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Olympian Wrestler Vinesh Phogat joined the Congress and is all set to contest Haryana assembly elections from Julana seat. Famous for missing the silver medal by 100 gm in the Paris Olympics as she had breached the category in which she entered the contest, Vinesh had received a hero’s welcome as soon as she returned to India. She was given a grand welcome at Delhi airport by the Haryana Congress leader Bhupinder Singh Hooda and his son, Deepinder. Her name was finalised as soon as she formally became a member. While wrestler Bajrang Punia has been appointed as working president of All India Kisan Congress. Entry of the wrestling icons, who are both Jats, means consolidation of Jat votes behind the Congress. Former CM Hooda is determined to make a comeback with Jat vote power after 10-year BJP rule in Haryana. Phogat termed her political innings as a new chapter and said that she will continue to work for the rights of other athletes. Referring to the ongoing sexual harassment case against former WFI chief and BJP leader Brij Bhushan Singh, she made it clear that only the Congress had understood “our tears”. “I will work for other athletes so that they don’t have to go through what we went through,” Phogat said. “I could have quit wrestling at Jantar Mantar because the BJP’s IT cell was publicising that we were spent forces. They said I did not want to play in the nationals but I did; they said I did not want to do trials, I did that… They said I could not go to the Olympics but I did… Unfortunately, it was not God’s will,” she said.
Maharashtra BJP president Chandrashekhar Bawankule’s latest allegation against NCP MP Supriya Sule has enraged her supporters. Supriya herself has vehemently refuted the charges and challenged him to produce the evidence to substantiate it. A staunch follower of BJP heavyweights Nitin Gadkari and Devendra Fadnavis, the BJP leader has stunned the state polity with his so-called disclosure. According to Bawankule, she had said, “If Fadnavis comes back to power, we will be nowhere and this will be the last election for Sharad Pawar and Uddhav Thackeray.” Different versions of Supriya’s directions to her party’s spokespersons regarding the coming elections are floating around. The general tenor of the reports is that she has indicated to them to go soft on chief minister Eknath Shinde and avoid any statement on Maratha leader Manoj Jarange but zero in on Fadnavis. Referring to these news stories, Bawankule has attacked Supriya while making his allegation. Taking him to task over his remarks, Supriya has challenged Bawankule to produce proof that she had asked her party spokespersons to hit only Fadnavis. “Show me a video making such a statement,” she has said. Fadnavis and Supriya are the two names which are repeatedly making rounds of the political grapevine as the next CM choice. Hence Bawankule’s advocacy of Fadnavis is hardly surprising. Other major parties in the state have so far kept away from this slanging match.
In the backdrop of the Modi government releasing a Rs 100 coin to mark birth centenary of DMK patriarch M Karunanidhi on August 18 and Defence Minister Rajnath Singh hailing him as “titan” of Indian politics, Tamil Nadu CM MK Stalin has always been anxious to assure his allies in the secular INDIA Bloc that he is not inching close to the BJP. Away in the U.S. since the end of last month along with his wife Durga to pitch for foreign investment in his state, Stalin has been making it a point to enjoy ordinary things like working out at a gym in San Francisco or a bike ride near Lake Michigan in Chicago. His post on X, “Evening’s calm sets the stage for new dreams”, somehow caught the attention of Congress Leader Rahul Gandhi who replied to Stalin’s post with a playful comment, “Brother, when are we cycling together in Chennai?”. Responding to Gandhi, Stalin proposed a leisurely ride to explore the heart of Chennai. “Dear brother @Rahul Gandhi, whenever you’re free, let’s ride and explore the heart of Chennai together! A box of sweets is still pending from my side. After our cycling, let’s enjoy a delicious South Indian lunch with sweets at my home.” Incidentally, Rahul will also be briefly in the U.S. — September 8-10 — to interact with the Indian diaspora as well as key business and academic figures. This will be his first visit to the U.S. since the 2024 Lok Sabha elections, after the Congress made significant gains. His visit precedes PM Modi’s planned appearance at the UN General Assembly later in the month. Gandhi will visit Dallas and Washington DC during his time in the U.S.
