COMPANIES, P4 ECONOMY, P3 ACC BATTERY STORAGE PLI Ola Electric, Reliance arm and Rajesh Exports to make batteries COMPANIES, P4 ROUGH DRIVE SIGNIFICANT COST PRESSURE SHAADI.COM CEO ANUPAM MITTAL Lack of SUVs, stiff competition from rivals make Honda cars’ ride tough Solar projects won at low rates in jeopardy ‘If 50% of my investments don't fail, then I'm not taking enough risk’ NEW DELHI, SATURDAY, JULY 30, 2022 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL XLVIII NO. 129, 30 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: 57,570.25 ▲ 712.46 NIFTY: 17,158.25 ▲ 228.65 NIKKEI 225: 27,801.64 ▼ 13.84 HANG SENG: 20,156.51 ▼ 466.17 `/$: 79.26 ▲ 0.49 `/€: 80.89 ▲ 0.09 BRENT: $109.52 ▲ $2.38 GOLD: `51,428 ▲ `412 Ola founder PE FIRMS TO PICK UP 10% STAKE EACH denies buzz on merger with Uber Significant as lock-in ON THE TABLE Carlyle, Advent to invest $1.1 billion in Yes Bank period for lender’s current investors comes to an end in March 2023 Bhavish Aggarwal, founder and CEO, Ola SALMAN SH & TUSHAR GOENKA Bengaluru, July 29 OLA’S CO-FOUNDER AND CEO Bhavish Aggarwal on Friday denied media reports of a potential merger with rival Uber. Media reports on Friday, citing sources, claimed that Aggarwal met with top Uber executives in San Francisco recently to discuss a potential merger between the firms. Aggarwal tweeted that Ola would“never”exploreamerger deal.“Absolute rubbish. We’re very profitable and growing well. If some other companies wanttoexittheirbusinessfrom India they are welcome to! We will never merge,” Aggarwal added in his tweet. The merger rumours also come shortly after Uber had reportedlyexplored the option to exit the Indian market sometime last year but suspended the discussions after tech startup valuations crashed globally. However, Uber also denied these reports that surfaced last month calling them“categorically false”. Responding to queries from FE,an Uberspokesperson said: “We are not, nor have we been,in mergertalkswith Ola.” Continued on Page 2 RESULTS CORNER HDFC Q1 NET SOARS 22% PAGE 9 IOC POSTS NET LOSS OF `1,993 CR PAGE 5 NTPC Q1 PROFIT AT `3,978 CR PAGE 5 ■ An extraordinary general meeting ofthe bank’s shareholderswill be held on Aug 24 EGM to seek nod for fundraising, increase in authorised share capital, Prashant Kumar's appointment, among others SHRITAMA BOSE Mumbai, July 29 ■ Yes Bankwas rescued in THE YES BANK’S board on Friday approved a proposal to sell a 20% stake in the bank for `8,898.47 crore, or approximately $1.1 billion,to private equity (PE) players Carlyle Group and Advent International. The development gains significance in light of the fact that the lock-in period for the March 2020 by a clutch of financial entities after its capital ratios came close to breaching regulatory norms Both the investors will play a crucial role in the next growth phase of the bank. — PRASHANT KUMAR, YES BANK MD & CEO private lender’s current investors,led by SBI,comes to an end in March 2023. Yes Bank was rescued in March 2020 by a clutch of financial sector entities after its capital ratios came close to breaching regulatory norms. The capital-raise will be in the form of a preferential allotment of 1.85 billion equity shares and 1.28 billion share warrants each to Carlyle Group entity CA Basque Investments andAdvent affiliate Verventa Holdings. The equity shares will be allotted at `13.78 a share and the warrants at `14.82 each. After the allotment of the shares, both entities will hold 5.9% each in Yes Bank,which will rise to 10% each once the warrants are converted. The bank’s shares ended at `14.94 on the BSE on Friday, 2.47% higher than their previous close. YesBank’sboardalsocleared aproposaltoincreaseitsauthorised share capital to `8,200 crore from `6,200 crore. Continued on Page 2 Biggest single-day gain for rupee in about a year Rupee vs dollar 79.10 Inverted scale FE BUREAU Mumbai, July 29 79.26 79.20 WITH THE DOLLAR weakening further in the wake of US Fed Reserve chief Jerome Powell’s dovish comments, the rupee on Friday rallied against the greenback and posted its single biggest daily gain in 79.30 79.40 79.50 79.60 79.55 Open Previous close: 79.76 Close about a year. Therupeeendedthesession at 79.26, 0.6% stronger than Thursday's close of 79.7550, a gain of 45 paise. Friday’s gain came on the back of a 22 paise appreciationonThursday. Several otherAsian currencies also strengthened against the dollaras US treasuryyields fell and the greenback slipped to a near six-week low against the yen. The dollar index, which measures the greenback's strength against a basket of six currencies, slipped 0.21% to 106.13. Continued on Page 2 ● SHAPING GLOBAL FINANCIALTRENDS