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Listen to the latest business and finance news by the Financial Express where today we talk about direct allocation of spectrum to enterprises for their private networks, India’s GDP growth, RCap bidders seeking extension and Swiggy’s significant rise in its business. We also talk about Adani group weighing a mop-up of capital.

Today’s Latest Business News at 09:30 am on 24th November 2022.

[Disclaimer: This transcript is auto-generated]
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Let’s begin. India’s economic growth rate may fall to below 6% in calendar year 2023 but inflationary pressures could ease marginally, according to a new report by Goldman Sachs. The agency has pegged India’s GDP growth rate in 2023 at 5.9% from an estimated 6.9% in 2022, as the boost from the reopening fades and monetary tightening weighs down domestic demand. For the fiscal year 2022-23, the investment bank hasn’t cut the GDP growth estimate for India, unlike many other agencies — the country’s economic expansion in the year has been pegged at 7.1%, marginally higher than 7% forecast earlier. The GDP expansion, however, would be significantly lower at 6% in 2023-24. Consumer price index-based inflation, on the other hand, will moderate from an average of 7% in 2022-23 to 5.6% in 2023-24. Meanwhile, the companies that have applied for spectrum to build their private captive networks will have to shell out around Rs 1,500 crore to buy it from the government, sources said. This is because direct allocation of spectrum to enterprises for their private networks will be done at the auction-determined prices. Final decision to this effect will be taken once the government consults the Telecom Regulatory Authority of India. Infosys, Tata Communications, Larsen & Toubro, Tejas Networks and Capgemini are among 20 enterprises that have applied to the department of telecommunications for direct allocation of spectrum for building private networks. For private networks, spectrum in the 24.25-28.5 GHz band is required where the per MHz auction price was Rs 6.99 crore. In some more industry news, food tech giant Swiggy has seen a significant rise in its restaurant food delivery and quick-commerce businesses, according to Prosus — one of its largest investors. The global investor said Swiggy’s core restaurant food delivery business’s total sales, or gross merchandise value (GMV), jumped 40% to touch $1.3 billion in the first six months of this financial year. Shedding light on the order growth, Prosus said the restaurant delivery business orders grew 38% during the period. During the same period, Instamart — Swiggy’s quick-commerce business — also saw its GMV reach $257 million. Moving on. With the debt levels of Adani Group not having fallen meaningfully in the last six months, the management is weighing a mop-up of capital. The total debt for the leading companies in the infrastructure conglomerate, at the end of September, was Rs 2.22 trillion, more or less flat compared with Rs 2.24 trillion at the end of March. On Tuesday, Adani Enterprises, the flagship enterprise for the group, said it was planning to issue new shares through a follow-on offer. While the late-evening regulatory filing did not specify the amount that would be raised, the mop-up is expected to be in the region of $1.8 billion or approximately Rs 14,600 crore. On Wednesday, Bloomberg reported, citing IFR, that Adani Enterprises and Adani Transmission are both planning follow-on public offers for up to a combined amount of $3.4 billion or Rs 27,500 crore. The issuance could be made early next year. The issue of fresh shares would also increase the free float of these companies. In some market related news, Private promoter share by value in companies listed on the National Stock Exchange went up to 44.61% as on September 30, 2022, from 44.32% in the previous quarter. In value terms, the private promoter holding was at Rs 118.44 trillion during the quarter under review, an increase of 12.43% over the previous quarter, according to data from primeinfobase.com. In terms of ownership by number of shares or share by volume, private promoters’ share decreased to 52.77% as on September 30, 2022, from 52.81% as on June 30, 2022. Companies that saw the highest increase in private promoter holding in percentage terms in the last one quarter include WS Industries, Eveready Industries and Hexa Tradex. And lastly, a number of bidders of debt-laden Reliance Capital, including a consortium led by Piramal Enterprises, have sought an extension to the November 28 deadline to submit binding bids for the former Anil Ambani group company. The bidders — others being Oaktree Capital, Torrent Group and Zurich Insurance — have written separate letters to the administrator of the insolvency process, seeking more time to finalise their resolution plans. While Piramal and Zurich want the deadline to be extended to December 16, Oaktree and Torrent want it to be moved to December 23, sources close to the development said. However, the administrator is unlikely to grant the requests as they come barely a week before the expiry of the deadline. The deadline, if extended again, would lead to further delays in the whole process, sources added.

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Business News at 09:30 am on 24th November 2022
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