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APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM VOL 34 NO. 16, 20 PAGES, `12.00 (NORTH EAST STATES `12 & ANDAMAN `17.00) 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 READ TO LEAD SENSEX: 77,578.38 ▲ 239.37 NIFTY: 23,518.50 ▲ 64.70 NIKKEI 225: 38,414.43 ▲ 193.58 HANG SENG: 19,663.67▲ 87.06 `/$: 84.41 ▼ 0.02 `/€: 89.06 ▲ 0.12 BRENT: $73.22 ▼ $0.08 GOLD: `75,564 ▲ `1,096 IN THE NEWS NEW NORMS TO EASE CORPORATE LIQUIDATION THE INSOLVENCY AND Bankruptcy Board of India (IBBI) has recommended several changes in the liquidation process under the Insolvency and Bankruptcy Code (IBC), in order to enhance overall efficiency, increase stakeholder confidence and improve financial outcome for all parties involved, reports Priyansh Verma. ■ PAGE 2 NTPC GREEN IPO DAY 1: RETAIL PART OVERSUBSCRIBED THE INITIAL PUBLIC offer of NTPC Green Energy, the renewable energy arm of NTPC, got subscribed 33% on the first day of share sale on Tuesday. The portion for retail individual investors (RIIs) fetched 1.33 times subscription while the category for non-institutional investors got subscribed 15%. ■ PAGE 2 POST-COVID BOOST FOR HEALTHCARE INFRASTRUCTURE THE HEALTHCARE INFRASTRUCTURE in India has grown tremendously after the pandemic, as per a report by Pharmarack, reports Manu Kaushik. While the number of hospitals has jumped from 43,500 in 2019 to 54,000 in 2024, the private hospitals have registered the strongest growth of 27% – from about 30,000 in 2019 to 38,000 in 2024. ■ PAGE 2 ON POLL EVE, BJP LEADER CAUGHT WITH CASH IN MAHA AMID ALLEGATIONS from Bahujan Vikas Aghadi workers that he was distributing cash among voters ahead of the Assembly elections in Maharashtra on Wednesday, BJP national general secretary Vinod Tawde was Tuesday booked following recovery of cash at a hotel in Virar near Mumbai. ■ PAGE 10 ADANI INFRA TO ACQUIRE 30% IN PSP PROJECTS THEADANI GROUP will acquire a 30% stake in Gujarat-based construction company PSP Projects for `685 crore, reports Raghavendra Kamath.The deal values PSP Projects at `575 per share, a 15% discount to its closing price onTuesday. ■ PAGE 4 FE S P E C I A L S Sebi raises the bar UK FTA negotiations on listing of SMEs to resume next year INVESTMENT TREATY ALSO IN THE WORKS Bigger lot size, 5-year lock-in for promoters AKSHATA GORDE Mumbai, November 19 THE SECURITIES AND Exchange Board of India (Sebi) on Tuesday proposed a slew of changes in the guidelines for listing of small and mediumenterprises(SMEs),including an increase in the lot size to `2 lakh or `4 lakh, higher promoter lock-in of five years and cooling period of two years for proprietary orpartnership firms aftertheyconvert to a company. “Considering increased activity in the SME segment, instances of misconduct…risks relating to siphoning of funds, promoter/ investors exiting the companyafter listing etc, it is felt that to protect the interest of the investors and market as awhole,there is a need to review SME IPO framework and applicability of corporate governance provisions to SME listed companies,” the regulator said in a draft paper, inviting public comments by December 4. In the current year, 215 SMEs have raised a record `7,663 crore IN INVESTOR INTEREST ■ Sebi has passed several orders against SME listed on exchanges ■ In total, it has and even halted the listing of an SME where made over 27 concerns were raised suggestions (till October) as per Primedatabase.com Overall, the regulator has made over 27 suggestions. Additionally, Sebi has proposed to increase the number of minimum investors from 50 to 200,and banning SME IPOs which plan to use the issue proceeds to repay loans availed by the promoter groups or related parties. Sebi has alsosuggestedrestrictingthesizeof offer for sale (OFS) to 20% of the total issue size of the SME IPO. Limited liability partnerships and partnership firms who have converted into a company, would have a 2 year-cooling period before Late