58,194.79. Sensex has taken just three sessions to go from the 57,000-level to 58,000. The index closed at fresh alltime highs in five of the previous six sessions. Similarly, Nifty advanced 89.45 points to its all-time closing peak of 17,323.60. During the session, it touched a record of 17,340.10. Investors'wealth rose by`4 lakh crore in the two days of market rally. In two days, the market capitalisation of BSElisted companies rose by `4,06,252.27croretoreach its fresh all-time high of `2,54,21,578.88 crore. 58,000 Invest based on risk: Sebi to AMCs MARKETS REGULATOR SEBI on Fridayasked asset management companies (AMCs) to invest in the range of 0.03 to 0.13 percentage of the asset base in their own schemes in a bid to align the interest of the fund houses with investors. Thepercentagethatneedsto be invested depends on the risk level of the scheme,which has beencategorisedintolow,lowto moderate, moderate, moderatelyhigh,high andveryhigh. The new framework is aimedataligningtheinterestof asset management companies (AMCs) with the unitholders of the mutual fund schemes. The regulator on August 5 amended mutual fund rules, requiringfundhousestoinvest in their own schemes depending on the risk level to ensure ‘skin in the game’. Sensex clocked 3.6% gains during the week to mark its best week since May 49,849.84 MUTUAL FUNDS Special Features UP, UP & UP PREMIUM BUY `24,713-crore merger deal with Reliance Retail, as sought by e-commerce gaint Amazon. “We will look into the file and give a date,” Chief Justice NV Ramana told FutureRetail’sseniorcounsel Harish Salve. ■ Report on Page 4 BIOLOGICAL E HAS received approval from the Drugs Controller General of India (DCGI) to start Phase III trials for its Covid-19 vaccine, Corbevax, for adults and phase II/III trials for children. The Subject Expert Committee (SEC) of the Central Drugs Standard Control Organisationhadreviewedthe company’s Phase I and II clinical trials data and approved safety and immunogenicity trial in adults. Bio E also received approval for Phase II/III study to evaluate safety, tolerability and immunogenicity of Corbevax inchildrenfiveyearsandabove as well as adolescents. The Hyderabad-based pharma company received support from the department of biotechnology (DBT) under the ministry of science & technology and Biotechnology Industry Research Assistance Council (BIRAC) from the pre-clinical stage to Phase III clinical studies and financial assistance of around `100 crore. Continued on Page 2 RAISING THE BAR Praveen Kumar participates in a men’s high jump event at the Tokyo Paralympics on Friday. Kumar, who battled Covid-19, won the silver medal with a jump of 2.07 m Rebound FE BUREAU Services PMI hits over 1-year high Services activity rose for the first time in four months and hit its peak in one-and-a-half years in August, as Covidinduced disruptions eased and vaccine access improved. Services PMI touched 56.7 in August, against 45.4 in July. New orders expanded at the fastest rate since January 2013. 65 Manufacturing PMI 60 55 50 Services PMI 45 40 35 30 56.7 52 52.3 41.8 August 2020 August 2021 Note: Reading below 50 suggests contraction and above it indicates expansion Source: Nikkei; IHS Markit PAY HIKE Walmart’s $1 wage bump puts spotlight on industry battle for labour RICHA NAIDU Chicago, September 3 WALMART INC’S MOVE on Thursdaytogive565,000ofits US store workers raises of at least $1 puts the spotlight on the industry’s tight, competitive labour market as the allimportant holiday shopping season is set to kick off. Worth nearly $800 billion lastyearintheUSalone,theholidays mark the busiest time of the year for stores,making up a majorityoftheirannualsalesas people shop on and around BlackFriday,CyberMondayand Christmas. Retailers hire tens of thousands of temporary workers across the country to keep up with crowds of people in stores andonline,payingcompetitive wages and offering benefits. Last year,for instance,big-box rival Target provided a coronavirus health plan and paid workers $15 an hour, versus $13 an hour in 2019. Continued on Page 2 US labour agency probing Apple over complaints from two workers ILLUSTRATION: ROHNIT PHORE A US NATIONAL labour agency is investigating two charges against tech giant AppleIncfiledbyemployees, records on its website show, amid a wave of worker activism at a company known for its secretive culture,reports Reuters. The charges, filed on August 26 and September1, New Delhi are being reviewed bythe US National Labor Relations Board’s office in Oakland, California. The agency declined to comment. “We take all concerns seriously and we thoroughly investigate whenever a concern is raised,”Apple,which is based inCupertino,California,said in a statement. ■ Page 8
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.