Nationalist Congress Party president Sharad Pawar’s choice for the next Maharashtra CM will not be Uddhav Thackeray. This sensational claim made by DCM Devendra Fadnavis has further dented the campaign started by the Shiv Sena leader’s followers to project him as the future chief minister. Pawar and state Congress president Nana Patole have publicly negated Uddhav’s demand to declare the name of the next Maha Vikas Aghadi CM in advance. Both have reiterated that a decision in this regard will be taken at an appropriate time. The Sena (UBT) has maintained a stoic silence ever since on this issue, unlike its practice to react to any development, big or small, instantly. Using the opportunity of his interview taken by a private news channel, Fadnavis ridiculed the efforts being made to project Uddhav as the unanimous MVA leader in Maharashtra. Fadnavis did not mention any other name in this connection but left his remark hanging, so that enough suspense pervades the opposition camp. Pawar himself has added to the guessing game. Though he had claimed that his party would not be in the race for the post, he has now added another rider by stating that the party with the largest number of MLAs will stand the chance. Fadnavis rubbed Uddhav the wrong way by remarking that the three-day recent visit of the Sena leader to Delhi had failed to obtain Sonia Gandhi’s backing to his name for chief ministership. Uddhav’s backlash is awaited.
Six decades have gone by since it was incorporated in 1959 as a company with charitable objects under Section 25 of the Companies Act, 1956 (now Section 8, Companies Act, 2013). Ostensibly, it was set up with the object to promote the spread of knowledge across assorted areas – such as politics, culture, art, history, sports and the like – and disseminate news to the general public both about Indian and foreign affairs. United News Of India (UNI) is a multilingual news agency. Once upon a time, it was one of the largest news agencies in India with several hundred subscribers across the length and breadth of the country. Today, it is a shadow of its past. Struggling to survive, UNI has now come under the IBC (Insolvency and Bankruptcy Code) resolution process. A process to invite resolution was initiated in August last year. However, based on a decision taken by the Committee of Creditors, a “Round 2” of the entire Resolution Process for inviting EOI (Expression of Interest) for submission of Plans has been now initiated. With just about 175 employees and revenue of less than Rs 7 crore, this once iconic news agency is on the verge of extinction. With the whole media industry going through tough times, UNI is hoping for a light at the end of the tunnel. Will the resolution process throw up a Good Samaritan? Fingers are crossed, indeed.
Amid a series of electoral failures, including a hat-trick of zero wins in major elections, the CPI(M) in Bengal is facing growing internal pressure to reconsider its approach and hire an external political strategist. Alimuddin Street, party’s headquarters, has received feedback that the organization’s current state is “disgraceful” and it must consider “alternatives.” Most political parties – BJP, Cong, TMC, AAP and DMK — have from time to time roped in political strategists/consultants. For instance, the Trinamool Congress’s 2021 victory was largely credited to IPAC, led by Prashant Kishor. Likewise Congress party has benefited from strategic insights provided by Sunil Kanugolu. CPI(M) State Secretary Mohammad Salim stated that though the party cannot afford to hire a professional agency, professionalism must be increased. The party had hoped that its alliance with Congress for the Lok Sabha polls would increase its vote share. Leaders had predicted a three-way contest between Trinamool, BJP, and the Left-Congress combine. However, the reality was a two-way fight between Trinamool and BJP, leaving CPI(M) without a seat, and Congress lost key constituencies like Baharampur, where five-time MP Adhir Chowdhury was defeated by TMC’s Yusuf Pathan. Party insiders have highlighted organizational failures, including an inability to deploy agents in polling stations. Again, in the RG Kar incident relating to rape-murder of doctor, where the CPI(M) youth wing DYFI, led protests in Kolkata, the party failed to mobilize at the district levels. Also, it has alienated women voters in the state by terming the Lakshmi Bhandar scheme as “alms”.