selling due to geopolitical fears spoils relief rally VIVEK KUMAR M Mumbai, November 19 A SUDDEN CORRECTION in the last hour's trade due to renewed geopolitical tensions in Europe dampened the relief rallyin domestic equities on Tuesday as key indices erased more than 1% of their day's gains and ended just marginally higher. The selling pressure came after concerns that war between Russia andUkrainecouldescalate,afterthe latter used INSIDE long-range RUPEE AT NEW US missiles against RusLOW, MAY HIT sia. In 84.50 BY DEC response to ■ PAGE 6 this, Russia has approved MARKETS changes to its SHUTTODAY nuclear docDUE TO trine, which MAHA POLLS now says an attack on it from a non-nuclear state, if backed byanuclearpower,willbetreatedas a joint assault. "Since this was not anticipated, it led to some panic selling. We do not know how worse it will get. Investors will have to wait," said Deepak Jasani, head of retail research at HDFC Securities. Sensex and Nifty ended the day several instances like diversion of issue proceeds, inflation of revenue by circular transactions to create positive sentiments among investors before the IPO ■ Sebi has proposed to increase the number of minimum investors from 50 to 200 & restricting the size of OFS to 20% ot total issue size VOLATILE SESSION Sensex 239.97 points 0.31% 77,339.01 77,578.38 Close: Nov 18 Close: Nov 19 Top Sensex gainers (%) Closing gain Intraday gain 3.55 M&M Tech Mahindra HDFC Bank Sun Pharma Tata Motors 2.28 5.30 3.77 2.21 2.88 1.60 3.33 1.47 3.56 0.3% higher at 77,578.38 and 23,518.50, respectively, dropping offfrom1.4%gainsseenduringthe day.With this,the Nifty snapped its seven-day losing streak. The broader market too saw a similartrend but outperformed the benchmark indices. Continued on Page 7 FE BUREAU New Delhi, November 19 ■ The move follows ■ The markets regulator also suggested higher corporate governance norms, including applying related-party transaction norms it could list on the SME platforms along with the existing three year track record requirement.This shall apply even in the case of change of promoter(s) or new promoter(s) after the acquisition of more than 50% shareholding prior to filing of draft offer document. The move follows several instances of diversion of issue proceeds,bookingfraudulentsales,and inflation of revenue by circular transactions through related parties or shell companies to create positive sentiments among investors before the IPO. Continued on Page 7 Russia President Putin may visit India next year RUSSIAN PRESIDENT Vladimir Putin is set to visit India and the dates forhistriparebeing finalised, Kremlin press secretary DmitryPeskovsaid Tuesday,reportsDivyaA.PrimeMinisterNarendraModihadinvitedPutin to visit India when the two leaders heldsummit-leveltalksinMoscowin July this year. Modi had also visited RussiainOctoberfortheBRICSSummitinKazan. “We welcomed Prime Minister Modi twicethisyearandwehopethatsoon wewillfigureoutthedatesofthevisit of President Putin to India,” Peskov said during his video address at an eventinNewDelhi. ■ Page 10 ANI sues OpenAI for unsanctioned content usage IN A FIRST suit against OpenAIbyanIndianpublisher over copyright infringement, the Delhi high court on Tuesday issued summons to the ChatGPT owner. This comes after news agency ANI sued OpenAIforusingitsoriginalcontent to train its large language models (LLMs). In its suit,ANI also said that ChatGPTisgivingfalseattributionto the publisher in response to a prompt on certain topics. ■ Page 5 INDIA AND THE UK will resume their negotiations on a proposed freetradeagreementearlynextyear after talks remained suspended since May this year due to elections in both countries. The office of UK Prime Minister KeirStarmerannouncedtheresumption of the talks after his meeting with Prime Minister Narendra Modi on the sidelines of the G20 Summit inRiodeJaneiroinBrazil.Itwastheir first meeting since Starmer’s Labour Partywon electionsin July. The FTA negotiations began in January 