the economic times - sme ipo · ms dhoni looks dejected during the world cup semi-final match in...

FRIDAY, 27 MARCH 2015

Ford’s Vision is to Make India its Export Hub: CEOBUSINESS OF BRANDS�� 6

India to Woo Investors withCulinary Skills in HannoverECONOMY�� 19

Retro Tax Not Applicable onDividends by Foreign FirmsCOMPANIES�� 9

BENNETT, COLEMAN & CO. LTD.THE ECONOMIC TIMES

WWW.ECONOMICTIMES.COM

Kejriwal Request for Chaturvedi as OSD Still Pending with MoEFArvind Kejriwal’s request for the appointment of

Indian Forest Service officer Sanjiv Chaturvedi as

his officer on special duty, made more than a

month ago, is still pending with the ministry of

environment, forests & climate change.

Pure Politics��2

llllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll

Aditya Birla Group to Start EcommWebsite for Pantaloons SoonAditya Birla Group will start an e-commerce web-

site for Pantaloons in the coming weeks to ex-

plore the booming online business in India.

Business of Brands ��6


VoiceTree Technologies Plans toRaise $4 million by Year-endDelhi-based start-up VoiceTree Technologies,

which is also a service provider for AAP’s help-

line, plans to raise its first round of fund, $4 mil-

lion, by the end of this year.

Startups & Tech ��7


As Industry Braces for Recovery,Hotel Chains See Change of GuardThe Oberoi Group has elevated Vikramjit Oberoi

to the post of CEO while the Taj Hotels has seen a

complete reshuffle over the past one month un-

der new chief executive Rakesh Sarna.

Companies ��8


Govt May Rope in Private SectorProfessional to Head Air IndiaThe civil aviation ministry may turn to the pri-

vate sector to find a suitable candidate to head

Air India, the minister of state said on Thursday.

Companies�� 8


92% of People in 6 Mega Cities, 11Tier-II cities Shopping OnlineThere is no stopping ecomm boom. Six mega ci-

ties and 11 tier-II cities, which account for more

than half the wealth in India, has nearly 92% of its

people shopping online, suggests a Visa study.

Markets & Finance��14


UBI, Hudco Scrap Bond Issues After Higher Payout DemandUBI and Hudco have scrapped their fund-raising

plans in bonds as yields have hardened after the

US Fed hinted at possibility of rate hike this year.

Markets & Finance��14


PSBs May Make Presentations to FMon Fund Requirements, Biz PlansPublic sector banks may now make individual

presentations to finance minister, Arun Jaitley on

their capital requirements and business plans.

Economy ��19


India Inc: Let Cos Accept DepositsWithout Insurance Contract for a YrIndia Inc has urged government to allow private

companies to accept deposit from public without

the deposit insurance contract for one more year.

Economy ��19

Inside story

Oil prices may hit $100 a barrel by 2016,says an analysis. Do you agree?

www.economictimes.com

Should the rupee be allowed to depreciate to push up exports?

TODAY’S QUESTION

43%YES

52%NO

5%CAN’T SAY

-2.21

-2.33

-0.84

-1

-0.53

1.58

3.29

4.76

% CHANGE

Re/US $

Gold Std*

Silver (`/kg)

Brent ($)

*(`/10gm) Compiled by ETIG Database

Nifty

Sensex

BSE Midcap

BSE Smallcap

LAST

8,342.15

27,457.58

10,355.03

10,474.56

62.67

27,000

39,300

56.95

Market Tracker

Our Bureau

New Delhi: The Delhi HighCourt has observed that the re-jection of winning bids of Jin-dal Power & Steel Ltd (JSPL)for two coal blocks in Chhattis-garh was ‘prima facie’ wrongas the government was mak-ing a mistake in comparing thebids with quotes received forother blocks.

The government rejected thebids, which were much lowerthan the price quoted for oth-er blocks, on the ground thatthey did not reflect the fairvalue of the blocks. The court

in the course of hearings onThursday, observed that thisdid not seem fair, and amount-ed to comparing apples withoranges.

