Connect with us

Businesses

Delhi HC directs DGCA to deregister all Go First aircraft

Published

on

New Delhi, April 26 (IANS) The Delhi High Court on Friday directed aviation watchdog, the Directorate General of Civil Aviation (DGCA), to process, within five working days, the deregistration applications for aircraft leased by grounded airline Go First, which is undergoing insolvency proceedings.

Justice Tara Vitasta Ganju also declined the Resolution Professional’s plea to keep the order in abeyance for a week.

The court also rejected the DGCA’s communications from May 2023, which had put lessors’ deregistration applications on hold due to Go First entering a moratorium.

As per the court’s directive, the RP must provide updated maintenance details to the lessors and is barred from accessing the aircraft henceforth.

Besides SpiceJet Chairman and Managing Director Ajay Singh, and Busy Bee Airways Private Ltd, Sky One, an aviation company headquartered in Sharjah, had also submitted the bid for GoFirst. However, bidding results are yet to be declared.

Following the court directions, Skyone Chairman Jaideep Mirchandani claimed that as far as their bid for Go First is concerned, the de-registration does not alter their plans for the Indian aviation industry.

ALSO READ:  Power giant NTPC’s mining arm surpasses 100mn tonnes coal production milestone

“If our bid goes through, Sky One can bring in its own assets to run and revive the airline as we are experienced lessors,” he said.

Earlier, the high court had asked the RP of Go First to file an affidavit in response to a lessor’s plea seeking contempt action, alleging that the RP had not complied with the court’s order to allow inspection and maintenance of the aircraft.

In October last year, the court allowed aircraft lessors to engage security personnel round-the-clock to safeguard their aircraft parked at rest for several months.

In an interim order on July 5, 2023, the court permitted the lessors to inspect their aircraft at least twice a month and carry out maintenance.

Justice Ganju, in October, had asked Go First’s RP to share documents regarding the maintenance of aircraft, engines and airframes with its lessors. She had said that court orders must be followed in letter and spirit, warning that further orders might be necessary if compliance is not achieved.

ALSO READ:  Adani Green secures $400 million from international banks for 750 MW solar projects

Lessor, DAE (SY 22) 13 Ireland Designated Activity Company, had filed a petition seeking contempt proceedings against the RP, claiming that the aircraft were not being properly maintained, required documents were not provided, and court-directed inspections were being denied.

Several other lessors had also raised similar issues during the hearing.

On May 26 last year, aircraft lessors – Pembroke Aircraft Leasing 11 Ltd, SMBC Aviation Capital Ltd, Accipiter Investments Aircraft 2 Ltd and EOS Aviation 12 (Ireland) Ltd – had moved the high court seeking deregistration of their planes by the DGCA to take them back from the airline.

The low-cost airline first stopped flying on May 3, 2023. The airline had approached the National Company Law Tribunal “due to the ever-increasing number of failing engines supplied by Pratt & Whitney’s International Aero Engines, which has resulted in Go First having to ground 25 aircraft (equivalent to approximately 50 per cent of its Airbus A320neo aircraft fleet) as of May 1, 2023”.

ALSO READ:  Federal Bank opens 26 new branches across Tamil Nadu, Puducherry

The National Company Law Appellate Tribunal on May 22, 2003, upheld the NCLT’s May 10 order for insolvency proceedings against Go First in a setback to efforts of its lessors to repossess their aircraft and asked the lessors to file an appeal before the NCLT.

On lessors’ petitions citing the refusal of their pleas for deregistration of their aircraft, the DGCA had told the high court that it was due to a technical glitch on its portal that the applications of several aircraft lessors were shown as ‘rejected’. It had said it was not processing such requests after a moratorium on financial obligations and transfer of assets of the crisis-hit airline post insolvency resolution proceedings.

The lessors had said it is “illegitimate” of the DGCA to deny deregistration, contending that Go First has no right to use their aircraft as the leases concerning them have been terminated.

–IANS

spr/vd

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Businesses

Zomato may buy Paytm's movie ticketing business: Reports

Published

on

By

New Delhi, June 16 (IANS) Online food delivery platform Zomato is in advanced discussions to buy Paytm’s movie ticketing and events business, according to multiple reports.

This move aligns with Zomato’s plan to expand its ‘going out’ offerings.

The potential deal could value Paytm’s vertical at around Rs 1,500 crore, as per reports.

Zomato or Paytm were yet to comment on the reports.

If finalised, this acquisition would be Zomato’s second-largest purchase, following its acquisition of quick commerce platform Blinkit in 2021, which was an all-stock deal worth Rs 4,447 crore.

Meanwhile, Zomato has invested Rs 300 crore in its quick commerce arm, Blinkit, as this segment is projected to surpass its core food delivery business.

The board of the company has approved the investment of Rs 300 crore in Blinkit Commerce, as per filings with the Registrar of Companies accessed via TheKredible.

