ECONOMY, P2 COMPANIES, P5 INTERNATIONAL, P8 WIDER INCLUSION EMAIL TO EMPLOYEES INFLATION FORECAST CUT NPS to cover gig and platform workers: PFRDA chairman SpiceJet to hike pilot salaries by 20% from Oct Bank of England raises interest rates by 50 bps despite likely recession MUMBAI, FRIDAY, SEPTEMBER 23, 2022 WWW.FINANCIALEXPRESS.COM FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE READ TO LEAD VOL LXII NO. 224, 14 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: 59,119.72 ▼ 337.06 NIFTY: 17,629.80 ▼ 88.55 NIKKEI 225: 27,153.83 ▼ 159.30 HANG SENG: 18,147.95 ▼ 296.67 `/$: 80.87 ▼ 0.89 `/€: 79.72 ▼ 0.31 BRENT: $92.29 ▲ $2.46 GOLD: `49,745 ▲ `254 IN THE NEWS Centre on track to meet FY23 monetisation target DESPITE A likely slippage in key sectors like railways and telecom, the Centre is likely to achieve the asset monetisation target of `1.62 trillion for the current fiscal, as the mining sector is expected to do the heavy lifting, a source told Prasanta Sahu in New Delhi. ■ PAGE 2 Telecom Bill lays road map for growth, innovation: Vaishnaw COMMUNICATIONS AND IT minister Ashwini Vaishnaw on Thursday said the new telecom Bill will provide a clear road map for industry restructuring and promote innovation, reports fe Bureau in New Delhi. ■ PAGE 3 IBA forms key working group on sustainability IN A first, the Indian Banks’ Association (IBA) has set up a large working group, comprising representatives of about a dozenand-a-half key banks, solely for handling issues covering sustainability and green financing, senior bankers told Banikinkar Pattanayak in New Delhi. ■ PAGE 2 Sri Lanka inflation at 70.2%; Goldman cuts China growth forecast SRI LANKA'S inflation surged to 70.2% in August from 66.7% a month ago as it grapples with the worst economic crisis, official data showed. Meanwhile, Goldman Sachs cut its 2023 economic growth forecast for China sharply. ■ PAGE 8 FE SPECIAL BOARD MEET ON SEPT 30 Sebi may widen disclosures on IPO pricing Paytm, Zomato had slid sharply from issue price post listing Simply injecting money into a defunct brand isn’t enough to save it, say experts ■ BrandWagon, P7 Regulator may ask firms to divulge rationale for the difference in pricing of shares sold to private equity investors and that for IPO ASHLEY COUTINHO Mumbai, September 22 THE SECURITIES AND Exchange Board of India (Sebi) may mandate more disclosures with regard to pricing of public share sales in its upcoming board meeting on September 30. The regulator may ask companies to divulge the rationale for the difference in pricing of shares sold to private equity investors and that for the initial public offering (IPO). “If the issue price in an IPO is high, and a stock slips on listing, investors do get prejudiced.Hence, Sebi is thinking of seeking disclosures on how the issue price has been arrived at, including looking at past transactions in the shares of such companies,” said Saurabh Tiwari, partner, DSK Legal. The basis of issue price has been the subject of debate afternew-age companies such as Paytm and Zomato slid sharply over their issue price post listing. “Theregulatorneedstobesmart about mandating any disclosures on new-age IPOs because every startup is unique and different.Valuation metrics for fintechs, for example,maybedifferentfromthat for e-commerce firms,” a senior industry official said. According to him,the regulator may ask companies to disclose metrics that formed a part of pre- ■ Sebi may also ask companies to disclose metrics that formed a part of previous private funding rounds ■ Sebi chairperson Madhabi Puri Buch had recently said the regulator was not in favour of dictating pricing of initial share sales of new-age tech firms vious private funding rounds. “Whatever metrics were used at the time of investor presentations during the private funding rounds can be used for making the relevant disclosures at the time of IPO,” he said. Continued on Page 2 ■ Sebi permits REITs, InvITs to issue commercial papers, P10 RBI asks Mahindra Finance to halt recovery via third parties FE BUREAU Mumbai, September 22 Return ticket: Lessons from successful brands SEEKING MORE CLARITY THE RESERVE BANK of India (RBI) on Thursday directed Mahindra Finance to immediately halt recovery of loans and repossession activity through third-party agents. The regulatory action comes in the wake of an incident in Hazaribagh,Jharkhand,where a recovery agent working on behalf of the non-banking financial