Vishwajeet Kadam, who jolted the MVA alliance in the recent Parliamentary polls, is set to ruffle feathers again in the forthcoming Maharashtra assembly elections. Kadam, who backed Congress rebel Vishal Patil to victory over the MVA’s official Sena nominee, now seems to have the backing of the Congress high command this time too. The message was sent loud and clear when Rahul Gandhi flew down on September 5 to unveil his father –Patangrao Kadam’s statue in the presence of the entire top brass of Congress and even NCP (SP) chief Sharad Pawar. The prominent positioning of rebel Vishal Patil MP on the dais at the event, between the state Congress and NCP chief — Nana Patole and Jayant Patil — signalled Vishwajeet’s insistence to have things work his way. The high-profile event estimated to cost over Rs 50 crore, with over 1.5 lakh people housed in a Rs 8 crore canopy spread over 20 acres, was also meant to pitch Vishwajeet for the top slot in state politics. The absence of Uddhav Thackeray from the event clearly signalled that the friction between the Congress and Sena, is here to stay. Currently, of the eight legislative assemblies in Sangli, only two are held with Congress. Another two seats are held with the BJP, which is keen to wrest control of the prosperous sugar belt. The Congress, which has sensed victory in Maharashtra, after emerging with the highest tally among MVA partners in the recent LS polls, is in no mood to relent to their coalition partners’ demands. The NCP has been tamed while the recalcitrant Uddhav is being ignored. The Congress which wants to play the big brother could give Vishwajeet a free hand to chart party’s revival in the state.
Raja Randhir Singh may have triggered a fresh debate on whether administrators’ maximum tenure of 12 years is good for developing sport in India. India’s National Sports Development Code (NSDC) 2011 specifies terms, tenures, age, and cooling-off rules for sports federations. A five-time Olympian, several-time Asian Games participant in the Trap and Skeet shooting event, a gold and bronze medal winner has been an administrator for around four decades at the national and international sports bodies and is all set to become the 44th President of the Olympic Council of Asia wef September 8. In recent interactions, the 77-year-old former member of the International Olympic Committee (IOC) has said that Yoga will become a medal sport from the 2030 Asian Games, but more significantly, he touched upon an essential aspect of the governance structure and strict rules. He believes more than 12 years is needed for administrators at the sports bodies. While the NSC stipulates a 12-year time restriction for national sports federations, the Justice Lodha Committee report that the Supreme Court has endorsed stipulates a maximum period of nine years together at the State and BCCI and with a cooling off period after six years that was initially three years. Being an experienced hand, Raja Randhir may have a point that will only get full support from the BCCI, but the Apex Council of the country believes that sports federations cannot be a fiefdom for an individual or group of people. The BCCI has been lucky to get relief from the Supreme Court on the cooling-off period restriction, but they may hope for further ease in restrictions. Given a chance, both the BCCI and the sports federations would like the cooling-off period and tenure restrictions, junked!
Now that N Srinivasan-headed India Cements has changed hands, the focus is clearly on what will happen to Chennai Super Kings Ltd. Once a division of India Cements, CSK was spun off into an independent entity following the conflict of interest issue. Post-India Cements sale, the focus obviously has turned to CSK. Where is it heading? Well, Srinivasan and his family have now consolidated their holding in CSK. They have increased their stake in CSK to nearly 42% from just above 28% in March 2023. The promoters now hold 158,016,303 shares. They had 86,726,373 shares in March 2023. The equity share has a face value of Rs 0.10 (ten paise). CSK Ltd. is the owner of the Chennai franchise of the IPL (Indian Premier League) T-20 cricket team. With the player auction for the upcoming IPL season coming up soon, the consolidation of holdings by the Srinivasan family in CSK reflects the commitment and passion of the promoter group to the cause of cricket. Not surprisingly, the board of CSK has decided to elevate K Viswanathan, popularly known as Kasi, a close loyalist of Srinivasan, as the managing director for a three-year term. Well, the context may have changed following the sale of India Cements. Srinivasan and Co, nevertheless, is focussed like a blinkered-horse on furthering the cause of cricket.
