Information pertaining to accounts of Kochhars destroyed in calamity, alleged British Virgin Islands. Naresh Goyal offers to pledge rest of shares in Jet, but conditions apply. IMF cuts India's GDP growth forecast for FY19-20. Uber seeks to raise about $10bn in IPO.
Moving on to the top Business stories of the day.
Information pertaining to accounts of Kochhars destroyed in calamity, alleged British Virgin Islands. ED accuses ICICI Bank of delaying probe against Chanda Kochhar.
Wrath of the Gods: In a rather interesting turn of events, the British Virgin Islands (BVI) has denied the Income Tax (IT) Department information pertaining to the Chanda Kochhar ICICI scam, saying it has been destroyed in a natural calamity.
About two weeks ago, the Enforcement Directorate (ED), which is probing the Kochhars and Videocon Chairman Venugopal Dhoot in the ICICI money-laundering case, had sought details on the Videocon loan, role of the sanctioning committee and procedures followed.
The Plot: As per the ED, monies have been moved and received from NuPower Renewables (Kochhar’s company) to various foreign accounts. In order to check the veracity and the purpose of these funds, they had written to three countries, which included Mauritius, Singapore and BVI.
Inertia: ED on Tuesday accused ICICI Bank of delaying the probe against Chanda Kochhar. The bank has not yet shared information on details of loans forwarded to NuPower and Videocon. The agency had sought from the ICICI Bank management certain details including information on the sanctioning committee, their attendance during the meeting, agenda, decisions and discussions and the exact date when the loans were sanctioned to these companies.
Naresh Goyal offers to pledge rest of shares in Jet, but conditions apply. No expression of interest on day two either.
Without Further Ado: Jet Airways Founder Naresh Goyal has offered the lenders of the debt-ridden airline to pledge the rest of his shares on condition that they release the promised interim loan funding of INR1,500 crore without delay.
What You Need to Know: Goyal owns 51% in the airline, but has till date pledged 31.2% with lenders.
No Suitors: Jet Airways has received no expression of interest in the first two days. The deadline to submit an expression of interest expired at 6 pm today.
If the response remains poor, the airline's lenders may even extend the deadline.
Bonus: The loss of aircraft and friction with lessors is just the latest major setback for Jet, which has been struggling for years, beset by an insurgent group of low-cost Indian competitors. Read the story of the downfall of India’s premium airline here.
NCLAT directs ArcelorMittal to deposit INR42,000cr. Fortis Healthcare looks to sell stake in Singapore-listed RHT trust.
Comply Now: The National Company Law Appellate Tribunal (NCLAT) has directed ArcelorMittal, the winning bidder for the stressed Essar Steel, to deposit the bid amount of INR42,000cr in a separate account.
The bench also asked ArcelorMittal to file an affidavit before it, detailing the steps to be taken for implementation of the resolution plan for debt-ridden Essar Steel.
A Pound of Flesh: Fortis Healthcare is in talks with potential buyers to sell its stake in Religare Health Trust (RHT), three months after it completed the acquisition of RHT’s assets for INR4,650cr.
Put to Good Use: The proposed transaction will help raise funds to fulfil the needs of Fortis Healthcare as its acquisition by Malaysia's IHH Healthcare is in limbo. The Supreme Court had in December ordered a status quo on the Fortis-IHH deal, following Japanese drug maker Daiichi Sankyo’s contempt plea against the Singh brothers.
IMF cuts India's GDP growth forecast for FY19-20; cuts global growth forecast for FY19-20 by 20 basis points to 3.3%.
Slashed: The International Monetary Fund (IMF) on Tuesday cut India’s GDP growth forecast for FY19-20 and FY20-21 by 20 basis points each.
In India, growth is projected to pick up to 7.3% in FY19-20 and 7.5% in FY20-21, supported by the continued recovery of investment and robust consumption amid a more expansionary stance of monetary policy and some expected impetus from fiscal policy, noted IMF in its World Economic Outlook Report.
The news comes shortly after both Asian Development Bank and RBI last week cut their FY2019-20 growth projection for India to 7.2% from 7.4% earlier, on back of rising risks to global economic growth as well as weakening domestic investment activity.
And This: IMF also cut its global growth forecast for FY19-20 by 20 basis points to 3.3% from estimates of 3.5% in January and 3.7% in October - the lowest since the financial crisis in 2008. The downgrade is on account of trade tensions between the US and China, loss of momentum in Europe and uncertainty surrounding Brexit.
Exception Count: IMF however, raised China’s GDP growth outlook by 10 basis points to 6.3% for 2019.
Vodafone Idea’s INR25,000cr rights issue opened today. Uber seeks to raise about $10bn in IPO.
Open Now: Vodafone Idea’s INR25,000cr rights issue, the largest in the country, opened today.
The development comes as the telecom service provider is readying to monetise its tower and fibre assets.
As part of the issue, the Vodafone Group will infuse up to INR11,000cr and Aditya Birla Group will put in up to INR7,250cr.
The issue comprises up to 2,000 crore shares at INR12.50 a share, totaling INR25,000cr for shareholders of record date April 2, 2019.
The telecom company plans to raise as much as INR25,000cr from its latest rights issue at less than a tenth of its valuation to pare debt and fight disruption brought about by Jio. However, will the rights issue solve Vodafone Idea’s problems. Read on…
Raising a Fortune: Ride-hailing giant Uber seeks to raise about $10bn as it plans to begin trading publicly in May.
Uber is likely to kick-off a road show to market shares to potential investors this month ahead of its debut in May.
This is expected to be the largest IPO this year and among the 10 largest of all time.
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