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XLV 15, 30 PAGES, `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: 75,418.04 ▲ 1196.98 NIFTY: 22,967.65 ▲ 369.85 NIKKEI 225: 39,103.22 ▲ 486.12 HANG SENG: 18,868.71 ▲ 326.89 `/$: 83.28* ▲ 0.03 `/€: 90.32* ▲ 0.27 BRENT: $82.85 ▲ $0.95 GOLD: `72,557 ▼ `1,355 ZEE ON THURSDAY said that it has sought termination fee of $90 million from Sony Pictures Networks India and its entity Bangla Entertainment for calling off the $10-billion merger deal in January. ■ PAGE 4 PAYTM MAY CUT UP TO 20% OF WORKFORCE ONE97 COMMUNICATIONS, which is looking to reduce employee costs, may have to cut around 15-20% of its workforce this fiscal, reports Ajay Ramanathan. ■ PAGE 10 BUDGET MAY STICK TO INTERIM TAX ESTIMATES THE CENTRE, WHILE presenting its full Budget in July, is likely to stick to its tax revenue estimates made during the interim Budget, reports Priyansh Verma. ■ PAGE 2 FE S P E C I A L The hybrid red flag forTata Motors It has warned that a duty cut on hybrids will defeat the very aim of vehicular emission reduction ■ EXPLAINER, P9 points 22,967.65 A DAY AFTER the Reserve Bank of India (RBI) surprised the marketwith awindfall dividend of `2.1 trillion to the government,indices rose sharplyto theirlifetime highs. Market players believe that the higher dividend – more than double of what was budgeted – could have several positive implications INSIDE including reduction is government’s borStocks of rowing/fiscal deficit Adani Group soar as well as higher spending. ■ PAGE 10 Both the Sensex and Nifty rose 1.6% each on Thursday to close at 75,418.04 points and 22,967.65 points,respectively. The indices also hit theirlifetime highs – 75,499.91 points and 22,993.60 points – intraday. For Nifty50, it was the biggest single-day gain since January 29 in percentage terms. Even the BSE Midcap and BSE Smallcap indices continued to hit fresh lifetime high levels. 54,658.38 1,081.86 May 23 (close) 55,740.24 points (1.98%) 74,221 May 22 (close) 17.99 13.21 135.79 11.34 120.73 10.09 92.35 7.72 Axis Bank Overall, investor wealth soared by `4.29 trillion to a fresh record of `420.23 trillion (approximately $5.05 trillion). Not surprisingly, the financial sector ■ In FY24 too, Premji took a pay cut ofapproximately 20%,with his total compensation reducing to $769,456 (around `6.5 crore) from $951,353 (around `7.9 crore) last year ■ Premji was not granted any stock options in FY24 ■ Former CEO Thierry Delaporte’s total compensation was $20.11 mn (around `166.5 crore) in FY24 The company's former CEO Thierry Delaporte, ranked as the highest-paid CEO among the Indian IT companies for the second year straight year,earned a total compensation of $20.11 million (around `166.5 crore) in FY24. Continued on Page 13 ■ Oberoi Malls' app givesvouchers if shoppers upload bills installed automatic number plate recognition at malls for easy parking ■ It is evaluating face recognition of shoppers for better data analytics numberplaterecognitionatmallsfor easy parking and digital navigation tools for easy navigation of vehicles. Forum Malls,the malls company ofPrestigeEstates,usesretailGPT,an AI-driven platform that has interactivechatsforrealtimeassistanceand information on demand, retail insights for retailers and customer support.It also has awayfinding app and WhatsApp Chatbot, an interactive tool available through WhatsApp,whichcanbeactivatedbyscanning a QR code or clicking a link. It also uses robot as a service, wherein smart robots deliver food orders to customers'tables,saidVMuhammad Ali,CEO-retail,Forum Malls. 215.32 L&T ■ DLF has also to guide shoppers to next storewith discounts and offers Points ICICI Bank RETAILTHERAPY ■ DLFworking on how TOP SENSEX CONTRIBUTORS Reliance Inds 158.10 Malls reboot to stay relevant MALLS IN INDIA are rebooting the shopping experience to woo the modern-day customer.The bottomline is clear: Malls and the stores within have to meet customers where they are, instead of endlessly waiting for them to come to them. In a bid to stay relevant, malls are tapping into every click, every swipe and every purchase which is leaving behind a digital footprint – a treasure trove of data waiting to unlock the secrets of consumer behaviour. The country’s largest developer DLF, for instance, is reworking its loyalty app where mall shoppers get vouchersforthe purchases theyhave made. As part of the rejig, it is also working on guiding shoppers to the next store that has special offers and discounts and is evaluating face recognitiontogetdemographicdata. “Wearerebootingourloyaltyprogramme and trying to convince tenants to join it,” said Pushpa Bector, senior executive director and business head -retail at DLF,which operates Mall of India in