OPINION, P6 ECONOMY, P2 S PAREKH & M DESHMUKH Listing framework for DRs comes at an opportune time INTERNATIONAL, P8 EDITORIAL US VISIT WEALTH CHECK Coal shortage: CIL must get its act together, discoms too. Gencos failed to sense rise in power demand FM discusses reforms in India with global corporate leaders Musk goads Bezos after extending lead as world’s richest person MUMBAI, WEDNESDAY, OCTOBER 13, 2021 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. LXI NO. 241, 14 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: 60,284.31 ▲ 148.53 NIFTY: 17,991.95 ▲ 46.00 NIKKEI 225: 28,230.61 ▼ 267.59 HANG SENG: 24,962.59 ▼ 362.50 `/$: 75.52 ▼ 0.16 `/€: 87.27 ▼ 0.20 BRENT: $83.41 ▼ $0.24 GOLD: `47,119 ▲ `222 IN THE NEWS Covaxin gets SEC nod for 2-18 year olds THE VACCINE Subject Expert Committee (SEC) on Tuesday recommended granting of Emergency Use Authorisation (EUA) for Bharat Biotech's Covid-19 vaccine, Covaxin, for children in the 2-18 years age group, reports fe Bureau in Pune. The SEC has recommended this to the Drugs Controller General of India (DCGI), which will finalise the EUA. This is the second vaccine approved for children. Indian economy to grow at 9.5% this year: IMF INDIA'S ECONOMY, which contracted by 7.3% due to the Covid-19 pandemic, is expected to grow by 9.5% in 2021 and 8.5% in 2022, according to latest projections released by the International Monetary Fund (IMF) on Tuesday, reports PTI. Cabinet approves `28,655-cr subsidy on P&K fertilisers THE GOVERNMENT on Tuesday announced a net subsidy of `28,655 crore on phosphatic and potassic (P&K) fertilisers to ensure farmers get nutrients at affordable prices during the rabi sowing season, reports PTI. The Cabinet Committee on Economic Affairs (CCEA) has approved the Nutrient Based Subsidy (NBS) rates for P&K fertilisers for October 2021 to March 2022 period. Third tranche: 88 coal mines up for auction THE UNION coal ministry on Tuesday launched the third tranche of commercial coal auctions, offering 88 mines with geological reserves of 55 billion tonne and annual peak rated capacity of 282 million tonne, reports fe Bureau in New Delhi. DRIVE-IN TPG parks $1 bn in Tata Motors EV arm PRESS TRUST OF INDIA New Delhi, October 12 HOMEGROWNAUTO MAJOR Tata Motors on Tuesday said it will raise $1 billion (`7,500 crore) in its passenger electric vehicle (EV) business from TPGRiseClimateatavaluation of up to $9.1 billion. Tata Motors (TML) and TPG Rise Climate, the dedicated climate investing strategy of private investment firm TPG, have entered into a binding pact in this regard. Under the agreement, TPG Rise Climate along with its co-investorADQ,will invest in a subsidiary of Tata Motors that will be newly incorporated, the company said in a statement. TPG Rise Climate, along with co-investors, shall invest `7,500 crore in compulsory convertible instruments to secure around 11-15% stake N CHANDRASEKARAN, CHAIRMAN, TATA MOTORS "I am delighted to have TPG Rise Climate join us in our journey to create a marketshaping electric passenger mobility business in India...we are committed to playing a leading role in the government's vision to have 30% EV penetration rate by 2030." in the company, translating to an equity valuation of up to $9.1 billion. Continued on Page 2 SFB licence for Centrum-BharatPe RBI ON TUESDAY awardeda Small Finance Bank (SFB) licence to the consortium of Centrum Financial Services Limited (Centrum), the lending arm of the Centrum Group and Resilient Innovations Private Limited,which operates the payment app BharatPe, reports fe Bureau inNewDelhi.Anin-principle licence had been given to CentrumaspartofRBI’sresolution for the failed Punjab and Maharashtra Cooperative Bank. Once the SFB is in place,it will acquire the business of PMC Bank. ■ Page 9 BOOSTING SUPPLIES Govt nudges states to step up coal imports Imported fuel up to four times costlier; discoms to take a hit if industry is to be spared ANUPAM CHATTERJEE New Delhi, October 12 IN A TACIT acknowledgment of the grave crisis being faced by the country’s power sector owing to paucity of coal, the Centre has asked the state governmentstostepupimportsof the keyfuel forthermal power, notwithstanding its elevated prices in the global markets. It is unclearhowquicklyimports could be contracted but use of imported fuel could definitely inflate the cost of powerto dis- Retail inflation eases further in Sept Retail inflation eased considerably to a five-month low of 4.35% in September, thanks to lower food prices. It was for the third straight month that inflation remained within the central bank’s target band 2-6%, bearing out its assessment of the inflation trajectory. Industrial production rose 11.9% in August, upon a low base (-7.1%), but was still below pre-pandemic level. 11.9 100 75 50 25 0 -25 (% change, y-o-y) 8 4.35 7 6 5 -16.6 June 2020 Consumer Price Index (CPI) 6.73 125 4 August 2021 3 July 2020 September 2021 SECONDARY SALE Special Feature SIP is also a smart strategy when buying stocks Using systematic investment plan, retail investors employ a buy and hold method and stay in the market throughout the investment period thus earning significant returns in the long run ■ Personal Finance, P7 QuickPicks DAP fertiliser shortage threatens to hit winter crop output INDIA IS staring at a severe shortage of diammonium phosphate (DAP), a key fertiliser, in the current rabi season, forcing the Centre to cut allocation for many states, a move which may reduce yield of key winter crops such as wheat, mustard and chana, reports Prabhudatta Mishra, Nanda Kasabe & Deepa Jainani in New Delhi/Pune/Lucknow. Non-availability of the nutrient in adequate quantity in the sowing