Apple's India store, Adani's earnings target, and Shapoorji Pallonji funding plan
The Federal brings you the key economic and business events on Thursday (April 6), including news about RBI, the SP group, Adani group, and Apple:
10:00 am: RBI Interest rate decision: repo rate remains unchanged at 6.50 per cent. The RBI was expected to increase the rate to 6.75 per cent.
12:00 pm: RBI Press conference
1. The Economic Affairs Committee and the Union Cabinet will meet in Delhi on Thursday.
2. In the first bond auction of the current financial year, RBI will sell new five-year government bonds due in 2028. This will bring in about ₹8,000 crore.
Also read: Inflation matters: Why RBI cannot afford to pause repo rate hikes
3. According to reports, the Maharashtra government will buy the famous Air India building at Nariman Point for ₹1,600 crore. The building will be an extension of the state government secretariat Mantralaya.
4. Mukesh Ambani is the richest sports owner, according to the Forbes billionaire list for 2023. He has a net worth of $83.4 billion, more than the net worth of Steve Ballmer, who owns the Los Angeles Clippers.
6. Coffee Day Enterprises: The company has appointed Crest Law firm for recovery of outstanding dues from Mysore Amalgamated Coffee Estates to its seven subsidiaries.
Explainers:
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SP Group to raise $1.75 billion:
According to the Economic Times, the Shapoorji Pallonji Group plans to raise $1.75 billion by pledging the remaining 9.37 per cent of its stake in Tata Sons. The group has already pledged nearly 9 per cent of its stake in Tata Sons. The total value of the 18.37 per cent stake is worth ₹94,000 crore.
The group plans to repay debt and partly invest in some of its companies. With this, the group would have raised $3 billion against the pledging of Tata Sons’ shares.
According to the rating agency ICRA, the group had applied for a one-time restructuring (OTR) plan under the Reserve Bank of India’s resolution framework for Covid-19-related stress. Subsequently, the OTR plan was successfully implemented on March 31, 2021.
The group exited the OTR, repaying its lenders ₹12,450 crore. In the next phase, the group plans to clean up its balance sheet, reduce debt, and list some of its companies.
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Apple to open a flagship store in India:
An official teaser on the Apple India store website shows a banner of its first retail store at Jio World Drive Mall in Mumbai. Apple CEO Tim Cook is expected to fly down for the launch, though there has been no confirmation from the company yet.
The fate of the franchisee stores which operate under various names such as iPlanet remains to be seen.
Also read: Apple to shake up sales operations to enhance focus on India
Tata Group recently announced that its retail arm, Infiniti Retail, which runs the Croma electronics store chain, will open 100 small, exclusive Apple stores nationwide. These 500 sq ft stores will be set up in shopping malls, and near housing colonies.
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Adani group to increase operating income, reduce debt:
The Adani group plans to raise operating earnings by nearly 50 per cent to around ₹91,000 crore over the course of the next two years. It also plans to reduce debt by 5-10 per cent from $23 billion during FY2024, according to a report in Mint.
These measures are being undertaken by the group to restructure its balance sheet. It has been taking a series of measures to boost investors’ confidence following a report by the New York-based short seller Hindenburg Research.
Also read: Adani pins hopes on 20% earnings growth every year to repay $23 b debt
The report on January 24 said that key listed Adani companies had taken on substantial debt, including pledging shares of their inflated stock for loans, thereby putting the entire group on a precarious financial footing.
According to reports, the group has put on hold its $4 billion petrochemical project in Mundra in Gujarat. It also recently called off acquiring the coal plant project, DB Power, for around ₹7,000 crore.