company (NBFC) allegedly ran over a pregnant woman during the confiscation of her family’s tractor. The NBFC has been allowed to continue recovery or repossession activities through its own employees. The central bank said the action is based on certain material supervisory concerns observed in the company with regard to the management of its outsourcing activities. Continued on Page 10 Women’s IPL set for decent score on advertising pitch ALOKANANDA CHAKRABORTY New Delhi, September 22 HARMANPREET KAUR'S SERIESWINNING knock of 143 in England on Wednesday evening was a towering moment for Indian women’s cricket. But the icing on the cake came a day later when reports surfaced about BCCI starting a women’s IPL (Indian Premier League). BCCI president Sourav Ganguly has reportedly written to state boards saying the board is expecting to start the first season early next year. Partypoopers,however,haveseveral questions: In theory it’s great news,butwherearetheviewers?Will they find enough advertisers to justify the commercial aspect of a television spectacle? Do they have enough players to form a certain minimum numberof teams? Butamajorityoftheexpertsassociated with cricket say the questions are irrelevant forseveral reasons. First,viewership.As peravailable data, the overall cumulative global dedicated TV audience for the 2022 ICCWomen’sCricketWorldCupwas RUN RATE ■ 2022 ICC Women’s Cricket World Cup: Third most digitally engaging event behind the ICC Men’s Cricket World Cup 2019 and ICC Men’s T20 World Cup 2021 ■ Cumulative broadcast hours : 10,308, including live coverage, repeat telecast and highlights Global TV audience : 104.8 million 104.8 million,with Indian channels delivering a majority share. The cumulativebroadcasthoursstoodat 10,308, including live coverage, repeattelecastandhighlights,which was a significant increase from 3,974 hours for the 2020 edition held in Australia.The total viewing hours — that is the amount of time the matches were actually watched by TV audiences — were 215.2 mil- lion,up 47.4% from 2020. Apart from English, the 2022 broadcastcoveragewasdeliveredfor thefirsttimeinfourotherlanguages —Hindi,Tamil,TeluguandKannada. The 2020 edition of the Women’s T20 Challenge (WT20C) had 5.34 billion minutes inviewership in India. Continued on Page 8 Fortis share sale: SC orders forensic audit Refuses to allow Malaysia’s IHH to go ahead with open offer Fortis Healthcare FE BUREAU New Delhi, September 22 future course of action.” Malaysia’s IHH had in July 2018 acquired a 31% stake in Fortis Healthcare for $1.1 billion through the bidding route.It needed to make themandatoryopenofferforanother 26% stake.However,the apex court had subsequentlyput it on hold on a contempt plea filed by Japanese drugmaker Daiichi Sankyo against Malvinder and Shivinder Singh, the formerpromoters ofFortis. A bench led by Justice UU Lalit, while disposing of various appeals including suo motu contempt, directed the HC to decide all the related issues while considering the execution proceedings.“Everything goesbacktotheexecutingcourt,”Justice Lalit said,reading out the order. The apex court said the Delhi High Court will have to order forensic audit to analyse whether transactions entered into by the banks and financial institutions were bona fide. 320 THE SUPREME COURT on Thursdayrefused to allowMalaysia’s IHH Healthcare Berhad to proceed with its open offer for Fortis Healthcare. It also asked the DelhiHigh Court to considerthe appointment of forensic auditorsto examine share sale in Fortis way back in 2018. The apex court also sentenced Malvinderand ShivinderSingh,the former promoters of Fortis to six months in jail and imposed a fine of `5,000 each on them to be paid within four weeks. In case of any default in payment, they will have to undergo a furtherjail term of two months. Both the brothers are currently in Tihar jail in a case related Intra-day on BSE (`), Sept 22 345 317 265.3 295 The apex court sentenced Malvinder and Shivinder Singh, former promoters of Fortis, to six months in jail and imposed a fine of `5,000 each on them to be paid within four weeks to causing wrongful loss worth `2,397 crore in Religare Finvest,an arm of Religare Enterprises. The development saw the biggest slide in shares of Fortis Healthcare, which closed down 14.65% at `265.30 on the BSE. Onitspart,FortisHealthcaresaid 270 245 220 Previous close: 311.20 Open Close inastatement,“Weunderstandthat the proceedings