Vodafone Idea Chairman says that the telecom operator will have to be shut down in the absence of govt relief.
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The End May Be Near: Vodafone Idea Chairman Kumar Mangalam Birla in response to a query posed at the Hindustan Times Leadership Summit about the company's course of action going forward in the absence of government relief said that the telecom operator will have to be shut down if the government doesn't provide relief that the company has sought. He also added that the company will have to opt for insolvency route in the absence of relief.
The comment comes shortly after Vodafone Group CEO Nick Read in November said that the company may head for liquidation of its India business if the government does not ease spectrum fees. Moneycontrol
Bonus Read: A per this Business Standard report, Subhash Chandra-led Essel Group is in for a rocky ride after losing control over two of its biggest cash cows — Zee Entertainment and Essel Propack, both of which accounted for the bulk of the group companies combined post-tax profits last financial year and were debt-free on a net basis, unlike the rest. Read more for the full scoop.
Underway: Finance Minister Nirmala Sitharaman on Thursday said reforms to provide the slowing Indian economy with the much-needed fillip will continue, hinting at tweaking personal income tax rates in the upcoming Budget. Financial Express
In a bid to shore up muted Goods and Services Tax (GST) collections and increase revenue, the GST Council is reportedly considering revamping tax structure and raising the existing 5% rate to 6%.
The 5% slab includes essential commodities such as food items, footwear and basic clothing, currently contributes to nearly 5% of GST collection and a slab restructuring may help the government garner additional revenues of INR1,000cr per month. Business Today
A Not-So Bright Future: Consumer confidence in India dipped to a five-year low in November as per the Reserve Bank of India’s consumer confidence survey released on Thursday.
The current situation index fell to 85.7 in November from 89.4 in September, as per the survey where 100 is the dividing line between pessimism and optimism. The future expectations gauge, which takes into account the one-year ahead perceptions fell to 114.5 from 118.0.
Good to Know: The survey was conducted in 13 major Indian cities including Delhi and Mumbai. It obtained data from 5,334 households across these cities on perceptions and expectations on the general economic situation, the employment scenario, the overall price situation and own income and spending. It said most respondents perceived prices as having increased during the last one year, and they expect a further rise in prices in the year ahead while households’ sentiments on overall spending remained resilient. Financial Express
In a first, India's foreign exchange reserves crossed the $450bn mark for the first time on the back of strong inflows which enabled the central bank to buy dollars from the market, thus checking any sharp appreciation of the rupee.
“India’s foreign exchange reserves were at $451.7 billion on December 3, 2019 — an increase of $38.8 billion over end-March 2019,” RBI Governor Shaktikanta Das said at the post monetary policy press conference. At $451.7 billion, the country’s import cover is now over 11 months.
Also This: Net foreign direct investment rose to $20.9bn in the first half of 2019-20 vs $17bn a year ago while net foreign portfolio investment was $8.8bn in April-November 2019 as against net outflows of $14.9bn in the same period last year. The Hindu
Raising A Fortune: Energy giant Saudi Aramco has raised a record $25.6bn in its initial public offering in Riyadh.
The share sale was the biggest to date, surpassing that of China's Alibaba which raised $25bn in 2014 in New York. The IPO will value it at $1.7tn when trading begins - short of its $2tn target, but making it the most valuable listed company in the world. Aramco’s shares are scheduled to start trading Dec 11 on Saudi Arabia’s Tadawul stock exchange.
Hit Refresh: Aramco - the world’s most profitable company - has found the journey to its public offering rather testing. Aramco had initially sought to raise $100bn on two exchanges - with a first listing on the kingdom's Tadawul bourse, and then another on an overseas exchange such as the London Stock Exchange. But it scaled back its plans after foreign investors raised questions over the valuation, venue for an international listing, political risk and a lack of corporate transparency, among other things. WSJ
However, bigger challenges await the giant. Analysts believe the biggest challenge for the company will be if it decides to list on an international stock exchange in the future to expand its investor pool. Demand for crude has been falling, which could make it difficult for the company to grow in the long term. The climate crisis and geopolitical risks are also key factors that could deter potential investors. BBC News
Netflix and Chill: Netflix founder and CEO Reed Hastings has announced that the streaming platform will spend INR3,000cr this year and next on producing original content in India, where it has a massive up and coming viewer base.
The investment is likely to help Netflix take on rivals such as Amazon and Hotstar.
The Indian arm of Netflix grew more than 700% during 2018-19, recording revenues of INR466.7cr for FY 19, with a net profit of INR5.1cr, according to its filing with the Registrar of Companies. HT
“Indians are bitten by the TikTok bug as the app makes it easy to create content using nothing more than a phone”. Read this amusing article to know how TikTok craze in India is minting celebrities and ruining lives in the country.
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