BACK PAGE, P24 COMPANIES, P4 INTERNATIONAL, P7 25M PISTOL EVENT CAPACITY ADDITION, EXPANSION TURNAROUND PUSH Manu Bhaker reaches final, targets her third Olympic medal today Akasa Air looks to fly into profit zone in two years, says CFO Intel to cut over 15% of its workforce, suspend dividend AHMEDABAD, SATURDAY, AUGUST 3, 2024 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE VOL NO. XIX 55, 36 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 WWW.FINANCIALEXPRESS.COM READ TO LEAD SENSEX: 80,981.95 ▼ 885.60 NIFTY: 24,717.70 ▼ 293.20 NIKKEI 225: 35,909.70 ▼ 2,216.63 HANG SENG: 16,945.51 ▼ 359.45 `/$: 83.75 ▼ 0.02 `/€: 90.62 ▼ 0.38 BRENT: $77.42 ▼ $2.10 GOLD: `70,095 ▲ `690 IN THE NEWS SEN 1ST INDIAN MALE SHUTTLER TO REACH OLYMPICS SEMIS LAKSHYA SEN ON Friday became the first male Indian badminton player to reach the men’s singles semifinal at the Olympics defeating Chou Tien Chen of Chinese Taipei. The young shuttler from Uttarakhand beat Chou 19-21, 21-15, 21-12 in the quarterfinal match. Sen, 22, had played a crucial role in India's historic Thomas Cup victory in 2022. CABINET CLEARS 8 ROAD CORRIDORS WORTH `50,655 CR THE UNION CABINET on Friday approved eight national highspeed road corridor projects of 936-km length at a total cost of `50,655 crore, reports fe Bureau. ■ PAGE 2 DAY ONE: OLA ELECTRIC IPO SUBSCRIBED 35% THE MUCHANTICIPATED IPO of Ola Electric received a muted response from investors, achieving only 35% subscription on the first day on Friday, reports fe Bureau. ■ PAGE 6 RCAP RESOLUTION: IIHLWARNED OF REMEDIALACTION LENDERS OF RCAP have cautioned IndusInd International Holdings (IIHL) of remedial action as it failed to comply with the NCLT-imposed conditions, reports PTI. ■ PAGE 6 FE S P E C I A L Why the Curvv has a sloping roof,and a sedan-like boot Curvv: Toughness of an SUV, elegance of a coupé: Global design head, Tata Motors. ■ MOTOBAHN, P9 WILL CUT DOWN TIME BY HALF Sebi’s combo offers for quick & easy fundraise Template to ‘demystify’ IPO paper, a product merging rights issues & preferential allotments AKSHATA GORDE Mumbai, August 2 templateofanofferdocumentisanattempt at“demystifying”theprocessoffilingpapers for an IPO which currently calls for a complex draft red herring prospectus (DRHP). Such a document, Buch said, will require companies to simply“fill in the blanks”for anapprovalandwillhaveaseparatesection toexplainanycomplexities.“Thedocument THE SECURITIES AND Exchange Board of India (Sebi) is considering a product that combines rights issues and preferential allotments to expedite fundraising, as it believesthiswouldcuttherequiredtimeby half. The capital markets regulator’s objectiveistosimplifythefundraisingprocessby eliminatingtheneedforamerchantbanker and Sebi’s approval. The regulator is also working on a model document that would help speed up approvals for initial public offerings (IPO). Sebi chairperson Madhabi Puri Buch saidonFridaythatacomboproductofrights issues and preferential allotments would bring out the best of both.“The entire endto-end processing time will be cut down to halffrom the current 42 days,” she said. Foranalready-listedcompanygoingthe ‘rights’wayto preferential allotment,there is no need forSebi to come in theway,Buch said, adding a consultation paper is in the works.“Companies will only be required to submit details of the purpose of the fundraise and how the funds will be utilised,she said. She observed that the proposed MADHABI PURI BUCH, CHAIRPERSON, SEBI THE COMBO PRODUCT WILL BRING OUT THE BEST OF BOTH... END-TO-END PROCESSING TIME WILL BE CUT DOWN TO HALF FROM THE CURRENT 42 DAYS will be precise and meaningful, without unnecessarydetails.Therewillbeaseparate columntoarticulateanyvariationsorcomplexities,” she said at a capital market conference organised byindustrybodyFicci. Separately,SebiisalsodevelopinganAIbased tool for processing IPO documents and it is expected to be in place by December, she said.This tool will make the fasttrack issue mechanism redundant as the normal approval process itself would become very fast. Erroneous IPO applicationsare“clutteringthepath”forgoodones in getting approval.The markets regulator is using artificial intelligence forfasterprocessing of public documents and 80% of the work done is through that technology, the Sebi chairperson said. CommentingondelaysinclearingIPOs, the Sebi chairperson said that many filings were incomplete, lacking the necessary approvals and consistency. Sebi has taken theapproachofreturningsuchfaultyapplications to make way for well-prepared IPO applications.“We return the documents to de-clutter the path so that the genuine applications are not delayed,” Buch said, pointing out that there are eight IPO applications which have crossed the threemonththresholdduetolackofduediligence. Sebi is also working on a performancevalidationagency,streamlining disclosures in the form of key performanceindicators(KPIs)forloss-making companies in listing. She said the industry standard forum is working on possible solutions to problems facedwiththese KPIs. NCLAT halts Byju’s insolvency process Approves edtech firm’s settlement with BCCI FE BUREAU Bengaluru, August 2 IN A MAJOR relief to edtech firm Byju’s, the National Company Law Appellate Tribunal (NCLAT) on Friday set aside insolvency proceedings against it over a cricket sponsorship deal and approved a `158-crore settlement with the Board of Control for Cricket in India (BCCI). TheNCLAT,however,passedtheorderwith a caveat that anyfailure to make payments on the dates mentioned in the undertaking would automatically lead