The high court will againhear the case on Friday andasked the government to workout an interim arrangementfor the blocks.

Setback for Government��21

‘Govt making mistake

in comparing bids

with quotes received

for other blocks’

Vikas Swarupto be new MEASpokesperson

He became famous as the

author of ‘Q&A,’ the book that

was made into the Oscar-

winning blockbuster ‘Slum-

dog Millionaire.’ And now,

Vikas Swarup — a 1986 batch

Indian Foreign Service offi-

cer — will continue to remain

in the limelight in a new role

— as the next foreign minis-

try spokesperson. Swarup

will succeed Syed Akbarud-

din in mid-April, reports

Dipanjan Roy Chaudhury.FULL REPORT ��4

Our Bureau

Mumbai: Move over, banks.Consumer businesses are thenew breeding ground for thenext generation of women busi-ness leaders in India. Over athird of the 25 women in the ETCorporate Dossier – SpencerStuart listing of India Inc’s Ris-ing Women Leaders 2015 work inthe consumer sector.

“The pool of “top talent” is rel-atively shallow relative to thesize of our corporate populationand there is indeed the need forinclusive thinking and diversi-ty,” says Anjali Bansal, MD,Spencer Stuart India, comment-

ing on the study. “Some industri-es are developing more womenleaders, such as consumer. Com-panies will have to scale up theirefforts to attract, retain and de-velop more women leaders,”adds Bansal.

There is another pointer thatwomen leaders are concentratedin only a few pockets of IndiaInc: nearly 56% of all women inthe list are working for MNCs.The list features women leadersfrom MNCs like Mondelez, Uni-lever, Nike, P&G, PepsiCo, Bax-ter, Castrol and McKinsey. MNCsare indeed working harder attheir mandate for diversity. Theaverage age of women featuredin the listing was 38.5 years.

Budding Women Stars of India IncLEADERSHIP FACTORY FMCG cos account for a third of ET Corporate Dossier-Spencer Stuart list

Vasudha Venugopal & Aman Sharma

New Delhi: Once bitten, forevershy? That seems to the state of thecentral government, which,stung by the Nirbhaya documen-tary episode of a few weeks ago,has set into motion a process totighten guidelines for monitor-ing films and documentaries be-ing shot in India, especially byforeigners.

Officials in three ministries —Home, Information & Broadcast-

ing and the Minis-try of ExternalAffairs — havebeen ordered tokeep a closewatch on propos-als for shootingmovies or docu-mentaries, espe-cially by foreign-ers, that are

pending approvals, officials inthese ministries have told ET. Aspart of this exercise, more than200 permissions granted in thepast couple of years will now be

reviewed, ostensibly to ensurethat these “do not spoil the imageof the country”.

“There is already a three-layeredcheck in place, but it was circum-vented in the case of India’sDaughter,” said a senior officialin the I&B ministry, referring toLeslee Udwin’s documentary filmon the Nirbhaya rape case of 2012whose telecast by the BBC earlierthis month put an unflatteringspotlight on the attitude towardswomen in India.

‘Fool-proof System’��21

Govt Scripts NewApproval ProcessPost Nirbhaya Film Plans to tighten norms

for monitoring films

and documentaries

being shot in India

Morethan 200permissionsgranted in thepast couple ofyears willnow bereviewed

The Issue: JSPL made the best bid but at a price lower than the other mines

Govt View: The bid looks suspicious, doesn’t reflect true value

Coal Block Row: The Story so Far

JSPL Action: Seek discussion with coal ministry, approach high court

JSPL VIEW : Auction was transparent, government action puzzling, made prudent bid

Govt Action:Rejects the best bid and lets Coal India get the block

OUTPLAYED: Australian players celebrate after Ajinkya Rahane is given out while captain MS Dhoni looks dejected during the World Cup semi-final match in Sydney.

