CHENNAI/KOCHI, TUESDAY, MAY 17, 2022 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL XLIII NO. 315, 18 PAGES, `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: 52,973.84 ▲ 180.22 NIFTY: 15,842.3 ▲ 60.15 NIKKEI 225: 26,547.05 ▲ 119.40 HANG SENG: 19,950.21 ▲ 51.44 `/$: 77.4463 ▼ 0.02 `/€: 80.3368 ▲ 0.39 BRENT: $111.47 ▼ $0.08 GOLD: `50,071 ▼ `204 IN THE NEWS Global wheat prices jump after India exports ban INTERNATIONAL WHEAT prices jumped on Monday as an export ban by India threatened to further squeeze world wheat supply strained by the war in Ukraine, reports Reuters. LIC set to make market debut today LIC IS set to debut on the exchanges on Tuesday, reports Ruchit Purohit in Mumbai. The state-owned insurer's offering is the country's largest one at `21,000 crore, even after the issue size was cut. Fundraising via IPOs falls 60% in March quarter INDIAWITNESSED only 16 Indian IPOs in Q12022 against 23 IPOs in Q12021, resulting in a decline of 60% in terms of proceeds raised through offers, and a decline of 82% in the number of deals, an EY report said, reports fe Bureau in Mumbai. Sri Lanka down to last day of petrol, says new PM SRI LANKA'S new Prime Minister said on Monday the nation was down to its last day of petrol, as the power minister told citizens not to join the lengthy fuel queues that have galvanised weeks of anti-government protests, reports Reuters. Child denied boarding: DGCA notice to IndiGo THE DIRECTORATE General of Civil Aviation (DGCA) has issued a showcause notice to IndiGo for denying boarding to a specially-abled child at the Ranchi airport on May 7, reports Pranav Mukul in New Delhi. Special Feature Deal is likely to boost growth for Ambuja Cements Valuation in line with past mean on a trailing basis; ‘Reduce’ rating maintained ■ Investor, P7 $10.5-BN SALE OF AMBUJA CEMENTS, ACC Holcim CEO rules out tax on sale proceeds Benefit available under Mauritius treaty, say tax experts RAJESH KURUP Mumbai, May 16 HOLCIM CEOJANJENISCHon Monday said the company’s $10.5-billionsaleofitsstakesin Ambuja Cements and ACC to theAdaniGroupwillnotattract any capital gains tax in India. “Accordingtoouranalysis,itisa tax-freetransaction...thereisno capitalgainsoranyothertaxfor this transaction.I don’t knowif anycomplication arises,butwe assume thatwewill get this 6.4 billion(Swissfrancs)asnetproceeds,” Jenisch said in an analysts’call on Monday. Holcim is believed to have discussed these issueswith tax experts before the deal was signed, a source close to the development said. “We have sold the company withnoindemnificationandno warranties. It’s a straightforward sale of the shares,with no further indemnification from our side,” Jenisch said, adding that no capital was being taken out of India.He added that any future liabilities arising out of ongoing litigations will have to be paid bythe newowners. Continued on Page 2 Our analysis comes to the conclusion there is no capital gains or any other tax for this transaction. Never know if any complication would arise, but we assume we’ll get 6.4 billion Swiss francs as net proceeds. Ride market —JAN JENISCH, CEO, HOLCIM Ambuja Cements 380 Intra-day on BSE (`) 370 375 368.10 370 365 2,300 Intra-day on BSE (`) 2,260 2,194.90 2,220 2,180 Prev close: 358.80 360 355 ACC Open 2,140 Close 2,100 2,149 Prev close: 2,113.70 Open Close Adani family makes open offer for Ambuja Cements, ACC stakes THE ADANI family, which signed definitive deals to buy Holcim Group’s stake in the latter’s two listed Indian entities,has made an open offer to buy 26% stake in each of the firms,reportsRajeshKurupin Mumbai.TheAdaniGrouphas madeoffersof`385asharefor AmbujaCementsand`2,300a share forACC,according to two separate regulatory updates. Under the proposal, Adani intends to acquire up to 51.63 croresharesofAmbujaCements for a total of `19,879.57 crore and has offered to acquire up to 4.89 crore public shares of ACC foratotal of `11,259.97 crore. ■ Detailed report on Page 4 FOR FASTER 5G ROLLOUT Balanced Advantage Funds. Give your portfolio a dynamic mix of equity and debt. Funds in the Balanced Advantage category aim to offer optimum market linked returns while helping you manage market volatility. Diversify your investments with Balanced Advantage Funds Ankiti Bose proposes to repay Zilingo’s $40-m debt KIRAN RATHEE New Delhi, May 16 volatility with SALMAN SH Bengaluru, May 16 Telecom gear makers seek China ban relief ■ After a border face-off NON-CHINESETELECOMgear manufacturers such as Nokia, Ericsson,Cisco,DellandHP,have urgedthegovernmentthatthey betemporarilyallowedtosource network equipment and components from their factories locatedinChinaforafasterrollout of 5G networks in India. In the wake of the IndoChina border skirmish around twoyears ago,the government had barred Chinese gear makers Huawei and ZTE from supplying 5G equipment to the Indian telecom operators. For non-Chinesevendors,the only bar was that the equipment which they supply should not be imported from