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30/04/2018 – 04/05/2018

Aditya Ghosh to step down as President of IndiGo from July 31; Rahul Bhatia to be interim CEO

Aditya Ghosh will step down as the President and Whole-Time Director of InterGlobe Aviation--

which operates Indigo airlines--from July 31.

In a statement to the stock exchanges, the company said the board will consider appointing

Gregory Taylor as the President and CEO subject to regulatory approvals.f Gujarat.

Rahul Bhatia will be the interim CEO and will continue as the director.Ghosh, who will step down

as Whole-Time Director effective April 26, plans to start a new business venture.

"Aditya has played a vital role with shaping IndiGo to what it is today and effective dynamic

managers tend to move on to newer and more challenging roles. Aditya a trained lawyer with no

aviation experience shaped one of Indias largest airlines; so his contribution have been

superlative. I don't think beyond a point he'd like to have stuck around doing the same mundane

job role," said Mark Martin, Founder and CEO of Martin Consulting LLC.

Ghosh in a letter to IndiGo employees had said: "... it’s now time for me to step off the treadmill

and get ready for my next new adventure.

"While in college, Ghosh's friend’s father, Jyoti Sagar, founder of legal firm J Sagar Associates, was

so impressed with Aditya’s curiosity that he offered the youngster a job as his executive assistant.

Ghosh rose swiftly at J Sagar and was soon handling important clients, Rahul Bhatia’s InterGlobe

Enterprises, is one of them.

In 2004, as Bhatia was readying to launch a low-cost airline IndiGo, he roped in Aditya, then 28, as

his General Counsel. Bhatia was in talks with aircraft maker Airbus to buy 100 A320s. Ghosh once

again showed his mettle in handling the legal aspect of the order, the biggest the domestic

aviation industry had ever seen at the time. Bhatia was impressed.

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production.

Four years later and after IndiGo’s launch, when the airline’s founding President and CEO Bruce Ashby resigned, Bhatia surprised everyone by naming Aditya as ‘acting CEO’. In the few months that he held the position, Ghosh did enough to convince Bhatia about his worthiness for the top job. In August 2008, Bhatia crowned Ghosh as the President of IndiGo. The President was all of 32 years old. Ghosh ably led IndiGo operations, which scaled to 1,000 flights a day - maximum for any Indian airline - in December 2017, staying comfortably ahead of rivals. However, the past few months have been a turbulent ride for the normally unflappable Ghosh, beginning with the manhandling of an IndiGo flier in November 2017. The company fired the employee who had shot the video of the incident but spared the two employees who had manhandled the flier. The same month badminton star PV Sindhu took to Twitter to complain about a ‘bad experience’ on an IndiGo flight. Many of the Twitterattis responded, sharing their own episodes with the airline. This followed by the worst crisis with eight of its new Airbus A320neo jets grounded in February and March, hit by a string of engine snags, forcing tens of flights to be canceled or rescheduled. According to DGCA documents .there were 69 engine failures in IndiGo’s A320neo fleet as of September 15, 2017. The first was delivered to IndiGo on March 11, 2016, implying 69 engine failures in 18 months or four a month or 1 every week. Questions were raised on why the airline on its own didn’t decide to ground the A320neo fleet when such incidents of engine failure were being reported every week. The planes were only grounded in February when the European Aviation Safety Agency (EASA)

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HOT PURSUIT

Fortis Board postpones decision till May 10, bidders get 3 more days to submit binding bids

Fortis Healthcare Board which met on Friday postponed its decision on selection of bids till May

10, giving one more extension for the bidders to submit new or revised binding offers till May 1

afternoon. The window for submission of binding bids was closed on April 25 and the Board was

supposed to take a decision on April 26. But the Board expressed its inability to take any decision

owing to the resignation of advisory committee member Renuka Ramnath.

The Board said the expert advisory committee (EAC) consisting of Deepak Kapoor and Lalit Bhasin

will evaluate the bids received till 12:00 noon of May 1 to make recommendation for the Board

that will be meeting on May 10 to take a decision.

The board said as per the "obligations" towards Manipal-TPG consortium, Manipal-TPG will have

five days or up to May 6 to respond with revised offer. Fortis has so far received four binding bids

from Manipal-TPG (valuing Fortis at 160.6 per share), Munjal-Burman (Rs 160 per share), IHH

Healthcare (Rs 160 per share) and Radiant Life Care (Rs 165 per share). China's Fosun had

submitted a non-binding bid valuing Fortis at Rs 156 per share.

