Trackpad
Igarashi Motors closes units temporarily due to lockdown in Chennai
According to the announcement made by Igarashi Motors India Limited, its manufacturing units and corporate office at Chennai will be closed from June 19, 2020 to June 30, 2020 as Government of Tamil Nadu has imposed a complete lockdown in Chennai and its adjoining districts in light of a sudden rise in COVID-19 cases in the state and especially in Chennai.
The company has informed that its senior level employees will continue to work from home, except for those whose physical presence is necessary to ensure that the daily operating activities continue to be carried on smoothly. Previously, when the directive for a nationwide lockdown had been issued, all of the company’s manufacturing units and its corporate office were closed from March 23, 2020 to April 14, 2020. Although the lockdown had been further extended, the company was able to partially resume its operations at the manufacturing units from May 07, 2020 after having taken approvals from the concerned government authorities.
In financial terms, its standalone revenue for Q4FY20 came in at Rs 118.12 crore relative to Rs 142.16 crore in the corresponding quarter last year, registering a 16.9 per cent YoY decline. The EBITDA for the quarter fell by 35.1 per cent YoY to Rs 13.25 crore as against Rs 20.42 crore in the corresponding quarter last year, with a corresponding margin contraction of 315 bps. EBITDA margin for the quarter stood at 11.2 per cent. The PAT for Q4FY20 came in at Rs 2.17 crore as against Rs 7.09 crore in the corresponding quarter last year, reflecting a YoY decline of 69.4 per cent. The growth in volumes took an impact from the lockdown imposed in March 2020.
HDFC AMC promoter, Standard Life Investments to divest its stake
HDFC Asset Management Company informed the bourses that one of its promoter-Standard Life Investments Limited proposes to sell up to 60,00,000 equity shares, which represent nearly 2.82 per cent of the total issued and paid-up equity share capital of the company. The offer for sale (OFS) opened on June 17 for non-retail investors while, both retail as well as non-retail investors will be able to subscribe on June 18, 2020. Besides, a minimum 10 per cent of the sale shares will be reserved for retail investors. The floor price for the sale is fixed at Rs 2,362 apiece. In case of oversubscription, the promoters have kept an option to additionally sell up to 60,00,000 equity shares. In the base case, the deal size is around Rs 1,417.2 crore and with an oversubscription of additional shares, it is Rs 2,834.4 crore. This is in-line with meeting the minimum public shareholding requirement prescribed by the regulator. At present, the minimum public shareholding requirement for listed companies is 25 per cent. As on March 2020, promoters holding in HDFC AMC stands at 79.61 per cent. At present, Standard Life holds 26.89 per cent stake in the company and HDFC holds almost 52.72 per cent.
Reliance lands one more investor
Reliance Industries Limited (RIL) and Jio Platforms Limited, India's leading digital services platform, reported of an investment of Rs 1,894.50 crore by L Catterton, giving it a 0.39 per cent equity stake in Jio Platforms on a fully diluted basis. Including this investment, Jio Platforms has raised over 1 lakh crore or nearly 10 per cent of RIL's market capitalization this year from top global investors since April 22, 2020. The markets have applauded this fund-raising exercise and RIL's stock is now trading at all-time highs. On April 22, 2020, Reliance announced the first investor to get on-board.
Jio Platforms has more than 388 million subscribers. As per the presentation made by the company, India has the world's second-largest internet user base and is fast-growing, which has led to many foreign investors showing interest in the company. Reliance Industries, which predominantly was into energy, textiles, petrochemicals, and natural resources, has diversified and introduced new revenue streams such as retail and telecommunication over the past couple of years. Thus, the consumer segment (retail and digital) is contributing about 35 per cent to the company EBITDA in FY20, compared to a mere 2 per cent in FY15.
GlobalSpace Technologies partners with Cadila Healthcare
GlobalSpace Technologies has signed a commercial contract with Cadila Healthcare, agreeing to share the use of its DocExa pro platform with Cadila. Just a month away from the formal launch of DoxExa, associating with Cadila, one of the major Indian pharmaceutical companies, is an important stepping-stone for GlobalSpace to expand its outreach.
DocExa is an artificial intelligence (AI) enabled virtual consultation app developed by GlobalSpace as part of its HealthTech business vertical. This contract will enable DocExa to reach a larger platform and also, to gain substantial market share through Cadila's extensive network. The app allows what is now the need of the hour, with doctors setting up their own personalized virtual consultation clinic to see patients. According to GlobalSpace, the app is highly secure as it is equipped with AS2 advanced levels of encryption, thus eliminating the risk of any leak or sharing of patient information. The app is expected to benefit the masses during such pandemic situations and offer quality and affordable healthcare services to all.
GlobalSpace Technologies also has a contract with Mediapp which is a digital distribution network of pharmaceuticals. By creating a digital healthcare ecosystem, GlobalSpace intends to connect DocExa with Mediapp, allowing for various chemists to directly reach patients and doctors.
GlobalSpace Technologies is a digital, mobility, analytics, AI & Cloud technology company providing integrated health-tech platforms to the healthcare sector. The company has its presence in the Edutech industry with its subsidiary Makebot which is a STEAM education imparting platform for students.
Maruti Suzuki join hands with IndusInd bank for finance schemes
India’s largest automaker, Maruti Suzuki India Limited (MSIL) informed the bourses that it has collaborated with IndusInd Bank in a bid to offer attractive finance schemes for its customers.
IndusInd Bank has offered a variety of finance options, including low EMI scheme, step-up and balloon payment options as well as funding 100 per cent on-road price for the vehicles. As of recently, the automaker has been arranging consumer finance with a number of finance partners in order to support the progressive restart of business activities in the automobile industry.
The industry has been hit hard in the wake of the current COVID-19 pandemic. The month of April 2020 has been disastrous with many companies reporting nil sales. This has led to several car manufacturers in the country, rolling out various schemes, to attract buyers. Speaking about the customer-centric initiative Shashank Srivastava, Executive Director (Marketing & Sales), Maruti Suzuki India stated the bank’s expertise in lending to a variety of customers, especially with no income proof, would result in the collaboration bringing convenience to both the rural and urban customers of MSIL.
Tata Communications Ltd announces of enhancing network capabilities
Tata Communications announced that the company is enhancing its network capability by building a new submarine cable in Asia Pacific. Asia direct cable (ADC) consortium of which Tata Communications is a part, will be building a high-performance submarine cable connecting (including Hong Kong SAR and Guangdong province), Japan, Philippines, Singapore, Thailand and Vietnam.
The ADC cable will include multiple pairs of high capacity optical fibers, specifically designed to carry more than 140 tbps of traffic. It will further allow high capacity transmission of data across East and Southeast Asian areas. The higher capacities of ADC cable will allows it to support the increasing bandwidth intensive applications, driven by technological advancements in 5G, cloud platforms, internet of things (IoT) and artificial intelligence (AI). This new development enables Tata Communications to strengthen and expand its global network.
Carl Osborne, Associate Vice President, International Cable Network Development, Tata Communications said, “Our collaboration within ADC consortium to build this high performance submarine cable will provide enterprises with additional connectivity between major traffic hubs in Asia. This will further augment our existing capabilities on the Tata Communications Global Network with deeper reach, enabling us to offer superior customer experience and enhanced resilience.”