| | | Question of the Week Which Indian company received the highest number of abbreviated new drug application (ANDA) approvals from the US Food and Drug Administration for 2022? | | |  | Here's a great value proposition A digital subscription to Mint premium can be yours at just ₹213 per month. Check out the convenient and affordable plans we have for you here. | | Good Morning | | The News in Summary Go First took the extreme step of filing for insolvency after its running feud with engine maker Pratt & Whitney left half the airline’s fleet grounded, leading to mounting losses. Meanwhile, markets regulator Sebi widened its scrutiny of the bank statements of Adani group companies even as it sought a 6-month extension from the Supreme Court to conclude its investigations. Elsewhere, the promoters of the Zydus group are exploring sale of Cliantha Research, their clinical research business while HDFC, forced to cut its stake in Credila, says it has received multiple offers for the education loans business. Finally, Japanese firms are the early bidders for a stake in ReNew Energy’s commercial and industrial project portfolio. | | | | As Go First Goes Bust Fliers’ Choices Shrink  Facing a severe cash crunch, the Wadia group-owned low-cost carrier Go First, unexpectedly filed for voluntary insolvency resolution proceedings before the National Company Law Tribunal (NCLT), Delhi. The airline, which has been making losses for the last three years and owes financial creditors Rs 6521 core, blamed the non-supply of engines by Pratt & Whitney, which forced the grounding of more than half its fleet, for the abrupt move. The engine maker in turn said that Go First had a lengthy history of missing its financial obligations to P&W. In its filing on the matter, the company said it had received notices from lessors for termination of aircraft lease agreements and some have started actions to ground or repossess aircraft, after it defaulted on payments to operational creditors, including vendors and aircraft lessors. An NCLT principal bench has reserved its decision on Go First’s petition to initiate an interim moratorium to prevent seizure of 26 aircraft with serviceable engines. Countering earlier reports, GoFirst CEO Kaushik Khona stated that the Wadia Group, was completely committed to the airline and was not looking to sell out. However, the statement did little to pacify irate flyers left in the lurch after Go First canceled its flights. Company employees too rushed to apply for jobs fearing a Jet-like situation which has seen that airline stay grounded despite efforts at revival. | | | | Go First’s bankruptcy filing is a shot in the arm for another troubled airline, SpiceJet. This Mint video explains how the rival airline is trying to cash in: | | |  | | | | | | | | Sebi Seeks 6-month Extension for Adani Probe  Even as it sought a 6-month extension from the Supreme Court for the mandated probe into the Adani group, markets regulator Securities and Exchange Board of India (Sebi) deepened its probe into the financial transactions of the group’s companies over the past decade by examining their bank accounts. Sebi, which has sent multiple queries over the last two months to seven key listed Adani group firms, said that it has already formed a “prima facie" view on allegations made by Hindenburg regarding suspicious transactions. However, it has so far drawn a blank in its efforts to seek ownership information from some of foreign funds invested in Adani group companies. The funds have declined to identify their beneficial owners, citing client confidentiality and foreign privacy laws relevant in the countries of their beneficiaries. While this seems to have delayed Sebi’s investigations, legal experts say the regulator can force these funds to reveal their ownership patterns. In the meantime, Shah Dhandharia & Co. LLP, the small Ahmedabad-based chartered accountancy firm whose appointment as auditor for Adani Enterprises and Adani Total Gas Ltd, was questioned by Hindenburg in its damning report, has resigned citing “increased professional pre-occupation in other assignment”. And in a development that was largely expected, financial index provider MSCI said that it would lower the free float of Adani Total Gas and Adani Transmission in its May index review. | | | | Zydus Promoters to Sell Clinical Research Business The promoters of the Zydus group have hired investment bank Moelis & Co. to explore the sale of their clinical research business, Cliantha Research Ltd, for $200 million - $250 million. The promoters, Pankaj Patel and his family, independently own Cliantha Research whose net sales rose 57% over the previous year to Rs 499.1 crore for the year ended 31 March 2022 while operating profit surged 79% in the same period. With clinical research in India facing regulatory challenges, the promoters are looking to sell Cliantha which specializes in early-phase (bioavailability/bioequivalence) clinical studies, possibly to focus on their highly successful generics business. Just last week, Zydus Lifesciences, the group’s listed company, received the approval of the US health regulator, the US Food and Drug Administration (USFDA), to market its generic product Levothyroxine Sodium Injection, which is used to treat myxedema coma. | | | | HDFC Receives Multiple Bids for Credila Stake Housing Development Finance Corp. (HDFC) has received multiple bids for its mandated stake sale in HDFC Credila Financial Services, being managed by Jefferies Financial Group. The financial services powerhouse could seek a value of as much as $1 billion in any potential deal. Following a Reserve Bank of India directive related to its merger with HDFC Bank, HDFC needs to cut its holding in its education loan subsidiary to 10% from the current 100% within two years and also stop fresh customer acquisitions. Keki Mistry, its vice-chairman and chief executive said that HDFC had received a lot of bids and “hopefully by the end of June, we will be able to arrive at some finality on how to close this.” The mortgage lender has been trying to sell its stake in Credila over the last one year but despite interest from large private equity players and sovereign funds, talks had been on hold since it was awaiting clarity from RBI on its planned merger with HDFC Bank. | | | | Japanese Firms Bid for Stake in ReNew Energy’s commercial and industrial portfolio Japanese firms Mitsui & Co. and Osaka Gas have placed non-binding bids to buy a 30% stake in ReNew Energy Global Plc’s 2.3 gigawatts (GW) commercial and industrial project portfolio for $300 million. The transaction, being managed by Moelis & Co., is a part of ReNew Energy Global’s capital recycling strategy. The company plans a capital expenditure of Rs 35,000 crore and has been exploring several opportunities including talks with Petronas for green energy projects in India, in which the Malaysian company may buy around 49% stake at the project level, and a potential sale of clean power projects worth 1.1GW to Torrent Power for approximately $450 million in equity value. With more non-binding offers expected, a deal could be some way off.. | | | | Last Word For a clue to the Tim Cook schmooze fest in India last month, look no further than Apple’s last quarter results. For the three months ended April 1, 2023, the iPhone maker reported its second straight quarter of declining revenue, only the third time in the last 10 years that the company has posted back-to-back quarters of falling revenue. The saving grace amidst the gloom: strong iPhone growth in emerging markets like India, Indonesia, Latin America and the Middle East. Both Cook and Apple’s Chief Financial Officer Luca Maestri stressed on the growing importance of India in the company’s scheme of things, with Maestri pointing out that the company was doing well in India in part because of its recent investments in the country, with new retail stores and focus on building up the app-developer community there. | | | | Answer to the Question Zydus with 36 approvals topped the overall list of companies getting final ANDA approvals in 2022. Expectedly Indian companies dominated the list bagging 355 of the total of 742 ANDA approvals. | | | Do you have any questions? Send in your queries to sundeepkkhanna@gmail.com Were you forwarded this email? Did you stumble upon it online? Sign up here. | | Written by Sundeep Khanna. Edited by Saikat Chatterjee. Produced by Shad Hasnain. 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