Prime Minister Narendra Modi interacts with finance minister Nirmala Sitharaman at the launch of the India International Bullion Exchange and NSE IFSC-SGX Connect at the GIFT City, in Gandhinagar on Friday Detailed report on Page 2 Amazon moves SC on Future INDU BHAN New Delhi, July 29 Case file AMAZON INDIA HAS filed a petition before the Supreme CourtchallengingtheNational Company Law Appellate Tribunal’s (NCLAT’s) ruling that upheld the Competition Commission of India’s (CCI’s) order suspending an over two-yearold approval to the 2019 deal with Future Coupons (FCPL). While asking Amazon to pay the penalty of `200 crore within 45 days, NCLAT had backed the antitrust body’s December 2021 findings that findings, NCLATasked Amazon to pay a penalty of `200 crore within 45 days Findings show Amazon suppressed infowhile seeking clearances for the 2019 deal ■ Auction price THE FOURTH DAY of 5G auction on Friday witnessed an intense fight between Bharti AirtelandRelianceJioforaslice of 4G spectrum in the 1,800 MHz band in the UttarPradesh (East) circle. The incremental jumpinthetotalbidvalueatthe end of the fourth daywas `232 crore,taking the total commitment so far to `149,855 crore. The same stood at `149,623 crore onThursday. The spend by the operators in the UP(E) circle increased to `1,459 crore on Friday from `1,227 crore on Thursday. One of the reasons for Bharti and Jio fighting for an around 5 MHz of spectrum in the UP (E) circle is because the reserve price at `91 crore per of1,800 MHz for UP(E) in 2021: `153 crore per MHz ■ Reserve price of 1,800 MHz for UP(E) for current auction: `91 crore per MHz Total spend in 1,800 MHz UP (E) (` cr) Auction price of 1,800 MHz for UP (E) at end Day 4: `135.09 crore per MHz 983 1,058 1,227 1,459 Jul 26 July 27 July 28 July 29 MHz is lower than the auction price of `153 crore perMHz in 2021.At the end of the fourth day, the price has moved to `135.09 crore perMHz.So,the operators still have a scope to spend more if the 2021 price is seen as the base. As reported earlier, Bharti hasthehighestspectrumholding in the 1,800 MHz band in this circle at 15 MHz, while both Jio and Vodafone Idea have 10 MHz each. Continued on Page 2 RIDING THE WAVE SUV definition takes sharp turns Some rebrand their crossovers or ‘raised hatchback cars’ as SUVs, others claim they make authentic SUVs that can be driven off the road IN THE FAST LANE SUV share in PV sales (in %) 17 19 23 23 26 32 41 VIKRAM CHAUDHARY New Delhi, July 29 WHEN MARUTI SUZUKI launched the S-Cross in 2015, it was branded as ‘The Premium Crossover’. When the same car was given a new design (facelift in automotive parlance) in 2018, the carmaker called it‘The Refined SUV’. Either the carmakerwas confused whether the S-Cross is a crossover or an SUV,or it wanted to ride the SUV-wave by calling its crossover car an SUV. According to data compiled from carmakers, the FY16 FY17 FY18 FY19 FY20 FY21 FY22 Source: Compiled from carmakers (data is for vehicles the carmakers believe are SUVs) But what exactly is an SUV? According to the Oxford Dictionary, an SUV is a highperformance “four-wheeldrive” vehicle. A crossover, on the other hand, is an SUV-like or a wagon-like design on a sedan or a hatchback-based platform, and is usually not a four-wheel drive. If one goes by that definition,barely 5% of SUVs sold in India are SUVs, an automotive analyst told FE. “Most of the SUV-like vehiclessoldin Indiaare two-wheel drive, i.e. only the front wheels receive power from the engine,”he said. What do carmakers say? share of SUVs (short for sport utility vehicles) to total passenger vehicle (PV) sales has been rising. In FY16, SUVs formed 17% of overall PV sales, which increased to 19% in FY17, 23% in FY18 and FY19, 26% in FY20, 32% in FY21 and 41% in FY22. suspended approval to Amazon's 2019 deal with Future Coupons ■ Backing CCI's Dec 2021 5G auction, Day 4: Bharti, Jio lock horns over UP circle RISHI RAJ New Delhi, July 29 ■ CCI order Veejay Nakra, president, automotive division, Mahindra & Mahindra, said anyone making a vehicle with a slightly macho-looking design thinks it can pass off as an SUV. Continued on Page 2 New Delhi the US e-commerce giant didn’t make full disclosures in its 2019 deal and had suppressed information while seeking clearances for the transaction. Amazon, in its appeal, told theapexcourtthatithadgiven all the details related to its proposed investment of `1,431 crore in FCPL to the CCI. According to Amazon, it hadinvested`1,431croreonly aftergettingtheCCI’sapproval and the proceeds from its investment in FCPL flowed down to FRL. Continued on Page 2
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