QBiz: Mutual Fund Investors Dread Voda Idea Debt Default & More

1. Rs 3,390 Cr at Stake for Debt Mutual Funds in Voda Idea’s AGR Blow

The Supreme Court’s dismissal of pleas to review its judgement on Adjusted Gross Revenue (AGR) is not only a setback for telecom companies who have to pay the government more than Rs 1 trillion in dues—now, mutual fund investors are worried about a debt default by Vodafone Idea.

The verdict means Bharti Airtel has to pay up Rs 35,586 crore and Vodafone Idea half a trillion rupees by 24 January.

Although all telecom companies will take a hit from the judgement, debt-laden Vodafone Idea is likely to find it particularly tough to make the repayments, said market watchers. Bharti Airtel is perceived to be in a far stronger position to pay the amount, while Reliance Jio has to pay a relatively minuscule Rs 60 crore.

(Source: Livemint)

2. Jeff Bezos Says Amazon to Create 1 Million Jobs in India by 2025

Amazon on Friday, 17 January, said it plans to create 1 million jobs in India by 2025 through continued investments in technology, infrastructure and logistics networks. The new jobs will add up to the 7,00,000 jobs the Seattle-based e-commerce major created in India over the last six years.

The announcement comes two days after founder and CEO Jeff Bezos said the company would invest an incremental $1 billion in the country to digitally enable micro, small and medium enterprises and traders, taking the firm’s total India investment commitment to $6 billion.

The CEO, who was in India to attend an in-house event, also said Amazon would use its global footprint to export $10 billion worth of ‘Make in India goods’ by 2025.

(Source: Financial Express)

Also Read: Airtel, Voda Idea Mull Curative Plea to Stall Dues on Telcos

3. Govt Revises Target for GST Collections Again

To augment collections amid growing concerns over missing the budgeted estimates, the government has reset the target for goods and service tax (GST) collections for the second time in two months – to Rs 1.15 lakh crore for February and Rs 1.25 lakh crore for March.

The decision to raise the target -- from Rs 1.1 lakh crore in December to at least Rs 1.15 lakh crore for the next two months -- was taken at a high-level meeting of senior officials of the Central Board of Indirect Taxes and Customs (CBIC) and Central Board of Direct Taxes (CBDT), people aware of the matter said.

(Source: The Economic Times)

4. Reliance Ind-Saudi Aramco Deal May Miss 31 March Closure Date

Reliance Industries Ltd said on Friday its plan to close the deal to sell a 20 per cent stake in its oil to chemicals business for $15 billion to Saudi Aramco will miss the 31 March timeline announced earlier.

The deal was announced in August 2019.

“It will not be a deal which will get done by March,” RIL’s joint chief financial officer V Srikanth told media on Friday, 17 January.

“The deal is making very good progress, but it’s a large transaction/large cross-border deal which is complex. I cannot comment on the timeline,” he said.

(Source: The Hindu BusinessLine)

Also Read: In Open Letter, Amazon CEO Bezos Promises More Jobs in India

5. Piramal Sells Insights Unit for $950 Million to Raise Finserv Funds

Piramal Enterprises Ltd will use the proceeds from the sale of its healthcare insights and analytics business to expand its financial services vertical, seeking to take advantage of opportunities created by the liquidity crisis in the non-banking financial company (NBFC) space, said Piramal Enterprises chairman Ajay Piramal.

On Friday, Piramal Enterprises informed the stock exchanges that it was selling its healthcare insights and analytics business, Decision Resources Group (DRG), to NYSE-listed Clarivate Analytics Plc. for $950 million.

DRG specialises in enabling the world’s leading pharma, biotech and medical technology companies to achieve commercial success in complex health markets with effective patient-centric commercial strategies.

(Source: Livemint)

6. RIL Posts Record High of Rs 11,640 Cr, Beats Estimates to Post 13.5% Hike in Q3 2019

Reliance Industries (RIL), the country’s most valuable company by market cap, reported a 13.5% increase in its net profits to a record high of Rs 11,640 crore for the quarter ended December, beating Bloomberg consensus estimates. Consumer businesses now account for over 37% of the consolidated Ebitda of RIL.

However, revenues for Q3FY20 fell 1.4% to Rs 1.68 lakh crore, primarily on account of a 10.6% decline in revenues from its oil-to-chemicals (O2C) segment, with lower product price realisation and 6.6% fall in Brent crude price. This was partially offset by the continuing growth momentum in consumer businesses, RIL said.

(Source: Financial Express)

7. Forex Reserves Rise by $58 Million to Record High of $461.21 Billion

The country foreign exchange reserves rose by $ 58 million to reach a life-time high of $ 461.21 billion in the week to 10 January, according to the data compiled by the Reserve Bank of India (RBI).

In the previous week, the reserves had increased by $3.689 billion to $461.15 billion.

In the reporting week, the reserves rose despite a decline in foreign currency assets (FCA), which is a major component of the overall reserves.

FCA decreased by $367 million to $427.582 billion, the RBI data released on Friday showed.

(Source: The Hindu BusinessLine)

Also Read: ‘Investments Welcome, But Within Law’: Goyal on Amazon Row

8. PFC Raises $750 Million in Overseas Bonds

Power Finance Corporation Ltd (PFC) has become the first public sector company to issue senior unsecured US Dollar bonds with a tenure of more than 10 years. A company statement said on Friday, PFC has successfully carried out the issuance of 10.25 year, $750-million bonds on January 15, under Reg S & 144 A route.

The bonds have a fixed coupon of 3.95 per annum and a yield of 4.066 per cent. This is PFC’s third international bond issuance in the current financial year as well as PFC’s largest single tranche bond.

The final order book amounted to more than $2.2 billion, attracting active and wider participation from investors across US, European and Asian markets, with around 42 per cent participation from the US market, the statement said.

(Source: The Hindu BusinessLine)

9. Which Company Just Hit $1 Trillion Market Cap? Google It.

As Google-parent Alphabet Inc became on Thursday the fourth US company to top a market value of more than $1 trillion, some funds holding its shares are wondering whether now is the time to cash in on the stock's extraordinary gains.

Shares of the Internet search giant are up nearly 17% over the last three months, outpacing a broader rally in the S&P 500 index over the same period by 6 percentage points.

Short interest in the stock, a measure of how many investors are betting on a price decline, is at 1%, near a 52-week high for the company and higher than competitors such as Microsoft and Facebook , according to Refinitv data.

(Source: Livemint)

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