season may also impact the production target, which is likely to be missed. About 30% of DAP’s annual demand of nearly 119 lakh tonne is met by domestic production while the balance is imported. PAGE 2 Since Oct 1,institutional investors voted against 3 resolutions: IiAS INSTITUTIONAL INVESTORS disapproved a total of three resolutions since October 1, including that of Centum Electronics, with a whopping 100% majority, according to data compiled by proxy advisory firm Institutional Investor Advisory Services India (IiAS), reports Rajesh Kurup in Mumbai. According to the data, Centum Electronics’ resolutions for its Restricted Stock Unit Plan 2021 (RSU 2021) were rejected by the entire votes cast. RSU 2021 is an initiative to reward employees, while the company was also planning to extend the scheme to employees of its subsidiary companies. PAGE 4 IPO-bound MobiKwik joins unicorn club PRESS TRUST OF INDIA New Delhi, October 12 IPO-BOUND FINTECH firm Mobikwik has turned unicorn after a recent secondary ESOP saleroundledbyformerBlackstone India head Mathew Cyriac,sources aware of the development said on Tuesday. MobiKwik employees exercised their ESOPs (Employee stock ownership) in a recently openedwindowbyselling part of their shares in a secondary sale. “Thesecondaryroundwas led by ex-Blackstone India Head, Mathew Cyriac, who topped up his holding at almost double of his previous price,”the sources said. The transaction size could not be ascertained. MobiKwik did not respond to the email query sent in this regard. “The transaction in the round took place at an enterprise valuation of around $1 billion,”the sources said. Thelastvaluationsharedby ■ Transaction MobiKwik staff exercised ESOPs by selling part of their shares in a secondary sale in round said to have taken place at enterprise valuation of around $1 billion ■ Secondary round led by ex-Blackstone India head Mathew Cyriac In May 2021, Mobikwik was valued at $720 million Mobikwikwas $720 million in May 2021,after a $20-million stake purchase byUAE’s sovereign wealth fund Abu Dhabi Investment Authority. Continued on Page 2 RBI bans audit firm Haribhakti for 2 years THE RESERVE Bank of India (RBI) on Tuesday banned chartered accountant firm Haribhakti & Co LLP from undertaking any type of audit assignments for regulated entities for a period of two years starting April 1, giga-watt Power supply status (Oct 11) 1.9 1.9 MT Energy shortage: 86.9 million units (MU) reach 2 MT from October 21) Gravest shortages (MU) Punjab 29.2 Rajasthan 20.7 UP 7.9 7.2 Gujarat Bihar 5.1 (in MT) 22.5 FY19 28.7 FY20 18.1 FY21 15.2 FY22 coms; if the consumers would feel the pinch would depend on whether and how much of the extra cost the discoms could be allowed to pass on to different categories of con- AIRLINES CAN OPERATE domestic flights without any capacity restriction from October 18, the ministry of civil aviation announced on Tuesday, keeping in mind the “passengerdemandforairtravel”,reportsPTI. Thecarriershavebeenoperatingat85%of their pre-Covid domestic services since September18,according to the ministry’s order. FE BUREAU (% change, y-o-y) 150 140 7.3 Daily supply: (expected to Coal imports by power plants in April-August sumers. Of course, industrial and commercial consumers will be the first to be subjected to any tariff increase. Continued on Page 2 Domestic flights can operate at full capacity from Oct 18 Good tidings Index of Industrial Production (IIP) Coal stocks with power plants (As on October 10) Less than Total stocks: Daily consumption: 6 days’: MT MT 2022, reports fe Bureau in New Delhi. This action against the firm was taken forits failure to complywith a specific direction issued by RBIwith respect to its statutory audit of a systemically important NBFC. ■ Page 9 The capacity cap stood at 72.5% between August 12 and September 18, 65% between July5andAugust12and50%betweenJune1 and July5. OnOctober9,theIndiancarriersoperated 2,340 domestic flights, which is 71.5% of their total pre-Covid capacity. ■ Report on Page 4 $100-M FUNDING Open gets Temasek, Google backing PRESS TRUST OF INDIA Mumbai, October 12 SMALL BUSINESS-FOCUSED neo-banking platform Open on Tuesday said it has raised $100 million (about `750 crore)inafundingroundledby Singapore’s Temasek. Google and Japanese venture capital fund SBI Investment also participated in the round, along with existing investors Tiger Global and 3one4 Capital, as per a statement. The Bengaluru-based company aims to strengthen its leadership in the SME neobanking space, taking the total base from the present 2 million to5millioninIndiaandexpand its services to Southeast Asia throughthefunds.Thefunding will also be used to strengthen and accelerate its new product lines like embedded finance platform Zwitch and Bankingstack,the cloud-native SME Neo-banking platform Open is processing $20 billion in transactions annually ■With the fresh funds, it aims to take total base to 5 million in India and expand services to SoutheastAsia ■ Funds to also be used to strengthen and accelerate new product lines banking platform for financial institutions,currentlydeployed at over15 banks in India. Continued on Page 2 Airtel, Voda Idea penalty case: TDSAT puts encashing of bank guarantees on hold TELECOMTRIBUNALTDSAT onTuesdayaskedtheDepartment of Telecom to put on hold the encashment of bank guaranteesinthepenaltycase of Bharti Airtel and Vodafone Idea till the next date of hear- ing,reportsPTI.“...Noencashment of bank guarantee shall be resorted to till the next date,” Justice Shiv Kirti Singh, headoftheTDSATbench,said andlistedthematterforhearing on October26. ■ Page 4
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