2022, initially aiming for a Diwali2022deadline,setbythethen UK Prime Minister Boris Johnson. The negotiations continued under Johnson's successor Rishi Sunak. However, the deal could not be clinchedevenafter14roundsoftalks. Some rounds of the negotiations have been long-drawn and the last fewroundsoftalkshaveextendedfor months,sometimeswith breaks. Despite the intensity of discussions,someoftheissuesarestilltobe sorted.FromanIndianpointofview, the UK's demand for greater market access in automobiles and whiskey and some other trade-related issues such as rules of origin and intellectualpropertyrightsare key areas that are takingtimeforresolution. In the services sector, the UK is seeking national treatment for its companies. India's demand for easier access to the UK market for its professionals through a liberal visa regime is one of the areas where common ground is eluding the negotiators. Continued on Page 7 Prime Minister Narendra Modi during a bilateral meeting with British Prime Minister Keir Starmer on the sidelines of the G20 Summit in Rio de Janeiro PTI G20 turns focus to climate change JAKE SPRING & WILLIAM JAMES Rio de Janeiro, November 19 LEADERS OF THE Group of 20 major economies met on Tuesday to discuss sustainable development and the transition to cleaner energy, as they aim to increase the odds of a successful deal to address global warming at UN climate talks in Azerbaijan. The host of the COP29 climate summit a day earlier had made a plea for G20 countries to send a positive signal on the need to tackle climate change and provide clear mandates to help save talks that had bogged down in Baku, Azerbaijan. With the world on track for its warmestyearon record,leaders are trying to shore up a global response to climate change before DonaldTrump retakes the US presidency in January. He is reportedly preparing to roll back US policy on global warming and exit the landmark Paris Agreement. The G20 leaders gathering for a summit in Rio de Janeiro, Brazil, called in a joint statement on Monday for "rapidly and substantially increasing climate finance from billions to trillions from all sources" to respond to global warming. ■ REPORTS, PAGE 3 IHCL lines up `5K-cr capex to double hotel count by 2030 SWARAJ BAGGONKAR Mumbai, November 19 LEVERAGING THE GROWING tourismboom,theTataGroup-controlled Indian Hotels Company (IHCL) is set to double its hotel inventory, launch new brands, and invest `5,000 crore over the next five years. IHCLcurrentlycontrols12-13% of the branded hotel room inventory in the country, a figure expected to rise to 23% by 2030. From its current portfolio of 350 hotels, including 232 operational properties across multiple brands, the Mumbai-based company aims to expand to 700 hotels, with 500 operational by the end of FY30. The number of rooms is projected to increase to 70,000 by FY30, up from 42,500, while consolidatedrevenueisexpectedtorise to `15,000 crore from `7,000 crore,a top IHCLofficial said during the 'Capital Market Day,' outlining the company's five-year plan. When asked about the details of new brands, Puneet Chhatwal, managing director and CEO of IHCL,said:"Somethingswillchange but exactly which brand will come atwhat pointwe can’t say,but at the moment this journey is based on whatwe have.There is playpossible in branded residences, in extended stay, in something that India has not seen like an all-inclusive brand PUNEET CHHATWAL, MD & CEO, IHCL THERE IS PLAY POSSIBLE IN BRANDED RESIDENCES, IN EXTENDED STAY, IN SOMETHING THAT INDIA HAS NOT SEEN LIKE AN ALLINCLUSIVE BRAND like it is done in the international markets." The companyis also considering inorganic growth opportunities, as it has committed to opening more than one new property every week until FY30. “If an inorganic, M&A (mergers andacquisition)opportunitycomes up we are generating enough cash soastofuelthegrowthandtheneed for capex that we have. Should there bea nice opportunity coming up which fits with the principle of