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XLV 34, 16 PAGES, `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: 76,992.77 ▲ 181.87 NIFTY: 23,465.60 ▲ 66.70 NIKKEI 225: 38,814.56 ▲ 94.09 HANG SENG: 17,941.78 ▼ 170.85 `/$: 83.56 ▼ 0.01 `/€: 89.30 ▲ 0.95 BRENT: $82.94 ▲ $0.19 GOLD: `71,596 ▲ `212 NEWS SBI HIKES LENDING RATE BY 10 BPS ACROSS TENURES STATE BANK OF India (SBI) has increased its marginal cost of fundsbased lending rate (MCLR) by 10 basis points (bps) across tenures. The revised MCLR rate is effective, June 15, according to the state-run lender’s website. WPI INFLATION RISES TO 15-MONTH HIGH IN MAY INFLATION, AS measured by the Wholesale Price Index (WPI), rose to a 15-month high of 2.61% in May from 1.26%, primarily due to increase in prices of food and industrial input items, data released by the commerce ministry showed on Friday, reports Priyansh Verma. ■ PAGE 2 SPECTRUM DUES: AIRTEL PREPAYS `7,904 CRORE BHARTI AIRTEL ON Friday said it has prepaid `7,904 crore to the department of telecommunications (DoT) to clear high cost deferred liabilities for spectrum acquired in 2012 and 2015. With this, the company has fully prepaid all its deferred liabilities for the spectrum acquired in the 2012 and 2015 auctions. FOREX RESERVES JUMP $4.3 BN TO HIT NEWALL-TIME HIGH FOREX RESERVES JUMPED $4.307 billion to a new all-time high of $655.817 billion for the week ended June 7, the Reserve Bank of India (RBI) said on Friday. The kitty had jumped $4.837 billion to $651.51 billion in the previous reporting week. ■ PAGE 6 FE S P E C I A L Hyundai India looks to raise $3 bn via IPO Targets valuation of $18-20 billion LISTING PLANS ■ Hyundai FE BUREAU New Delhi, June 14 HYUNDAI MOTOR INDIA (HMIL) will file a draft red herring prospectus (DRHP) with the SecuritiesandExchangeBoardofIndiasoonto raise up to $3 billion through an initial public offer (IPO). It is expected to be India’s largest IPO, surpassing the Life Insurance Corporation’s $2.5-billionshare sale in May2022. According to industry sources,the South Korean auto major’s Indian subsidiaryis targeting a valuation of around $18-20 billion and may dilute a 15-20% stake. There will be no issuance of new shares and the auto major plans to use the proceeds from the IPO to expand its operations. When contacted, an HMIL spokesperson declined to comment. However, in February when reports of an IPO had first surfaced, Hyundai Motor had issued an official statement to the Korean Stock Exchange and said that as a global company, it is constantly reviewing various activities,including listing overseas subsidiaries, to increase corporate value,butnothinghasbeenconfirmedtodate. Hyundai Motor Group's executive chair Euisun Chung reportedly made a visit to India last month to review the company's mid- to long-term strategies. The IPO will also mark a major milestone for the Indian industry, as it will be the first auto major to go for an initial share sale in over two decades, after Japan's Maruti Suzuki's listing in 2003. Earlier this week, electric two-wheeler company Ola Electric also received the regulator’s clearance to raise funds through an IPO. Continued on Page 5 World likely to witness record-high temperatures during 2024-2028 ■ EXPLAINER, P2 to be first auto major to go for IPO in over 20 years after Maruti Suzuki's in 2003 Sale via block deals likely next week M SRIRAM Mumbai, June 14 ■ If it materialises, the IPO would be the largest in India ■ Hyundai Motor India is the second-largest PVmaker in the country ■ Hyundai Motor Group executive chair Euisun Chung was in India last month to review mid-, longterm strategies VODAFONE GROUP IS looking to sell its entire $2.3-billion stake in Indus Towers through stock market block deals next week, two sources with direct knowledge said,aspartoftheBritishcompany’s effort to repay debt. Vodafoneowns21.5%ofmobile-tower operator Indus via various group entities. As of Friday’s closing stock price, the investment is worth $2.3 billion. The final size of the stake sale is yet to be decided and could be lowerthan 21.5% if demand,which is still being assessed, is insufficient,saidthesources,whodeclined to be named. Shares of Vodafone Idea extended gains, rising as much as 4.8% after the report,whileIndusTowersparedgainsand closed up 0.3%. CUTTING DEBT ■ Vodafone owns 21.5% of mobile tower operator Indus via