Business
Confirm willingness to fund debt owned to lenders: FRL independent directors to Amazon
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Future Retail’s independent directors have asked e-commerce giant Amazon if it is willing to fund Rs 3,500 crore to repay the retail company’s lenders.
Notably, the question to Amazon was posted after the e-commerce giant in an earlier letter to independent directors objected to the sale of Future Retail Ltd (FRL)’s small-format stores.
“FRL is in need for cash infusion urgently in order to repay its lenders. FRL is required to pay its lenders Rs 3,500 crore by January 29, failing which it will be classified as an NPA,” said the letter dated January 21.
“Since you are objecting to the sale of small-format sales, the proceeds of which were to be used to repay lenders and thereby avoid NPA classification, please confirm that you are willing to fund this amount by Monday through an unsecured, long-term loan, subordinated to FRL’s existing lenders or any other mutually suitable and legally acceptable structure.”
Besides, the letter to e-commerce giant said, “If you do so, FRL will use such funds in order to repay FRL’s existing lenders. Alternatively, you are also free to engage with the lenders so that we do not fall foul of our OTR process or obligations.”
Accordingly, the independent directors asked the e-commerce giant to provide the confirmations for such funds by January 22, 2022.
“Once you have provided these confirmations in writing and agree to infuse Rs 3,500 crore in order to repay FRL’s lenders by January 29, 2022, we would be happy to assess a detailed proposal and meet Amazon India Head Abhijeet Muzumdar.”
Furthermore, the letter asked Amazon, “Coming to the specific aspects of your proposal — we note that your letter refers to a potential transaction between Samara Capital and FRL as a ‘solution’.”
“In this regard, you are requested to confirm if Amazon can act on behalf of Samara Capital and has the authority to negotiate and finalise such transaction on its behalf.”
It asked Amazon to confirm the structure for the proposed transaction, and that the Manager of Samara Capital is owned-and-controlled by resident Indians.
“As you know, FRL is in the multi-brand retail sector and FDI in this sector is restricted. You are also aware that Amazon’s transaction in Future Coupons, has resulted in regulatory scrutiny, including by the Competition Commission of India, as well as enquiries by the Enforcement Directorate.”
“It is therefore critical that any investment being proposed is in compliance with all applicable laws, including FDI laws, CCI regulations and SEBI regulations, and that any such transaction should not raise further regulatory scrutiny.”
Business
Ducati DesertX Discovery Launched in India: Price, Features & Availability
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Ducati has introduced the DesertX Discovery in India, a feature-packed adventure motorcycle built for both on-road and off-road exploration. Designed to tackle diverse terrains, this special edition comes loaded with enhancements that improve rider comfort, durability, and overall performance. The bike sports an eye-catching Thrilling Black and Ducati Red color scheme, adding to its bold presence. Equipped with premium components for long-distance touring, the DesertX Discovery is now available across Ducati dealerships in India at an ex-showroom price of Rs 21,78,200.
The Ducati DesertX Discovery is engineered for adventure, offering rugged protection and enhanced comfort for long rides. It comes equipped with reinforced hand guards, an engine guard with water pump protection, a radiator grill, and a reinforced sump guard to handle rough terrains.
For added convenience, the bike features heated grips and a larger windshield, making it ideal for colder conditions. A central stand provides better stability and easy access to luggage and maintenance. Additionally, the Turn-by-Turn navigation system, accessible through the Ducati Link App, displays route guidance directly on the dashboard, enhancing the overall riding experience.
Powering the Ducati DesertX Discovery is a 937cc liquid-cooled Testastretta 11° engine, delivering 110 hp at 9,250 rpm and 92 Nm of torque at 6,500 rpm. The engine has been fine-tuned for optimal performance, with a gearbox and electronics tailored for adventure riding. The bike features multiple riding modes, with three dedicated to road conditions and two specifically designed for off-road terrain. With a generous 21-litre fuel tank, riders can cover long distances with fewer refueling stops, making it an ideal choice for extended journeys.
Commenting on the launch of the DesertX Discovery, Bipul Chandra, Managing Director, Ducati India, said, “The DesertX Discovery represents a significant step in Ducati’s growth within the Indian market. We recognize the immense potential of the adventure segment here, and we’re confident that this motorcycle will capture the hearts of adventure enthusiasts across India. We’re also committed to offering a diverse range of adventure motorcycles, ensuring that every discerning Indian customer can find the perfect Ducati to match their individual riding style and needs.”