Caste dynamics has political formations of India in a tizzy for the imminent Haryana state assembly elections with the BJP set to also launch a new poll strategy to dampen the Congress dream of a clean sweep in the Nuh belt of the state along with others where the minority vote plays a dominant role. The AAP and Congress vowed to fight solo after the zero-voter verdict their alliance evoked in Delhi’s seven Lok Sabha constituencies, then kissed and yet, to make up. While AAP wants 10 seats, Congress is willing to part with only seven. The SP too wants seats to field candidates in Muslim proliferated constituencies. Congress believes minority votes will accrue to itself, particularly in three assembly constituencies in Nuh region dominated Muslim voters. Only former Congress CM Bhupinder Singh Hooda appears worried over his political future. The BJP too, worried over anti-incumbency, wants to buck the political tide and announced 16 OBC candidates, 13 from Jat community with 17 reserved SC seats. Though the OBC community is the majority voter segment in Haryana, Jat community always holds sway over political affairs be it the Lal clan troika (Bansi Lal, Devi Lal) or the Chautala clan among dominant segments of farmer leaders. The BJP elevated another community leader Kiran Choudhary to the Rajya Sabha and will also accommodate her daughter for state assemblies. Similarly, late Jat leader Ajit Singh’s son Jayant Choudhary was inducted into the NDA alliance for the Haryana assembly. The BJP has topped up its poll plans by clearing a slew of farmer packages in the state before the elections were notified in the state to include most of the crops sown in Haryana under the ambit of its MSP protection.
The world’s largest cricketing stadium opened to a deluge of media headlines. And also, to one of the globe’s wealthiest: Lakshmi N Mittal, Chairman & CEO of the $53.3-billion ArcelorMittal, the world’s largest steel and mining company. Mittal was spotted at the Narendra Modi Cricket Stadium, Ahmedabad along with BCCI Secretary Jay Shah, and Congress Leader Rajiv Shukla, enjoying the fourth test match between India and England. According to the Gujarat government’s official version, Mittal visited the Statue Of Unity at Kevadia, less than 200 kms from Ahmedabad. But the corporate observers are attributing the timing of the visit to more than that. They are connecting dots. It may be mentioned that during the same time, Prime Minister Narendra Modi was in Kevadia to address the concluding session of the annual conference of top officers of India’s Armed Forces. It is speculated that Mittal met Modi and Chief Minister Vijay Rupani before the PM’s address and after that watched the cricket match.
In the mid-eighties and early nineties, the Indian promoters literally made hay in the absence of a market regulator, according to the Mumbai-based brokerage firm Altina Securities. The modus operandi was simple: raise money via private placement. To illustrate, if Company X had a post-issue capital of Rs 100 lakh, the break-up was: promoters Rs 40 lakh and public Rs 60 lakh. Many promoters – just before the IPO – privately placed nearly 75% of their holdings. Thus, Post IPO, the Rs 100 lakh equity base would be: Promoters Rs10 lakh, Private Placement Rs 30 lakh & Public Rs 60 lakh. There have been instances where the fly-by-night promoters received kickbacks for the project. This effectively reduced their skin in the game. Little wonder many companies which resorted to this route have vanished, leaving the small investors high and dry. Some of the vanishing companies are: Bonanza Pharma, Atash Industries, Amrut Industries, UCL Plastics, Rasik Plast, Indiana Diary. Senthur Shoes, Printed Circuit Board, Alsa Marine and Premier Housing.
JSW Group Chairman Sajjan Jindal is hogging the limelight for his announcement to invest Rs 22,000 crore for the expansion of Dolvi plant in the coastal Raigad district in Maharashtra with an annual production capacity of 14 million tonnes. Already, the Maharashtra Industrial Development Corporation has notified 750 acre of the total 1,600 acre land. Jindal’s investment decision has raised eyebrows especially among those in the ruling Shiv Sena. Many in the Sena know about the proximity Jindal enjoys with Prime Minister Narendra Modi. The Sajjan Jindal group was also associated with the redevelopment of Kedarnath and Badrinath when the holy cities were severely devastated by floods and landslides in June 2013. It is believed that Jindal had organised the PM’s meeting with Pakistan’s former PM Nawaz Sharif. Against this backdrop, some of the Sena leaders are wondering why Jindal agreed for big investments in Maharashtra which is now ruled by their party, in alliance with the Congress and the NCP, instead of any of the BJP-ruled States. Clearly, all businessmen know the consequences of putting all eggs in one basket. There are lessons galore of businessmen who forget this simple principle.
