Tata Steel to get 45% stake in Thyssenkrupp joint venture: Sources

The changes happened after Thyssenkrupp's activist shareholders pressured management to squeeze better terms from the deal, which was originally a 50-50 split

Thyssenkrupp AG and Tata Steel Ltd. are closing in on a European steel joint venture after a last-minute change to the deal terms that won approval from Thyssenkrupp’s union.

In the revised deal, Thyssenkrupp will own about 55 per cent of the equity in the new company and Tata will have 45 per cent, according to people familiar with the matter. The changes happened after Thyssenkrupp’s activist shareholders pressured management to squeeze better terms from the deal, which was originally a 50-50 split. The voting rights will be equally split.

The talks over the joint venture have dragged on for more than a year and faced opposition from labour representatives, as well as activist shareholders. Thyssenkrupp’s labour representatives said on Thursday they would vote in favour of the joint venture, paving the way for it to go through.

Elliott Management Corp. and Cevian had argued that the terms needed to be improved after a long slump in Tata’s European steel profits. The new agreement represents an increase of more than 600 million euros ($695 million) for Thyssenkrupp shareholders compared with the previous deal, said the people, who asked not to be identified because the details aren’t public.

Changes to the deal follow weeks of mounting pressure on Thyssenkrupp’s Chief Executive Officer Heinrich Hiesinger by activist shareholders and labour representatives to get a better deal after profits plunged at Tata’s European steel business.

Even though the union will approve the deal, Thyssenkrupp shouldn’t be "scrapped like a used car," said Wilhelm Segerath, chairman of the General Works Council and a member of Thyssenkrupp’s supervisory board.

Equity investors and labor unions are equally represented on Thyssenkrupp’s supervisory board, giving them both influence over the deal.

Under the new terms, Tata also agreed to pay for potential environmental risks at a coke oven of its Port Talbot plant in Wales and for investments, should it be necessary, the people said.

Check Market Price : Tata Steel Share Price

Bharti Airtel announces senior leadership appointments for its B2B unit

Ajay Chitkara has been appointed as Director and CEO, Airtel Business to spearhead the domestic and global enterprise business as one unit

Country's top telecom operator Bharti Airtel ltd has announced senior leadership appointments for its B2B unit.

Ajay Chitkara has been appointed as Director and CEO, Airtel Business to spearhead the domestic and global enterprise business as one unit.

Chitkara will continue reporting to Gopal Vittal, MD and CEO, Bharti Airtel.

Airtel also announced the appointment of Pankaj Miglani as CEO - Global Business. Miglani will report to Ajay Chitkara. In his previous role, Miglani was CFO, Bharti Infratel and played a key role in the company's IPO in 2012.

Chitkara has been with Airtel since 2001 and is credited with building brand Airtel in the global wholesale segment. In his previous role as Director & CEO, Global Business and Nxtra, he was responsible for creating business strategies for Carriers, Global Enterprise and OTT segments, and implementing them globally through the regional teams. Under Chitkara's leadership, Global Business grew in topline to become a billion-dollar business, while EBIT margins jumped five-fold since 2013.

Pankaj Miglani, who is a Chartered Accountant, Cost Accountant and Company Secretary with over 25 years of experience, has earlier worked in Airtel for 10 years in various roles.

Gopal Vittal, MD & CEO (India and South Asia), Bharti Airtel said, "I am delighted at Ajay's appointment to lead Airtel's B2B business as an integrated entity, which will help us leverage our global reach and deep relationships in the enterprise segment. I am also pleased to welcome back Pankaj after his successful stint with Bharti Infratel."

Check Bharti Airtel Ltd Market Price : Bharti Airtel Share Price : Live NSE/BSE Stock Price Today

HDFC MF gets Sebi go-ahead for IPO after nearly two months on backburner

It will be entirely an offer for sale by promoter HDFC and UK's Standard Life, who currently hold 57% and 38% respectively

HDFC Mutual Fund has obtained a go-ahead to launch its initial public offering (IPO), two investment bankers handling the issue said.

“Sebi has issued final observation on the offer document. The company will have to respond to the market regulator,” said an investment banker, adding that the asset manager is looking to launch its IPO in the second or third week of July.

HDFC MF couldn’t be immediately reached for a confirmation.

The processing status of draft offer documents filed with Sebi, uploaded on June 22, featured names of 26 companies that are awaiting approval. The list didn't include the name of HDFC MF.

Among the companies awaiting a nod for their IPO include Lodha Developers, Mazagon Dock and Srei Equipment Finance. As per Sebi’s website, the IPO of Lodha Developers, country’s leading real estate company, has been “kept in abeyance for examination of past violations.”

