MARKETS, P8 BACK PAGE, P22 INTERNATIONAL, P9 FROM THE MPC MINUTES STREAMING NOW ENTERING THE FRAY Strong growth gives us space to focus on price stability: Das India among major contributors to Netflix’s subscriber growth Sony, Apollo discuss joint bid for Paramount NEW DELHI, SATURDAY, APRIL 20, 2024 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. L NO. 42, 22 PAGES, `12.00 (PATNA & RAIPUR `12.00) 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: 73,088.31 ▲ 599.32 NIFTY: 22,147 ▲ 151.15 NIKKEI 225: 37,068.35 ▼ 1011.35 HANG SENG: 16,224.14 ▼ 161.73 `/$: 83.47 ▲ 0.07 `/€: 88.97 ▲ 0.18 BRENT: $86.99 ▼ $0.12 GOLD: `73,262 ▲ `143 IN THE NEWS OLA CABS PLANS $500-MN IPO AT $5-BN VALUATION RIDE-HAILING FIRM Ola Cabs is planning an initial public offering (IPO) to raise $500 million at a company valuation of about $5 billion, three sources with direct knowledge of the matter told Reuters on Friday. The company plans to file papers for approval with the markets regulator within three months, said the sources. ■ PAGE 5 YES BANK CASE: RANA KAPOOR GETS BAILAFTER 4 YEARS A SPECIAL COURT IN Mumbai on Friday granted bail to Yes Bank co-founder Rana Kapoor in the `466.51-crore bank fraud case, paving the way for him to walk out of jail after four years. ■ PAGE 8 PROFITS TO REMAIN ELUSIVE IN e2W BIZ, SAYS BAJAJ AUTO THOUGH THE DRAG on the financials has softened, profitability on electric two-wheelers will remain elusive despite the boost from the productionlinked incentive (PLI) scheme, Bajaj Auto chief financial officer Dinesh Thapar said, reports Swaraj Baggonkar. ■ PAGE 5 FE S P E C I A L S TO SOURCE 40% CHIPS, FORGINGS LOCALLY Tesla may set up India plant ahead of govt deadline JATIN GROVER & RISHI RAJ New Delhi, April 19 ON MUSK ITINERARY ELON MUSK'S TESLA will set up its India assembly plant earlier than the three-year deadline which the government’s new electricvehicle(EV)policyhaslaiddownforglobal companies choosing to import their cars at concessional duties. The company is also likely to meet the localisation content ahead of schedule. Tata group’s semiconductor fabrication plant, whichwill come up at Dholera in Gujarat,has been identified as one of the major suppliers of chips to Tesla. Government sources said Tesla has indicated that itwill source 30-40% of chips and forging foritsvehicles from India.“These two components comprise around 40-50% of what goes into making of EVs, so it makes sense forTesla to set up its assembly plant in the countryas earlyas possible,”said a source. TeslawillalsobesupplyingchipsandforgingssourcedfromIndiatoitsplantsintheUS, but it makes sense to assemble the products closerto the pointwhere the components are sourced from,sources said. UndertheEVpolicy,manufacturershaveto achieve25%localisationbythethirdyearand 50% by the fifth year. Sources said that since majority of chips and forgings will be sourced from India, the company will be able to meet these deadlines ahead of the schedule. Under the EV policy, global automakers willbe allowed to import completelybuilt-up units (CBU) at a concessional import duty of 15%forvehicleswhicharepriced(cost,insur- ■ Arrives in New ■ Scheduled to meet PM Modi in the first half of Monday Delhi on Sunday night by private jet ■ Will be staying at The Oberoi hotel ■ To meet space Women voters after casting their vote in the first phase of the Lok Sabha elections, in Rajasthan’s Nagaur district, on Friday. The seven-phase polls will conclude on June 1 and the results will be declared on June 4 ■ PAGE 3 startup founders around 4 pm on Monday at Bharat Mandapam Govt may sell 10% in GIC Re in FY25 ■ No event or announcement likely on Starlink No immediate plan to sell more stake in LIC Source: Industry ance and freight) $35,000 and above for a period of five years. However, they will be required to set up manufacturing facilities in the countrywithin a three-year period. For companies which are not opting for this route, CBUs priced more than $40,000 will continue to attract 100% dutyand those below it 70%. Continued on Page 9 Indices had a tough week Sensex Nifty 22,500 22,300 22,100 