before the Hon'ble SupremeCourthaveconcludedwith certaindirectionsandthesuo-motu contempt has been disposed off.We will go by the directions of the Hon'ble Supreme Court and will be seeking legal advice regarding our Continued on Page 2 SoftBank slashes valuation of OYO by 20% to $2.7 billion Hotel aggregator rejects markdown as ‘patently incorrect’ FE BUREAU Bengaluru, September 22 JAPAN’S SOFTBANK HAS cut the valuation of OYO Hotels on its books by more than 20%, Bloomberg reportedonThursday,citingsources. Thedowngradecomesatatimewhen the hotel aggregator is once again preparing for an initial public offering (IPO) earlynextyear. TheJapaneseinvestor,thelargest shareholder in OYO, cut its estimatedvalue forthe firm to $2.7 billionintheJunequarterfromanearlier$3.4billionafterbenchmarking it against peers with similar operations, the report said. OYO’s valuation had reached $10 billion in a 2019 funding round. While SoftBank couldn’t be LOSING VALUE ■ SoftBank cut OYO's estimatedvalue after benchmarking it against peers with similar operations ■ The lodging firm had reached a valuation of $10 bn in a 2019 funding round In January, the startup was said to be targeting a $9-billion valuation in its IPO reachedforacomment,OYOrejected the markdown,terming it“patently incorrect”.Explaining why there was no basis for a markdown, OYO said: “Confident that speculations about thevaluationmarkdownispatently incorrect. Valuation is an outcome of business performance. As per our latest audited results, we have clocked `7 crore maiden adjusted Ebitda profit in the June quarter, at 41% gross profit margin and a 45% increase in gross booking value per hotel per monthvsthelastfinancialyear.These arethedramaticallyimprovedresults and the strong performance trajectoryis expected to continue.” On speculations that it is targeting an early2023 IPO at a $5-billion valuation, OYO said, “We have not decidedtheexacttimingandtheIPO valuation is also highlyspeculative.” On September 19, OYO filed its earningsforFY22andtheApril-June quarterofthecurrentfiscalasaddendumtoits draftredherringprospectus filed earlier with the Securities and Exchange Board of India (Sebi). Poor show by Accenture sets the tone for peers in IT IT MAJOR ACCENTURE has forecast a tepid revenue growth for FY23 in the range of 8-11% inlocalcurrency,amidcutintech budgets,highinflation,andother macro-economic uncertainties. This could set the tone for a lukewarm earnings season by peers like TCS, Infosys, HCL Technologies and Wipro. Margins have shrunk for most of these companies due to higher employee costs, low graduate uptake,limited increase in pricing, travel expenses, and high onsite inflation. ■ Page 4 Continued on Page 8 Re hits record low on hawkish Fed stance FE BUREAU Mumbai, September 22 THE RUPEE ON Thursday slipped to record lows against the dollar, after the US Federal Reserve raised benchmark rates by75 basis points and sounded more hawkish than anticipated. The rupee plunged nearly 90 paise, closing the session at 80.87 compared with 79.98 on Wednesday,the single-biggest drop fortheIndiancurrencysinceFebruary 24. Apart from the prospect of more rate hikes, the escalating geopolitical risks also weighed on the sentiment. Meanwhile,bonds soldoff,sendingtheyieldonthebenchmarkbond to7.312%,up8basispointsfromits previouscloseof7.234%.Theselevelswere last seen onAugust 8. The Reserve Bank of India (RBI) willmeet toreviewmonetarypolicy from September 28-30. Jayesh Mehta,countrytreasurer, ASIAN CURRENCIES AGAINSTTHE DOLLAR Rupee Indonesian Philippine Chinese rupiah peso Yuan Thai Baht Sept 21, 2022 79.98 14,998.00 58.00 7.05 37.15 Sept 22, 2022 80.87 15,018.00 58.49 7.07 37.37 Rupee vs dollar 80.2 Intra-day, Sept 22 Inverted scale 80.87 80.4 80.6 80.8 81.0 Bank ofAmerica,said thatwhile the uncertainty in global markets and theconsequentvolatilitycouldkeep the rupee above 80 levels, closer to March itwas likelyto settle down at below 80 levels.It was not immediately clear whether RBI had intervened in the currency markets. Previous close: 79.98 Open Close Most Asian currencies also depreciated against the greenback. Thedollexwastradingat110.65 on Thursday evening (IST) after having gone up to 111 levels in earlier trades. Continued on Page 8 Dollar Index 115 110 105 100 95 90 110.65 95.67 Dec 31, 2021 Sept 22, 2022 INSIDE BOND YIELDS RISE TO 7.312% PAGE 9 STOCKS SLUMP, FMCG BUCKS TREND PAGE 9
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