According to an update on Sebi’s website on April 27, HDFC MF’s IPO was kept abeyance for past violations.

“Sebi needed clarity on some issues, which were provided to them,” said a banker.

Nomura, Kotak Mahindra Capital, Axis Capital, BofA Merrill Lynch, Citigroup, CLSA India, HDFC Bank, ICICI Securities, IIFL Holdings, JM Financial, JP Morgan and Morgan Stanley are the investment banks handling HDFC MF’s IPO.

HDFC MF’s IPO will be the second by a domestic asset manager after Reliance Nippon MF. HDFC MF’s offering will be entirely an offer for sale by promoter HDFC and UK’s Standard Life, who currently hold 57 per cent and 38 per cent respectively. In the IPO, HDFC is selling 4 per cent and Standard Life is offloading 8 per cent stake. The IPO size is expected between Rs 35 billion and Rs 38 billion. The maiden offering could value the asset manager at Rs 307 billion.

HDFC MF currently manages assets worth over Rs 3 trillion making it the second-biggest fund house in the country after ICICI Prudential MF.

Check here : HDFC Bank Ltd Share Price.

Here's why India's life-saving plan for IDBI Bank makes no sense

It's hard to see how the transaction could bolster the reputation of any of India's three financial regulators

Rescuing a dying bank with taxpayers' money is often the only way to prevent a costlier contagion. But nursing a deposit-taking institution by tapping life-insurance premiums of policyholders? That's like allowing a localized infection to spread all over, hoping the natural immunity of an otherwise healthy body will help beat back the germs.

India's plan to sell a majority stake in IDBI Bank Ltd to Life Insurance Corp of India is not modern medicine. It's bureaucratic quackery. New Delhi hasn't found a genuine private-sector buyer for the ailing IDBI for more than two years. Hence, the stage is being cleared for state-owned LIC, the government’s preferred buyer of stuff nobody wants.

If LIC cares about its fiduciary responsibility to policyholders, it will pass this one up. But then, it can never say no to New Delhi. LIC already owns about 11 percent of IDBI, thanks to its previous participation in rescue missions. The new proposal is for it to take roughly half of the government’s 81 percent interest to become the majority shareholder. It could cost LIC around $3 billion to pay the government and top up IDBI’s capital for one year.

That's money down the drain.

At more than $8 billion, the bank’s gross nonperforming assets are nearing 28 percent of the total. If all IDBI’s distressed loans currently classified as standard assets have to be marked down, NPAs would rise to almost 36 percent, in India Ratings & Research Pvt.’s assessment.

Suppose NPAs do go up, but only to the halfway mark of 32 percent. The math is still stark: A 70 percent loss on 32 percent of the bank’s $29 billion loan book would translate to a $6.5 billion hit, of which only about $4 billion could be absorbed by existing loan-loss provisions. The remaining $2.5 billion would wipe out IDBI’s Tier 1 capital. Whatever price LIC pays for IDBI shares would be too much. Instead of buying from the government, LIC could purchase new stock in IDBI. However, that would dilute minority investors while generating zero cash for the government’s stretched budget.

It’s hard to see how the transaction could bolster the reputation of any of India’s three financial regulators.

Read more about : IDBI Bank LTD Market Price.

Hero MotoCorp gains after launching Splendor iSmart

Hero MotoCorp gains after launching Splendor iSmart 110

Hero MotoCorp rose 0.94% to Rs 3,281.70 at 9:25 IST on BSE after the company launched its first in-house designed and developed motorcycle, Splendor iSmart 110.

Meanwhile, the BSE Sensex was up 48.29 points, or 0.17%, to 27,990.40.

On BSE, so far 2,347 shares were traded in the counter, compared with an average volume of 39,942 shares in the past one quarter. The stock hit a high of Rs 3,289 so far during the day, which is also a record high for the counter. The stock hit a low of Rs 3,261 so far during the day. The stock hit a 52-week low of Rs 2,259.10 on 7 September 2015. The stock had outperformed the market over the past one month till 14 July 2016, rising 7.96% compared with 5.86% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, rising 3.16% as against Sensex's 9.03% rise.

The large-cap company has an equity capital of Rs 39.94 crore. Face value per share is Rs 2.

Hero MotoCorp (HMCL) after market hours yesterday, 14 July 2016, announced the launch of the new Splendor iSmart 110, the first motorcyle to be developed completely in-house, with HMCL's own technology. Built on a completely new chassis and frame, the bike is powered by the new 110cc Torque on Demand engine that also features HMCL's patented i3S technology, the company said. The bike is now available at the Hero dealerships across India. The bike is priced at Rs 53,300 ex-showroom Delhi.(more)