Thanks to pandemic work from home has become a way of life. Most CEOs are operating out of their homes or farmhouses. Take for instance how Arun Nanda, chairman of Mahindra Holidays & Resorts India, managed his company’s affairs. According to informed sources, Nanda has been calling the shots from Tungi, Lonavala for most part of the year. And his efforts saw company’s Q3FY20 net profit jump 63% to Rs 41 cr. Likewise, superbanker Aditya Puri, former MD & CEO of HDFC Bank, worked most of the last year between Mumbai and Lonavala. Puri who has joined The Carlyle Group as a Senior Advisor, went to Sandoz House, Worli (that’s where he started his innings with the bank) for his send-off organized by the current managing director Sashidhar Jagdishan. It was an e-Event for the rest of the staff. Likewise, Ashok Sinha, former chairman of BPCL, who sits on several boards did not cross the threshold of his Peddar Road flat since lockdown was clamped down and has managed all his affairs via digital meetings. Covid has indeed put the fear of God among all. Earlier, many were sceptical about the Indian vaccines. But, now it is learnt that all of them are fed up of operating out of their homes and are keen to take the jab so that they can travel freely
Pump price for petrol includes excise duty levied by the Centre – with the States adding VAT to it, which varies from state to state. Higher the VAT, higher the fuel prices in that state. So, why are the Opposition parties throwing a fit on petrol breaching the Rs100-a-litre mark? It may be recalled that after years of deliberations, the current market-led pricing mechanism got stabilized since its implementation in June 2017. Hit hard by Covid-19, neither the Centre nor the States are in a position to reduce levies, which constitute 60% of the retail selling price of petrol, and more than 54% of diesel. Domestic prices should cool down hopefully in line with the projected international trends. If the government is forced to tweak taxes to moderate fuel prices, it will have to dismantle the whole reform process aimed at fixing market-determined prices. The economic reforms implemented after extensive deliberations and consensus over a long period must be kept out of opportunist politics. FM Nirmala Sitharaman is right in calling petrol price increase a ‘Dharmasankat.’ Clearly, both the Centre and the States have to abide by the ‘Raj Dharm’ to find solution to this sankat together.
The meteoric rise and dramatic fall of Rana Kapoor could make for an interesting TV serial on the OTT platform. Two books have already been written on the man who co-founded Yes Bank with his co-brother-in-law Ashok Kapur. (Ashok was killed in Mumbai terror attack). Pavan C Lall, has penned Yes Man: The Untold Story Of Rana Kapoor. Tamal Bandyopadhyay in his book Pandemonium: The Great Indian Banking Tragedy, rips the façade off the smartly constructed corporate image of Yes Bank, exposing promoter Kapoor’s questionable deals. The author goes on to say that the RBI saw through the game played by Kapoor. Alarmed at the speed with which the NPAs were getting resolved, the regulator started monitoring Yes Bank closely. Finally, it was an anonymous letter sent to then RBI Governor Urijit Patel in September 2018 about the hanky-panky deals at the bank that got the central bank into action. But soon they discovered that Kapoor had many moles around. Every move contemplated by the RBI was relayed to him in real time. It took a while for the RBI to identify the suspects and isolate them from the investigative process. When Kapoor was told in one of the meetings by the RBI that he had to go, he broke down, calling Yes Bank his son, his only son — beside his three biological daughters. But such histrionics with eyes brimming over with tears didn’t move anybody. Presently, he is cooling his heels at Taloja jail on the outskirts of Mumbai.