Additionally, Zomato will also invest Rs 100 crore in Zomato Entertainment, its events arm, which specialises in curating and selling tickets for concerts, parties, and festivals.

ALSO READ:  Adani Green secures $400 million from international banks for 750 MW solar projects

–IANS

shs/vd

Continue Reading

Businesses

First-ever direct flight between India and Cambodia launched

Published

on

By

Phnom Penh, June 16 (IANS) Cambodian Deputy Prime Minister Neth Savoeun and Indian Ambassador to the country Devyani Khobragade launched the first-ever direct flight between Phnom Penh and New Delhi on Sunday.

The flight between the two capitals will be operated four times a week by Cambodia’s national flag carrier Cambodia Angkor Air.

Several members of the Indian community also joined the flight inauguration ceremony which not only marks ease of travel for tourists but also strengthens the historic ties between the two countries.

The Embassy of India in Phnom Penh hailed the development as a “historic moment”, citing India’s “Act East” Policy.

A statement released by Angkor Air said that the new connection will make the Angkor Archaeological Park, a UNESCO-listed world heritage site, more accessible to Indian tourists and also provide Cambodian patients better access to medical treatments in India.

“With both nations’ rich histories and mutual interests, Cambodia Angkor Air is optimistic about the potential and positive impact of this new service,” the statement said.

ALSO READ:  Adani Green secures $400 million from international banks for 750 MW solar projects

Citing India’s involvement in the restoration of Angkor Wat and Preah Vihear temples in Cambodia depicts the cultural and linguistic connect, Prime Minister Narendra Modi has time and again spotlighted the historical and civilisational links between the two countries.

–IANS

as/khz

Continue Reading

Businesses

Markets need correction but current momentum indicates otherwise

Published

on

By

New Delhi, June 16 (IANS) After the sharp gains witnessed in the previous week, markets were circumspect this time around but continued to post gains. Markets are at lifetime highs, and in the previous week, one saw the market breadth gaining substantially.

One reason for the above could be the fact that key portfolios of the Cabinet have been retained by the ruling party, and there is no significant change in ministers. This implies continuity. Probably, that explains why the markets rallied and why one saw such huge momentum. The market believes that the policies and thinking of the government in Modi 3.0 would be on similar lines as in the previous stint, even though this is a coalition government.

Sensex gained on three of the five trading sessions and lost on two, while NIFTY gained on four sessions and lost on one session. BSESENSEX gained 299.41 points or 0.39 per cent to close at 76,992.77 points, while NIFTY gained 175.45 points or 0.75 per cent to close at 23,465.60 points. The broader indices like BSE100, BSE200 and BSE500 gained 1.29 per cent, 1.68 per cent and 2.02 per cent. BSEMIDCAP gained 4.41 per cent, while BSESMALLCAP was up 5.07 per cent.

In the benchmark indices, one is seeing a churning of heavyweight stocks. In the previous week, the top gainers were FMCG and IT stocks. This week, they were under pressure, and we saw cement shares rallying. I believe this rotation will continue till the announcement of the budget and the onset of Quarter One results for the April to June Quarter.

If there is one serious concern in the market, it’s the fact that valuations have run up quite sharply, and we have not seen any meaningful improvement in results, which indicates a solid improvement in earnings growth.

ALSO READ:  Adani Green secures $400 million from international banks for 750 MW solar projects

The Indian Rupee lost some ground and was down 19 paise or 0.23 per cent to close at Rs 83.56 to the US Dollar. There appears to be clarity in the US markets that there would be no immediate rate cut and that in the current calendar year, there would be just one rate cut. Dow Jones lost 209.83 points or 0.54 per cent to close at 38,589.16 points. Dow gained on just one of the five sessions and lost on four.

In primary market news, we had one issue which opened and closed for subscription last week. The issue from Le Travenues Technologies Limited was subscribed 98.1 times overall. The QIB portion was subscribed 106.73 times, the HNI portion was subscribed 110.25 times, and the Retail portion was subscribed 53.95 times. There were 26.75 lakh applications overall.

In the week ahead, we begin the week with a trading holiday on Monday. This will shorten the week and increase volatility to some extent. There are three issues which are opening in the coming week. The first of the lot is the issue from DEE Development Engineers Limited, which is tapping the capital markets with its fresh issue of Rs 325 crore and an offer for sale of 45.82 lakh shares in a price band of Rs 193-203.

The company is in the business of piping solutions for the oil and gas sector, chemical sector and supercritical and power sector. It also makes structural towers for the wind energy space. It began operations in Haryana and has now expanded operations into Kutch in Gujarat. This place is strategically located with two ports, Kandla and Mundra, in the vicinity, customers for wind energy having their sites in the vicinity, and major steel suppliers being in a 25-kilometre radius. The location helps in reducing costs on account of inward transportation significantly.

