News digest: IPO norms, stressed power assets, Cannes Lions 2018, and more

Sebi also tweaked the definition of 'promoter group' to include immediate relatives, and revised the threshold for identifying promoter groups from 10% to 20%.

1. Sebi tweaks norms to aid fund-raising, caps tenure of MD & CEO of exchanges

The Securities and Exchange Board of India (Sebi) has made major changes in rules governing fund-raising, to provide flexibility to issuers and to boost capital formation.

The regulator tweaked norms governing stock exchanges, clearing corporations and depositories —known as market infrastructure institutions (MIIs) — capping the tenure of top officials and bringing in more accountability to the board structure.

Going ahead, a company will have to make public the pricing for its initial public offering (IPO) just two days before the opening as distinct from five days earlier. Read more...

2. Tata group profit rises 35% under Chandra; importance of TCS, JLR declines

In the first full financial year under Chairman N Chandrasekaran, the adjusted net profit of listed Tata group companies rose 35 per cent in 2017-18 against a 0.5 per cent decline in the previous year.

Group revenues, too, were up 9.2 per cent, growing at the fastest pace in the last four years.

Tata Steel was the star performer in 2017-18, with revenue from the domestic business rising 23 per cent last financial year. Its impact at the net profit level was significant — if Tata Steel were to be excluded, the net profit growth of the group would have been 10.3 per cent. Read more...

3. Swiggy gets battle ready; raises $210 mn from Naspers, DST Global

Online food ordering and delivery service Swiggy has become the latest Indian startup to achieve the unicorn (startup valued over $1 billion) status after raising $210 million (Rs14.28 billion) in fresh funding led by South African Internet giant Naspers and Russian billionaire Yuri Milner-led investment firm DST Global.

Sources confirmed that the funds were raised at a valuation close to $1.3 billion, making Swiggy the second Indian food-tech firm after rival Zomato to be valued at over a billion dollars and currently the most valuable firm in the sector. The company has so far raised over $450 million in its 3 year 10 month lifespan. Read more...

4. RBI relief unlikely for stressed power sector; govt to work on reform plan

The Reserve Bank of India (RBI) is unlikely to soften its stand on stressed assets in the power sector, which is asking for a special dispensation under the Insolvency and Bankruptcy Code (IBC).

The Centre is likely to push for debt restructuring and reform schemes to resolve issues plaguing private power producers.

After chairing a meeting with stakeholders in the power sector, along with officials of the ministries of coal and power and an RBI representative, Rajiv Kumar, secretary, Department of Financial Services, said the central bank had reiterated that its February circular provided enough room to restructure stressed power assets and no special dispensation was needed. Read more...

5. Cannes Lions 2018: Shortlists and metals tally keep rising

Indian advertising agencies have seen a nearly 20 per cent conversion rate from shortlist to metal, industry parlance for awards, at the ongoing Cannes Lions Festival of Creativity.

While this is lower than anticipated, the good news is that there is a high probability of India taking home a second Grand Prix this year, notably, in the glass lion category.

Like health care, the glass lions are a segment that Indian agencies have understood well and have four strong shortlisted entries this year. Read more...