Bidding for IPL media rights tops Rs 43,000 crore on first day of e-auction
The bidding for television and digital media rights of the Indian Premier League went past Rs 43,000 crore on the first day of the e-auction as four broadcasters fought for the biggest event in Indian cricket. Disney-Star India, Viacom18 and Sony Pictures Networks India bid for TV rights, while Zee Entertainment Enterprises bid only for digital media rights. TV rights closed for the day at Rs 57 crore per match, 16 percent above floor price, and bids for digital rights closed at Rs 48,000 crore per match, 45 percent over base price.
Why it’s important: The bidding trend on the first day showed the fight is fiercer for digital rights as the audience for the cricket matches is shifting to online viewing. The bids are expected to rise higher.
Well-funded Tata firms to focus on future business growth
Tata Sons has infused over Rs 80,000 crore and made secondary market purchases of around Rs 10,000 crore in group companies in the past five years to strengthen their balance sheets. Tata Sons will now focus on future growth businesses, chairman N Chandrasekaran said in an interview.
Why it’s important: The conglomerate has started a transformation of core businesses focused on the four themes of digitisation, sustainability, supply chain resilience, and health, wellness and safety under the helm of Chandrasekaran, who was reappointed as chairman in February for a second term of five years.
Adani group plans to raise $4.5 billion from overseas banks
The Adani group, which recently purchased Holcim’s local businesses in India’s biggest cement takeover, is in discussions with more than a dozen foreign banks to raise up to $4.5 billion through a mix of overseas loan instruments. The proposed loan structures include mezzanine financing, stock-backed bridge loans to be repaid in cash, and a senior debt facility for 18 months.
Why it’s important: This will be one of the biggest loan-based fundraisings in foreign currency by an Indian conglomerate. The Adani group has seen dizzying expansion in the past few years, mainly on borrowings.
Jindal Steel to raise Rs 15,000 crore from lenders led by State Bank
Jindal Steel and Power is raising Rs 15,000 crore from a group of banks led by State Bank of India. Jindal Steel Odisha will raise the long-term loan to partly finance the Rs 22,500 crore capacity expansion at Angul district in Odhisha, with the parent firm bringing in the rest as equity.
Why it’s important: Jindal Steel and Power is one of India’s largest steelmakers and the borrowing will be one of the largest corporate loan agreements in recent times.
Anti-profiteering agency to be merged into competition watchdog
The National Anti-Profiteering Authority, which watches over profiteering related to the goods and services tax, will be subsumed into the ecosystem of the Competition Commission of India, with no extension planned beyond November, when its term ends. It was set up in 2017 and given two extensions.
Why it’s important: The move to reduce the multiplicity of regulators indicates that policymakers believe continuing with a standalone body to check GST-related profiteering may no longer be required when the Competition Commission can protect consumer interest.
Government unlikely to sell stake in Bharat Petroleum this year
The central government is unlikely to restart the divestment process for Bharat Petroleum this financial year because of the stock market volatility and soaring energy prices. The department of investment and public asset management would focus on completing ongoing transactions before reconsidering privatization.
Why it’s important: The government called off the disinvestment last month after interested parties backed out due to adverse conditions in the global energy market. State-run fuel marketers are bleeding due to surging crude oil prices, and this is not the right time to sell stake.
Credit card linkage to UPI may come at a cost to merchants
The recent decision by the Reserve Bank of India to allow credit cards for payments through the UPI digital payments network is likely to attract a merchant discount rate. Smaller merchants could be provided with a subsidy for rate.
Why it’s important: The linking of credit cards with UPI cannot work without a business model. The commercial model has to be viable if it is to be widely adopted by merchants.
China’s Tencent purchases $264 million Flipkart stake from Binny Bansal
Chinese conglomerate Tencent has bought stake worth $264 million (some Rs 20 billion) in Flipkart from its cofounder Binny Bansal through its European subsidiary. Bansal holds around 1. 84 percent stake in Flipkart after selling part of his stake to Tencent Cloud Europe BV.
Why it’s important: Although Tencent has investments in many companies operating in India, the authorities have banned its popular PUBG app in the country. Chinese firms are on a sticky wicket in India.
India cannot be pressured into signing WTO deal: Commerce minister
India cannot be pressured into signing an agreement on any issue at the World Trade Organization, commerce minister Piyush Goyal said as he joined talks with trade ministers from more than 160 countries in Geneva to negotiate deals.
Why it’s important: India has said it will protect the interests of its farmers and fisherfolk before agreeing to any agreement that seeks freer trade on commodities that are highly subsidized by Western nations.
Reserve Bank of India unlikely to extend deadline for stake dilution in IDBI Bank
Reserve Bank of India may not grant any special dispensation to the new buyer of state-owned IDBI Bank over the post-acquisition pathway to reduce promoter shareholding in the long term. The central government is looking to invite expressions of interest for the strategic divestment of IDBI Bank by the end of July.
Why it’s important: State-appointed intermediaries have sought relaxations in the guidelines that require promoter shareholding to be reduced to 26 percent in 15 years. The central bank is unlikely to budge.