the evolution of our brand scape that is relevant to the Indian subcontinent, we will look at it,” Chhatwal added. Meanwhile, IHCL'ssharepricerose 3% immediately aftertheannouncement but settled at a 2% gain by the close of trading. Continued on Page 7 MOVE TO RELINQUISH ZEE POSITION AIMED AT PLACATING SHAREHOLDERS AHEAD OF AGM, SAY LAWYERS & PROXY ADVISORS On the digital highway Mercedes Benz is leading the auto industry’s D2C journey ■ BRANDWAGON, P9 Will the Bitcoin price rally sustain? The jury is still out on whether all of Trump’s pro-crypto pledges are feasible ■ EXPLAINER, P9 Tactical shift: Punit Goenka stoops to conquer VIVEAT SUSAN PINTO Mumbai, November 19 PUNIT GOENKA'S DECISION on Mondaytostepdownfromthemanagingdirector’spositionatZeeEntertainment,staying only as its CEO,is being seen in corporate circles as a smart gambit,just ahead of a crucial re-appointment vote at the company's annual general meeting to be heldnextweek.Corporatelawyersand proxyadvisoryfirms thatFE spoke to saythatGoenkahassoughttoplacate shareholderswiththemove. "Punit Goenka is showing skin in thegamebygivinguptheroleofmanaging director and continuing to be CEO,”ShriramSubramanian,managing director of proxy advisory firm InGovern, said. He, however, said shareholders are likely to reject his reappointmentasdirectorandaskfor BOARD BATTLE ■ Both InGovern and IiAS in reports this week had recommended that shareholders reject Goenka's reappointment as MD ■ The company’s board had given Goenka a fresh five-year tenure as the MD starting January 1, 2025 achangeinleadershipattheAGMon November28. CorporatelawyerssuchasHPRaninasaythatthe Zeeboardwillhave to find a replacement to Goenka as MD in the near future."It is a statutory ■ Shareholders are likely to reject his reappointment as director and ask for a change in leadership at the AGM on Nov 28 Zee Entertainment shareholding data 3.99 (Promoter) 12.99 (Mutual funds) 6.39 (Insurance cos) (in %) 18.52 (FPIs) 33.35 (Retail investors) 8.24 Individuals holding excess of `2 lakh 12.0 (Bodies corporate) 5.03 (Others) As of September 30, 2024; Source: BSE position which will have to be filled. Companieshavetodoitwithinayear ofthepositionfallingvacant,"Ranina said. ThoughZeehassaidthatthedecisiontogiveuptheMD’spositionwas togiveGoenkamoretimetofocuson meeting the stiff targets,a corporate governance expert described Goenka's move as "clever."The promoter family holds 3.99% in Zee, while mutual funds,insurance com- paniesandforeignportfolioinvestors hold 18.52%. Some institutional investorsaresaidtobeuncomfortable withGoenkacontinuingasZee'sMD, whichcouldhave promptedhisdecision to relinquish the position, the expertsaiddecliningtobequoted. Both InGovern and Institutional Investor Advisory Services (IiAS) in reports thisweek had recommended that shareholders reject Goenka's reappointmentasthecompany’sMD. The company’s board had given Goenkaafreshfive-yeartenureasthe MDstarting1January2025,afterhis current five-year tenure ends on 31 December. In a conversation with FE, Zee's chairmanRGopalansaidthatGoenka needed to focus his attention on the enhanced targets set by the board. These targets include quarterly consolidated revenue and consolidated Ebitdaoutlookforthenextfourquarters (commencing Q3FY25) and a payout of 25% of consolidated net profits as dividend to the shareholdersofthecompany. "These targets are stringent and willbereviewedattheendofthecurrent financial year (FY25).There will be a second review at the end of the first half of the next financial year (FY26).Theboardwasoftheviewthat Punit would need to focus his attention on the business as the competitive landscape is increasinglygetting dynamic.MD responsibilities would have taken his attention away from thiscrucialobjective,"Gopalansaid. Gopalansaidthatadecisiononthe MD’spositionhadnotyetbeentaken by the board.“We want to go ahead with the CEO for now because it is important,he (Goenka) achieve the targetsset.Thatiskey,”Gopalansaid. Kolkata