Saturday, October 24News That Matters

Tag: Business news

Business

Aditya Birla Fashion to sell 8% to Flipkart for Rs 1,500 crore – Times of India

Bengaluru: Aditya Birla Fashion and Retail (ABFR) has entered into a commercial pact with Flipkart where it will raise Rs 1,500 crore by selling nearly 8% stake to the e-commerce platform. Owned by the US-based Walmart, Flipkart is paying a premium of nearly 34% for each ABFR share at Rs 205 compared to Thursday’s close on the BSE (24% from Friday’s), according to regulatory filings. Industry executives said this deal underscores the importance of e-commerce for fashion sellers as well as a bigger omni-channel play in a Covid-hit retail universe. TOI first reported in its Thursday edition that ABFR was in talks to sell a minority stake to the Bengaluru-based e-tailer and boost its exposure online. This deal includes pre-emption rights, meaning Flipkart can buy more shares before they ar...
Business

Sebi bans Yash Birla from market for 2 years – Times of India

MUMBAI: Regulator Sebi has banned Yashovardhan (Yash) Birla from the market for two years. The action is due to misutilisation of funds collected through the initial public offering (IPO) of Birla Pacific Medspa in mid-2011, including using the proceeds from the offer to manipulate the stock price. Sebi also banned several others associated with Yash for their roles in the same matter. Earlier this month as well, in another case, Sebi had banned Yash from the market for two years. According to the 61-page order by Sebi whole-time member Ananta Barua, Birla Medspa opened its Rs 65-crore IPO in June 2011 and the shares were listed on July 7 in the same year. Within days of listing, Birla Medspa had transferred large amounts of funds to other entities, which transferred these on to some ot...
Business

India’s refinery processing limps to six-month peak – Times of India

NEW DELHI: Crude oil processed by Indian refiners hit the highest in six months in September, in another sign that demand for fuel is recovering from the blow to economic activity and transportation from coronavirus restrictions. Crude oil throughput in September rose 13.4% from the previous month to 4.33 million barrels per day (17.71 million tonnes). This was the highest since the onset of the country’s coronavirus restrictions in March, when refiners processed 5.01 million bpd of crude oil. Fuel demand also rose for the first time since June last month, data showed earlier. October gasoil sales rose for the first time since March, preliminary data showed, signalling a pick-up in industrial activity ahead of key festivals. “There have been some promising signs of recovery in India, wh...
Business

No more scotch? India moves to ban imported goods at military shops – Times of India

NEW DELHI: India has ordered its 4,000 military shops to stop buying imported goods, according to a document reviewed by Reuters, a move that could send an unwelcome signal to foreign liquor firms such as Diageo and Pernod Ricard. The defence canteens sell liquor, electronics and other goods at discounted prices to soldiers, ex-servicemen and their families. With annual sales of over $2 billion, they make up one of the largest retail chains in India. The October 19 internal order from the defence ministry, reviewed by Reuters, said that in future, "procurement of direct imported items shall not be undertaken". The order said the issue had been discussed with the army, air force and navy in May and July, and was aimed at supporting Prime Minister Narendra Modi's campaign to promote domes...
Business

Government resorts to stock limit to check rising onion prices – Times of India

NEW DELHI: The government on Friday invoked the stock limit norms under the Essential Commodities Act for onions as prices continued to increase across almost all cities. The new norms kicked in just 31 days after the Parliament had passed the amendments to the EC Act, which had the provision to invoke this clause in extra-ordinary price rise situations. The consumer affairs secretary Leena Nandan told reporters that while retailers can store a maximum of 2 tonnes (20 quintal) of onion, the wholesalers can keep up to 25 tonnes (250 quintals) at a particular time. This restriction will be effective till December 31 to ensure the traders were not creating artificial conditions to jack up prices. The onion prices increased across cities with the key kitchen bulb selling at a maximum of Rs ...
Business