Business
Sensex, Nifty end flat amid mixed market sentiment
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Mumbai, Feb 25: The Indian stock market on Tuesday ended the intra-day’s trading session on a flat note, as investors remained cautious amid the mixed market sentiment.
The Sensex gained 147.71 points, or 0.20 per cent, to close at 74,602.12. During the intra-day, the index moved between 74,785.08 and 74,400.37.
Meanwhile, the Nifty closed marginally lower by slipping 5.80 points, or 0.03 per cent, to settle at 22,547.55. The index touched a high of 22,625.30 and a low of 22,516.45 during the session.
The market saw a mixed trend among stocks. Out of the 50 Nifty stocks, 31 ended lower.
Rupak De from LKP Securities said the index remained mostly muted, except for a small correction towards the close, adding that sentiment continues to favour the bears.
A rise towards resistance is likely to attract selling pressure, he added.
Hindalco, Dr Reddy’s Labs, Trent, Hero MotoCorp, and Sun Pharma were among the top losers, with losses of up to 3.10 per cent.
On the other hand, Bharti Airtel, Mahindra & Mahindra, Bajaj Finance, Nestle India, and Titan saw gains of up to 2.32 per cent.
The broader market indices also saw some pressure. The Nifty Midcap100 index declined by 0.62 per cent, while the Nifty Smallcap100 index slipped by 0.44 per cent.
Among sectoral indices, the market remained divided. Sectors like Nifty Auto, FMCG, Select Financial Services, Media, and Consumer Durables ended with gains of up to 0.84 per cent.
However, other sectors saw declines — reflecting the cautious sentiment in the market.
“Technically, on the daily chart, Nifty has formed an inverted hammer candlestick pattern, indicating buying interest around 23,500 levels,” said Hrishikesh Yedve from Asit C. Mehta Investment Limited.
He added that as long as the index respects 23,500 levels, a pullback rally towards 22,700-22,800 could be possible. On the higher side, 22,700-22,800 will serve as a solid resistance zone.
Sustenance below 22,500 levels could trigger fresh selling pressure. Traders should monitor these levels for potential trading opportunities.
The volatility index, India VIX, cooled off by 5.03 per cent to 13.72 which indicates a decline in market volatility.
The domestic benchmark indices will remain closed on Wednesday (February 26) due to the Maha Shivaratri holiday.
The Indian rupee weakened by 50 paise on Tuesday, closing at 87.20 per dollar, compared to 86.70 in the previous session.
Business
UK-India Business Council upbeat as FTA talks get underway
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New Delhi, Feb 25: The UK-India Business Council on Tuesday welcomed the restart of the Free Trade Agreement (FTA) negotiations during UK Business and Trade Secretary Jonathan Reynolds’ visit to India, which includes two days of meetings with Commerce and Industry Minister Piyush Goyal and his team.
India and the UK resumed the negotiations on Monday.
This is an important and positive development. It is worth noting that UK-India bilateral trade and investment are already growing. The total trade in goods and services grew by 10 per cent to reach 42 billion pounds in the four quarters to the end of Q2-2024. This level of trade has almost doubled from before the pandemic in 2019, when the UK-India trade was 24.1 billion pounds, according to a UK-India Business Council (UKIBC) statement.
The UK and India have concluded 13 rounds of the bilateral FTA negotiation, with the 14th round being paused due to the UK’s general elections in May 2024. Substantial progress has been made since negotiations were first launched in 2022. The UK and India are focused on substantially deepening bilateral trade and the investment tide, with clear political will to close a mutually beneficial win-win deal, the statement said.
UKIBC applauded the continued commitment visible from both sides reaffirming at the highest levels the priority status being accorded to this partnership.
Richard Heald, Chair, the UK-India Business Council, said, “The visit of Secretary of State Jonathan Reynolds reaffirms the UK government’s commitment to step up to a more ambitious and future-focused trade and investment relationship with India.”
He said that starting with last year’s announcement of the Technology Security Initiative between India and the UK, the partnership has developed further with a renewed focus on cooperation, collaboration and integration across AI, security, climate change, development, as well as research and innovation.
Heald said the success of the FTA will support further economic growth for the world’s 5th and 6th largest economies and it will catalyse collaboration in other areas, too.
“Importantly, it will underscore the fact that the UK and India are strategic partners. This is truly an exciting chapter of the UK-India partnership. As India charges ahead towards Viksit Bharat@2047, UKIBC and more broadly, British businesses recognise that a successful FTA is a critical milestone in a long-term journey and are keen to support India’s ambitions,” he added.
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