Noida, DLF Emporio in Delhi among others in the national capital region. DLF has also installed automatic 75,418 HDFC Bank APPS, CHATBOTS HELP IN CUSTOMISED SERVICES RAGHAVENDRA KAMATH Mumbai, May 23 May 23 (close) Company NO PROFIT, NO VARIABLE WIPRO'S EXECUTIVE CHAIRMAN Rishad Premji did not receive any variable or commission pay for the second consecutive year in FY24. The variable or commission was withheld as the company's incremental consolidated net profit duringthefiscalwasnegative,Wiprosaid in its 20-F filing with the US Securities and Exchange Commission. Premji is entiINSIDE tled to a 0.35% commission on AI, GenAI incremental conto drive solidated net growth profits of the ■ PAGE 5 companyoverthe previous fiscal. In FY24, he also took a pay cut of approximately 20%, with his total compensation reducing to $769,456 (around `6.5 crore) from $951,353 (around `7.9 crore) in the previous year.As a result, his salary went down to$692,641(around`5.8crore)from $861,000 (around `7.2 crore), a year ago,withthebalancebeingotherlongterm compensation. Premji was not granted anystock options in FY24. points (1.61%) BSE BANKEX May 22 (close) Pay cut forWipro’s Rishad Premji again PADMINI DHRUVARAJ Bengaluru, May 23 1,196.98 1.63 (1.64%) SENSEX 1.64 May 23 (close) VIVEK KUMAR M Mumbai, May 23 369.85 Services 22,597.80 Bankex NIFTY May 22 (close) TOP SECTORAL GAINERS (%) Financial Services ZEE GROUP SEEKS TERMINATION FEE FROM SONY ON A RECORD RUN 2.28 SEBI ON THURSDAY proposed that the valuation of unlisted securities held by Alternative Investment Funds (AIFs) be carried out as per the guidelines issued by the eligible industry association, and not as per mutual fund regulations, reports Akshata Gorde. ■ PAGE 10 Financial sector stocks drive rally, investor wealth soars `4.29 trn 2.13 1.98 SEBI FOR INDUSTRY GUIDELINES FOR AIF VALUATIONS Windfall for bulls, too Capital goods NEWS RBI PAYOUT POWERS MARKET INDICES TO LIFETIME HIGHS Auto IN THE % contribution drove Tuesday’s rally, contributing as much as 40% to the Nifty-50’s gains. Continued on Page 13 Google selects Tamil Nadu to assemble Pixel P R SANJAI & SANKALP PHARTIYAL May 23 GOOGLE PLANS TO invest billions of dollars in Tamil Nadu to set up smartphone production,picking the southern industrial province for its manufacturing push in the country. TheAlphabetunitplanstoassemblePixelphones inthestate,settingupnewproductionlineswithTaiwanese contract manufacturing partner Foxconn Technology Group, people familiar with the matter said.ItsWing subsidiarywill also assemble drones in Tamil Nadu, said the people, who asked not CHINA’S LOSS, to be identified as the information is private. INDIA’S GAIN Google is accelerat- ■ Google plans to ing its plans to manu- assemble Pixel in the facture devices in India, state, with Taiwanese following companies company Foxconn such as Apple in pivot■ ItsWing subsidiary ing away from China to will also assemble lessengeopoliticalrisks. drones inTamil Nadu Thecompany’sdecision benefits Tamil Nadu, which is seeking to get into advanced manufacturing and move away from the historical tag line “Detroit of India.” A team from the Tamil Nadu government, comprising ministerforindustriesTRB Rajaa and senior executives, held talks with senior Google management in the US to pitch their state as a manufacturing location,the people said. Google representatives didn’t immediately respond to a request forcomment.Indian newswebsite Moneycontrol earlier reported Google’s plan to manufacture in Tamil Nadu. Google said last year it will begin production of its Pixel 8 smartphones in India,withoutdisclosingalocation.Applehasshifted someiPhoneproductiontoIndia,andSamsungElectronics also has set up assembly in the country. Global technologyplayers moving production to IndiaisapotentialboonforPrimeMinisterNarendra Modi,asthecountryundergoeselectionstopicknew leadership. Modi’s so-called production-linked financial incentives have helped the country attract electronics manufacturers. -- BLOOMBERG *Prv close Govt borrowing plan unlikely to be altered SACHIN KUMAR Mumbai, May 23 THE GOVERNMENTIS unlikelytocancelauctions of central government securities scheduled for the first half of the current fiscal, despite receiving a record dividend from the Reserve Bank of India (RBI).Officials from the ministryoffinancehavetoldbondmarketparticipants that they do not intend to alter their borrowing plan for the initial six months.The bumperdividendsparkedspeculationamong bond traders that an excess cash infusion might lead the government to cancel securities auctions. “The ministry officials have made it clear that the government will borrow whatever has come out in the calendar. They are not willing to tinker with their borrowing programme,”a senior official told FE after meeting with the officials of the ministry of finance.