WPI inflation (producer inflation) for Nov-21 scaled a 13-month high of 14.23%. This was largely led by a sharp uptick in the cost of minerals, fuel, oil & gas and power. This is the eighth month in a row that WPI inflation has been in double-digits. Even the excise and VAT cuts on petrol and diesel only made a marginal difference. Among the major components of WPI inflation, fuel and power inflation surged to nearly 40%. Most of the pressure on WPI inflation came from the doubling of wholesale food and primary articles inflation.
Merchandise exports for Nov-21 was up 27.16% yoy at $30.04 billion led by petro products, engineering goods and electronic items. However, imports were also up 56.6% at $52.94 billion, resulting in the trade deficit widening to a record level of $22.90 billion. However, sequentially gold imports tapered to $3.02 billion. For the Apr-Nov period, the cumulative trade deficit stood at $121 billion and now threatens to cross the $200 billion mark for FY22. Imports of coal, coke & briquettes surged 136% yoy to $ 3.57 billion.
RBI announced a prompt corrective action (PCA) framework for large and systemically important NBFCs. This would put restrictions on NBFCs whenever critical financial metrics dipped below the prescribed threshold. This would bring large NBFCs almost at par with commercial banks in terms of stringency of RBI regulation. The PCA framework will come into effect from Oct-22. The idea of the PCA framework for NBFCs is to ensure supervisory intervention at appropriate time so that remedial measures can be taken.
Aditya Birla Fashion and Retail surged to Rs.281 on 14-December after the company announced that it had approved the acquisition of exclusive online and offline rights to Reebok in the Indian market. This would be a licensing cum purchase agreement that will grant ABFRL exclusive rights to distribute and sell Reebok products in India and the ASEAN region via wholesale, e-commerce and Reebok branded retail stores. This marks the first foray of ABFRL into the highly lucrative and growing sports and leisure segment.
HP Adhesives Ltd, a niche manufacturer of adhesives and sealants, raised Rs.56.68 crore ahead of its IPO on 15-December from 3 anchor investors. The IPO will open till 17-December. A total of 20,68,700 equity shares were allocated to 3 anchor investors at Rs 274 per equity share, which represents the upper band of IPO pricing. The 3 anchors were Coeus Global Opportunities Fund, Sigma Global Fund and AG Dynamic Funds. The issue size itself is quite small at Rs.125.95 crore and comprises of a fresh issue and an OFS.
In its first investor meet, ITC gave few hints but left a lot of specifics unsaid. ITC has not ruled out listing its infotech business and demerging its FMCG and hotels business. However, it also underlined that it would prefer to see more traction coming from these businesses in terms of profit flows. ITC also underlined that it would invest Rs.10,000 crore over the next 3 years across FMCG, paper and digital initiatives. ITC also spoke at length about regulating the tobacco industry and give ITC a level playing field.
If there is one group that is usually on the prowl when companies are in trouble, it is the Adani group. The realty business of the Adani Group is looking to take over Ozone Group at an enterprise value of about $1 billion. Talks are at an advanced stage. Bengaluru based Ozone group has outstanding debt of Rs.6,000 crore despite a solid portfolio of projects across Mumbai, Bengaluru and Chennai. Adani Realty will take over the debt of Ozone group as part of the deal. Adani Realty is developing 69 million SFT across India.
Emami announced the entry of its German skincare brand “Creme 21”, which was acquired in Jan-19, into the Indian market. Emami has marquee brands in its portfolio like Boro Plus and Zandu Balm. Emami will introduce Creme 21 skin creams and lotions in India. However, all Creme 21 products will continue to be manufactured in Germany. Emami expects Indian women to gravitate to world class skin care brands. Crème 21 derives more than 80% of its revenues from the Middle East and North Africa (MENA) region.