 "Top headlines: Race for Cipla stake, interest costs hit India Inc earnings")
Blackstone, Baring in race to acquire up to 20% stake in pharma firm Cipla
In one of the largest potential transactions this year, private-equity majors Blackstone and Baring have initiated talks with the Hamied family, the promoters of pharmaceutical firm Cipla, to acquire up to 20 per cent in the company. The family owns 33.47 per cent and may become minority owners if the talks succeed, said a source close to the development. It has appointed bankers to seek bids from potential investors, and Blackstone and Baring PE have responded. Read more...
Casting a shadow: India Inc earnings feel the squeeze of interest costs Rising interest costs have become one of the biggest headwinds for corporate earnings. Interest expenses are now the fastest-growing cost head for India Inc and are weighing down corporate earnings despite a softening of raw material and energy costs in recent quarters. The combined interest expenses of the 271 listed companies, excluding banking, financial services and insurance (BFSI) and information technology (IT) services, were up 36.2 per cent year-on-year (YoY) in the 2023-24 (FY24) April-June quarter (first quarter, or Q1), growing at the fastest pace in three years. In contrast, manufacturers reported a sharp deceleration in raw material and energy costs in Q1 compared to the same period last year. Read more...
Benchmark indices declined over half a per cent on Thursday as investors digested the latest interest rate hike by the US Federal Reserve (Fed) and earnings disappointment by blue chip companies. The expiry of July series monthly derivatives contracts and selling by overseas funds also weighed on sentiment. The Sensex ended the session at 66,267, dropping 440 points or 0.66 per cent, while the Nifty50 ended at 19,660, down 118 points or 0.6 per cent. Read more...
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Parliamentary Panel recommends DGCA-like authority for cybersecurity
The Standing Committee on Finance has proposed the establishment of a centralised and empowered ‘cyber protection authority’, particularly for the financial services ecosystem, similar to the Directorate General of Civil Aviation (DGCA), to tackle the rising instances of white-collar crimes in cyberspace. The committee, chaired by Jayant Sinha, has based its recommendations on extensive discussions with industry bodies, corporations, and banking authorities. Contributions were sourced from the Reserve Bank of India (RBI), National Payments Corporation of India (NPCI), CERT-In, and private companies like RazorPay and Flipkart. Read more...
Adani group lenders may offer $750 million loan for Ambuja debt
Barclays, Deutsche Bank AG and Standard Chartered are in talks to lend between $600 million and $750 million collectively to the Adani group, as part of discussions to refinance the debt taken to fund its purchase of Ambuja Cements, according to people familiar with the matter. The loan would be syndicated, said the people, who asked not be named as the matter is private. Gautam Adani’s conglomerate is also in discussions with other lenders, as it seeks to refinance as much as $3.8 billion of a loan facility taken for its Ambuja acquisition. Read more...