various group entities billion net debt using proceeds ■ In 2022, had announced sale of all of its then 28% stake; has managed to sell only a small portion so far aged to sell only a small portion so far.The sources said the talks with rival telecom firms fora stake sale had not materialised. Vodafone plans to repay part of its $42.17-billion net debt using proceeds from the Indus stake sale,the sources said. Indus,which says itisoneof theworld’s biggest tower companies, also counts Bharti Airtel as a shareholder. Continued on Page 5 AN INDIAN TOUCH Prime Minister Narendra Modi with UK Prime Minister Rishi Sunak (centre) and World Bank president Ajay Banga during the G7 Summit in Bari, Italy, on Friday. Besides Sunak, the PM held meetings with several other world leaders on Friday PTI ■ PAGE 16 Gautam Adani, other promoters up stake in flagship company RAJESH KURUP Mumbai, June 14 MARKETVALUATION MAHINDRA&MAHINDRA(M&M)brieflyovertook Tata Motors to become the second most valuable automobile company in the country, as investors cheered the detailed outlook presented bythe carmakeron its investorday. The company’s market capitalisation surged to `3.66 trillion afterits shares rose as muchas2.8%tohitalifetimehighof`2,945. However, the company’s shares closed down at `2,927 owing to profit booking, dragging the m-cap downto end `184 crore shyofTata Motor’s m-cap of `3.64 trillion. M&M, which already has a stronghold in India’sSUVmarket, planstointroducesixnew SUVs by 2030, and a total of 23 launches by 2030. It also plans to introduce seven Born Electricvehicles bythe end of the decade. money out of thin air? A model for companies in financial difficulty: issue equity to creditors to repay their debt. If the stock is well traded, the creditor can sell in the $42.17- BAJAJ HOUSING FINANCE, a subsidiary of Bajaj Group and promoted by Bajaj Finance and Bajaj Finserv, has filed a draft red herring prospectus (DRHP) with Sebi for its proposed IPO to raise up to `7,000 crore. Earlier, the company announced that the public issue would comprise a fresh issue of shares worth `4,000 crore. According to the DRHP, parent company BajajFinancewouldsellsharesworthanadditional `3,000 crore through an offer for sale. KotakInvestmentBanking,AxisCapital,BofA Securities, Axis Capital, Goldman Sachs, SBICAPS,JM Financial and IIFLSecurities are book running lead managers to the issue. Briefly becomes second most valuable auto firm A MODEL FOR COMPANIES IN FINANCIAL DIFFICULTY: ISSUE EQUITYTO CREDITORS TO REPAYTHEIR DEBT. IF THE STOCK IS WELLTRADED, THE CREDITOR CAN SELL IN THE MARKETAND GET PAID BY INVESTORS... repay part of Bajaj Housing Fin files for `7,000-crore IPO The company also intends to roll out a total capital expenditure and investment of `27,000 crore between FY25 and FY27. ADANIGROUPCHAIRMANGautamAdaniandotherpromoters have increased their stake in Adani Enterprises (AEL), the group’s flagship company, by buying 2.02% stakethroughopenmarketpurchases.Followingthestake purchases,executed between September 2023 and June thisyear,thepromoters’stakeintheflagshipfirmhasrisen to 73.95%,according to stock exchange data. Infinite Trade and Investment, a promoter group firm, bought 7.7 million shares or 0.68% stake in AEL, overfourdays from September8-12,2023.Later,Kempas Trade and Investment acquired 4.8 million shares or 0.42% stake between May 10-14, 2024. Later, Emerging Market Investment DMCC bought 10.5 millionsharesor0.92%stakebetweenMay21andJune12, 2024.Priortothepurchases,thetotalvotingcapitalwith the promoter group was at 71.95%. Continued on Page 5 Continued on Page 5 Company Jun 13 Jun 14 M-cap in ` crore At At high At close prices close Tata Motors 3,27,661 3,31,401 3,30,204 Tata Motors 33,864 34,100 33,960 DVR Total 3,61,525 3,65,501 3,64,164 M&M 3,56,153 3,66,219 3,63,981 ■ Vodafone Idea to make preferential allotment of nearly 1.7 bn equity shares worth `2,458 cr to Nokia Solutions & Ericsson India ■ Nokia to get 1.5% stake amounting to `1,520 cr at issue price; Ericsson to own 0.9% stake amounting to `938 cr market and get paid by investors. What is that story about Peter and Paul?”Kotak said in his post. Through the preferential allotment of shares, Nokia will get a ■ Company had earlier settled dues of telecom tower firmATC in a similar way amounting to `938 cr 1.5% stake in Vodafone Idea amounting to `1,520 crore