• Moneymint
  • Posts
  • Adani group plans to raise $800 million for green energy projects (Even after Hindenburg's report?)

Adani group plans to raise $800 million for green energy projects (Even after Hindenburg's report?)

Author

ADITYA SINGH
April 28, 2023

Friday, April 28th 2023

Good Morning ☕

The Indian business landscape has been buzzing with activity recently, with several notable developments taking place across different sectors. In one such development, Godrej Consumer announced the acquisition of Raymond’s FMCG business for a staggering ₹2,825 crore. Meanwhile, the Reserve Bank of India Governor, Shaktikanta Das, revealed that Indian banks' bad loans had dropped to just 4.4% of total assets, a significant improvement for the sector.

Adani group is also making waves, with plans to raise $800 million for green energy projects. In the financial world, ICICI Prudential MF has increased its stake in PVR to 7.19%. On the government front, wheat procurement has surpassed last year's total purchase, and the Cabinet has approved ₹1,570 crore for 157 nursing colleges and a new medical devices policy.

1. Godrej Consumer acquires Raymond’s FMCG business for ₹2,825 crore

Godrej Consumer Products Limited (GCPL) will acquire the FMCG business of Raymond Consumer Care Limited (RCCL) for ₹2,825 crore, which includes the trademarks of Park Avenue, KS, KamaSutra and Premium, to expand into the deodorants and sexual wellness categories in India. Raymond will demerge its Lifestyle business to RCCL to create a listed entity, which will primarily be a listed real estate company with investments in engineering and denim business.

The demerger will make the Lifestyle business net debt-free and an independently listed entity. Each shareholder of Raymond Limited will receive 4 shares of RCCL for every 5 shares held based on the swap ratio suggested by independent valuers.

2. Indian banks' bad loans drop to 4.4% of total assets, says RBI Governor Shaktikanta Das

According to Reserve Bank of India Governor Shaktikanta Das, Indian banks have remained resilient and bad loans have significantly decreased, with the gross non-performing assets ratio falling to 4.41% at the end of 2022 - the lowest since March 2015. The capital adequacy ratio of banks also remained strong at 16.1% at the end of December, well above the regulatory requirement. However, Das urged banks to continually assess financial risk and build up adequate risk and capital buffers beyond the minimum regulatory requirement.

3. Adani group plans to raise $800 million for green energy projects

Adani Group is considering raising around USD 800 million for new green energy projects, according to people familiar with the matter. The conglomerate is in talks with global banks, including SMBC, DBS Bank Ltd, Mitsubishi UFJ Financial Group and Standard Chartered Plc. The size of the fundraise could range from about USD 700 million to some USD 800 million, and the plan and size are not yet finalised. This could be Adani Group's biggest borrowing since a short-seller report sparked a share rout in January. India's renewable energy sector is attracting increasing foreign investment and was among the top five industries for overseas funds last fiscal year, with a 5% share of all inflows from April to September 2022. India's installed renewable energy capacity has increased 396% in the last 8.5 years, and its installed solar energy capacity has increased by 24.4 times in the last 9 years.

4. ICICI Prudential MF hikes stake in PVR to 7.19%

ICICI Prudential Mutual Fund has increased its shareholding in PVR from 7.34% to 9.37%, after purchasing 2.03% stake in the company. PVR is a film entertainment company and its consolidated net profit decreased 34.25% to Rs 36.34 crore on a 8.61% increase in net sales to Rs 915.74 crore in Q3 December 2019 over Q3 December 2018. The company operates in three business segments: movie exhibition, movie production & distribution and others like bowling, gaming and restaurant. The stock price of PVR fell 1.67% to close at Rs 1,257.25 on Friday.

5. Wheat procurement reaches 195 lakh tonnes so far in 2022-23, surpasses previous year’s total purchase: Govt

Wheat procurement in India during the current marketing year that started in April has already surpassed the total procurement made during the previous year, according to a government statement. So far, 195 lakh tonnes of wheat have been procured, benefiting farmers with MSP outflows of about INR 41,148 crore. Major contributions to procurement have come from Punjab, Haryana, and Madhya Pradesh. The government has also allowed all states to open procurement centres at the village or panchayat level and to carry out procurement through co-operative societies, gram panchayats, and arhatias for better outreach. The combined stock position of wheat and rice in the central pool has surpassed 510 lakh tonnes.

6. India, US are indispensable partners, American Ambassador-Designate Eric Garcetti quotes President Joe Biden

The new US Ambassador to India, Eric Garcetti, has emphasized the importance of the US-India relationship, stating that it is critical to the future of both nations. Garcetti highlighted the fact that the two countries have never before worked so closely on such a range of issues. He made these comments while addressing a gathering of prominent Indian Americans at the US-India Summit, organised by Congressional India Caucus’s Co-chairs Ro Khanna and Michael Waltz. Garcetti's appointment had been pending before the US Congress since July 2021. Before coming to India, he spoke with President Biden about his vision for the US-India partnership. The US-India relationship is vital for both nations, and President Biden has stressed that the two countries are indispensable partners.