It is a well-known fact that most businessmen like Rahul Bajaj, Keshub Mahindra, Ajit Gulabchand have a very good equation with the NCP Supremo Sharad Pawar. So the news that the Adani Group chairman Gautam Adani is in the same league comes as no surprise. In fact, in 2013 Pawar had attended Adani’s son’s wedding in Goa. Now, it is reliably learnt that the Maratha strongman with a view to attract investment in Maharashtra from the Adani Group is pulling out all the stops to ensure that Adani’s thermal power project comes up in the coal-rich Vidarbha region without any hitch. Earlier, Pawar guided Adani when he took over the Anil Ambani-controlled Reliance Infrastructure, which runs the Mumbai distribution business with 30 lakh customers. Pawar’s strategy of rolling out red carpet seems to be yielding dividends. Now, the Adani Group has lined up a slew of investments in Maharashtra. They have picked up a majority stake in Mumbai International Airport from the GVK Group, securing the contract for the Rs 16,000-cr Navi Mumbai airport. Adani Transmission has bagged the contract to construct 400 kV substation at Vikhroli, for transmission of about 1,000 MW in Mumbai. The company will also construct another line between Aarey Colony and Padgha to evacuate another 1,000 mw. Clearly, Pawar knows which horse to back.
It may be recalled that during the UPA regime the Union Minister for Science & Technology Kapil Sibal had flaunted a $32 tablet which would provide Internet access to the less fortunate students. Now that the Covid-19 pandemic has pushed a large section of students towards online schooling, it’s time to ask Sibal what happened to his pet project? Had it translated to a tablet in each student’s hand, there wouldn’t have been such a digital divide today. Then Sibal had announced the tablet as a cheap, simple computer. First as ‘Shaksat’, then renamed as ‘Akash’, and upgraded to ‘Akash2’. But despite the abracadabra moment, the project failed to deliver. Today, probably an IIT student could develop easily a low-cost tablet. But at that time, it appeared to be a magical moment: parts to be sourced from China or Taiwan via a Canadian company and then assembled in India. It is surprising the vocal politician hasn’t whispered a word about it. Has the project been given a silent burial? Is this the reason why he is not expressing any views on digital divide as he fears it would bring to public glare the failure of Akash tablet in an era of whataboutery!
An RBI working group has proposed allowing corporate houses to set up banks in India. Suddenly, former RBI governors and deputy governors want to protect the country from business houses entering the banking arena. Over the last two years, IL&FS, DHFL, Yes Bank and PMC Bank have collapsed due to their weak financial position. The latest to the list of bank failures is Lakshmi Vilas Bank, which was merged with DBS Bank. What we need to do is to have a strong deterrence so that we don’t see a repeat of YES Bank. According to KV Kamath, former MD & CEO of ICICI Bank, in his interview to CNBC TV18, the way forward is heavy investment in technology by the regulator so that on a real-time basis the creditworthiness of individuals or companies is made available. Seems a doable idea.
Cartelisation among manufacturers is a known fact. OPEC is the biggest global example. Close to home the Competition Commission Of India, which came down heavily on cement companies sometimes back, has now set its sights on the domestic steel companies. It is believed that the steel companies have increased their prices in unison in the last few months. But, recent developments in the distribution trade in Mumbai – liquor and paper – are quite an eye-opener. With businesses shuttered for nearly a year, those running hotels & restaurants, printing presses, and paper distribution have been hit by severe liquidity crunch. Most of them have not been able to pay their vendors, suppliers, or staff. After the Lockdown was lifted, the restaurant owners, printers and media houses placed fresh orders with their respective distributors. But they were told to clear some of the backlog. Irked, some of these businessmen tried tapping new distributors but they were surprised to learn that the liquor and paper trade had a list of outstanding of different businesses or credit information of bad borrowers. The distributors felt if they supply today their fellow traders would lose. So they decided to unite. It is proving to be a win-win for all.
