CORPORATE RESTRUCTURING
NCLT approves Raymond group entities’ strategic demerger, amalgamation
The National Company Law Tribunal (NCLT) has approved Raymond’s composite scheme of arrangement and restructuring, involving the demerger of its lifestyle business and the amalgamation of its consumer trading arm. The approval paves the way for a focused and streamlined corporate structure, separating Raymond Ltd and Raymond Lifestyle, with the integration of Ray Global Consumer Trading. Shareholders will receive equity shares based on the swap ratio post-restructuring.
IBC helps personal guarantors resolve financial stress: MCA
The Insolvency and Bankruptcy Code (IBC) provides opportunities for defaulting firms and personal guarantors to restructure debts. The Ministry of Corporate Affairs (MCA) emphasized the importance of trust in financial transactions and highlighted the benefits of the IBC for resolving financial difficulties. Data from the Insolvency and Bankruptcy Board of India (IBBI) shows a high number of applications for the insolvency resolution process of personal guarantors to corporate debtors.
Startups’ pink slip count falls to 10,000 amid funding blues
Firing in first half of 2024 lesser than H2, H1 of ’23, signalling a slight recovery. Ola Electric is in the final stages of laying off over 600 after sister company Ola Cabs fired around 200 workers in late April. Industry executive told ET, even with the slowdown in layoffs, startups are still not out of the woods.
OpenAI CEO Sam Altman says company could become benefit corporation: report
One scenario Altman said the board is considering is a for-profit benefit corporation, which rivals such as Anthropic and xAI are using, the report said, citing a person who heard the comments.
Bengaluru civic body split discussion gains momentum post LS polls, Parameshwara backs idea for ‘effective administration’
The BBMP elected Council's term had expired in September 2020. Ward delimitation exercises and reservation disputes have pushed the polls forward. In January this year, Shivakumar, who holds the Bengaluru development portfolio, had said that the civic body’s polls would be conducted soon after the Lok Sabha elections.
IDBI Bank seeks ROC help over nominee director dispute with NTADCL
IDBI Bank has raised governance concerns over the exclusion of nominee directors from board meetings of New Tirupur Area Development Corporation Ltd (NTADCL) post-loan repayment. Despite provisions allowing their retention until all dues are settled, the directors were excluded, leading IDBI Bank to write to the Registrar of Companies (ROC). NTADCL, which underwent Corporate Debt Restructuring in 2011, excluded IDBI Bank and SBI's nominee directors, citing vacancy due to loan repayment. IDBI Bank seeks ROC's intervention to assert its right to retain Nominee Directors until all dues are cleared, citing clauses in the MRA, AoA, and Companies Act, 2013.
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Angel One to undertake corporate restructuring, create holding company
Angel One, the country’s third largest stock broker, is set to undertake a major corporate restructuring exercise, according to two people in the know. Angel One is setting up a holding company under which all its different business entities will be held as subsidiaries.
Non-mortgage security receipts formed 90% of the fresh issuances in 2023: India Ratings
In 2023, non-mortgage security receipts dominated fresh issuances, driven by retail non-mortgage bad loans, per India Ratings. Asset Restructuring Companies (ARCs) must enhance recovery infrastructure to handle this shift. Legal resolutions improved for corporate and SME bad loans, but retail loan recoveries remain crucial. ARCs adapt strategies amid evolving NPL dynamics and anticipate legal reforms to transform the recovery landscape
NCLT rejects JM Financial Asset Reconstruction's plea in Arch Pharmalabs case...
The National Company Law Tribunal dismissed JM Financial Asset Reconstruction's application to intervene in an insolvency resolution application filed by Bank of Baroda against Arch Pharmalabs.
Zee shelled out Rs 432 crore on failed merger with Sony unit
Zee Entertainment faced significant merger-related costs due to a failed deal with Culver Max Entertainment. The company also dealt with impairment charges, headcount reduction, arbitration cases, and demands for termination fees and compensation for damages.
Donald Trump wants to control the Justice Department and FBI. His allies have a plan
Donald Trump's allies aim to reshape the Justice Department to align with conservative causes, potentially compromising its independence and core values in a second Trump presidency.
How to treat extended producers' responsibility in insolvency?
Extended Producer Responsibility (EPR) makes the producers i.e., manufacturers, assembler, importer, or a seller of the goods, responsible for the entire life cycle of their goods.
Restructuring impacts even the smallest player: 5 not so much talked about PSU banks
When it comes to PSU banks, all the limelight is taken by the top players, like SBI, BoB, PNB and one or two others. But the fact is that there are many other small PSU banks, which of course have smaller books and less of national presence, but the fact is that they have been also the beneficiary of the “ reconstruction and restructuring" (R&R) which both government and RBI have done in the banking sector in the last seven years. The good part of any R&R exercise in banking is that all the players whether it is small or large have to follow the rules and that ensures that the operating matrix improves across the sector and which leads to long term beneficial impact. We take a look at 5 small PSU banks, which are not normally in news, but over years they have also seen an improvement in their working. Yes, they have their own risks in terms of loan book and other business risk, but then because they are under owned in institutional space, a bit of institutional buying can lead to sharp re-rating.
