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Statue of Unity Stands Tall, IL&FS Presents Revival Plan et al

Professor of Financial Economics and Part-time Value Investor, Transfin.
Nov 1, 2018 1:00 PM 3 min read
Editorial

Good evening reader,

 

The PM yesterday, on Sardar Patel's 143rd birth anniversary, inaugurated a rather larger than life monument in memoriam.

 

Rather than allowing our primeval instincts to point "look, my statue is larger than yours!" to the rest of humanity;

 

OR take sides on the argument around "whether 3,000 crore Rupees was spend prudently in light of more urgent issues?"...

 

...We would rather think of the great man in whose memory, albeit for political/nationalistic point scoring, this engineering marvel was shaped in the first place.

 

Vallabhbhai Patel was the first Deputy Prime Minister and Home Minister of Independent India. Not a victim of "emotionalism and sentimentality" in his own words, it was his pragmatism, political acumen and tact which led to the integration of India in those critical months to 15th August 1947.

 

Would highly recommend reading the first few chapters of Ramachandra Guha's seminal work titled India after Gandhi to understand how fragile those early days of nation building were, and how we as a country were fortunate to have Sardar Patel at its forefront.

 

No monument would be able to overshadow that.

 

Here are today’s Top 6 Business Stories in our End Of Day Wrap Up:

 

INDIA

 

IL&FS Board presents revival plan to NCLT, proposes fund infusion and asset monetization.

Recently appointed IL&FS Board submitted a resolution framework to National Company Law Tribunal (NCLT), proposing “significant” capital infusion by shareholders and new investors, divestment of assets, restructuring of debt and liquidation of subsidiaries. Board proposes planning and execution to complete within 6-9 months.

The Tribunal adjourned the matter to December 3.

 

Manufacturing activity grows on back of strong orders; PMI at 53.1 up from 52.2 last month.

India’s manufacturing activity is in the green as companies scale up production and employment that was at its strongest since December 2017. The Nikkei Manufacturing Purchasing Managers Index (PMI) for October strengthened as compared to last month, standing at 53.1.

 

PMI readings above 50-point mark indicate expansion, whereas below 50 imply contraction.

 

JLR Q2 sales fall 14.7% driving Tata Motors into loss.

Due to c. 44% drop in Chinese sales, Jaguar Land Rover (JLR) pushed the group into losses, as reported in the company’s Q2 results. Net loss of Tata Motors Ltd was stated at INR1,009cr, as JLR sales in UK also declined by 11%.

 

Airtel introduces new strategy to counter competition from Reliance Jio.

As per a report by Livemint, Bharti Airtel has set its minimum recharge plans to INR35 and will not be competing in the feature phones market, in turn easing congestion on the network. The company believes that this move will reduce peripheral customers, but will help in enhancing services for customers who pay better.

 

US/INTERNATIONAL

 

General Motors offers buyouts to 18,000 employees in a move to cut costs.

US-based General Motors is offering optional buyouts to salaried employees who have minimum 12 years of experience, as the company looks to cut costs and boost its independent investments. The company has given till November 19 for employees decide upon the offer.

 

US Fed issues plan to relax rules for major banks.

US Feredal Reserve released a proposal to relax rules for US banks with less than $700bn in assets, to exempt dozens of firms such as American Express, Citizens Financial, Discover etc. from stricter oversight under the Dodd-Frank Wall Street reform law.

 

The 9 largest US banks i.e. G-SIBs, have been excluded from this exemption.

 

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