BACK PAGE, P18 COMPANIES, P4 INTERNATIONAL, P7 SIMPLE & CEREBRAL RECOVERY REMAINS SLOW SECURING SUPPORT Siraj's 6/15 helps India bowl South Africa out for 55 at Cape Town Weak rural demand likely to hit FMCG volumes in Q3 Disney to work with ValueAct to counter billionaire activist Peltz NEW DELHI, THURSDAY, JANUARY 4, 2024 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL XLIX NO. 264, 32 PAGES, `12.00 (PATNA & RAIPUR `12.00) P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E SENSEX: 71,356.63 ▼ 535.85 NIFTY: 21,517.35 ▼ 148.45 NIKKEI 225: 33,464.17 ▼ 75.45 HANG SENG: 16,646.41 ▼ 142.14 `/$: 83.29 ▲ 0.03 `/€: 91.10 ▲ 0.69 BRENT: $76.51 ▲ $0.62 GOLD: `62,818 ▼ `548 IN THE NEWS BAJAJ AUTO TO CONSIDER SHARE BUYBACK ON JAN 8 BAJAJ AUTO on Wednesday said that its board of directors will consider a share buyback proposal on January 8, reports Geeta Nair. Talking to CNBCTV18, MD and CEO Rajiv Bajaj (in pic) said the buyback is an efficient way to return capital to shareholders. ■ PAGE 4 WIPRO SUIT: COURT ALLOWS DALAL’S ARBITRATION PLEA A CIVIL court in Bengaluru has referred the lawsuit involving Wipro and its former CFO Jatin Dalal to arbitration, allowing his plea, reports Sameer Ranjan Bakshi. Wipro had moved court against Dalal and sought `25.15crore damages from him, along with 18% interest per annum till the date of payment. ■ PAGE 4 NO HALTTO SALE OF WHEAT & RICE BY FCI THE GOVERNMENT will continue to sell surplus grain stock in the open market to control the rise in cereal inflation, a senior food ministry official on Wednesday said, adding it has more than double grain stock for market intervention, reports Sandip Das. ■ PAGE 3 XIAOMI CHARTS GROWTH PLAN FOR NEXT 3 YEARS CHINESE SMARTPHONE maker Xiaomi is banking on an end-to-end premiumisation play, integrated smartphone artificial intelligence of things offering, and omnichannel strategy for its next leg of growth over three years, India president Muralikrishnan B said, reports Jatin Grover. ■ PAGE 4 OVER 100 DEAD IN BLASTAT IRAN COMMEMORATION TWO EXPLOSIONS killed over 100 people and wounded scores at a ceremony in Iran on Wednesday to commemorate top commander Qassem Soleimani who was killed by a US drone in 2020, Iranian officials said. ■ PAGE 7 FE S P E C I A L S ‘Failing fast is key to innovation’ Data and AI often create new industry value chains, says Infosys’s Sunil Senan ■ eFE, P9 Behind the post facto environment clearance debate The Supreme Court has just stayed a January 2022 environment ministry notification allowing this ■ EXPLAINER, P9 Manufacturing PMI hits 18-month low HINDENBURG REPORT: 3-MONTH DEADLINE FOR SEBI SC refuses CBI probe against Adani Group RAJESH KURUP Mumbai, January 3 DAY OF HIGHS IN A REPRIEVE to Adani Group, the Supreme Court on Wednesday refused to transfer the investigation currently being carried out bythe Securities and Exchange Board of India (Sebi) to the Central Bureau of Investigation (CBI) or a special investigation team (SIT). The verdict prompted Adani Group chairman Gautam Adani to tweet:“Truth has prevailed”. Stating that its power to enter the regulator’s domain was INSIDE “limited”, the apex It’s yesterday court asked Sebi to conclude its investionce more gationintotheallega■ PAGE 4 tions by US-based M-cap zooms short-seller HindenburgResearchwithin to `15 trn three months. ■ PAGE 6 The three-judge bench comprising Sebi gets vote Chief Justice DY of confidence Chandrachud and Justices JB Pardiwala ■ PAGE 8 and Manoj Misra dismissed all writ petitions filed in February 2023, raising concerns over the decline in investor wealth and volatility in the share marketduetoafallinthesharepricesofthe Adani Group companies. “The court must refrain from substituting its ownwisdom overthe regulatory policiesofSebi.Thescopeofjudicialreview when examining a policyframed bya specialised regulator is to scrutinise whether it violates fundamental rights, any provisionoftheconstitution,anystatutoryprovisionorismanifestlyarbitrary,”courtsaid Company Falls to 54.9 in Dec on fading demand for certain products GAUTAM ADANI ON SC JUDGMENT (January 3, 2024) PRIYANSH VERMA New Delhi, January 3 Price (`) % gain* Adani Energy Solutions AdaniTotal Gas 1,099.05 Adani Green Energy 11.6 1,183.90 1,698.75 Adani Power 6 5 544.65 AdaniWilmar 9.8 381.05 Adani Enterprises 3.7 3,003.95 Adani Ports 1,093.50 2.5 1.4 0.9 535.60 Ambuja Cements 2,270.00 ACC INDIA’S MANUFACTURING PURCHASING Managers’ Index (PMI), maintained by S&P Global, fell to an 18-month low of 54.9 in December from 56.0 the previous month, primarily due to fading demand for “certain types”of products. With the latest reading, manufacturing PMI averaged 55.5 in the October-December quarter of FY24,the lowest in six quarters. Data released on Friday showed that the year-on-year growth in production of core industries fell to a six-month low of 7.8% in