OPINION, P6 COMPANIES, P4 KARTHIK GANESAN Pushing LPG uptake by the poor calls for meaningful subsidies INTERNATIONAL, P8 EDITORIAL RESUMING COMMERCIAL OPERATIONS SOOTHING INVESTOR WORRIES It will be unfortunate if the SC judgment on GST Council is used for politicking Three years after it was grounded, Jet Airways gets nod to fly again Tesla is on my mind 24/7 amid Twitter distraction: Musk NEW DELHI, SATURDAY, MAY 21, 2022 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL XLVIII NO. 69, 22 PAGES, `10.00 (PATNA & 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: 54,326.39 ▲ 1,534.16 NIFTY: 16,266.15 ▲ 456.75 NIKKEI 225: 26,739.03 ▲ 336.19 HANG SENG: 20,717.24 ▲ 596.56 `/$: 77.55 ▲ 0.18 `/€: 82.14 ▼ 0.54 BRENT: $112.50 ▲ $0.46 GOLD: `50,785 ▲ `298 Nexon EV Max: Makes a strong case for EVs The claimed driving range is 437 km, but drive keeping in mind 300-350 km ■ Motobahn, P8 3,700 1.55% stake held via SUUTI in Axis Bank 3,200 11,000 (Actual stake sale size to be decided ahead of transactions) sale (OFS) route may be adopted for the sale. As per the Supreme Court order dated November 18, 2021, the Centre can sell its 29.54%residualstakeinHZLin Tuhin Kanta Pandey the open market in accordance with the Sebi rules.The stake is worth about `36,600 crore at the current market prices. Continued on Page 15 Flipkart, Amazon close in on Metropolis SARITHA RAI May 20 METROPOLIS HEALTHCARE, A diagnostics chain operating in India and Africa, is looking to raise more than $300 million and bring onboard a strategic partner by selling a significant minority stake, according to people familiar with the matter. The company is in early discussionswith several global strategic investors and other potential purchasers of the shares,said the people,asking RBI surplus transfer lowest in a decade The move follows discoms' reluctance to buy costlier power from imported coal-based units Profitable spot market saleswere one ofthe incentives offered to ICB units size over $300 million. Walmart-owned retailer Flipkart and listed healthcare chain Apollo Hospitals Enterprise are among potential strategic investors that have signed non-disclosure agreements with Metropolis, while Amazon.com has held preliminary discussions, said one of the people. Continued on Page 2 Sensex STOCKS REBOUNDED SHARPLY on Friday, logging their biggest single-day gains since February 15, propelled by some buying in banking counters and a sharp rally in index heavyweight Reliance Industries.The Sensex rallied to over 54,000 levels while the broader Nifty50 reclaimed the 16,000 mark. Shrugging off Thursday’s slump in the US markets, the sentiment tracked the positive cues from Asian peers after the Chinese central bank cut five-year rates by 15 basis points (bps). With Friday's rally, both domestic benchmarks managed to snap their 5-week losing streak and ended the week higher by nearly 3% each; the week was the best since March 20. After gaining as much as 1,604 points intra-day, the Sensex settled higher by 1,534.16 points, or 2.9%, at 54,326.39, and the broader Nifty-50 advanced 456.75 points,or 2.9%,to 16,266.15. Reliance Industries, HDFC Bank,and ICICI Bank were the top contributors to the Sensex's upmove. The Reliance Industries stock surged as much as 5.8%, marking its best single-day gain in six Intra-day, May 20 16,390 54,250 16,275 53,900 16,160 53,550 53,200 52,850 52,500 Continued on Page 15 ■ However, things haven't moved much on the ground as most states refrained from clinching deals with ICBs 16,041.45 15,930 52,792.23 Previous close ● Dr Reddy's Labs ● RIL ● JSW Steel Close 15,815 15,809.40 Previous close 15,700 Open Close Close (`) 4,249.10 2,624.45 631.10 ● Tata Motors 418 ● Nestle India 16,862 months. Siddhartha Khemka, head of retail research, Motilal Oswal Financial Services, believes the rate action in China with the five-year loan prime rate being cut by 15 basis points to 4.45% to stimulateeconomicactivity,helped the sentiment. The positive commentaryfrom the finance minister,Nirmala Sitharaman, in her address at the 7th Continued on Page 2 2021-22** Continued on Page 2 financial institutions in FY23, unless surplus transfers from other entities rise sharply. 16,045 53,513.97 Open 16,266.15 Top 5 gainers of Nifty50 Zilingo fires Ankiti Bose on charges of financial irregularities eration in demand. Sources said power minister RK Singh hinted at issuing a directive to discoms at a review meeting held in New Delhi with ICB units. *Including a surplus of `1,23,414 cr and excess provision of `52,637 cr, as per revised ECF Note: Transfers before 2020-21 were for RBI's earlier fiscal years (July-June); #dividend based on surplus from Jul 2019-Mar 2021; **RBI's fiscal year is now the same as the govt's (Apr-Mar) Nifty50 Intra-day, May 20 54,600 54,326.39 SINGAPORE-BASED B2B START-UP,Zilingo has fired its co-founder and CEO Ankiti Bose after the board initially suspended heron March 31 on allegations of financial irregularities, and other accusations of inflating revenues on the company books. Bose’s suspension came afterawhistleblowerwithinthe company informed the board and shareholders of alleged financial wrongdoings that have taken place in the last two years which allegedly involved Bose. Zilingo subsequently opened an investigation into the company's accounting practicesandappointedathirdparty consulting firm to conduct a forensic audit in April. On Friday, Zilingo said that the investigations led by theforensics firm have Ankiti Bose concluded while indicating that the company may launch further legal action. “Following an investigation