What is it? The maximum amount that Idea Cellular will raise by selling up to 326.6 million shares on a preferential basis to firms owned by its parent Aditya Birla Group, as per a plan approved by its board members on Thursday.
Why is it important? This comes ahead of the telecom company’s merger with Vodafone India and will increase Aditya Birla Group’s stake in Idea to 47.2% from 42.4% currently. The fundraising seems to be to meet merger conditions, and not due to any cash crunch or breach of covenant, according to a recent report by JM Financial. The proceeds from this fundraising, along with the sale of the tower businesses by Idea and Vodafone India separately, is likely to strengthen the balance sheet of the merged entity.
Tell me more: The Idea board also set up a committee of directors to evaluate options to raise an additional equity of Rs3,500 crore, including a further preferential issue, qualified institutional placement and rights issue.
What is it? The size of a plan put forth by the Indian government to recapitalise state-run banks by March as part of a two-year programme, for which it sought approval of Parliament on Thursday.
Why is it important? The Lok Sabha gave its green signal to the plan, which seeks to help public sector banks tackle their bad loan problems and revive credit growth. State-run banks account for two-thirds of India’s banking assets, but account for about 90% of bad loans, according to Credit Suisse Group. Last October, the government announced a plan to infuse Rs2,11,000 crore of capital in 21 banks, including Rs1,35,000 crore via recapitalisation bonds and Rs58,000 crore via stake sales by public sector banks.
Tell me more: According to Moody’s Investors Service, the average common equity tier I ratio of rated state-run banks was 8.7%, as of September 2017, compared to 12.2% for rated private sector banks. That gap is set to narrow with the government’s Rs2,11,000 crore plan.
What is it? The price for which one can allegedly gain access to all details submitted by all individuals to the UIDAI (Unique Identification Authority of India), including name, photograph, phone number, address and email ID, according to a report by The Tribune.
Why is it important? If true, it is a major security breach of the world’s biggest biometric database that leaves a billion people at risk of identity theft. However, the UIDAI rubbished the report and said crucial data is secure, and said this appears to be an instance of misuse. It added that it has initiated legal proceedings, including filing an FIR against the persons involved in this case. The Tribune, in response, has countered UIDAI’s claims and has said that the government agency has admitted to misuse of data.
Tell me more: A year ago, the government said more than 111 crore people have an Aadhaar number, which covers over 99% of the country’s adult population.
What is it? The likely compensation of Salil Parekh, Infosys’s new chief, in his first year ending March 2019, if he meets performance expectations. This can increase to Rs19.25 crore in the second year and Rs35.25 crore in the third year.
Why is it important? Parekh, who took over as CEO on 2 January on a five-year term, will draw a considerably lower package than his predecessor Vishal Sikka, who earned Rs48.7 crore in his first year. During Sikka’s tenure, Infosys co-founder N.R. Narayana Murthy had slammed the company’s board for approving salary hikes to the company’s COO and CEO that were significantly above the standard increase for an average employee.
Tell me more: Parekh’s annual compensation includes Rs6.5 crore as fixed salary and up to Rs9.75 crore as variable portion. On top of that, there are some equity grants. Parekh’s salary is also lower than his peers at Cognizant and TCS, but more than what he made in his previous role at Capgemini.
What is it? The number of test series that India has won in South Africa out of the six they have played since 1992-93. India has lost five series and drawn one.
Why is it important? That’s the kind of history this Indian cricket team will be looking to reverse when it commences its tour of South Africa on Friday, with the first test match at Cape Town. India last toured South Africa in 2013-14. They go into this match without a warm-up game, opting out of one, and instead choosing practice sessions they could control.
Tell me more: India come into the series with a momentum of its own. In 2017, they won all the four test series they played in, losing only one of 11 test matches in the process.
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