Suvalaxmi Chakraborty, Ravi Rajagopal and Indrajit Banerjee — the three nominees suggested by its investors East Bridge Capital and National Westminster Bank — were appointed additional directors. Certain board committees too were re-constituted to reflect the representation of new members.

"The reconstituted board, discussed the way forward for a possible infusion of funds/restructuring of the company," Fortis Board said in a statement.

East Bridge Capital and National Westminster Bank together hold around 12.06 percent stake in Fortis, have issued special notice to the company calling for an emergency extraordinary general meeting (EGM) of shareholders to replace the existing board with its nominees Chakraborty, Rajagopal and Banerjee.

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Liberty House offers over Rs 26,000 cr for Bhushan Power and Steel

UK-based Liberty House has offered over Rs 26,000 crore for acquiring the stressed assets of

Bhushan Power & Steel Ltd (BPSL), leading Tata Steel and JSW in the race.

The National Company Law Tribunal (NCLT) has asked BPSL lenders, led by PNB, to consider the

bid submitted by Liberty House for the debt-ridden company. It owes about Rs 45,000 crore to

the lenders.

"In the meeting of Committee of Creditors (CoC) held today, the bid of Liberty House was opened. The consolidated bid amount offered by the UK-based firm for the stressed assets of BPSL was over Rs 26,000 crore," said a source privy to the development. Tata Steel had earlier offered Rs 17,000 crore to the lenders as upfront amount and Rs 7,200 crore for operations of Bhushan. JSW Steel made an offer of Rs 11,000 crore to the lenders and Rs 2,000 crore for the operations of the beleaguered power firm. The CoC will meet again next week and take a call on the rebidding. Allowing the plea of Liberty House, NCLT had earlier directed the CoC to complete its resolution proceedings by June 23.

The tribunal's order came over a petition filed by Liberty House, challenging the rejection of its bid

by the BPSL's resolution professional (RP) on account of late submission. Liberty House had

moved the NCLT on February 26 against the rejection. The CoC had in February rejected Liberty

House's bid to acquire BPSL, leaving Tata Steel and JSW Steel in the race.

Liberty House had submitted before the NCLT that RP rejected its bid to acquire BPSL without

even opening the seal of its offer. Bhushan Steel and Power was among the 12 non-performing

accounts referred by the Reserve Bank for NCLT proceedings. The insolvency process was filed by

SBI, the lead bank of the consortium of lenders, in the case of Bhushan Steel. A similar plea was

filed by Punjab National Bank against Bhushan Power and Steel.

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RIL reports $1.4 billion in net profit; top 10 takeaways from Q4 results

The stock which rose to a record high ahead of the results closed 2.1 percent higher to Rs 996.30.

It hit a record high of 1011 and a low of 985.50. The stock rose nearly 6 percent so far in the year

2018 and by about 39 percent in the last one year.

Commenting on the results, Mukesh D. Ambani, Chairman, and Managing Director, Reliance

Industries Limited said: “FY 2017-18 was a landmark year for Reliance where we established

several records on both operating and financial parameters. Reliance has become the first Indian

company to record PBDIT of over US$ 10 billion with each of our key businesses - Refining,

Petrochemicals, Retail and Digital Services achieving record earnings performance.

"Substantial synergies, productivity gains and production growth in our energy and materials

business have allowed us to perform at very competitive levels despite the uptrend in oil prices

through the year," he said.

We have collated a list of top 10 takeaways from RIL Q4 results:RIL achieved revenue of Rs

129,120 crore ($ 19.8 billion), an increase of 39 percent as compared to Rs 92,889 crore in the

corresponding period of the previous year.

Increase in revenue is primarily on account of volume increase with the start-up of

petrochemicals projects and oil price related increase in realizations for refining and

petrochemical products.

The increase in consolidated revenues reflects the robust growth of 134% in Retail business and

continuing growth momentum in wireless subscriber additions for Digital Services business.

Outstanding debt as on 31st March 2018 was Rs218,763 crore ($ 33.6 billion) compared to

Rs196,601 crore as on 31st March 2017

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PM Narendra Modi, Xi begin second day of informal summit in Wuhan

Prime Minister Narendra Modi and Chinese President Xi Jinping began their last round of one-on-one talks here today on the second day of a two-day informal summit aimed at forging consensus to improve the bilateral relations and address the contentious issues bedevilling their ties.The two leaders walked together along the picturesque East Lake. They were accompanied by two translators. They also had tea after the walk.