21,900 21,700 Apr 12 74,244.9 -1.56% Apr 15 Brent crude* 72,943.6 86 *at 5pm IST -0.07% 83.42 83.47 83.50 MCX gold* (` per 10 gm) 73,500 73,000 72,500 83.60 2024 0.48% 72,000 Apr 12 Apr 15 Apr 16 Apr 17 Apr 18 Apr 19 Apr 19 Apr 18 Apr 17 Apr 16 ■ EXPLAINER, P7 Apr 15 84 Apr 19 73,088.3 83.55 Apr 12 Experts say climate change, not cloud seeding, is to blame for rain in the UAE, Oman Apr 19 Apr 18 (inverted scale) 83.40 Apr 18 72,488.9 Rupee 83.45 86.27 87.29 88 What’s behind flash floods in the desert? -4.62% 87.11 90.02 90 90.45 90.10 92 Apr Apr 16 17 2024 72,931 72,266 73,012 73,012 73,119 73,280 ■ MOTOBAHN, P7 Apr 12 22,147.0 Apr 16 73,399.7 in New York, London, Dubai, Singapore and Hong Kong 71,500 2024 in GIC 10% stakeprice Re worth `5,700 crore at current market THE CENTRE MAY sell up to 10% stake in state-run General Insurance Corporation (GIC Re) in the current financial year, a senior official told FE.“GIC Re received a very good response in the roadshows held recently to apprise potential investors of the company’s unique position in the Indian reinsurance market,and its strong growth potential,”the official added. The official, however, said the government has no immediate plans to sell anymore stake in Life Insurance Corporation (LIC), but added that it would explore the option “at appropriate times ■ GIC may get another year to meet minimum public shareholding norm in small tranches”. GIC Re held investor outreach programmes in New York, Singapore, Hong Kong, Dubai and London between February 19 and March 1. A 10% stake in the company is worth about `5,700 crore at the current market prices.The reinsurer's share price closed at `324.95 on Friday, Tata seeks RBI nod to avoid listing NBFC RAJESH KURUP Mumbai, April 19 Apr 15 Apr 16 Apr 17 Apr 18 Apr 19 Apr 15 -1.65% 22,519.4 Apr 12 From the Alto to Scorpio, 15 Indian cars have sold over a million units each. STAKE SALE IN THE OFFING ■ Good response to GIC roadshows PRASANTA SAHU New Delhi, April 19 BENCHMARK INDICES rebounded from early lows to close higher on Friday after a 4-day hiatus. For the week, Sensex saw a 1.6% drop, while Nifty ended 1.7% lower asWestAsia fears weighed.While the rupee hit a record low in intraday trading on Friday, oil prices eased to $86.27. Gold prices remained at new highs. Car history: India’s millionaires and their unique traits ● 63% TURNOUT IN PHASE 1 OF VERDICT ‘24 2024 SEEKING WAIVER THE TATA GROUP has sought a waiver from the Reserve Bank of India (RBI) to avoid listing its investment holding arm,Tata Sons. The group, in its request to the central bank, has said that Tata Sons does not fall under the upper-layer non-banking finance company (NBFC) norms and should be exempt from the rules. This came after the company carried out certain restructuringwithin the organisation and reduced debt, sources close to the development said. As per revised RBI regulations, it was mandatory for an upper-layer NBFC to list within three years of notification.On September 14, 2023, the regulator had notified 15 companies, including Tata Sons, under this category, following which the holding company would have to get listed by September 2025. Earlierin March,Tata Sonsraised about `9,300 crore by offloading 23.4 million sharesinitsITsubsidiaryTataConsultancy Services (TCS) through block deals.A part of this was used to repay debt, the sources ■ TheTata group, in its request to RBI, saidTata Sons does not fall under the upper-layer NBFC norms and should be exempt ■ Company said to have carried out restructuring within the organisation and reduced debt INSIDE Tata may buy Pegatron’s iPhone operations as soon as May PAGE 5 said but did not specify the quantum of debt repaid. Tata Sons has been mulling options to shed the upper-layer NBFC tag, which included merging a subsidiary with itself or reducing debt to certain levels. Continued on Page 9 down 1.87% from the previous closing. Currently, the Centre owns 85.78% of GIC Re and needs to reduce it to 75% byAugust this year to meet the minimum public shareholding (MPS) of 25% in the company. Continued on Page 9 RESULTS CORNER Wipro revenue