Carlyle eyes Hexaware with a $3-billion offer
Carlyle is the leading bidder for buying Hexaware Technologies with a $3 billion (₹22,500 crore) offer from its PE owner Baring Private Equity Asia (BPEA), The Economic Times reports.
Why it's important: The 3-billion offer, if it materialises, would be the largest ever PE takeover in India other than in infrastructure sector.
⦁ The private equity players are active in buyouts in IT services due to the rise in digitalisation around the world.
⦁ Others in the fray are Bain Capital and Teleperformance.
Govt ringfencing itself in the retro tax settlements
The government is careful in ringfencing itself in the retro tax cases to safeguard from likely future problems, The Economic Times reports.
Why it's important: While settling the reto tax disputes, the government is working on assurances from the companies for putting a full stop to the matter whatsoever.
⦁ The settlement to take care of everything under international law.
⦁ Plans to make sure that all stakeholders in a company agree to the settlement with the government and they don't go for damages at global forums later.
Vi lenders seek more collateral for its ongoing loans
Vodafone Idea is facing one more problem as its lenders are asking for additional collateral and security for its ongoing loans, The Economic Times reports.
Why it's important: The lenders are worried over the rating downgrade of the company.
⦁ The lenders are looking for higher interest rates along with securities for the ongoing loans to cover their exposure.
Problems galore for Vi as it fails to pay a full licence fee
The never-ending problems of Vodafone Idea further complicated its plans as it fell short of by around Rs150 crore to pay the full licence fee for the quarter, The Times of India reports.
Why it's important: The delay in paying licence fee will invite more penalties.
⦁ Last quarter also the company delayed its government fee.
⦁ The licence fee for the June quarter was around Rs 690 crore.
Retail loan repayments improve with economic recovery
Retail loan defaults are coming down with the improvement of the economy after the second wave of Covid-19, reports Mint.
Why it's important: The improvement is because the borrowers are recovering after lockdowns and able to manage their income.
⦁ Loan defaults were peaked during the previous three months.
⦁ Default rates of auto-debit transactions improved to 33.2% in July from 36.5%.
Government e-marketplace to experiment with blockchain technology
The Centre is planning to experiment with blockchain technology in its government e-marketplace (GeM), Mint reports.
Why it's important: The government is planning it with a pilot project for 372 geographical indication (GI)-registered products.
⦁ It eyes supply of vaccines and medicines using the blockchain mechanism.
⦁ The government thinks it will mitigate counterfeit products as well as better tracking of the supply chain.
'The future will be of hybrid work culture'
Genpact CEO 'Tiger’ Tyagarajan in an interview with Business Standard talks about the company's plans and said that the quarter results exceeded their expectations.
What the CEO says:
⦁ The company expected a double-digit growth only by the fourth quarter.
⦁ This has boosted the confidence for the rest of the year.
⦁ All most all sectors did well with analytics in particular.
⦁ The company expects the future will be of hybrid work culture.
Indian Railways may shelf private train operation bids
After getting just two bids for the ambitious programme, the Indian Railways is likely to cancel bids it had called for private train operations in the country, reports Business Standard.
Why it's important: Railways is rethinking the viability of these operations as not many private operators are interested.
⦁ It had offered passenger train services over 109 origin-destination pairs with an estimated investment of around ₹30,000 crore.
⦁ IRCTC and MEIL were the only two companies that left in the fray.