The Securities and Exchange Board of India (SEBI) has tightened the disclosure norms for credit rating agencies (CRAs) that will now have to take into account various factors, including asset-liability mismatch, liquid investments, cash flows and capital infusion from parent or group entities while performing any rating action. When a rating factors in support from a parent/group/ government, with an expectation of infusion of funds towards timely debt servicing, the name of such entities, along with rationale for such expectation, may be provided. When subsidiaries or group companies are consolidated to arrive at a rating, list of all such companies, along with the extent (e.g. full, proportionate or moderate) and rationale of consolidation, may be provided. SEBI also mandated CRAs to include a specific section on “liquidity” to highlight parameters like cash balances for servicing maturing debt obligation.
In a first, Singapore based Agritrade Resources has acquired SKS Power Generation (Chattisgarh) in a one-time settlement of Rs.21.70 billion with its lenders. The settlement is for all the outstanding debt to State Bank of India, L&T Infrastructure Finance Company Limited and PTC (India) Financial Services. Agritrade is a diversified energy provider with strong expertise in coal and renewable energy. Agritrade provides solutions for sustainable mining, cleaner coal and affordable energy access.
Drug major Cipla said its subsidiary InvaGen Pharmaceuticals Inc has entered into definitive agreements to acquire US-based speciality business firm Avenue Therapeutics for up to USD 215 million (around Rs.1,560 cr.). Avenue Therapeutics is focused on development and commercialization of intravenous (IV) Tramadol, a painkiller.
Aurobindo Pharma has said its wholly-owned subsidiary has entered into an agreement to acquire a product under development and related assets from Australia-based Advent Pharmaceuticals Pty Ltd for USD 12.5 million. Based out of Melbourne, Advent Pharmaceuticals is engaged in developing and commercializing generic inhaled medicines for global markets.
Homegrown private equity fund True North will acquire a 75% stake in Shree Digvijay Cement Co. Ltd from Brazil-based Votorantim Cimentos, one of the largest global cement producers in terms of annual installed capacity. True North has made an open offer to acquire a 25.1% stake held by public shareholders for Rs.23.33 a piece, aggregating to Rs.83 cr. Shree Digvijay Cement was set up in 1944. In 2012, Cimentos de Portugal, a Portuguese cement company and the then promoter of the Gujarat-based company, had transferred its stake to Votorantim as part of its global restructuring strategy.
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