Morning Scan: All the big stories to get you started for the day

The board of Tata Sons is set for a refresh in the next 15 months as two directors retire to make way for new members, the Mint reported. Bhaskar Bhat and Ralf Speth, who joined the board in 2017 and 2016, respectively, will reach Tata Sons’ mandatory retirement age of 70 over this year and next. Last month, Tata Sons’ 10-member board, chaired by Natarajan Chandrasekaran, gave a third three-year term to independent director Harish Manwani, a former chief operating officer of Unilever Plc.

Why it’s important: The development will take place at a time when the holding company of the Tata Group is aiming to become free of debt and avoid a public listing.

#3. Eyecare company Lenskart close to raising $200 million at valuation of around $5 billion

Singapore’s Temasek and US-based Fidelity are in advanced talks to invest around $200 million in Lenskart through a secondary share sale at a valuation of about $5 billion, the Economic Times reported. Temasek, an existing investor, is leading the round by putting in $125-150 million. Investment fund Fidelity will be investing in the omnichannel retailer for the first time.

Why it’s important: Lenskart’s secondary sale is taking place at an 11-12 percent higher valuation than its previous $4.5 billion, setting it apart from other such transactions that usually close at a lower valuation.

#4. Kedaara Capital raises $1.7 billion in record among Indian private equity firms

Kedaara Capital has closed its $1.73 billion fund, the largest fundraising by a local private equity firm, the Economic Times reported. About 85 percent of it was raised from existing backers like Canada Pension Plan Investment Board, Caisse de Depot et Placement du Quebec and Ontario Teachers’ Pension Plan.

Why it’s important: Kedaara has raised a record amount at a time several funds are struggling with fresh investor commitments to fetch new pools of capital after several years of high fundraising.

#5. Indian Railways takes over Rashtriya Ispat Nigam’s forged wheel plant at Uttar Pradesh

The Railways has taken over the operations of the forged wheel plant of debt laden Rashtriya Ispat Nigam at Raebareli in Uttar Pradesh, the Hindu Businessline reported. The takeover terms include part payment of cash to the steelmaker, pegged at Rs 800-900 crore, and a transfer of Rs1,000 crore of its debt to the forged wheel unit.

Why it’s important: Rashtriya Ispat was unable to operate the factory at optimal capacity due to financial constraints and technical inadequacies, which the railways can fill. Higher production can reduce import bill on this count.

#6. Telecom regulator to revive discussions on allocating satellite broadband communications

The telecom department will send new terms of reference to the Telecom Regulatory Authority of India in a few weeks to begin a fresh round of consultations on allocation of spectrum for satellite broadband communications, the Mint reported. The previous consultation process would not be taken forward since a new telecom law was enacted.

Why it’s important: The new consultations will have to navigate a slew of issues as there a rift between industry participants on satcom services competing with services offered by terrestrial service providers.

#7. Canada pension fund divests 2.8 percent stake in logistics firm Delhivery for Rs 908 crore

The Canada Pension Plan Investment Board has offloaded 2.8 per cent stake in supply chain and logistics firm Delhivery for Rs 908 crore through an open market transaction, the Hindu Businessline reported. US-based financial services company Capital Group, Fidelity Investments, HSBC, and the Master Trust Banker Japan Ltd A/C HSBC Indian Equity Mother Fund bought the shares on the National Stock Exchange.

Why it’s important: The pension funds shareholding has now declined to 3.16 percent from 5.96 percent as it booked some profits on its investment.

#8. Banks will scrutinize repayment schedule be lending to Vodafone Idea

Despite the successful follow-on public offer, cash-strapped Vodafone Idea may face some difficulties in raising funds as commercial banks will first look into the telco’s liabilities and their repayment schedule over the next 4-5 years before deciding on extending loans. The company needs to raise about Rs 25,000 crore in loans.

Why it’s important: In the light of the difficulties Vodafone Idea has been facing in recent years. Commercial banks are looking for some comfort that it will be ne able to repay debt.

#9. Eldeco Infrastructure raises Rs 350 crore in funding from HDFC Capital Advisors

Eldeco Infrastructure and Properties has secured Rs350 crore in funding from HDFC Capital Advisors for their joint platform that executes residential projects, the Economic Times reported. This is the third round of funding in as many years, which has taken the platform’s corpus to Rs850 crore. The company expects to generate Rs8,000 crore from 17 projects.

Why it’s important: The company is hoping that the demand for premium housing will surge after a prolonged downturn. It remains to be seen if the premiumization trend in the economy will be reflected in the housing sector as well.

#10. Payment aggregation companies could be looking at higher costs on new KYC rules

A recent directive from the Reserve Bank of India has rattled payment aggregators such as Razorpay, Cashfree and PayU, who may have to put more feet on the ground to check if a business is legitimate before signing them up as merchants, the Mint reported. The central bank in a recent draft circular has proposed stricter KYC guidelines for businesses that use payment aggregators to accept digital payments.

Why it’s important: The banking overseer could be acting on abundant caution as customer verification rules act as a safeguard against money laundering by mapping each account to a bona fide customer.