A round-up of the biggest articles from newspapers.
Centre gets ready with sops for ailing telecom sector
The Centre is likely to come out with a relief package for the telecom sector soon, reports The Economic Times.
Why it’s important: The relief package is likely to allow the surrender of the spectrum, slash bank guarantees, phase out levies and prospectively define AGR to provide relief to the sector as well as Vodafone Idea.
However, the government is silent on a letter written by Aditya Birla Group Chairman Kumar Mangalam Birla’s offer of handing over the group’ stake in Vodafone Idea to any public sector or domestic financial entity to save to company.
This is because the government’s hand is already full and announced a ₹70,000-crore package for BSNL.
Bank stress going up in home loan books
Many of the banks are showing stress due to defaulting home loans by some customers, The Economic Times reports.
Why it’s important: This is mainly because of the job losses and wage cuts due to the pandemic-induced lockdowns.
Experts suggest a recovery is almost underway as income streams normalise and banks start getting repayments on delinquent loans.
Tata Sky plans IPO; Disney to exit
Tata Sky is planning to go for an IPO by end-March, Mint reports citing its sources.
Why it’s important: Tata Sky is preparing the draft prospectus to file with Sebi by September.
The size of the planned IPO would be between ₹2,000 crore and ₹3,000 crore
The IPO is set to initiate an exit to investors, especially Disney that has been planning to sell its stake it is a non-core investment for them.
Tata Sky is the leader in the DTH market with a 33% share.
India’s skill development mission misses its goals
The country’s skills development mission under the flagship Pradhan Mantri Kaushal Vikas Yojana (PMKVY) has fallen short of expectations both in providing training and placement for the last six years, reports Mint.
Why it’s important: Only about 6.59 million people got training against a target of 7.62 million.
Out of these, only 2.32 million were placed in the last six years.
The government’s target for placement was 70% of trained and certified youth.
But only 45% were certified and around 35% of those trained got placement.
Sebi panel to look into book building of IPOs
The Sebi is planning to look into the book-building processes of IPOs, Business Standard reports.
Why it’s important: The market regulator found out several shortcomings in the existing procedure.
It has formed an expert panel to suggest ways to tweak the whole process.
The regulator feels that there is hardly any price discovery happening during the IPO.
‘Focus on capital formation to create jobs’
Larsen & Toubro’s CEO & MD S N Subrahmanyan said in an interview with Business Standard that despite the challenges, the group order inflows and revenues have registered a growth of 13 per cent and 38 per cent, respectively.
What he says: There are definite signs of a pick-up in economic activity.
“We remain committed to our guidance of up to a low- to mid-teens growth in order inflows and revenues for FY22. Despite input cost pressures, our core business margins will remain at the same levels as last years.
Focusing on capital formation is the best way to create employment opportunities during these times when household balance sheets are possibly at their weakest.
We see capital expenditure opportunities across the Centre, states, and PSUs.”
‘Positive surprises on earnings growth must for markets to scale newer highs’
Sachin Trivedi, senior vice-president, head of research & equity fund manager at UTI AMC, tells Business Standard in an interview that the market may see time-wise correction if there is now positive earnings surprise along the way.
What he says: To keep the momentum and force the markets to reach higher grounds, positive surprises on earnings growth are a must, otherwise a time-wise correction is likely.
Bond yield movements and a stronger dollar may also impact the sentiment and trigger some near-term correction.
It is hard to say that the markets have factored in the impact of a third wave.
India is likely to get a larger share of allocation to emerging markets due to the regulatory uncertainty in some markets.
India is more attractive due to its stable governance and double-digit earnings growth outlook.
Byju’s looks for $1 bn revenue in the US in 3 years
Byju’s is targeting revenues of $1 billion in the next three years, reports Business Standard.
Why it’s important: This is part of its ambitious plan of becoming one of the largest players in the education space in the US.
Byju’s hopes to extend its Indian success and plan to generate 25 per cent of its overall revenues from the US in three to four years.
The ed-tech major is planning to invest $100 million to build the brand in the US this fiscal.
Byju Raveendran: “Byju’s is looking at a 12-18 months time frame for its IPO, or somewhere in the end of 2022. We hope that by that time, the acquisitions in the US and India will get integrated and the offtake of revenues from them will be significant so we will get a better valuation.”
Centre’s spending to boost corporate capital expenditure
Banks are witnessing a revival with the government giving fresh orders to companies, reports Business Standard.
Why it’s important: Bankers feel the multi-year capital expenditure cycle has just started.
This is because the government is set to give $356-billion worth of orders in the next two years.
The investment cycle is likely to start from the second half of the fiscal.