at the issue price. Similarly, Ericsson will own a 0.9% stake amounting to `938 crore. Exports rise 9% in May on low base; trade deficit grows IN A NUTSHELL 25 20 15 10 5 0 Exports Imports (% chg, y-o-y, RHS) Trade deficit ($ bn), LHS 20.8 18.1 23.8 21 16 15.6 19.1 9.1 14 -2.7 -3.3 Nov Dec Jan 2023 The shares will be issued at `14.80 a piece, which is 35% higher than the follow-on public offer (FPO) price of `11 a share. On Friday, shares of Vodafone Idea closed up 4.1% at `16.7 on the BSE. As perthe terms,Nokia and Ericssonwill have to hold the shares for a minimum period of six months. The proposal is subject to approval by the company’s shareholders at the extraordinary general meeting (EGM) to be held on July 10. Post the share issue, the stake of the Aditya Birla Group and Vodafone Plc stands at 37.3%.The government’s stake is at 23.2%, while the public shareholding is at 37.1%. Continued on Page 5 7 7.7 0 -7 Feb Mar Apr May Source: Commerce ministry -14 2024 MUKESH JAGOTA New Delhi, June 14 Kotak’s take on Vi deal: Robbing Peter to pay Paul KOTAK MAHINDRABANK founder Uday Kotak on Friday took a swipe at Vodafone Idea for settling the dues of its vendors by issuing preferential shares. Without naming the company, Kotak in a post on X on Friday said that such deals are like “robbing Peterto payPaul”.The referencewas to Vodafone Idea board’s decision on Thursday to make preferential allotment of nearly 1.7 billion equitysharesworth `2,458 crore to its network vendors, Nokia Solutions and Ericsson India.The companyhad also earliersettled dues of telecom tower firm American Tower Company in a similar way. “Financial markets create ■ Plans to ● G7 GETS Race for No.2 spot: M&M closes in on Tata Motors Kotak Mahindra Bank founder Uday Kotak on X ■ Final size yet to be decided, could be lower than 21.5% if demand insufficient Vodafone India and its British parent did not respond to requests for comment. Indus Towers declined to comment. Vodafone has hired Bank of America, Morgan Stanley and BNP Paribas to manage the stake sale in the stock markets,the sources said. Bank of America declined to commentwhiletheothersdidnotrespond to Reuters requests for comment. Vodafone in 2022 announced it would sell all of its then-28% stake,but has man- ON THURSDAY, VODA IDEA ISSUED SHARES TO VENDORS TO SETTLE DUES FE BUREAU New Delhi, June 14 ■ Has hired Bank of America, Morgan Stanley and BNP Paribas to manage the stake sale ■ PAGE 6 AKSHATA GORDE Mumbai, June 14 Impact of heat waves on food production Vodafone to sell $2.3-bn stake in Indus Towers 15-20% STAKE DILUTION LIKELY 18.7 IN THE INDIA’S MERCHANDISE EXPORTS grew9.1% onyearin Mayto $38.13 billion, but a sharp 28% rise in imports of crude and petroleum products pushed imports growth to 7.7%,precipitating a trade deficit of $23.78 billion — the highest since October last year, official data released on Fridayshowed. The rise in outward shipments of goods in May was the highest since February (11.9%), and was much above the subdued trend seen most of the recent months,but it was also due to a lowbase (-10.4%). CommercesecretarySunilBarthwal, however, attributed the high deficit to economic growth.“When youreconomyisgrowingfasterthan the world, there will be higher demand for imports and you will havelessexportablesurplus,”hesaid. The merchandise trade deficit during May was closely comparable to that in theyear-ago month ($22.5 billion) even though the imports of petroleumwentupby$4.4billionin value terms, officials cited. In April, the deficit stood at $19.1 billion, while exportshad grown just 1%. “With the merchandise trade deficit enlarging by $6 billion in April-May 2024 relative to the yearago months,we expect the current accountdeficittoriseto1.5%ofGDP in this quarter from 1.1% of GDP in Q1 FY2024,” Aditi Nayar,chief economist at Icra,said. Merchandise imports were recorded at $61.91 billion. Besides petroleum,the biggest import item, electronic goods also saw considerable jump during the month. Barthwal attributed the export performance in May to the return in demandfromdevelopedcountriesas they got inflation under control and their purchasing power rose.“This positive trend,we foresee,will continue.That is also the prediction of the WTO for 2024 of positive trade growth prediction compared to last yearwhen itwas negative growth.” Continued on Page 5 CHENNAI/KOCHI