Gold premiums rise as jewellers boost festive stocks – Times of India

BENGALURU/MUMBAI: Gold premiums in India jumped to their highest in nearly three months this week, as jewellers continued to stock up on hopes of more customers visiting stores as the festive season gathers pace. The country celebrates Dussehra on Sunday and Diwali and Dhanteras in November, when buying gold is considered auspicious. “Investment demand was good in the last few days. Retail demand for jewellery is still weak, but it could improve during the festive season,” said Ashok Jain, proprietor of Mumbai-based gold wholesaler Chenaji Narsinghji. On Friday, local gold futures traded at around 50,920 rupees per 10 grams. Prices hit an all-time high of 56,191 rupees in August. Dealers charged premiums of $5 an ounce this week over official domestic prices, inclusive of 12.5% import a...
Business

Second wave of Covid-19 could hamper nascent recovery: RBI governor – Times of India

MUMBAI: The Reserve Bank of India (RBI) governor Shaktikanta Das has said the risk of a second wave of COVID-19 could put sand in the wheels of the nascent recovery, while his deputy M D Patra opined that it might take years to regain the output lost on account of the pandemic. These views were expressed by them during the meeting of the newly constituted Monetary Policy Committee (MPC) held from October 7 to 9. The newly appointed independent member of the rate-setting panel Shashanka Bhide said uncertainties relating to COVID-19 pandemic will impact growth and inflation scenarios in the next two to three quarters. Das also said the decision to cut benchmark repo rate would depend upon the evolving situation with regard to inflation which is currently above the tolerance level of the c...
Business

After Parliament no-show, Amazon says experts couldn’t travel due to Covid curbs – Times of India

NEW DELHI: E-commerce giant Amazon on Friday said that its inability to appear before the joint committee of Parliament in India due to overseas travel restrictions amid the ongoing coronavirus pandemic has been misconstrued. In a statement, Amazon clarified that it would continue to engage with the panel, which is reviewing the Data Protection Bill. Stating that its subject experts on data protection are based abroad and cannot travel in the current situation, the company said that there has been a misunderstanding about its position and it will work towards clarifying the same. "The inability of our experts to travel from overseas due to travel restrictions and depose before the JPC (joint parliamentary committee) during the ongoing pandemic may have been misconstrued and led to a mis...
Business

GST compensation shortfall: Centre borrows, transfers Rs 6,000 crore to 16 states, 2 UTs – Times of India

NEW DELHI: The Centre has borrowed and transferred Rs 6,000 crore as the first tranche of GST compensation shortfall to 16 states and two union territories, including Maharashtra, Gujarat, Bihar, Assam, Delhi and J&K, the finance ministry said on Friday. Last week, the Centre gave in to the demands of opposition-ruled states to borrow and fund the GST compensation shortfall. The finance ministry said that the Centre would borrow from the market to pay the GST compensation shortfall of Rs 1.1 lakh crore to states, and then act as an intermediary to arrange back-to-back loans to state governments. The ministry said the government of India has evolved a special borrowing window to address the shortfall in the GST collection during the year 2020–2021. Twenty-one states and two union ter...
Business

Yes Bank posts Rs 130 crore net profit in Q2 – Times of India

NEW DELHI: Yes Bank on Friday reported a standalone net profit of Rs 129.37 crore for the second quarter ended September despite a spurt in bad loans. The private sector lender had posted a net loss of Rs 600 crore in the corresponding quarter of previous fiscal. Total income slipped to Rs 5,952.1 crore during July-September quarter from Rs 8,347.50 crore in the same quarter last year, the bank said in a regulatory filing. Gross bad loans more than doubled to 16.9 per cent of gross advances as on September 30, 2020 from 7.39 per cent a year ago. Net non-performing assets (NPAs) or bad loans also rose to 4.70 per cent from 4.35 per cent a year ago. Total step up in provisioning of Rs 1,600 crore consists of Rs 1,038 crore towards COVID-19 related provisioning and balance predominantly to...