Advent International, the global private equity giant, will buy 50.1% stake in Suven Pharma for Rs6,313 crore. Post the deal the promoter Jasti family will just hold 9.9% in Suven Pharma. Post this purchase, Advent will also launch an open offer for 26% stake at Rs495 per share. Assuming full subscription to the open offer, Advent will have to totally shell out Rs9,589 crore for over 76% in Suven Pharma. It may be recollected that Suven Pharma was demerged from Suven Life Sciences in 2020 to focus purely on CDMO.
Hyderabad based Power Mech Projects bagged 3 projects worth Rs1,034 crore, including one project from the Adani group. The Adani order worth Rs608 crore is for execution of retrofitting of FGD system at its thermal power plants located in the state of Chhattisgarh. The second order worth Rs307 crore is to set up a wagon repair workshop at Kazipet in the state of Telangana. The third project worth Rs119 crore is for providing technical support at Dangote Petroleum Refinery and Petchem Project at Lagos in Nigeria.
As per a recent report by Jones Lang LaSalle (JLL), India’s Data Centre segment will close year 2022 with estimated absorption in the range of 150-170 MW. This would be largely attributed to delivery of pre-committed supply to hyperscale Cloud Service Providers (CSPs). JLL expects a lot of commercial real estate demand coming from data centres. Supply was largely concentrated in Mumbai due to submarine cable connectivity and a large user market. Data centres will add 681 MW capacity by the end of the year 2024.
The Central Bureau of Investigation (CBI) has arrested Videocon Group chairman, Venugopal Dhoot, a day after the arrest of Chanda Kochhar and Deepak Kochhar in connection with the loan fraud case. The case involved a loan of Rs1,500 crore by ICICI Bank to Videocon group, which later went bad. Such loans were in violation of the existing lending policies of the bank and the former CEO of ICICI Bank is reported to have received quid pro quo for granting such loans. The issue exploded when Videocon defaulted on loan.
Notwithstanding the efforts of the lenders to work out a resolution to the Jet Airways impasse, it looks like the airlines is once again up against a dead end. Amid uncertainty over the future of Jet Airways, it is reported that several senior executives, including pilots and cabin crew, had quite the airline. While the Jalan Kalrock consortium emerged the winning bidder for Jet Airways in June 2021, the airline is still stuck in procedural issues and hasn’t started operations. Lenders are already trying to force an asset sale at Jet.
Central Bank of India will raise up to Rs1,500 crore in FY23 by issuing Basel III compliant bonds to boost its capital adequacy. While the board of Central Bank of India has approved the raising of funds via bonds, the timing and modality is yet to be worked out. What we know is that it would be a Rs500 crore issue with a green shoe option to retain another Rs1,000 crore. Central Bank just came out of Prompt Corrective Action (PCA) framework in September this year, but close monitoring of parameters will continue for now.
On Monday, the markets bounced back emphatically as the Sensex closed the day gaining as much as 989 points at its peak. The Nifty closed the day 208 points higher. In the aftermath of the correction on Friday, there was a bout of short covering that took markets higher. In addition, Russia’s willingness to take a more pragmatic approach on Ukraine and China unlikely to go for another lockdown have been positives for the market. Also, the BF.7 variant is not likely to be as virulent in India as it was initially anticipated.
Poonawala Fincorp stock closed 13% higher at Rs277 with a 2-fold jump in volumes. Formerly called the Magma group, it was renamed as Poonawalla Fincorp after the Poonawalla based group took over the company. As part of its monetization plan, the sale of its housing finance subsidiary is already approved and it is likely to raise Rs3,900 crore for the group. A number of brokers have turned positive on the group after recent developments. It is expected to generated ROA of 4.8% and ROE of 12% by fiscal year FY25.
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