ED links INR500cr kickback to Kochhar and family. Huawei sues US over ban on its products. Hyundai may invest up to $300m in Ola. Govt set to launch uniquely shaped Rs 20 coin.
Now to Today's Top Business News Stories in Our End Of Day Wrap Up:
ED links INR500cr kickback to Kochhar and family. Reliance to sell stake in non-core investments in a bid to reduce debt. GIC to invest in Bharti Airtel.
Kick Money: The Enforcement Directorate has reported that Chanda Kochhar and her family had received kickbacks worth INR500cr in the Videocon-ICICI loan case.
Investigators reported of having clear evidence of a "quid pro quo” in the loans cleared by ICICI Bank under Chanda Kochhar's leadership.
What Now?: The probe agency will seize the Kochhar family's assets created out of the proceeds of the fraud.
Cutting Down: Reliance Capital – part of Anil Ambani-controlled Reliance Group is set to reduce its debt by c. INR10,000-12,000cr in the next 3-4 months.
The reduction will be achieved through monetization of its 43% stake in Reliance Nippon Life Asset and 49% stake in Reliance General Insurance Company, along with several non-core investments.
Foreign Help: Singapore’s sovereign wealth fund, GIC is set to invest INR5,000cr in Bharti Airtel, as part of the latter's INR32,000cr fundraiser.
GIC’s investment will be part of a rights issue to shareholders in which Bharti Airtel's promoters Bharti Group, Bharti Telecom and Singapore Telecommunications (Singtel) will also take part.
Bharti Airtel is planning to raise up to INR32,000cr through a mix of rights issues (INR25,000cr) and perpetual bond issues (INR7,000cr).
Cabinet clears power plant investment worth INR26,000cr. Govt set to launch uniquely shaped Rs 20 coin.
Power Fund: The Cabinet Committee on Economic Affairs has approved an investment of c. INR26,000cr for two thermal power projects and a hydro-electric plant.
These investments include c. INR10,440cr for Buxar Thermal Power Project in Bihar, c. INR11,089cr for Khurja Super Thermal Power Plant in Bulandshahr, Uttar Pradesh and Amelia Coal Mine in Singrauli, Madhya Pradesh, and c. INR4,288cr for construction of Kiru Hydro Electric Project in J&K.
Dodecagon: Government set to roll out new Rs 20 coin. This coin will be shaped in the form of a 12-edged polygon and will have the design of grains embossed, symbolic of the dominance of farming in the economy.
New series of one, two, five and ten rupees coins would also be minted, which will be circular in design and have denominations written in Hindi.
Huawei sues US over ban on its products. Facebook to focus on private messaging. Parliament panel seeks help from Facebook to curb fake news. BJP tops in ads spending list.
In Court: Huawei has sued the US government over ban on its products.
Huawei commented that the ban besides being unlawful, also restricts Huawei from engaging in fair competition, ultimately harming US consumers.
Huawei is pushing back at a provision in the 2019 National Defense Authorization Act which bars any executive agency, government contractor or company that receives a government loan or grant from using Huawei and ZTE equipment.
Shifting Stance: Facebook, which became the world’s biggest social network by encouraging people to share photos and messages publicly is now betting on private messaging and small-group chats.
Know what caused this drastic shift in ideology here.
Not Fake: A Parliamentary panel has asked Facebook to take more stringent steps to curb the spread of fake news on its platforms, which include WhatsApp and Instagram, ahead of the General Elections.
Facebook has been asked to send clear written replies to the panel’s various questions about its efforts in this regard within 10 days.
Ad King: According to data from Facebook's Ad Archive report, advertisers in India spent over INR4cr on political ads on Facebook last month and more than half of the amount came from the ruling Bharatiya Janata Party and its backers.
Bharat Ke Mann Ki Baat, topped the list, spending over INR1cr for 1,168 political ads on the social networking platform last month. Facebook also noted that most of these ads were run without a disclaimer. Read more on this here.
Etihad hits roadblock in its rescue plan for Jet Airways. Japan bets on axed A380.
Pause: Etihad Airways has hit a roadblock in its rescue deal for Jet Airways, as the UAE-based carrier is seeking clarity on several contentious issues.
Caveat: FDI rules allow a foreign carrier to own up to 49% stake in a domestic airline but mandate that it must have a local partner to service passengers in India. Etihad is yet to find a local partner to replace Jet’s Founder-Chairman Naresh Goyal, who will have to step down if Etihad invests in the airline.
Etihad is also seeking an exemption from the open offer that may be triggered if the ownership structure of the company changes after Goyal’s exit.
The complication could affect the ongoing negotiations between the two carriers and any failure could jeopardize Jet Airway's revival.
Placing Bets: Japan’s biggest airline All Nippon Airways (ANA) has placed its bets on the recently axed A380 in a bid to revive its Hawaii business.
The company is planning to schedule three flights a week from Tokyo to Honolulu on the 520-seat behemoths, painted in a special sea-turtle theme.
Hyundai may invest up to $300m in Ola.
Keep it Moving: As per an Entrackr report, Hyundai is in talks to invest up to $300m in the home-grown ride-hailing giant Ola. The deal would be a part of Ola's ongoing Series J round of funding estimated at $1bn.
Ola had last month acquired INR650cr from Flipkart co-founder Sachin Bansal.
Not the First: Hyundai has previously invested $250m in Grab and INR100cr in car-sharing startup Revv.
Bonus Read: Fewer Indian firms are raising through IPOs, with a majority opting to stay private amid rich valuations, abundance of private capital and somewhat pressured public market valuations. Read this article to know more.
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