The hottest topic being discussed by business tycoons these days is not the Union Budget but the Which, When, Where (and maybe even, if) and How to get the Covid-19 vaccine. Before India rolled out its own versions, some wealthy individuals were rumoured to have rushed overseas (read: Dubai) to get their shot. Now there are whispers about certain famous people making private arrangements to get the vaccine out of turn. Because, as per the Government diktat, in the current phase, the vaccine is being made available only to the frontline healthcare workers. Such clandestine shots may give them immunity but without the all-important vaccine certificate. They are confident, however, of procuring one with some jugaad in due course. One person who won’t have to resort to any such subterfuge is Dr Swati Piramal, vice chairperson, Piramal Enterprises. The wife of billionaire Ajay Piramal, who is a qualified doctor, recently got her Covid-19 shot at the BKC jumbo vaccination center in Mumbai, along with staff of the Gopikrishna Memorial Hospital. Piramal took the Covishield vaccine made by the Serum Institute of India and promptly posted photos of the said deed on Facebook.
Legendary investor Warren Buffett said: “Unless you can watch your stock holding decline by 50% without becoming panic-stricken, you should not be in the stock market.” The stock market is not for the weak-hearted – nor for Inside Trading. An NSDL campaign is creating awareness among the retail investors not to fall prey to the Insider Trading. If you are an equity investor, chances are that at some point in time you would have been offered an ‘insider tip’ to conduct a trade in a particular stock to make quick money. If the tip turns out to be false, you could end up losing money. If the Tip turns out to be true, although you might make quick money, it could land you in legal trouble. Insider trading is a punishable offence, as per the SEBI. The BSE, the NSE, and the SEBI keep routinely tom-tomming about such instructions – and yet the greedy investors keep falling prey to such Tip messages. Looks like investors seem to blindly follow the investment philosophy of Gordon Gekko in the movie Wall Street, “Greed, for lack of a better word is good.” And we know where insider trading and greed got Gekko and his ilk.
With the stock market booming and indices touching lifetime highs, the investor’s appetite seem to be growing even bigger. Many are keenly awaiting the IPO of the state-run Life Insurance Corporation Of India. Set up in 1956, the LIC is the jewel in the government’s crown. The state insurer has smartly competed with 23-odd private sector players to command a market share of 70.21%. With assets over Rs 31.96 lakh crore, the LIC manages 28.92 million customers through a network of 12,08,826 agents and 144,498 employees. Such impressive numbers have made the government plan a mega IPO in 2021. The government hopes to raise around Rs 70,000-100,000 crore by diluting a 10% stake. Based on this figure, the valuation of the LIC works out to around Rs 13-15 lakh crore. Experts say that the IPO could attract a large number of retail and institutional investors. The IPO dates are not finalized neither has the Red Herring prospectus been filed with the SEBI. Reportedly, Edelweiss Financial Services and Deloitte have been appointed as pre-IPO advisors. Now, the Finance Minister Nirmala Sitharaman in her Budget Speech has indicated that LIC IPO could hit the market in FY21-22. The good news for LIC policyholders is that up to 10 per cent of IPO may be offered to them.
The country’s telecom sector has gone through cataclysmic change. From about two dozen players, it is now reduced to three telecom service providers. Falling average revenues per user or ARPUs — and now the payment of Adjusted Gross Revenue (AGR) to the government — has broken the back of the debt-laden service providers. Vodaphone, which is facing a bigger impact, has been looking for strategic alliance and name of Verizon International has cropped up. Meanwhile, Vodaphone-Idea has gone for another name change — sixth time in the last 25 years, in line with change in ownership pattern. It started with Max (promoted by Analjit Singh) then became Orange, and then followed by Hutch, Vodaphone and finally, after merger with Idea –Vodaphone-Idea. Now, this consolidated name has a new, abbreviated identity – Vi. People are reading between the lines about the new abbreviated name. Watch this space for more development.
