Tata Power, BoB among 6 stocks dropped from MSCI India Domestic Index

Abbot India, Ipca Laboratories, Jubilant Foodworks and Tata Consumer are among the six stocks that have been added to the MSCI India Domestic Index (See document), while there have been five deletions, which include Ashok Leyland, Bank of Baroda, Cummins India Kirloskar and M&M Financial Services.
MSCI India Domestic Small Cap Index (see document), on the other hand, has seen 52 deletions which include BSE, Venky’s India, Jammu & Kashmir Bank, Power Finance Corporation and Dish TV India. IndiaMart Intermesh, Mishra Dhatu Nigam, Nippon Life India and Relaxo Footwears are among the 13 added to this index. Though changes in both these indices have been announced, they will take place as of the close of May 29, 2020.
Domestic equities, according to a recent report by Emkay Global, are expected to see inflows to the tune of $250 million (Rs 1,900 crore) on account of this semi-annual rebalancing of the MSCI India Index, which is tracked by funds worth $14 billion (Rs 1 trillon).

It had anticipated Tata Consumer, Torrent Pharma, Jubliant Foodworks, and Biocon as key inclusion candidates, which it said, are expected to see inflows in the range between $50 million (Rs 380 crore) and $85 million (Rs 640 crore).

Relaxed FPI norms in InvITs to help Reliance, Tata Power cut debt

International News

The infrastructure InvITs to be launched by Reliance Industries, Tata Power and Vodafone Idea will be able to attract investments from foreign portfolio investor (FPIs), with the Union Budget relaxing norms to enable FPIs to subscribe to listed debt securities issued by the InvITs and REITs.
While Sebi had operationalised issue of debt securities under the InvIT and REIT regulations, raising financing from FPIs had hit a roadblock due to restrictions under the FPI regulations as only corporate debentures were permitted.
"As Invits and REITs are organised as trusts, it is now proposed to align the FPI regulations and permit FPIs to subscribe to debt securities issued by Invit and REITs," said Shagoofa Rashid Khan, Partner, Cyril Amarchand Mangaldas.
Reliance Jio Infocomm, a subsidiary of Reliance Industries, plans to hive off its telecom and fibre assets to two separate InvITs. With this, Reliance will be able to park debt worth $15.4 billion with the InvIT which is seeking investments from both foreign and local investors.
Taking a leaf from RIL's books, Tata Power also plans to deleverage its balance sheet by hiving off its renewable energy portfolio and park debt worth Rs 10,000 crore with the InvIT. Tata Power had gross debt of Rs 48,500 crore as on March 2019. Vodafone Idea, owned by Vodafone and Aditya Birla group, is also planning an InvIT to hive off part of its Rs 1.2 trillion debt.
The move will also help Embassy Office Park REIT, which was listed recently on the Indian stock exchanges.

 As of now, foreign investments via the FPI route are too restrictive and despite interest shown by overseas participants to invest in the InvITs of top-rated companies's , they were not allowed...Read More

Seamless passenger transfer as Emirates, SpiceJet enters code sharing deal

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Company News
The passenger transfers at Dubai airport and service differentiation will not be an issue, said Dubai-based airline Emirates as it entered into a code share agreement with SpiceJet on Monday.
Emirates is the largest foreign airline operating to India and its home base, Dubai, is the largest overseas hub for Indian travellers.

Emirates and SpiceJet signed a memorandum of understanding for code shares which will allow passengers from India more travel options.

At present, Emirates operates from Terminal 3 while Spice Jet works from Terminal 1 in Dubai. Also, Emirates is a full service airline with first class and business cabins and full fledged loyalty programme while SpiceJet offers no frills and charges passengers for meals.

An Emirates spokesperson, however, said these issues will not impact passengers."There will be no change to the current transfer process between terminals at Dubai international airport. Passengers are transported via an inter terminal shuttle bus which operates between terminals every 20 minutes," Emirates said in a statement.

"It is not uncommon in codeshare partnerships to have mixed cabin itineraries and customers are not averse with this as a seamless connectivity and quicker overall journey takes priority. The codeshare partnership will enable Spicejet customers to experience Emirates’ renowned product and service," the airline added.


 Emirates said SpiceJet passengers travelling from Delhi, Mumbai, Ahmedabad, Kochi, Amritsar, Jaipur, Pune, Mangalore, Madurai, Kozhikode and 41 other domestic destinations that the airline operates to, will be able to access Emirates’ expansive network across the globe.

Tata Power may pull the plug on new coal power, says study

Company News

Tata Power, the country’s largest private integrated power producer, is likely to cease building new coal-based generation projects, shifting gears to renewable power sources, a study showed.

A report by the US-based Institute for Energy Economics & Financial Analysis (IEEFA) titled ‘Tata Power: Renewables to Power Growth’ spells out the company’s long-term strategy that will see renewable energy dominate its power capacity build-out going forward.

Presently, thermal power accounts for around 70 per cent of Tata Power’s portfolio. But the current energy mix is part of the company’s long-term legacy before 2013 when renewable energy was pricier compared with competitive coal-fired power.

“The company’s plan, ‘Strategic Intent 2025’ calls for up to 70 per cent of new capacity additions to come from solar, wind and hydro through to 2025. This represents a significant departure from the accepted wisdom of just a few years ago that a major expansion of coal-fired power would be required to serve India’s growing electricity demand”, said Simon Nicholas, energy finance analyst at IEEFA.

Tata Power’s debt laden and stranded power asset at Mundra (Gujarat) is viewed as the trigger for the company to abjure fresh coal-fired capacities.

“The Mundra plant is making consistent, significant losses that are dragging back the company’s overall financial performance. Tata Power’s experience at Mundra has helped convince the company to turn away from new coal-fired power”, Nicolas said.


 Tata Power had not responded to Business Standard’s questions sent by mail till the time this report was filed.

Solar installation stood at 8.3 GW in 2018, Adani top project developer

Company News

India’s solar installations stood at 8.3 GW in 2018. The installations include large-scale and rooftop solar capacity. The country’s cumulative solar capacity is around 28 GW as of 2018.

Much has changed in the Indian solar industry over the last year. There was some re-shuffling when it came to suppliers after the imposition of the safeguard duty while others have consolidated their positions, says Industry representative, said Raj Prabhu, CEO of Mercom Capital Group.

Mercom Communications India's report finds that the top 10 large-scale developers accounted for 60 per cent of the market share in 2018.

In terms of cumulative installations, Adani maintained its position as the top project developer, while ACME Solar was the developer with the most large-scale solar installations in 2018. Adani was the second largest developer in 2018.

Around 80 large-scale project developers with a pipeline of 5 MW or more in India. ACME Solar had the largest project pipeline at the end of 2018 closely followed by SB Energy (SoftBank) and Azure Power.

In 2018, the top 10 rooftop solar installers accounted for just 30 per cent of the installed capacity in India, reflecting the fragmented nature of the sector, said Mercom.

Rooftop installations grew 66 per cent year-over-year (YoY) with cumulative installations totaling nearly 3.3 GW at the end of 2018. Rooftop solar installations for 2018 amounted to 1.7 GW.


 Among rooftop installers, Tata Power led cumulative installations while CleanMax Solar was the top rooftop installer in 2018.ABB continues to lead solar inverter supply in the Indian market cumulatively and in 2018.