7. Rajnath Singh to hold bilateral meeting with Russian, Chinese counterparts today on sidelines of SCO conclave

India's Defence Minister Rajnath Singh is set to hold talks with his Chinese counterpart Li Shangfu on the sidelines of the SCO defence ministerial conclave in Delhi. Defence ministers from China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, and Uzbekistan will be attending the meeting, along with the Russian Defence Minister and their counterparts from other member countries of the SCO, except Pakistan's Khawaja Asif. Matters related to regional peace and security, counter-terrorism efforts within SCO and effective multilateralism will be discussed. India considers SCO as an important regional group to promote multilateral, political, security, economic and people-to-people interactions in the region.

8. Sebi crackdown on fake Telegram channels; Rs 5.7 crore penalty on 3 entities

India's Securities and Exchange Board of India (SEBI) has barred three entities from accessing the securities market in connection to a fake Telegram channel that was used to give stock-specific recommendations to subscribers. SEBI has imposed a penalty of twice the amount made in unlawful gains, which amounts to INR 5.68 crore ($755,000), on the three entities and INR 5 lakh ($6,660) on the remaining three for their violations. The three entities were responsible for running a 'pump and dump' scheme, known as scalping, to generate enormous illegal profits. The regulator has directed the guilty parties to pay up the remaining amount, along with interest at 12%.

9. Cabinet Approves Rs 1,570 Crore For 157 Nursing Colleges, Medical Devices Policy

The Indian government has approved Rs 1,570 crore to open 157 new medical nursing colleges within the next 24 months. The aim of the nursing colleges is to provide quality, affordable and equitable nursing education in the country and increase the number of nursing professionals.

The government also plans to co-locate these nursing colleges with medical colleges to optimise the use of existing infrastructure, skill labs, clinical facilities and faculty. In addition, the government has approved a National Medical Devices Policy to promote domestic production of medical devices and reduce imports. The policy is expected to help the medical devices sector grow from USD 11 billion to USD 50 billion in the next five years.

10. India Feeling 'Little Challenged' About EU's Carbon Tax

A carbon border tax is worrisome for India as it is the EU’s third largest trading partner. In 2020, the EU accounted for 11.1 per cent of India’s total global trade.

India has urged G20 members to bring their per capita greenhouse gas emissions down to the global average, to make room for developing nations, at a time when the EU is proposing a carbon border tax on imported goods. The tax will be phased in from 2026, and requires non-EU companies exporting to Europe to pay the same price for their carbon footprint as European companies. China has said the proposed tax will expand climate issues into trade and goes against the free international trade system. The EU’s Carbon Border Adjustment Mechanism (CBAM) is designed to address “carbon leakage” and will work alongside carbon pricing. However, India and other developing countries have called CBAM “discriminatory”, arguing it goes against the principle of Common but Differentiated Responsibilities and Respective Capabilities.

Word News

1. US economy grows at 1.1 per cent in first quarter: Report

The US economy's growth rate slowed down to 1.1% annually in the first quarter of 2023, from 2.6% in Q4 of 2022, due to the Federal Reserve's aggressive attempts to control inflation through a series of interest rate hikes. Consumer spending, which accounts for 70% of economic activity, remained robust, growing at 3.7%, although many economists believe the cumulative impact of the rate hikes is yet to be felt, and the US may enter into a mild recession soon. The Commerce Department is expected to release further estimates for growth in Q1 2023.

2. OpenAI, Apple, Microsoft, Alphabet among AI companies urged by US Senator to prioritize security and combat bias

Senator Mark Warner, chair of the Senate Intelligence Committee, has sent letters to several AI companies, including OpenAI, Scale AI, Google, and Apple, urging them to prioritize security, address bias concerns, and ensure responsible deployment of new technologies. Warner emphasized the need for regulation in the field of AI beyond industry commitments. Senate Majority Leader Chuck Schumer also announced efforts to establish rules around AI and address concerns related to national security and education, citing the widespread use of programs such as ChatGPT. The rapid rise of ChatGPT has caught the interest of US lawmakers, with OpenAI receiving significant investments from Microsoft and Google.

3. Russian court imposes ₹19.93 lakh fine on Wikipedia for not deleting 'banned' content on its military

A court in Russia has imposed a fine of 2 million rubles on Wikipedia for not complying with an order to delete "banned content" related to the Russian military. This follows a recent fine of 1.5 million rubles imposed by another court for an article about the ongoing Ukraine conflict. Despite these fines, Russia's digital affairs minister has said that there are currently no plans to block Wikipedia. The country has been increasing its state-led suppression of online content, but Wikipedia remains one of the rare independent sources of information still available in the country. Google and Twitch have also faced fines in Russia for failing to remove content related to Moscow's campaign.

What else is happening around the world?