Tata Sons board okays 6,500 cr equity infusion in Tata Motors:
Tata Motors Ltd its board approved an equity infusion of 6,500 crores from its promoter Tata Sons Pvt. Ltd. Tata Motors will allot ordinary shares and warrants to the developer in return, subject to shareholder approval. The board approved raising ?3,500 crores via external commercial borrowing, which will be used to refinance its existing debt. The total debt stands at around ?50,000 crores, of which ?20,000 crore is in its stand-alone business.
The equity infusion from the promoters will help Tata Motors to reduce its absolute debt levels primarily. The fundraise will help Tata Motors` stand-alone business, where the balance sheet has debt issues. Jaguar Land Rover`s (JLR`s) balance sheet, however, is secure and is in no need of capital infusion currently.
Tata Motors reported a consolidated net loss of ?217 crore in the September quarter on higher tax expenses and accumulated losses from joint ventures, primarily from the Cherry JLR Automotive Co. Ltd, its joint venture unit in China.Tata Motors` joint venture units reported accumulated loss of ?363 crore in Q2 as against a profit of ?86 crore in the year-ago period. On a year-on-year basis, the company managed to narrow down its quarterly loss, which stood at ?1,049 crore in Q2FY19.Tata Motors reported an operating revenue of ?65,432 crore in Q2 FY20, as against ?71,981 crore in the year-ago period. The 9% year-on-year (y-o-y) fall in revenue was on account of subdued performance across JLR and its domestic business.Tata Sons chairman N. Chandrasekaran dismissed reports that Tata Motors was looking to sell JLR, although he had added that the company was open to the idea of a suitable partner to collaborate amid the ongoing demand slump and technological disruptions across the automotive industry.
The company`s stand-alone revenue was down 44% y-o-y at ?10,000 crore in Q2 FY20 on the continued demand slump for passenger and commercial vehicles in India. Tata Motors reported a sharp drop of 44% in its wholesales, which stood at 106,349 units in Q2 FY20. Medium and heavy commercial vehicle wholesales were the most hit with a decline of 59%. The company`s stand-alone Ebit (earnings before interest and tax) stood at -9.8% on an adverse mix and negative operating leverage.
India and France explore 3rd country projects in Western Indian Ocean region:
India and France have taken concrete steps to firm up their strategic partnership in the western Indian Ocean part of their Indo-Pacific strategies, within two months of Prime Minister Narendra Modi`s trip to Paris.
They consisting of Comoros, Madagascar, Mauritius, and Seychelles in the western Indian Ocean currently meeting for the first time in the Reunion Islands (French territory) for exploring economic and development partnership.
India represented by the minister of state for external affairs V Muraleedharan at the meet.
India has longstanding defense partnerships with Mauritius and Seychelles, its defense ties with Comoros and Madagascar are growing as part of India`s Indo-Pacific outreach to ensure peace and stability. Indo-French defense partnership extends to the western part of the Indian Ocean.
The joint statement issued after Modi`s meeting with French President Emmanuel Macron had indicated enhancement in the Indo-French partnership in the western Indian Ocean.
The swift implementation of the conclusions of the joint strategic vision of India-France cooperation in the Indian Ocean region, adopted during the state visit to India of President Macron in March 2018.
CCI approved acquisition of ANI and Ola by HMC and KMC:
Competition Commission of India (CCI) approves the acquisition of a shareholding in ANI Technologies Private Limited (ANI) and Ola Electric Mobility Private Limited (OEM) by Hyundai Motor Company (HMC) and Kia Motors Corporation (KMC). CCI approved the acquisition under Section 31(1) of the Competition Act, 2002.
Partnership:
In March 2019, Hyundai and Kia announced an investment of $300 million in Bengaluru-based Ola. The partnership was intended to help Ola to intensify its battle with its rival Uber. This partnership enabled the companies to extensively collaborate on developing unique fleet and mobility solutions, building India-specific electric vehicles (EV) and infrastructure. The companies also agreed to co-create solutions to operate and manage fleet vehicles.
About the companies:
HMC, KMC: HMC, and KMC are a part of the Hyundai Motor Group (HMG). The companies are involved in the business of manufacturing and distribution of automobiles, automobile parts, and accessories, after-sales service, research and development of automotive engineering across several countries in the world.
ANI: ANI is a ride-sharing company that integrates city transportation for customers and driver-partners onto an online platform. It will ensure convenient, transparent, and quick service fulfillment.
OEM: OEM operates and envisages operations primarily in the electric vehicles value chain, with a focus on the market for charging infrastructure.
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