Tatas set to acquire 68% stake in BigBasket for ₹9,500 crore

The Tata group will acquire 68% stake in online grocery platform BigBasket for about ₹9,500 crore, sources said. The group has signed an agreement, the sources added.

The agreement puts BigBasket’s enterprise value at more than ₹13,500 crore.

The deal comes at a time when online shopping has accelerated in India, especially in the aftermath of COVID-19 pandemic.

The conglomerate has been reported to be working on a ‘super app’ to stamp its presence in the e-commerce space currently dominated by Amazon and Walmart-owned Flipkart, while Reliance Retail is also making heavy inroads in the sector.

In March 2019, BigBasket had raised $150 million from Mirae, Alibaba and CDC Group, which placed the Bengaluru-based company in the unicorn club (companies with valuation of $1 billion and above).

The company had then said it planned to utilise the proceeds of this fundraising to further penetrate into existing markets with more investments in the first mile, scaling-up of its supply chain and for developing new reseller channels.

Founded in 2011, BigBasket operates in 25 Indian cities. It competes with SoftBank-backed Grofers as well as Amazon India and Flipkart.

According to reports, the top management of BigBasket, including co-founder Hari Menon, may continue with the company for three to four years. However, Mr. Menon did not respond when reached out for comments.

Rio Tinto FY Underlying Profit Rises; Sales Revenue Up 3% – Quick Facts

Rio Tinto (RTPPF.PK,RIO.L,RIO,RTNTF.PK) reported 2020 net earnings of $9.8 billion, 22% higher than 2019, mainly reflecting $1.1 billion of impairments. Earnings per share in US cents was 599.8 compared to 487.8. Underlying earnings was $12.4 billion, 20% above 2019. Underlying earnings per share in US cents was 769.6 compared to 636.3. Underlying EBITDA was $23.90 billion, up 13%.

For 2020, consolidated sales revenue was $44.61 billion, an increase of 3% from a year ago.

“The Board has approved a total dividend of 557 US cents per share including a special dividend of 93 US cents per share, representing a 72% full year pay-out ratio, which builds on our five-year pay-out track record,” said Rio Tinto Chief Executive Jakob Stausholm.

Akzo Nobel Q4 Profit Soars, Lifts Dividend, Plans €1 Bln Share Buyback; Sees Margin Growth

Dutch paints and chemicals maker Akzo Nobel N.V. (AKZA.AS; AKZOY) Wednesday reported that its fourth-quarter net income attributable to shareholders increased 106 percent to 167 million euros from last year’s 81 million euros.

Earnings per share were 0.87 euro, up from 0.41 euro last year.

Adjusted earnings per share from continuing operations were 1.08 euros, compared to 0.74 euros a year ago.

Adjusted operating income grew 32 percent to 294 million euros.

Revenue declined 1 percent to 2.21 billion euros from 2.24 billion euros last year.

Revenues grew 6 percent in constant currencies, with volumes 6 percent higher and positive price/mix of 1 percent more than offset by adverse currency impact.

Looking ahead for fiscal 2021, AkzoNobel said it targets to grow at least in line with its relevant markets. Although trends differ per region and segment with raw material inflation expected, margin management and cost-saving programs are in place to deliver 50 basis points increase in return on sales.

Further, the company announced 1 billion euros share buyback, to be completed in the first quarter of fiscal 2022.

The company also proposed final dividend of 1.52 euros per share for fiscal 2020, higher than 1.49 euros per share last year.

Sweden Central Bank Keeps Rate, QE Unchanged

Sweden’s central bank maintained its key interest rate and the asset purchase programme, in order to facilitate the recovery and bring inflation back to the target.

The Executive Board of Riksbank decided to hold the repo rate at zero percent. The rate is projected to remain at this level in the years to come.

The board also kept the envelope of the asset purchase programme unchanged at SEK 700 billion.

The executive board estimated that the envelope for asset purchases will be fully utilized by the end of 2021 and that the size of the holdings will be maintained on this level at least during 2022.

The bank vowed to formulate the monetary policy so that it supports the recovery and inflation as long as necessary.

A further extension to the quantitative easing programme is possible later in the year, particularly if the downside risks surrounding the virus materialise – though a return to negative rates remains unlikely, James Smith and Petr Krpata, economists at ING said.

The bank upgraded its inflation forecast for both 2021 and 2022 to 1.3 percent, from 0.8 percent and 1.2 percent, respectively.

Riksbank observed that the economic developments in 2021 will be largely determined by how quickly and effectively vaccinations reduce the pandemic.

The growth outlook for 2021 was raised to 3 percent from 2.6 percent but that for 2022 was lowered to 3.9 percent from 5 percent.

Rupee slumps 23 paise to 72.92 against U.S. dollar in early trade

This comes amid a muted trend in the domestic equity market and strengthening American currency.

The rupee depreciated 23 paise to 72.92 against the U.S. dollar in opening trade on Wednesday amid a muted trend in the domestic equity market and strengthening American currency.

At the interbank forex market, the domestic unit opened at 72.90 against the U.S. dollar, then lost further ground and touched 72.92, registering a fall of 23 paise over its previous close.

On Tuesday, the rupee had settled at 72.69 against the American currency.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, advanced 0.17% to 90.66.

“FPI flows into the domestic markets could cap the depreciation bias of the local unit,” Reliance Securities said in a research note.

Meanwhile, Asian currencies are weak this morning and could weigh on sentiments, the note added.

On the domestic equity market front, the 30-share BSE benchmark Sensex was trading 325.12 points lower at 51,779.05, and the broader NSE Nifty declined 89.40 points to 15,224.05.

Foreign institutional investors were net buyers in the capital market as they purchased shares worth ₹1,144.09 crore on Tuesday, according to exchange data.

Brent crude futures, the global oil benchmark, advanced 0.17% to $63.46 per barrel.