flat, misses estimates AFTER EXPERIENCING A revenue decline for four consecutive quarters, Wipro on Friday reported a marginal sequential topline growth of `3 crore in the quarter ended March, reports PadminiDhruvaraj.The modest growth came due to a base effect after a period in October-December that was impacted by furloughs and growth in Wipro’s management consulting company Capco. ■ PAGE 4 Jio Fin consolidated PAT rises 6% in Q4 JIO FINANCIAL SERVICES on Friday reported a 6% quarteron-quarter rise in its consolidated net profit for the quarter ended March at `311 crore. On a standalone basis, the net profit stood at `78 crore,marginallyhigherthan `71 crore in the previous quarter. In Q3FY24, it had reported a 56% q-o-q fall in its consolidated net profit at `294 crore due to higher expenses and lower total income. ■ PAGE 8 MSP WHEAT SALES FETCH BUMPER PROFITS, PRIVATE TRADE ACTIVE TOO Punjab farmers reap twin bounty: Higher yield,robust procurement SANDIP DAS Rajpura, Khanna (Punjab), Karnal (Haryana) AHEAD OFTHE LokSabhaelections in the state, Punjab farmers — the most vocal and organised among India’s cultivators— are a happylot. Two things are working in their favouratthemoment:higherwheat yield, and robust procurement of the key rabi crop at attractive minimum supportprice(MSP).Unlike in many other states, for Punjab’s land-owning farmers, most of who grow cereals in their own holdings, the current MSP of `2,275/quintal is almost 2.5 times the cost. With prospects of record output and procurement expected to gatherfurthermomentum overthe next few weeks, the government’s wheat stocks, which had fallen to the buffer level recently, may soon be replenished. At7%,MSPincreaseforwheatin the current season was the steepest ineightyears.Moreover,forfarmers in Punjab,which account foralmost half of the wheat MSP operations, crop yield has recovered from the low levels seen in the last two seasonsbyaquarter.Theextendedwinter helped grain formation. At Rajpura mandi, wheat procurementbytheagenciesrunbythe stategovernmenthasjustpickedup pace after a slight delay caused by the prolonged cool weather in northernIndia.AmarjeetSingh,who has sown wheat in 50 acres in Kotla village in Patiala district, estimates IN THE FIELDS PA RT- I WHEAT STOCKS ARE AT A 16-YEAR LOW, BUT NEW ARRIVALS SEEM TO ALLAY THE FEARS the yield of his fields this season at 23 quintal/acre. With a projected incomeof`52,000/acreagainstthe gross inputs cost of `15,000/acre, farmers like Singh are confident of HIGH RETURNS Punjab's share in country's production 13% State's share in procurement 46% record remuneration. “In the last twoyears,thecropwashitbyunseasonal heatwave (2022) and rains duringthematuritystage,whilethis year prolonged winter has helped Procurement against output Wheat (%, 2023-24) Electricity subsidy to farmers (% of nominal GDP, FY24) (`9,330 crore earmarked for Punjab All India FY25 in Punjab 1.3 0.5 72 Punjab UP 1 Madhya Pradesh Paddy price fetched by farmers 32 Punjab Rice (%, 2022-23) 92 Punjab All India 37 for free electricity to farmers) UP Bihar 2,040 1,980 1,950 (`/quintal kharif 2023) (MSP for Punjab average mandi prices for Nov-Dec for Bihar & UP) grain formation,”Singh told FE. Theyieldofwheatfields,according to a number of farmers this reporter spoke to in Punjab and Haryana, had dropped to 17-18 quintal/acre in 2022, and stood at 19-20 quintal/acre last year. This year, however, average yield is in seen at 22-23 quintal/acre. Farmers from Punjab were at New Delhi the forefront of the year-long agitation in 2020-21 that forced the Narendra Modi government to withdraw the controversial new laws for agriculture marketing. In February this year, a section of them went on the warpath again, renewing their demand for legal guarantee for MSP, but they were blocked by the Haryana Police at the Shambhu border. Strong MSP operations and remunerativepricescould,however, further dampen the prospects of crop diversification in Punjab and Haryana. Farm economists have long been advocating a shift to less water-intensive crops by farmers in the two states. Continued on Page 9