led byan independent forensics firm that was commissioned to look into complaints of serious financialirregularities,thecompany has decided to terminate Ms Ankiti Bose’s employment withcause,andreservestheright to pursue appropriate legal action,”thestatementsaid. The B2B start-up, which offers a tech platform forfashion retailers to source wholesale supplies, has been one of the most celebrated start-ups to emerge from SEA geography. Zilingo has raised around $340 million in equity and debt financing to date from prominent investors, includingTemasekHoldings,Sequoia Capital India, Burda Principal Investments,andmanyothers. Spot power prices have dropped by half in the last one week on the India Energy Exchange from the highs of `11 per unit refrained from clinching deals with ICBs, due to financial constraints. Spot power prices have dropped by half in the last one week on the India Energy Exchange from the highs of `11 per unit,thanks to a mod- not to be identified because the deliberations aren’t public. Metropolis,traded in Mumbai with a market value of $1.1 billion — about half what it was at the start of the year — tapped Barclays as an adviser, they said. A deal would likely include a sale of primary shares as well as secondary shares by existing investors, including the managing director, that could take the deal RUCHIT PUROHIT Mumbai, May 20 SALMAN SH Bengaluru, May 20 30,307 (` cr) 99,122 THE RESERVE BANK of India (RBI) on Friday decided to transfer its FY22 surplus of `30,307 crore to the government, the lowest dividend in ten years,which will reflect in the Centre’s budgetary calculations in FY23. Its board decided to maintain the contingency risk buffer at 5.5%. The dividend is less than a third of the central bank’s generous transfer of `99,122 crore for FY21, which was, in fact, based on the RBI’s surplus over a nine-month period through March 2021, as it had decided to align its fiscal year with that of the government. Low payout by the central bank, partly due to its heavy investments in reverse repo operations,will drag down the government’s budgeted receipts of `73,948 crore on account of dividends from the RBI,state-run banks and other Dividend transfer 57,128 BANIKINKAR PATTANAYAK New Delhi, May 20 Discoms to mandatorily purchase from ICB plants THE UNION MINISTRY of power may invoke Section 11 of the Electricity Act, 2003 to make it mandatory for staterun electricity discoms to buy power produced from imported coal. The move follows discoms' reluctance to buy costlier power from imported coal-based (ICB) units, which were earlier directed by the ministry under the same section to run at full capacity. Profitable spot market sales were one of the incentives offered to ICB units apart from the promise of cost passthrough. However, things haven't moved much on the ground as most states 18,000 30.8% in ConCor 63.75% in Shipping Corporation POWER MINISTRY'S NEW FIAT VIKAS SRIVASTAVA & DEEPA JAINANI Mumbai/Lucknow, May 20 27,300 45.48% in IDBI Bank 2020-21 Special Feature 36,600 (in ` crore) 7.92% held through SUUTI in ITC # COMMERCE AND industry minister Piyush Goyal will lead the delegation of ministers, chief ministers and business leaders at the World Economic Forum in Davos from May 23-25, an official statement said on Friday, reports PTI in New Delhi. 29.54% stake in HZL been withdrawn and there are no pendingissueswith thedisinvestment of the government’s stake in HZL. It will go to the Cabinet soon,” Pandey said, adding that the offer for 2019-20 Piyush Goyal to lead team India at WEF in Davos Mobilised from 1.5% stake sale in ONGC 1,76,051 THE CENTRAL Consumer Protection Authority has issued notices to cab aggregators Ola and Uber for "unfair trade practices and violation of consumer rights", reports fe Bureau in New Delhi. `3,059 CRORE 2018-19* Notices issued to cab aggregators for unfair trade WITH THE PRIVATISATION of BPCL now on the backburner, the sale of the residual stake in Hindustan Zinc Ltd (HZL) is likelyto be the largest deal this year for the government in terms of revenue potential, Tuhin Kanta Pandey,secretary at the department of investment and public asset management (Dipam),told FE. “The arbitration cases have Disinvestment target for FY23 excluding LIC IPO which fetched `20,516 cr 50,000 GROSS FOREIGN direct investment (FDI) inflows in FY22 hit a record $83.6 billion, but the year-onyear rise slowed down to just 2% from 10% in the previous year, mainly due to an unfavourable base, reports fe Bureau in New Delhi. PRASANTA SAHU New Delhi, May 20 CURRENT MARKET VALUE OF CENTRE'S STAKE `65,000 CRORE 2017-18 FDI inflow at all-time high of$83.57 bn in 2021-22 Privatisation of Concor, IDBI; offloading part of SUUTI stakes in ITC and Axis top FY23 agenda 30,659 THE SUPREME Court on Friday allowed export of already-extracted iron ore from Karnataka's three districts — Bellary, Chitradurga and Tumkar — subject to conditions set by the central government, reports Indu Bhan in New Delhi. Stocks rebound sharply to HZL stake sale on the cards reclaim Thursday’s losses DIPAM SECY SAYS CABINET NOD TO BE SOUGHT SOON 2016-17 IN THE NEWS Karnataka mining: SC permits firms to export iron ores New Delhi Gain (%) 8.1 5.8 5.1 4.9 4.8 annual meeting of NewDevelopment Bank (NDB),also lifted the sentiment. Market watchers indicated there could have been a fairbit of short covering at the end of the week.Moreover,it is possible, they said, there could be some short positions remaining,perhaps of Foreign Portfolio Investors (FPIs). Continued on Page 2
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