their factories located in China. Though these companies have small production bases in India and other European and US locations, their sizeable base is in China. Since the 5G auctions are round the corner, these vendors want some relaxation on the China clause so that they are able to help telecom operators roll out services faster. around two years ago, govt barred Chinese gear makers Huawei & ZTE from supplying 5G equipment to Indian telcos They have said that they need some 6-9 months to relocate their China bases to India and after that will be compliant with all the regulations. ZILINGO’S CO-FOUNDER and CEO Ankiti Bose, who was recently suspended from her position at the B2B e-commercestart-up,isexploringrecompensing the company’s entire outstanding debt worth $40million.Thiswouldprovide herwithanoptiontogainmore equity in the firm, two people aware of the discussions said. However, according to an investor in a venture debt firm based in Asia, Bose’s endeavour to acquire more sharesinthecompanycouldbe met with a pushback from the board,and eventually lead to a legal tussle if the warrants were to be sold to her. SourcestoldFEthatBosehad already reached out to Varde PartnersandIndiesCapitalwith a term sheet to pay back the entire pending loan amount. Varde and Indies together provided a loan of $40 million to Zilingo under Ankiti’s leadership in July 2021,which is valid tillJuly2023,thesourcesadded. Continued on Page 2 Continued on Page 2 ■ For non-Chinese vendors, the bar was that the equipment they supply not be imported from their factories located in China ■ These vendors have a sizeable base in China and smaller ones in India and other regions ■ They say they need some 6-9 months to relocate their China base to India CONCERNS AFTER NCLT SLAMS WINNING BIDDER Sale of Pawan Hans put on hold FE BUREAU New Delhi, May 16 THE CENTRE HAS put on hold the sale of Pawan Hans (PHL), taking into consideration a recent NCLT-Kolkata ruling against Almas Global OpportunityFund,theleadpartnerinthe consortiumthatwonthebidfor the state-run helicopterfirm. Thisisthesecondinstancein aspanoffivemonthswheredisinvestment in a state-run firm has been halted after the winning bidder was named by the government. In January this year, the sale of Central Electronics (CEL) to Delhi-based NandalFinanceandLeasingwas stalled following allegations of undervaluation of the firm by the employees’association. In an April 20 order, the Kolkata bench of the National Company Law Tribunal (NCLT) said Almas Global could not Almas Global is the lead member of the consortium that won bid for the state-run helicopter firm Consortium qualified to put in the bid for Pawan Hans on strength of Almas net worth honour its winning bid to acquire EMC, a Kolkata-based power system solutions company as it failed to pay `568 crore to the creditors. Stating thatAlmasGlobalhadtakenthe insolvency resolution “process for a ride”, the tribunal sought action against its management NCLT Kolkata, in April, criticised Almas for not honouring its winning bid for another firm as it failed to pay `568 cr to creditors undersection74(3)oftheInsolvency and Bankruptcy Code. If the special court concerned takes penal action in this case, the officials of the company couldfacejailtermsof1-5years besides penalties. “We will do legal examination of the NCLT order before proceeding further (with the saleofPawanHans).Theletterof awardhasnotbeenissuedtothe bidderthusfar,”aseniorgovernment officialtold FE. Analysts said as dozens of companies are on the government's list for strategic sale,the ongoing litigation involving them could prove to be a stumbling block in completing the sale processes. According to the government’sstrategicdisinvestment guidelines: “any charge-sheet by any governmental authority/convictionbyacourtoflaw for an offence committed by the interested bidder or any of the members of consortium or byanyof their respective sister concerns or any of their promoters, promoter group and directors would result in disqualification.” Continued on Page 2 Contact your MFD/RIA. An Investor Education Initiative by HDFC Mutual Fund Visit https://www.hdfcfund.com/information/key-know-how to know more about the process to complete a one-time Know Your Customer (KYC) requirement to invest in Mutual Funds. Investors should only deal with registered Mutual Funds, details of which can be verified on the SEBI website (www.sebi.gov.in/intermediaries.html). For any queries, complaints & grievance redressal, investors may reach out to the AMCs and/or Investor Relations Officers. Additionally, investors may also lodge complaints on https://scores.gov.in if they are unsatisfied with the resolutions given by AMCs. SCORES portal facilitates investors to lodge complaint online with SEBI and subsequently view its status. Mutual Fund investments are subject to market risks, read all scheme related documents carefully. CHENNAI/KOCHI
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