"Taking India-China relations on a forward-looking path, charting the future direction of the relationship! PM @narendramodi and Chinese President Xi take a walk together along the East Lake in Wuhan today morning," Ministry of External Affairs spokesman Raveesh Kumar tweeted.

Modi and Xi then took a boat ride in the East Lake. The two leaders were seen talking to each other in relax mood inside the house boat. They would conclude their talks with one-on-one lunch hosted by Xi in the honour of Modi. The Prime Minister is due to leave for home after that.

The two leaders yesterday held extensive talks amid the warmth and bonhomie. They started the summit talks at the Hubei Provincial Museum where Xi took Modi around introducing the historic artefacts.

The museum walk scheduled for 20 minutes lasted over 40 minutes after which they began one-on-one talks. The summit was stated to be unique as the two leaders have no pressure and obligation to strike any agreements nor make big announcements but focus mainly on candid discussions on solutions to some of the vexed problems like the boundary question and other issues.

Their one-on-one talks were followed by delegation-level interaction with six top officials each from both sides took part, giving an impression that some of the critical issues were on the table for discussion.National Security Advisor Ajit Doval, Foreign Secretary Vijay Gokhale and Indian Ambassador to China Gautam Bambawale were present in the meeting.

Xi headed a high-powered delegation which included Member of the Political Bureau of the Communist Party of China Central Committee Ding Xuexiang, Member of the Political Bureau of the CPC Yang Jiechi and State Councillor and Minister of Foreign Affairs Wang Yi.The delegation talks which apparently focussed on some of the most contentious issues lasted for over two hours overshooting scheduled half an hour, hinting the seriousness of the discussions, officials said.Later Xi hosted a banquet in the honour of Modi at East Lake.

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Seek higher bids for Jaypee Infratech: IIFC tells co-lender IDBI

India Infrastructure Finance Company Ltd, the second largest lender to the beleaguered Jaypee Infratech, is said to be unhappy with the bids received for the Yamuna Expressway owner and has conveyed the same to IDBI Bank, the largest creditor to the company, according to a source aware of the development. The Gaur family-promoted company owes the lenders Rs. 9,100 crore and figured as one of the twelve companies in the central bank’s first list of defaulters.

“The bids are much lower than the actual value of the assets. They are also much lower than what the company was offering to the creditors. IIFL has told IDBI of its displeasure over the bids and wants them to be higher,” the official said.

The race is now down to two bidders -- Lakshadweep Pvt Ltd and the Adani Group -- with the former in the front seat. Lakshadweep is a joint venture between Sudhir Valia-led Suraksha Asset Reconstruction Company and Mumbai-based Dosti Reality. Valia is the brother-in-law of Shanghvi and an executive director on the board of his company, Sun Pharmaceutical Industries. Dosti Realty is a real estate company promoted by Shanghvi’s cousin Deepak Goradia.

According to a conservative estimate, the value of the company’s assets should not be less than Rs 20,277 crore. This is derived from the hospital being worth Rs. 500 crore, 167-km Yamuna Expressway Rs. 3,500 crore, 900-acre land parcel near Formula-1 track at the circle rate of Rs 7 crore per acre, 1,225 acres in Jewar at circle rate of Rs 3.34 crore per acre, 1,185 acres near Agra at circle rate of Rs 3.28 acres per acre and 10 million square feet FSI at Noida at Rs 2,000 per square feet.

“JP is clearly being undervalued by all the bidders so far. The value of the assets is much higher. Also, land and property rates have already started firming up in the Noida-Greater Noida area owing to the proposed international airport at Jewar. In this period, JP has also continued to deliver the flats to the buyers, clearly showing its intent to stay in the game,” another official told Adani Group has offered Rs 1,200 crore in cash, Rs 3,500 crore of land parcel and Rs 3,000 crore of back-dated instruments.

Jaypee parent Jaiprakash Associates’ Executive Chairman and Chief Executive Officer Manoj Gaur had earlier said that Jaypee was close to clinching the deal with the lenders in 2016 but the RBI directive on NPAs spoilt its case. Jaypee’s offer still remains the best and the Supreme Court has left it to the Committee of Creditors, a consortium of the company’s lenders, to decide its fate.

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