to a revival of the insolvency proceedings against Byju’s. The appellate tribunal also dismissed the allegationofround-trippinglevelled byByju’s US-based lenders, saying they failed to provide any evidence. Accordingtolegalobservers,ifthecompany fulfilsitsundertakingandanydissentingparty is not able to get a stay order from a higher court,thenfounder-CEOByjuRaveendranwill effectivelybe back in control of the firm. Welcoming the NCLATorder,Byju’s said in BYJU RAVEENDRAN, FOUNDER-CEO OF BYJU'S THE ORDER IS NOT JUST A LEGAL VICTORY, BUT A TESTAMENT TO THE HEROIC EFFORTS MADE BY OUR BYJU’S FAMILY a statement that it is a“majorvictory”for the edtech firm and its founders. The tribunal said the money was paid by founder Byju Raveendran’s brother, Riju Raveendran, through sales of his shares. According to the undertaking, Riju Raveendran made a payment of `50 crore on July 31 against the outstanding dues owed by Byju’s to the cricket board. Continued on Page 19 After 5-day winning run, markets slide Apple reports record high revenue in India INDIAN EQUITIESTOOK a big tumble on Fridayasinvestorschosetotakeriskoffthetable following a big sell-off in the US markets in view of weak economic data.After a five-day winning run, the Sensex fell 1.08% and the Nifty1.17%,reports fe Bureau. ■ Page 6 APPLECEOTIMCookonFridaysaidtheAprilJune quarter revenue in India was a new record for the tech giant, reports fe Bureau. The revenue growth can be attributed to iPhone sales and a strong demand for MacBooks,according to analysts. ■ Page 4 Finance Bill boosts hopes of GST relief for e-gaming PRIYANSH VERMA New Delhi, August 2 THE CENTRE HAS proposed to remove the “retrospective”natureofthe higherGoodsand Services Tax (GST) levy on the online gaming industry,byinserting an enabling provision in the Finance Bill, 2024. The provision seeks to empower the Centre, via an amendment to Section 11A of the Central GST Act, to declare any retrospective levy of GST null and void. The move signalsthe Centre’sintenttogive relieftothethrivingsector,whichhasbeenfacing a viability crisis,due to a flurry of hefty tax demands.Though the GSTlawswere amended to jack up the levies only in October,2023,tax notices with the same interpretations had been issued to e-gaming firms in previous months.According to official data,as many as 71 show-cause notices had been issued to online gaming companies, flagging GST evasion of `1.12 trillion in FY23 and FY24 (till October 2023). So, the removal of the retrospective validityof the taxwould amount to a huge breather for the firms even as the matter is sub-judice. The relevant Finance Bill section says that the government can regularise “non-levy”, or “short-levy”, of GST due to any “general prac- BREATHER LIKELY ■ The proposed change will empower the Centre to declare any retrospective levy of GST null and void ■ The previous amendment to GST laws was interpreted differently by the government and industry tice prevalent in trade.” Simply put, the government could choose to not collect anytax for any particular period,where in the industry as a whole was interpreting the law in a manner differentfromwhatthegovernmentintended. Continued on Page 19 SOFT DRINKS STEAL A MARCH OVER JUICES, NECTARS IN Q1 Thirst for fizzy drinks growing VIVEAT SUSAN PINTO Mumbai, August 2 AN EXTENDED HEATWAVE in most parts of India generated a soaring demand for carbonated drinks and,in the process,hurt the sales of juices and nectars in the AprilJune period. With more and more people thirsting forfizzydrinks,companiessuch Daburand ITC that focus on juices and non-fizzy drinks saw their sales slump, their Q1 results showed. And, bottled soft drinks emerged the biggest gainers during the summer months, breaching the annual penetration of 50%,research agency Kantar said about the shift in consumption. “In temperatures of 40-50°C outside, consumerswantmorehydrationratherthan nourishment.Fizz is more thirst quenching as compared to a juice or a nectar,”Dabur’s CEO Mohit Malhotra said on Thursday, pointingtohowfizzydrinksappearexciting to consumers despite being unhealthy. Kolkata-based ITC,which has the B Naturalbrandoffruitjuices,alsoadmittedthat discretionary and out-of-home consumption categories (such as beverages) were hurt by the intense heatwave in Q1. “Extreme heatwave conditions adversely SUMMER BOOST ■ Kantar says consumption of bottled soft drinks has grown in the last two years ■ The average household consumption of carbonated drinks has increased by 250 ml impacted segments of the portfolio that have high out-of-home salience,”the company said. Kantarsaysthatconsumptionofbottled soft drinks has grown in the last two years on the back of growing distribution and affordable packs pushed by new and existing players. The average household consumptionofcarbonateddrinks,forinstance, has expanded by 250 ml over the last two years,withthetrendexpectedtogrow,Kantarsays,as fizzydrink makers keep prices in check to drive consumption aggressively. ■ The trend expected to grow as fizzy drink makers keep prices in check ■ These products have breached the annual penetration of 50% For instance, a 200-ml pack of Campa Cola from Reliance Consumer Products is available for`10,a 50% reduction in price to Pepsi and Coca-Cola packs of the same size, forcing the latter two players to respond to the pricing action,experts said. Reliance Consumer Products also aggressively pushed ethnic fizzy drinks such as Lahori Zeera during the summer months for `20 for a 200-ml pack to drive consumption in the marketplace. Continued on Page 19 Ahmedabad