“They feel changing the borrowing programme will send the wrong signal to the market- that we said something and doing something else,”he added. He said that the ministry thinks that it might not be the best for price discovery, adding that the cancellation of auctions will create uncertaintyamong traders. As per the earlier announced calendar by the central bank,the government will borrow `7.5trillionduringthefirsthalfofthecurrent financial year while for the full year, the government plans to borrow `14.13 trillion. AccordingtotheRBI,thegrossmarketborrowing of `7.5 trillion will be completed through26weeklyauctions,spreadoversecurities with maturities ranging from 3 to 50 years. Bondtradersbelievethathigherdividends will prompt the government to conduct more buybacks of securities and will improve liquidity in the banking system. According to bankers,thegovernmentwillchoosebuybacks to infuse liquidity until the new government STATUS QUO ■ The government will borrow `7.5 ■ For the full year, the government plans to borrow `14.13 trillion trillion Bond traders believe that higher dividends will prompt more buybacks ■ during the first half of the current financial year ■ According to the RBI, the gross market borrowing of `7.5 trillion will be completed through 26 weekly auctions takes charge. The easing in liquidity will cool the shorttermratesandbringtheovernightratesdown, saybankers.Bankersexpectovernightratesto fall below the repo rate. “As a result of improvement in liquidity, overnight rates which are currently hovering between the repo rate and MSF rate are expected to range between the SDF rate and the repo rate,” said V Ramachandra Reddy, head of treasury, Karur Vysya Bank. Duetotightliquidityconditions,overnight rates are hovering between the repo rate (6.5%) and Marginal Standing Facility (MSF) rate (6.75%). The Standing Deposit Facility (SDF) rate currently stands at 6.25%. Continued on Page 13 Low-cost IndiGo to offer business class ROHITVAID New Delhi, May 23 AFTER FLYING FOR nearly 18 years,low-cost carrier IndiGo on Thursday said it will introduce business class in flights bythe end of this year,to provide more options forpassengers. The airline said it will launch a new tailormadebusinessproducttocatertoIndia’sbusiest andbusinessroutes.Thedetailswillbeunveiled around August,which will also mark the 18th anniversaryof thecarrier.Thelatest announcementalsocomeslessthanamonthaftertheairlinesaiditwouldbuy30wide-bodyaircraft. “Inagroundbreakingmovetoredefinebusiness travel in India, IndiGo, India's most preferredairline,announcestheplantolaunchatailor-made business product for India’s busiest and business routes,” INSIDE IndiGosaidinastatement. “As India’s most preSalary hike for AI pilots ferred airline, we are constantly looking at innovat■ PAGE 4 ing our service offering for ourmillionsofcustomers,”CEOPieterElberssaid. “We are excited with this new phase and tailormadeproductinIndiGo’sevolutionandstrategy and aim to further give wings to the nation,by connecting people and aspirations,” he added. “Over the past 18 years, India’s and IndiGo’s growthstorieshavebeencloselyinterlinked.We believe as India gears up to become the third largesteconomyintheworld,it'sourprivilegeto provide the New India even more options to choosefromastheytravelbusiness,”Elberssaid. The airline,which currently has only economy class,has a fleet of more than 360 aircraft andoperatesaround2,000flightsdaily. PLAN FOR NEW INDIA ■ The latest announcement also comes less than a month after the airline said it would buy 30 wide-body aircraft ■ The detailswill be unveiled around August,whichwill also mark the 18th anniversary ofthe carrier PIETER ELBERS, CEO, INDIGO ...IT'S OUR PRIVILEGE TO PROVIDE THE NEW INDIA EVEN MORE OPTIONS TO CHOOSE FROM AS THEYTRAVEL BUSINESS Q4 RESULTS CORNER ITC consolidated net profit falls 1.1% to `5,121 crore PAGE 4 IndiGo profit more than doubles to `1,895 crore PAGE 4 Mamaearth parent Honasa posts `30-crore profit PAGE 4 ■ Forum Malls uses Robot as a Service, wherein robots deliver orders to customers' tables Some are also geofencing and sending targeted messaging to consumers’ phones once they enter a certain parameterwithin the mall. Oberoi Mall in Mumbai’s Goregaon encourages shoppers to upload their invoices on its Club Uno app,its reward programme. The mall also reaches out to shoppers through Instagram,Facebookandsoonabout itsactivations,offers,newstoreopenings and so on."Bydoing this,we create appetite among buyers so that they come back to the mall for shopping,dining and so on,"said Sameep Pathak,CEO-malls at Oberoi Realty. Continued on Page 13 CHENNAI/KOCHI