Corporate News - June 2024

PERSONS IN NEWS

Sony Pictures Networks India appoints Disney Star's Mr. Gaurav Banerjee as new Managing Director and Chief Executive Officer

Sony Pictures Networks India (SPNI) has appointed Mr. Gaurav Banerjee as its new managing director and chief executive, effective on or before 26 August. Mr. Banerjee will succeed Mr. N. P. Singh, who stepped down last month after a 25-year tenure. Mr. Banerjee previously served as head of content for Hindi entertainment and Disney+ Hotstar, and business head for Star Bharat, Hindi and English movies, kids and infotainment, and regional (east). In these roles, he oversaw content curation across several languages and also spearheaded original series and films.

Paytm appoints Mr. Rajeev Agarwal, IRS (Retd.) as Non-Executive Independent Director

Paytm announced the appointment of Mr. Rajeev Krishnamuralilal Agarwal as a non-executive independent director, marking the latest change to its board of directors. This appointment is effective immediately. Simultaneously, the board accepted the resignation of Mr. Neeraj Arora from his position as a non-executive independent director, citing preoccupation and other personal commitments. Mr. Agarwal, an engineering graduate from IIT-Roorkee and a member of the 1983 batch of the Indian Revenue Service, brings extensive experience in securities markets, commodity markets, and taxation. With over four decades of experience in the stock market, including 28 years with the Indian Revenue Services, he has played a crucial role in significant market policy reforms. As a whole-time member of SEBI, he contributed to major initiatives such as the revival package for the mutual fund industry in 2012 and the merger of the Forward Markets Commission with SEBI in 2015.

Global Wind Energy Council India appoints Mr. Girish Tanti from Suzlon Group as New Chairman

Suzlon Vice Chairman, Mr. Girish Tanti, who also serves as the Vice Chair of GWEC, has now been elected as the Chairman of the Global Wind Energy Council, India (GWEC India). As the world's fourth-largest wind market, with 46 GW of onshore wind and one of the world's most prominent wind energy manufacturing hubs, Mr. Tanti's leadership at both GWEC and GWEC India is poised to further catalyze momentum. Driven by the ambitions of the Hon'ble Prime Minister of India, his leadership will accelerate dialogue and delivery to ensure the country's enormous potential is realized.

ECONOMY

india surpasses hong kong to reclaim fourth spot in global equity market

India's equity market has once again outpaced Hong Kong, securing the position as the world's fourth-largest by market capitalization. With India's market value soaring to $5.2 trillion, bolstered by a 10% surge following a postelection market rebound, it now leads Hong Kong, which stands at $5.17 trillion after a 5.4% decline from its peak this year. This marks a significant shift in global market rankings, reflecting India's robust economic fundamentals and investor confidence. India's ascent is fueled by a burgeoning retail investor base, strong corporate earnings, and favorable policy reforms, cementing its status as an attractive investment destination. The country's stock market, characterized by a forward P/E ratio of 20x and a price-to-book ratio of 3x, underscores its growth potential amidst global uncertainties.

FMCG Firms to Strategically Boost Ad Spends as Demand Stabilizes

Makers of fast-moving consumer goods (FMCG) are cautiously planning to increase advertising and promotional expenditures despite a relatively stable commodity outlook, as they wait for stronger signs of demand revival. Advertising executives and industry watchers expect a significant increase in ad spends in the second half of this fiscal year. Companies are likely to ramp up their advertising efforts to drive greater volume growth. Historically, packaged goods companies have invested heavily in advertising. However, the past two to three years have been characterized by high inflation, leading companies to implement price hikes to offset increased input costs.

ESG

Mindspace REIT becomes the First Indian REIT to Issue Sustainability Linked Bond, Raising INR 650 Crore from IFC

Mindspace Business Parks REIT, a developer and owner of high quality Grade A office portfolios, announced its INR 650 Crore Sustainability Linked Bond issuance, placed with the International Finance Corporation (IFC), the private sector arm of the World Bank Group. The bond's coupon rate is linked to Mindspace's commitment to achieving specific ESG targets aimed at building a greener ecosystem. These targets include reducing greenhouse gas emissions (Scope 1, 2, and 3), increasing the share of green-certified areas for existing buildings (under operations and maintenance), and reducing energy intensity. The coupon rate of these bonds is fixed and will be reduced in a staggered manner based on the achievement of the set targets.

Denmark becomes First- Ever to Impose CO 2 Emissions Tax on Agriculture

Denmark is set to become the first country to impose a CO tax on agricultural 2 emissions, targeting livestock. This groundbreaking policy, achieved through extensive negotiations among various stakeholders, aims to significantly reduce greenhouse gas emissions. The tax will start in 2030 and incrementally increase by 2035, with revenues earmarked to support the farming sector's green transition. This initiative underscores Denmark's commitment to climate goals and sets a precedent for other nations. This bold move aims to inspire other nations to adopt similar measures. The government reached a consensus with farmers, industry, labor unions, and environmental groups on policies linked to agriculture, Denmark's largest CO emitter.

MERGERS AND ACQUISITIONS

UltraTech Cement acquires 23% stake in India Cements

UltraTech Cement announced that the company board has approved the acquisition of approximately 23 per cent equity stake in India Cements. The Board of UltraTech Cement has approved making a financial investment to purchase upto 7.06 crores equity shares of India Cements at a price of upto INR 267/- per share. This non-controlling financial investment constitutes around 23% of the equity share capital of ICL. This takes the total cost of acquisition to INR 1885 crores.

Dr. Reddy's to acquire Nicotinell portfolio products for £500 million

Expanding its global consumer healthcare OTC business, pharma major Dr. Reddy's Laboratories Ltd. has signed a definitive agreement with Haleon plc for the purchase of shares of Northstar Switzerland SARL, a Haleon Group company, to acquire its portfolio of consumer healthcare brands in the Nicotine Replacement Therapy category outside of the US. The acquisition size is £500 million, including an upfront cash payment of £458 million and performance based contingent payments of up to £42 million, payable in 2025 and 2026. The operations will transition to Dr. Reddy's in a phased approach to ensure successful business integration. The portfolio to be acquired consists of NRT brand Nicotinell and its local brand names Nicabate, Habitrol and Thrive in markets outside of the US.