The speed and alacrity with which Satyam Computer, the brainchild of Ramalinga Raju; YES Bank, promoted by Rana Kapoor; and Lakshmi Vilas Bank (LVB) were bailed out by the Union government seems to have surprised everyone. No government since Independence has moved at this sort of lightning speed to resolve such tricky, tortuous issues. Seeing the government’s bailout overdrive, especially in relation to YES Bank and LVB, some of the Opposition parties attributed motives, saying it was shielding people aligned to the government. Be that as it may, the government’s move has certainly given succour to the aggrieved depositors of both the banks. And it is this kind of relief that the shattered depositors of PMC Bank have been clamouring for since the news of the Rs 4,300-crore money laundering scam hit the bank. The angry depositors of PMC Bank staged dharna in front of the RBI, dashed off letter to the finance minister Nirmala Sitharaman. But of no avail. Seeing depositor’s hapless state, Republic TV ran a high decibel campaign. Republic TV revealed that a letter was written on January 28, 2011 by Manpreet Kaur to the then Chief General Manager in-charge, Urban Banks Department, RBI about bank’s misdoings way back in 2011. There is hope for depositors as there are many suitors eager to take over this bank.
The late Big Bull Harshad Mehta was in the news. This time for reel life – a movie The Big Bull starring Abhishek Bachchan and The Scam 1992 : The Harshad Mehta Story and A 10-episode series, based on a book, sketches his dramatic rise and tragic fall. The brain behind the 1992 Securities Scam, Mehta never displayed emotions openly. He was always smiling and had a swagger. He greeted people with Jai Shri Krishna, an usual greeting among the Gujaratis. Like the movie Sholay a lot of his one liners have become immortal. He once told a few journalists after being caught: “Badnam hua tho kya hua, naam tho howa! His another famous line was: “India is a turnaround scrip.” True to his words, the Sensex in 1992 zoomed from 1,000 points to 4,546. The Big Bull was yoked and jailed in 1992. But after his release from the jail, his fan following did not dwindle; in fact it increased. A huge crowd was seen waiting for him at a book launch at a Crossword book store in south Mumbai that he attended. Many took his autographs. Out of jail he was back punting on scrips like BPL, Videocon and Sterlite. Interestingly, he wrote Guest Column for The Financial Express and had plans to launch a TV channel called Money Television. But a story in Business Standard in 1996 scuttled his IPO plans for the proposed TV channel. In the end, despite amassing huge wealth, he died in a Thane jail. He got a massive heart attack. It was a short lived bull-run.
ends
TRENDS & VIEWS
Editor’s Note: Big Punch In Small Pack
It is the Third Anniversary of Short Post and as a news media startup launched during the Covid-19 pandemic it certainly feels better than good to find ourselves where we are today. Here, I must cite the unstinted support of our seasoned contributors, all senior editors in the country, who brought a great degree of maturity and sagacity to the Short Post newsroom. But for them, our tagline “Authentic Gossip”, an Oxymoron, would not have matured viably. Our user numbers may be small but our stories have created the desired impact among people who matter — decision makers and influencers. We offer a big punch in a small pack and Short Post with its 225-word stories has been punching above its weight category. Having posted close to 3,000 stories in the last 36 months, Short Post, I feel, is an idea whose time has come.
And this is vindicated by our two marquee advertisers – IDFC FIRST Bank and ICICI Lombard. Both believed in our story and have supported us from Day one. A big thank you to both.
If you look at the media landscape – print, TV and digital — it is a mixed bag. There are job losses as some outfits have closed down while a lucky few were bailed out by large corporate houses. Yes, there is a lot of action in the digital space. However, the entry of corporate houses has raised the question of independence of news media outfits. Sadly, there are just a handful of independent media outfits in the country that are highly respected for their neutrality. At Short Post, our credo is not to take sides, prejudge issues or be biased but, informing readers of behind-the-scenes happenings. In essence, Short Post strives to be a neutral editorial platform — neither anti-establishment nor pro-establishment.
As I said last year, disruptions in the media world are moving at a fast and furious pace. Technology is playing a very big role in how content is generated and consumed. But, we are neither alarmed nor perturbed as it is all a part of the evolution process. What gives us comfort is that AI is unable to create original gossipy content. And that is the news arena where we have achieved a distinction.