Vodafone board approved raising up to Rs.14,500 crore including Rs.4,500 crore from promoter entities. It will issue 338 crore equity shares at an issue price of Rs.13.30 per share to promoters, aggregating to Rs.4,500 crore. In addition, the balance Rs.10,000 crore will be raised through equity or bonds, in one or more tranches. Responding to the news, the stock of Vodafone rallied 6% in a tough market. Vodafone had reported consolidated net loss of Rs.7,231 crore for Q3 on revenues of Rs.9,720 crore on tariff hikes.
The US imposed sanctions on Russian refineries, leading to a sharp spike in the price of Brent Crude to $120/bbl. This is the highest level of oil seen since May 2012. However, the WTI Crude was not too far behind at $116.57/bbl, the highest level since September 2008. It is feared that next round of sanctions could target Russian oil and gas exports. It is estimated that sanctions on Russian exports of oil could spike oil to its previous peak of $147/bbl. Russian crude exports stand at 7.8 million bpd, or 8% of world supply.
Members of the Khaitan family stepped down from the board of Eveready Industries after the expression of interest from the Burman family (of Dabur fame) to take control of the company. Eveready came under the wings of the Khaitan family when they had bought Union Carbide in 1993. Currently, the Khaitan family holds just about 4.84% in Eveready while the Burman family holds 19.84% stake. It may be recollected that Eveready had recently sold its insurance business to HDFC Life and has plans for green EV batteries.
India is exploring giving guarantees on LCs and soft loans for exporters hit by the cash squeeze following Russia’s invasion of Ukraine and the resultant Western sanctions. Indian banks have been in a tizzy after bills for imports from Russia have started bouncing and payments for exports are stuck. The total dues stand at $500 million. India has an annual trade of $9 billion with Russia and $2.5 billion with Ukraine. The idea of the package is to ease the pain of Indian exporters. India abstained from UNSC and UNGA votes.
Coal India surged 7% to Rs.198 and has rallied by 32% in the last 4 days amidst a market that remains very rocky and having a strong downward bias. Russia is not only one of the largest producers of oil but also of coal and a host of other minerals. This has resulted in global coal prices spiking sharply. Coal prices are ruling at their highest level globally since 2008 and in most of the e-auctions, the prices are at a 100% premium to the rates agreed in the Fuel Supply Agreements (FSA). Most brokers have upgraded Coal India.
Promoters of UPL are likely to sell the company to implement the family separation. In addition, the cash needs of promoters for personal matters may also drive the sale of UPL. Apparently, investment bankers have already been hired for the job. UPL has already launched a buyback to get indicative valuation. The sale will enable distribution of economic interest among promoters; Rajnikant Shroff, Jai Shroff and Vikram Shroff. ADIA and TPG Capital had invested $1.2 billion for 22% in UPL for the acquisition of Arysta.
Amazon plans to initiate criminal proceedings against Future Retail for allowing the transfer of assets to Reliance. The $3.4 billion deal between Future group and Reliance had been in the limbo due to objections raised by Amazon. While Future group denies any wrongdoing, Amazon’s position is backed by SIAC. RRVL had taken over 500 Future group stores and more were in the offing. Amazon feels this is acquisition via the back door. Meanwhile, Supreme Court wants to give the parties one last chance to negotiate a deal.
Mankind Pharma will pay Rs.1,872 crore take over formulations brands of Panacea Biotec Pharma, a 100% subsidiary of Panacea Biotec. Mankind Pharma will retain the sales and marketing team of Panacea. Currently, Panacea has a niche in chronic and transplant business, supported by highly complex and distinctive technology. Post the deal, Mankind Pharma will be able to explore new therapeutic areas like oncology and transplant business. Panacea plans to become debt free and focus on formulations exports.