Sensex slides 2.33%, the biggest drop in a day since January 6

Our Bureau

Mumbai: Indian stocksslumped the most in more thanthree months after Saudi Ara-bia and its allies attacked re-bels in Yemen, sending shiversdown the spine of investorsstaring at geopolitical strifeintensifying in West Asia.With oil prices shooting upand gold surging, traders look-ing for relief in cricket hadtheir hopes dashed by a sub-stantial 95 runs.

Still, the Aus-tralia-IndiaWorld Cupsemi-final mayhave at least of-

fered brief glimmers of hopeduring the course of the matchon Thursday, such as when MSDhoni blasted his two sixes.Not so the markets, and what’sworse is there could be morepain to come as the Sunni-Shiachasm grows wider, threaten-ing oil supplies. Stocks andcurrencies dropped, boostingdemand for gold.

The Sensex fell 2.33%, the big-gest drop in a day since Janu-ary 6, as investors dumped ex-

pensive stocks on worries thatfourth-quarter results coulddisappoint and the rise in oilprices may delay cuts in inter-est rates by the Reserve Bankof India.

The nervousness was evidentin rise of the Volatility Index.

Outlook Remains Jittery��21

Yemen Air Strikes SendD-St Ducking for Cover

[email protected]

Mumbai:A new definition, sepa-rate trading platform and higherentry barrier to discourage risk-averse small investors will formthe contours of a new set of rulesto enable startups to list on stockexchanges.

Capital market regulator Sebi,which is preparing a discussionpaper on the subject, will also re-lax disclosure norms relating touse of funds raised in maiden

public stock offer-ing by such com-panies. Eventhough most star-tups — backed byventure capital-ists and angel in-vestors — are lossmaking and maynot attract toomany retail inves-tors, the Securi-

ties and Exchange Board of India(Sebi) fears that an absence of list-ing opportunity in India coulddrive these firms to tap overseasbourses that offer softer regula-tions and easier listing facilities.

The regulator plans to define‘startups’ — where no singlestakeholder or interest groupholds 25% or more equity stake —as “professionally managed com-panies”, said a person familiarwith the discussions.

Flexibility in IPO Prospectus��21

New Rules on Cards forStartup Listing

BOURSES CALLING

Govt Wants Partof Spectrum FeeBefore March 31Telcos need to pay

25% of bid amount in

10 days, but may fail

to meet govt request

are unlikely to be able to makethe payment in the next five days,as requested by the minister.

“We haven't yet received a noti-fication from the ministry. Sup-pose we were to receive it tomor-row, then we have a weekend inbetween, when no work can bedone and finally Monday andTuesday before the fiscal getsover,” a top industry officialsaid. Some companies will needto get board resolutions passed,which will also take time.

Idea has to Shell out Most��21

Our Bureau

New Delhi: Telecom ministerRavi Shankar Prasad has urgedtelcos to cough up the nearly.̀ 29,000 crore initial paymentdue from the spectrum auctionsby March end as it tries to rein inits fiscal deficit, a request whichis unlikely to be met by oper-ators reeling from steep biddingat the sale.

“I am request-ing the oper-ators to help usrein in the fiscaldeficit. It wasnot a personal fa-vour but in na-tional interest.The governmentneeds revenue tocarry out gov-ernance,” Tele-com MinisterRavi ShankarPrasad told ET.

The govern-ment has budgeted around.̀ 11,000 crore to meet its fiscal def-icit target of 4.1% of GDP for thisfiscal year, which is far lowerthan the .̀ 28,872 crore that it ex-pects to come in as upfront pay-ment from operators. At least afourth of the total winningamount needs to be paid within10 days, starting Thursday – theday the results were declared af-ter being allowed by the SupremeCourt – but operators say they

PAYMENT WILL REDUCE FISCAL DEFICIT

What Govt is Looking ForOperator Total price (` cr)