November. Sequentially too, the core industries’ output declined by 3.4% during the month.The goods and services tax (GST) collections grew at a three-month low of 10.3% in December (November transactions). However,despitea lossofgrowth momentum in December, there were softer, albeit sharp,increases in factoryorders and output, S&PGlobalsaid.BoththeDecemberandquarterly PMI print were lower sequentially, but higher than the long-term average. Manufacturing PMI has remained in the expansion zone (print above 50) for 30 months in a row. December data, however, showed the 21st consecutive increase in international 4 281.60 NDTV TRUTH HAS PREVAILED. SATYAMEVA JAYATE 0.1 *over previous close FROM THE VERDICT SUCH POWER (TRANSFERRING THE THE CASE TO AN SIT OR CBI) IS EXERCISED ONLY IN EXTRAORDINARY CIRCUMSTANCES WHEN THERE ARE GLARING, WILFUL & DELIBERATE INACTION IN CARRYING OUT INVESTIGATIONS. —SUPREME COURT in its judgment. The SC also said that“no valid grounds” were raised for the court to direct Sebi to revokeitsamendmentstoforeignportfolio investorsandlistingregulationsasthepro- cedure followed in arriving at the current shape of the regulations does not suffer from irregularityorillegality. Continued on Page 17 Haven’t told OMCs to cut fuel prices: Puri Akasa Air adds 2 Boeing 737 MAX 8 to fleet ARUNIMA BHARADWAJ New Delhi, January 3 AGENCIES New Delhi/Mumbai, January 3 a highly turbulent situation. There are two areas on the global map which are in conflict situation.” PETROLEUM AND NATURAL GAS He emphasised on the current turbuminister Hardeep Singh Puri on lence in the global oil markets,including Wednesday asserted that the govern- the disruption of major shipping routes, ment has not asked state-owned oil the Red Sea, and said that India is navimarketing companies gating through the situ(OMCs) to reduce ation very carefully. HARDEEP SINGH PURI, retail prices of petrol “This is a highly PETROLEUM & NATURAL and diesel. volatile situation GAS MINISTER Refuting reports that and our primary responthe OMCs may cut prices sibility is to ensure availALL THESE of the auto fuels, given ability and affordability,” REPORTS (ON FUEL the recent moderation in the minister said. global crude oil prices, Puri’s comments PRICE CUT) ARE NOT and the coming ParliaONLY SPECULATIVE, come after reports sugment elections,Puri said: gested that fuel prices, BUT ALSO SLIGHTLY which are deregulated, “First of all, all these media reports (on fuel may be cut in the range of MISCHIEVOUS price cut) are not only `4-6 per litre, and a prospeculative, but I would posal under consideraalso turn around and say, tion involves governslightly mischievous. I ment and OMCs to bear have clarified that there equal burden of it (the have been no discussions former via excise/cess with OMCs (in this cuts and the latter, vial regard).” retail price cuts). The OMCs have kept fuel prices unchanged Continued on Page 17 since April 2022. ■ Oil purchases from Addressing the Russia not hit by any media here, the minispayment crisis: ter also said:“We are in Minister, Page 2 DOMESTIC CARRIER Akasa Air on Wednesday said it has recently added two Boeing 737 MAX 8 aircraft to its fleet. With this, the airline closed the calendar year 2023 with a fleet of 22 aircraft, including 21 Boeing 737 MAX 8 and one Boeing 737 MAX 8 200. Akasa, which has Rakesh Jhunjhunwala’s family as one of the investors,commenced operations in earlyAugust 2022. “The additions to our fleet will help us bolster the strength of our operations as we expand our footprint and foray into international skies in the coming months,” said Vinay Dube, founder and CEO,Akasa Air. The airline connects with 17 cities across India — Mumbai,Ahmedabad,Bengaluru, Chennai, Kochi, Delhi, Guwahati, Agartala,Pune,Lucknow,Goa,Hyderabad, Varanasi,Bagdogra,Bhubaneswar,Kolkata and Port Blair. Reuters reported on Tuesday that the budget carrier is set to close an order for around 150 Boeing 737 MAXnarrowbody planes,quoting two unnamed sources. Akasa is the country’s newest airline and has garnered market share of 4% since it started flying in 2022, against IndiGo’s 60% and Tata Group airlines’ combined 26%. DECEMBER DROP 64 PMI Services 62 58.5 60 Nov ‘23 ‘2 56.9 56.9 58 56 Manufacturing 54.9 57.8 54 Dec 2022 Dec 2023 Note: Reading below 50 suggests contraction and above it indicates expansion Source: PMI by S&P Global order receipts at goods producers in India. Companies noted gains from clients in Asia, Europe, West Asia and North America, according to S&P Global. Continued on Page 12 Vedantawins bondholders’ backing to restructure debt RAJESH KURUP Mumbai, January 3 LONDON-HEADQUARTERED VEDANTA Resources(VRL),theparentcompanyofIndian mining majorVedanta,received bondholders’ approvaltoextendthematurityperiodoffour series of bonds worth $3.2 billion due in the next three years. The