QBiz: Aramco May Break IPO Record; Law to Shield Global Investors

Catch the latest business news for the day.

A man walks past a compound for Saudi Aramco in Jiddah, Saudi Arabia. In documents released Sunday, Saudi Arabia’s state oil giant Saudi Aramco is going to sell a 1.5% stake in its company on Riyadh’s stock exchange.

(Photo: AP)

1. Centre Explores New Law to Shield Global Investors

The Centre is exploring a law to protect investments affected by state governments’ decisions to scrap contracts as it moves to reassure foreign investors who are riled up by Andhra Pradesh’s plan to annul some clean energy agreements.

In a controversial move, the Y.S. Jagan Mohan Reddy-led Andhra Pradesh government decided to reopen renewable energy contracts inked under the previous state government led by his rival N. Chandrababu Naidu, drawing criticism from the Union government, as well as governments of France, Canada and Japan.

(Source: Livemint)

2. Saudi Aramco in Race for IPO Record with $1.7 Trillion Top Value

Saudi Aramco is worth up to $1.7 trillion at the price range set by the oil giant on Sunday, below the $2 trillion sought by Saudi’s crown prince but putting it in the running to become the world’s biggest IPO.

Aramco cannot sell its shares directly to investors in the United States and other markets, as the initial public offering (IPO) will be restricted to Saudis and those foreign institutions permitted to invest in the kingdom’s stock market.

The oil giant said it plans to sell 1.5% of the company, or about 3 billion shares, at an indicative price range of 30 riyals to 32 riyals, valuing the IPO at as much as 96 billion riyals ($25.6 billion) and giving the company a potential market value of between $1.6 trillion and $1.7 trillion.

(Source: Reuters)

3. Jaypee Infra Insolvency: NBCC Sweetens Bid by Offering More Land & Benami Flats to Lenders

State-owned NBCC Ltd on Sunday sweetened its bid to acquire bankruptcy-bound Jaypee Infratech, by offering lenders 1,426-acre land instead of 950 acres earlier and also providing half of 3,000 benami flats to them, sources said.

The company, which submitted its resolution plan on Sunday, is also believed to have offered 75 per cent of 858 acres land which is expected to be transferred back to Jaypee Infratech from the parent company Jaiprakash Associates, they added.

(Source: PTI)

4. Muthoot Finance to Buy IDBI Bank’s MF Business

Gold loan financier Muthoot Finance Ltd is in advanced stages of acquiring IDBI Asset Management Ltd, the mutual fund unit of Life Insurance Corp. of India (LIC)-owned private sector lender IDBI Bank Ltd, three people aware of the development said.

“The deal is expected to close this week. Initially, the binding offers had come in from Muthoot Finance and Vikas Khemani’s Carnelian Capital Advisors Llp," said one of the three persons cited above, all of whom spoke under condition of anonymity.

(Source: Livemint)

5. DHFL’s Debt Resolution Plan Hits a Roadblock as Collections Drop

Dewan Housing Finance Corp. Ltd’s (DHFL’s) debt recovery process has hit an unexpected hurdle with scores of collection agents quitting in the wake of the crisis at the mortgage lender, the latest in a string of setbacks that is likely to jeopardize a speedy debt resolution, according to two people aware of the development.

Banks are hoping to recover loans worth ₹38,342 crore by implementing a debt resolution plan for the home financier and contain the risk of contagion in the Indian financial sector. Lenders have followed Reserve Bank of India’s guidelines of reporting suspicious transactions and tagged DHFL as a red-flagged account, one of the two people cited above said on condition of anonymity.

(Source: Livemint)

6. MakeMyTrip Bets on Expanding Homestays Market to Take on Rivals

Online travel firm MakeMyTrip is betting on the growing homestay market with plans to add another 10,000 villas, apartments and other alternative accommodations on its online platform in the next one year, said a top company executive.

The Nasdaq-listed company’s plan to firm up presence in the homestay segment comes at a time when established companies such as Airbnb as well as startups such as Vista Rooms and Saffronstays are aggressively looking to tap the segment in the last two to three years.

(Source: Livemint)

7. CAIT Suggests Imposition of Minimum Operating Price for Products on e-Commerce Sites

Traders body CAIT on Sunday suggested the government to impose a “minimum operating price” for products, alleging that traders are at the receiving end of a pricing onslaught posed by e-commerce firms and brands in collusion with banks. The Confederation of All India Traders (CAIT) has written a letter in this regard to Union Commerce and Industry Minister Piyush Goyal.

“Under the circumstances and visualising it as a price war, we suggest it is the high time when the government must step in and enforce the fundamental of Minimum Operating Price (MOP) which is the price consisting of landing price, operational cost and reasonable profit margin and below the MOP no product should be sold in the market,” CAIT said in the letter.

(Source: PTI)

8. RBI Turns Down Banks' Plea to Relax 7 June Circular on Stressed Assets

With no resolution in sight for nearly Rs 3 trillion of stressed assets, banks seem to be reaching a dead end with respect to the inter-creditor agreements (ICAs) signed for these loans.

Sources said banks had sought some relaxation from the Reserve Bank of India (RBI) on timelines and modalities for reaching a resolution under the regulator’s June 7 circular on prudential framework for resolution on stressed assets. However, highly placed sources said the regulator was unwilling to budge on its stand.

(Source: Business Standard)

9. Airtel Withdraws Bid for RCom Assets Sale, Cites 'Unfair' Conduct by CoC

Telecom operator Bharti Airtel has withdrawn its bid to purchase assets of Reliance Communications (RCom) after terming the move of committee of creditors to extend the bid submission deadline on the request of Reliance Jio as "extremely unfair" and "biased".

Without naming Reliance Jio, Bharti Airtel Director (Finance) Harjeet Kohli in a letter to resolution professional Anish Niranjan Nanavaty said his company's request to extend the deadline was turned down by the committee of creditors (CoC) of RCom but surprisingly, the dates have been extended to accommodate submission by a bidder.

(Source: PTI)