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Top News Today: IRCTC IPO News, Facebook-ICC Deal, SoftBank Investment in Piramal Group May Be Stalled

Professor of Financial Economics and Part-time Value Investor, Transfin.
Sep 27, 2019 12:32 PM 5 min read

Essel Group in talks with Adani Group to sell its solar energy assets. SoftBank's investment in Piramal Group may be stalled. Facebook signs a four year deal with ICC. IRCTC IPO to go live on September 30.



Essel Group in talks with Adani Group to sell its solar energy assets.

Saving Grace: In an attempt to stave off any loan defaults, debt-laden Essel Group is reportedly rushing to complete its unfinished solar power projects of 480 megawatts (MW) to sell them to Adani Green Energy - Adani Group’s renewable energy arm. 

The news comes shortly after Essel Infraprojects, wholly owned by Essel Group, in August, sold its operating portfolio of 205MW to Adani Green Energy at an enterprise value of INR1,300cr. 

Zooming Out: Essel group owes c. INR13,000cr in debt to its creditors, while Essel Infra owes another INR10,000cr. The promoter group, led by Subhash Chandra, have agreed with certain lenders to defer the payment date on certain non-convertible debentures to March 2020, from 30 September. Deal Street Asia

SoftBank may call off $1bn investment plan in Piramal Group.

This Is Not Working Anymore: Japanese multinational conglomerate SoftBank may call off an investment of around $1bn in Piramal Group’s financial services arm, Piramal Capital and Housing Finance, on the back of irreconcilable differences. 

One of the major points of disagreement is reported to be Piramal Group’s resistance to make a complete shift from wholesale loans to consumer lending. SoftBank wanted Piramal to make a shift towards technology-based consumer lending with a timeline of 6-8 years to list the new financial firm on BSE. ET





Facebook inks four-year deal with ICC to secure exclusive digital rights to its cricket content.

That’s A Sixer: Facebook has reportedly finalised a four-year deal with the International Cricket Council (ICC) to secure exclusive digital content rights for global ICC events in the Indian subcontinent. While this won’t include live-streaming matches, the social media giant will show post-match recaps and in-play key moments and other “feature content”. Official Media Release
This isn’t the first time Facebook has tried to tap onto South Asia’s cricket frenzy. In 2017, it bid $600mn for online streaming rights of the Indian Premier League for five years but it lost the bid to Star India (which operates Hotstar). TechCrunch

Citizens and tech companies served better with some regulation, says Facebook India MD.

Regulate Me Like You Do: In a recent interview with ET Tech, Ajit Mohan, VP and Managing Director for Facebook India, said both citizens and technology companies will be “served better with an element of regulation”. He also opined that Facebook and its sister apps (Instagram, WhatsApp) are “embedded in the fabric of India” and said the apps could be allies for the country in the trajectory of economic growth and social development. ET Tech




IRCTC IPO to open on Monday, 30th September.

Going Public: The IPO of Indian Railway Catering and Tourism Corporation (IRCTC), the online ticketing, tourism and the catering arm of Railways, will open for subscription on September 30 and close on October 3. 

IRCTC is looking to raise up to INR645cr through this IPO, which comprises an offer for sale of 2.01 crore shares of the face value of INR10. The price band of the IRCTC IPO has been fixed at INR315-INR320 per equity share. India Today

To Buy or Not to Buy: Read this article to know more about IRCTC’s upcoming IPO and to perhaps decide on whether you want to buy a stake in the stock. Finshots



OMCs may ration LPG cylinders to users amidst delivery shortage.

What’s Cooking: State-run oil marketing companies such as Indian Oil Corporation Ltd, Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd may ration LPG cylinders to users following the temporary shortage of cooking gas or liquefied petroleum gas (LPG) on the back of the drone attack on Saudi Aramco’s oil facilities, fire in ONGC's processing plant in Uran, Navi Mumbai and shut down of Mangalore Refinery and Petrochemicals due to a minor landslide. 

Meanwhile, the sector is arranging for alternative sources for LPG which are likely to reach India within a week. Currently, states including Maharashtra, Karnataka, Punjab and Goa could face an LPG supply pinch reportedly due to a booking backlog, with the delivery of cylinders taking 10 to 15 days in some of the states. Livemint

India is the largest consumer of LPG after China. In 2018-19, India’s overall consumption of LPG was 24.9 million tonnes (MT), of which 51.4% or 12.8 MT was met from domestic production while the remaining was imported. BS



FM Nirmala Sitharaman to meet Secretaries and Financial Advisors of key Ministries today.

Congregation: Finance Minister Nirmala Sitharaman will be meeting with Secretaries and Financial Advisors of key Ministries today to review total capital expenditure in 2019-20. Discussions are likely to be held on ways to revive the economy and boost investments, besides planning the future trajectory for CapEx in the current financial year. ANI

Govt’s capital expenditure dropped to 18.8% of Budget estimates in Q1.

Consternation: In case your economic jargon needs a rejig, capital expenditure pertains to funds utilised to acquire, upgrade and maintain physical assets like property, buildings, plants, technology or defense equipment. High CapEx indicates more money invested in growing the economy and can be crucial for rapid growth. And as per the latest numbers released by the Department of Economic Affairs, the government’s capital expenditure dropped YoY in Q1. While it was 29% of annual budget estimates in April-June 2018, this FY it was 18.8%. Financial Express



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