Vedanta: How an old-age biz is trying to deliver a new-age baby
The complete acquisition of AvanStrate positions Vedanta in the display panel market, with plans to build its own display glass plant in Gujarat. The company is also eyeing partnerships for a potential chip plant. Vedanta's foray into electronics manufacturing, spearheaded by Agarwal's son-in-law Akarsh K. Hebbar, aligns with its core business of metals and mining.
WhiteOak Capital Mutual Fund launches special opportunities fund
WhiteOak Capital Mutual Fund has announced the launch of WhiteOak Capital Special Opportunities Fund. The fund is an open-ended equity scheme that will be following a special situations theme.
Tata Motors looks to spin off its NBFC arms, merge with IPO-bound Tata Capital
Group holding company Tata Sons will offer shares of Tata Capital to Tata Motors. This will give India's third-largest carmaker by volume a minority stake in Tata Capital.
Indian techie gets laid off from Telsa after getting promoted a month ago; Brother shares 'cold email' from Elon Musk
Tesla's recent layoffs, including an Indian techie, have sparked controversy. The techie, who was promoted just a month before, faced unexpected termination due to restructuring. The layoffs are part of Tesla's efforts to reduce its workforce by 10% amid sales challenges. Jatin Saini, the techie's brother, criticized Tesla for its lack of transparency and empathy in the process. Despite the layoffs, Tesla's shares saw a 1.97% gain on 7 May, reaching USD 184.76.
IDBI Bank seeks RoC help over board tussle with NTADCL
NTADCL had faced financial challenges that led to the restructuring of debt totalling ₹575.34 crore in 2011. As part of the corporate debt restructuring (CDR) exercise, IDBI Bank and some other lenders converted senior debt into equity, with IDBI Bank holding ₹6.11 crore in equity shares.
Licious turning omnichannel with five stores in Bengaluru by June
Licious founders plan 500 stores in 5 years with 6% operating profit margin. Targeting profitability by FY25, focusing on offline strategy. Improved demand forecasting and introduced subscription model for growth.
Event-Driven Investing: Making the most of corporate actions and news events
The persistence of mispricing opportunities in the stock markets challenges the notion that they are entirely rational and efficiently priced in all material information.
WhiteOak Mutual Fund files draft with Sebi for Special Opportunities Fund
The scheme will be benchmarked against S&P BSE 500 TRI. The scheme will be managed by Ramesh Mantri, Trupti Agrawal, Dheeresh Pathak, Piyush Baranwal, and Shariq Merchant(overseas investments).
Offer-for-sale for Hindustan Zinc likely in three months, says CEO
"An OFS was always on the cards, and it was to be done last year itself," Misra said in an exclusive interaction with ET. "The government is of the opinion that restructuring is not to be done now, and our opinion is that, in that case, the OFS should be done now," he said. Hindustan Zinc had proposed a corporate restructuring in September last year, where it looked to create three different entities for zinc and lead, silver and its recycling business.
NCLT approves merger between Hinduja Group’s healthcare, real estate companies
The National Company Law Tribunal (NCLT) has approved the merger scheme between Hinduja Group's Hinduja Realty Ventures Ltd and Hinduja Healthcare Ltd, marking a significant step in the group's corporate restructuring plans. Under the scheme, Hinduja Healthcare will merge into Hinduja Realty Ventures to consolidate operations and enhance efficiency.
Hindustan Zinc may put off demerger
In a letter to the mines ministry this month, HZL said it wouldn't push ahead with any demerger proposal that the government disapproves of and that it would take the Centre on board while adopting such a plan, people aware of the details told ET. "The matter is going to be put off, although the company would take a formal decision in due course," one of them said.
Tata Sons charting new path to sidestep Dalal Street
Tata Sons net debt as of September last year was ₹15,200 crore, according to rating company Crisil. Tata Sons has substantial, stable income from group entities, including Tata Consultancy Services (TCS), through dividends and buybacks, which should be sufficient for meeting interest obligations and planned investments. Its cash equivalents were ₹2,000 crore.
Read the full text of Byju Raveendran's letter to shareholders on rights issue, board restructuring
Byju Raveendran informs shareholders that the $200 million rights issue is fully subscribed, emphasizes the importance of all shareholders participating, and assures transparency in fund usage. He expresses faith in the company's resilience and commitment to creating shareholder value.
Read the full text of Byju Raveendran's letter to shareholders on rights issue, board restructuring
Raveendran reiterated in his note that a few vested interests are acting against the company at a time when it is facing a severe cash crunch. “ I refuse to let the self-serving actions of a few individuals cloud my judgment and pollute our relationship,” he said.
Hindustan Zinc expects "positive feedback" from govt on co rejig by next quarter
The company’s board had on September 29, proposed a corporate restructuring to create three separate legal entities for zinc and lead, silver, and recycling business. The move, meant to unlock potential shareholder value, is in line with its parent Vedanta’s plans to create separately listed entities for aluminium, oil and gas, iron ore and steel.
Citi makes new appointments in Asia Pacific as part of restructuring
Citigroup has appointed Jan Metzger as Capital Markets and Advisory Head for Asia, Kaleem Rizvi as corporate bank head for Asia North and Australia, K Balasubramanian as head of corporate banking for Asia South, and Gunjan Kalra as commercial banking business leader for Asia North, Australia, and Asia South.
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