Top 10 biz headlines: The Jet saga, Ujjwala boost, Adidas vs Puma, and more

From IBC tweaking to Ujjwala scheme, Business Standard brings you top 10 business headlines that made news on Monday

SBI, PNB may buy other banks' exposure to debt-laden Jet Airways

Lead bankers of Naresh Goyal-led Jet Airways are likely to buy out the exposure of other smaller lenders, which are hesitant to participate in the debt-equity restructuring process, it is learnt. Simultaneously, the size of the rights issue is likely to be increased from the proposed Rs 2,500 crore to around Rs 4,000 crore.

As part of the final steps to stitch together a resolution plan, the stake to be held by the National Investment and Infrastructure Fund (NIIF) would possibly be higher than the proposed 19.5 per cent. The sovereign fund is yet to firm up a decision on the matter. Read more here.

Govt likely to tweak IBC for cross-border cases, Bill after elections

The government is planning to promulgate an Ordinance amending the Insolvency and Bankruptcy Code (IBC) and adding a chapter on cross-border insolvency. This would give comfort to foreign investors in India and vice-versa.

A source in the government said, “We plan to get a Cabinet nod for this soon.” The Ordinance will be based on the UNCITRAL model law for cross-border insolvency. Read more here.

Ujjwala leads to 40 mn new LPG connections with a jump of 45% in FY19

The push for clean energy through the Pradhan Mantri Ujjwala Yojana (PMUY) has led to a record 40.7 million new liquefied petroleum gas (LPG) connections being added in the current fiscal year (2018-19, or FY19). This is a jump of 45 per cent over 2017-18 (FY18).

The three oil marketing companies — Indian Oil Corporation (IOC), Bharat Petroleum Corporation, and Hindustan Petroleum Corporation (HPCL) — have together set a target of adding 42.5 million customers by the end of March 31. Read more here.

How Essel Group left mobility start-up ZipGo high and dry on funding

Last week, emails landed in the inboxes of customers of ZipGo in Mumbai, Pune, Bengaluru, Jaipur, Hyderabad, Kolkata, and the National Capital Region, informing the recipients that the Bengaluru-based mobility start-up would not be working in their cities from the beginning of this month.

Emails like this from start-ups are rare. Customers rarely blink before switching to a competitor. Read more here.

Zomato sells UAE business to Delivery Hero Group for $172 million

Online food technology giant Zomato has sold its food delivery business in the United Arab Emirates (UAE) to the Delivery Hero Group for around $172 million, it is learnt.

In a statement, the Berlin-based food delivery firm announced on Monday it has entered into an agreement with Zomato Media to buy its business via Delivery Hero’s fully owned subsidiary Talabat Middle East Internet Services Company LLC. Read more here.

Adidas jogs ahead in profit race, rival Puma bleeds in Indian markets

Adidas has trumped its German sportswear rival Puma in the race to shore up profit in India. 

As of December last year, Puma surpassed its closest rival Adidas to become the largest sportswear brand in India but it continues to lose money in the country. The journey of two of the largest sportswear brands —both from Germany — are on divergent paths in the local market.  Closest rival Adidas, however, has managed to improve its bottom line in recent years. Group company Reebok India, too, has shown improvement in margins. Read more here.

DHFL fights to stay afloat: from wooing banks to managing brand name

Dewan Housing Finance (DHFL), India’s second-largest housing finance company (HFC), finds itself in a peculiar quandary. It is now seeing its credit ratings coming down at a time when banks are not willing to lend and raising money from retail investors is not an option any more.

In many ways, it is the reflection of the larger non-banking finance company (NBFC) sector fighting a liquidity crisis. But DHFL is a special case. Read more here.

HFCs push back biz goals amid cash crunch

Small housing finance companies (HFCs) have pushed back their 2021 business targets as a liquidity crunch continues to cripple their growth. Many companies that have seen their disbursements dip sharply over the third quarter are yet to see any signs of a pick up.

Housing finance companies have seen growth slow down to 12% from 18% earlier, according to India Ratings, Livemint reports.

How bankruptcy code can help fix India's agrarian crisis

Historically, farm loan waivers have been used as a quick-fix solution to agrarian distress in India. Commonly used by political parties before elections, they have a long history at both central and state levels. However, the efficiency of waivers in actually resolving the debt burden of farmers is questionable. 

Waivers may work as a temporary remedy to provide relief from debts in times of extreme economic distress. But they don’t go far in providing any structural relief to resolve problems of the agricultural sector, writes Economic Times.

Adani Group’s power SEZ gets Centre’s nod post norms tweak

Less than two months after amending the power sector guidelines for special economic zones (SEZs) enabling standalone power plants to qualify as SEZs and be eligible for tax sops, the government has approved Adani Power’s request to set up a power sector SEZ in Jharkhand, The Hindu BusinessLine reported.