bondholders approved extension of thedeadlinewithvotesrangingbetween97% and 100% in favour of the proposal, in contrastwith the minimum 66.7% required. The results came after the voting for the proposal ended on Tuesday,VRL said in a regulatory update on Wednesday. Followingthenod,itwillmeetbondholders onThursdaytopassanextraordinaryresolution for each bond.The bonds are listed on the Singapore Exchange SecuritiesTrading (SGX-ST). If the consent conditions are not satisfied by January 29, 2024, the solicitations will be terminated. Earlier on December 14, VRL sought investors’approvaltoextendthematuritydate of its $3.15-billion dollar bonds, even as it secured $1.25-billion new funding to repay part of the debt.VRL also offered to pay $779 million by early February for the three bonds — due in January 2024, August 2024 and March2025—andhassoughtextendingtheir maturity periods for as much as four years through a consent solicitation exercise. The company intends to repay the bonds using a mix of cash and newbonds. The company, helmed by Anil Agarwal, would also use $1.25-billion proceeds from a new financing for the partial pre-payment of the bonds, it said in an investor presentation. With the consent exercise, VRL will improve the current structure and economics of the bonds through an improved secu- MAJORITY VOTE ■ Nod is to extend maturity period of four series of bonds worth $3.2 billion due in next three years ■ Bondholders approved extension of deadline with votes ranging between 97% and 100% in favour ■ To meet bondholders today to pass extraordinary resolution for each bond rity package, priority derisking or repayments and other enhancements. Vedanta Resources Investments and Vedanta Holdings Mauritius II, the whollyownedsubsidiariesofVRL,weretheborrowers. VRLwillexchangeabouthalfoftheJanuary 2024 bonds with the new bonds maturing in January2027,andmostoftheAugust2024and March 2025 bonds with the new ones maturing in December2028. VRL has a debt maturity of $1 billion in 13.875% bonds due in January 2024, which thecompanywantstorefinancebyDecember 23, and another $1 billion due in August 2024.Furthermore,it has a $3.1-billion debt obligation in FY25. COMMUNICATIONS SATELLITE DESIGNED TO MEET CONNECTIVITY NEEDS OF REMOTE AREAS In a first, Musk’s SpaceX to launch Isro satellite EXPRESS NEWS SERVICE New Delhi, January 3 IN A FIRST, India will launch a heavy communication satellite GSAT-20 on-board the Falcon-9 launch vehicle of Elon Musk’s SpaceX, NewSpace India, the commercial arm of Isro, said on Wednesday. The launch is scheduled for the second quarter of 2024,according to the statement by NewSpace India (NSIL). For satellites weighing more than 4,000 kg, India so far depended on the European launch provider Arianespace. However,its heavy launch vehicle Ariane5 was retired in July last year and its successor Ariane6 is NEW LAUNCHPAD ■ NewSpace India, the commercial arm of Indian Space Research Organisation, has signed a contract with SpaceX for the launch in second quarter of 2024 yet to make its debut. India has to launch the heavy satellites with other launch providers because even its ■ GSAT-20 is the second 'demand-driven' communications satellite funded and operated exclusively by NewSpace India heaviest-lift launch vehicle LVM3 is only capable of carrying only 4,000 kg to a Geostationary Transfer Orbit (GTO). ■ The first, GSAT- 24, was launched in mid-2022 on a European Ariane 5 rocket ■ GSAT-20, to be renamed GSAT-N2, will have Ka-Ka band high throughput satellite capacity with 32 beams SpaceX’s Falcon-9 is capable of placing 8,300 kg payloads into GTO. “(It)…will be launched on-board Falcon9 under a launch service contract between NSIL and SpaceX,” the statement said. It is the second “demand driven” satellite launch by NSIL after GSAT-24 last year that was launched for TataPlay services. The 4,700 kg GSAT-20 satellite will provide cost-effective high throughput services (HTS) mainly for broadband, in-flight maritime connectivity, and cellphone services. “Bulk of the HTS capacity has on-board GSAT-20 satellite has alreadybeen secured byIndian service provider,” NSIL said. The satellite will have 32 beams offering pan-India coverage, including Andaman and Nicobar Islands and Lakshadweep. New Delhi The satellite has been specifically designed to meet the service needs of remote and unconnected areas, according to the Indian Space Research Organisation (Isro). With plans to set up a space station and taking humans to moon, the Indian Space Research Organisation is working to develop heavy-lift launch vehicles. The Next-Generation Launch Vehicle (NGVL) that the space agency is working on will have a capacity to carry 10,000 kg to a GTO. The GSAT-24 mission was fully funded by NewSpace India. The commercial arm of Isro currently owns and operates 11 communication satellites in orbit.