Upfront Payment (` cr)VODAFONE25,959.746,867.93

AIRCEL2,250742.50

BHARTI29,130.27,832.58

IDEA30,306.987,790.10

RCOM4,299.131,106.95

R JIO10,077.532519.38

TATA TELE7,851.332,013.33

TOTAL1,09,874.912,88,72.77SOURCE: Telecom department, ministry of communications & IT

Starting AfreshMinimim IPO application size will be `5 lakh

A new defi nition – ‘professionally managed cos’ – will apply to cos where no shareholder owns or more

Startups will not have to spell out fund use in detail

`` `

LARGE NBFCS, SEBI REGISTERED FAMILY OFFICES, TRUSTS WILL BE ALLOWED TO INVEST

Separate listing platform for startups. They can migrate to main listing platform of SEs a year later

25%

Norms expected tolure startups, butwill keep retailinvestors at bay

Sebi fearsboursesabroad maytap thesefirms inabsence offavourablenorms inIndia

PAGES ��6, 22

India’s Hopes Hit for a Six

Markets On a Slippery Ground Biggest Sensex Falls DATE SENSEX %ABS CHG

06-01-2015 26987.46 -854.86

26-03-2015 27457.58 -654.25

09-03-2015 28844.78 -604.17

16-12-2014 26781.44 -538.12

30-01-2015 29182.95 -498.82

Source : ETIG Database

Nifty Gainers & Losers Company Close %Chg

GAINERS BPCL 762.3 1.82

Bharti Airtel 399.65 1.18

UltraTech Cement 2795.8 1.08

NMDC 125.3 0.8

Ambuja Cement 250.1 0.52

LOSERS DLF 159.3 -3.48

Sesa Sterlite 188.3 -4.32

Wipro 631.9 -4.42

PNB 148.15 -4.73

HDFC 1283.7 -5.23

Sectoral Losers ET INDEX CLOSE %CHG

ET NBFC 41027.33 -3.87

ET Banks 19211.01 -2.49

ET Infotech 8777.05 -2.45

ET Logistics 45412.34 -2

ET Shipping 12758.66 -1.99

Crude oil prices jumped

more than 4% on Thurs-

day after the Yemen air

strikes. The turmoil also boosted

gold, precious metals.��13

Raids Push upGold, Crude Prices

The chief Marseille prosecu-

tor handling the investiga-

tion into the crash of the

Germanwings jetliner said on Thurs-

day that evidence from the cockpit

voice recorder indicated that the co-

pilot had deliberately locked the cap-

tain out of the cockpit and steered the

plane into its fatal descent.��17

‘Co-pilot CrashedGermanwings’

RIL believes that pow-

er station stranded by

the acute shortage of

natural gas were not built on the

basis of fuel supply from its de-

pleted KG-D6 fields.��9

‘KGD6 no Factorin Power Crisis’

Rejecting JSPL’s WinningBids Wrong, says Delhi HC

‘No Scarcity Created’Ravi Shankar Prasad tells Anandita

Singh Mankotia that the spectrum

auction results vindicate the govern-

ment’s stand that there was ample

airwaves put up for sale and no artifi-

cial scarcity was created.�� 10

RAVI SHANKAR PRASADTELECOM MINISTER

Q&A

WHY THEOIL ROIL��PAGE 17

SALA

M

Attempts at reconversion or asking Hindus to have

more children are at odds with Hinduism’s tradi-

tions, noted spiritualistJaggi Vasudev tells

Vasudha Venugopal in an interview.��4

Jaggi Vasudev on Hinduism

RCOM LOSESSPECTRUMIN 3 CIRCLES��PAGE 10

Vodafone,Bharti, Ideawin back900 Mhzspectrum inrespectiverenewalcircles

AFP

MUMBAI | 22 + 4 PAGES OF CORPORATE DOSSIER + 6 PAGES OF ET PANACHE | .̀ 3.00 OR .̀ 7.00 ALONG WITH THE TIMES OF INDIA

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the economic times - sme ipo · ms dhoni looks dejected during the world cup semi-final match in...

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