ALSO READ:  C V Raghu to mentor ORTIS Law

The expansion happening at Kutch will take about 6-8 months to fructify. I believe the company has a great future, and it will do well after the commissioning of the new plant. The numbers of the company would reflect improved scale and efficiency for the year ended March 26. Only if you have an investment horizon of 18 months or more should you invest now. There may always be listing gains looking at the market mood, but otherwise, investment is for the medium to long term.

The second issue is from a NBFC based out of Rajasthan, Akme Fintrade (India) Limited. The company is raising through a fresh issue of 1.1 crore shares in a price band of Rs 114-120. The issue opens on Wednesday, June 19 and closes on Friday, June 21.

The NBFC space is crowded, and recent issues in this space have not done well. The company and its merchant banker have chosen not to have a roadshow in Mumbai for this issue. This speaks volumes for their confidence in marketing the issue. One wishes them luck.

The third issue is from Stanley Lifestyles Limited, which is tapping the capital markets with its fresh issue of Rs 200 crore and an offer for sale of 91,33,454 shares in a price band of Rs 351-369. The issue opens on Friday, June 21 and closes on Tuesday, June 25.

ALSO READ:  Adani Green Energy operationalises 1,000 MW of 30,000 MW Gujarat renewable energy park

The company is a bespoke manufacturer of super-premium and luxury furniture brands in India. It’s a home-grown brand, and a little over half its revenues come from sofas and recliners. The company crafts its products as per the requirements of its customers, and everything’s made to order.

The business has been growing, and with funds being raised to open more stores, benefits of the same would be available as time passes. The company is in a niche segment where luxury defines markets. Take a measured call, as growth in revenues will not be a factor of perpendicular growth.

Coming to the markets in the week ahead, as mentioned earlier, it would be a four-day week. Momentum and market breadth are in favour of the bulls, and there seems to be no letting go of them as of now. However, the run-up has been fast and other than the sharp one-day correction on June 4, no meaningful corrections as of now.

Market corrections come suddenly and without warning. Will it happen this week or the next? Not sure. Keep one ear to the ground and prepare for the same because that could be sharp and meaningful. Until that happens, ride the wave as long as the going is good.

A simple strategy for the period ahead would be to ensure that you have no overnight exposure, as markets could open gap-up or gap-down. This could be dangerous. Trading opportunities would exist galore and provide plenty of trades to be facilitated. Use the opportunities to trade and await the correction when it comes.

Trade cautiously.

(Arun Kejriwal is the founder of Kejriwal Research and Investment Services. The views expressed are personal)

–IANS

arun/sd/kvd

Continue Reading

Businesses

Modi 3.0: Stock markets to touch new high in 1 yr, say global rating agencies

Published

on

By

New Delhi, June 16 (IANS) Indian stock markets have seen a robust rally since the new government’s formation, closing at an all-time high in the last week. According to top rating agencies, the indices are set to gain new highs in the next 12 months.

It was the second consecutive week when Indian frontline indices Sensex and Nifty made a new all-time high of 77,145 and 23,490 respectively, as inflation cooled off.

The stock market is attracting global funds which are going to accelerate soon.

Moreover, the stock markets have emerged as a favourite investment destination for retail investors.

According to global rating agency Moody’s, its “12-month forward BSE Sensex target is 82,000, implying 14 per cent upside”.

In its latest report, Moody’s said that the key benefit to the market of the NDA’s re-election is “policy predictability, which will influence how growth and equity return pan out in the coming five years”.

ALSO READ:  Federal Bank opens 26 new branches across Tamil Nadu, Puducherry

“We believe the government is likely to continue focusing on macro stability (i.e., inflation hawkishness) to inform policy,” according to the report.

“With government continuity now in place, we believe the market can look forward to further structural reforms, giving us more confidence in the earnings cycle. Macro stability with rising GDP growth relative to real rates should extend India’s outperformance over emerging markets equities,” it added.

According to Moody’s, India’s stock market has been making new highs, and the debate now is over what could take the market materially higher.

“In our view, the government’s mandate is likely to result in policy changes that will lengthen the earnings cycle and surprise the market,” it emphasised.

With Modi 3.0 in power, more will come over the next five years in the form of positive structural shifts.

Moreover, India has reclaimed the fourth-biggest global equity market tag from Hong Kong. The country’s market capitalisation soared 10 per cent to reach $5.2 trillion.

ALSO READ:  RBI beefs up Enabling Framework for Regulatory Sandbox

In comparison, Hong Kong’s equity market cap is $5.17 trillion, down 5.4 per cent from the high of $5.47 trillion this year.

At present, India is the second-largest emerging market after China.

Global investors now prioritise liquidity and can’t afford to ignore the Indian stock market, which is booming with retail investments, according to global analysts.

–IANS

na/khz

Continue Reading

Businesses

Collective action required to achieve renewable energy targets: MoS Shripad Yesso Naik

Published

on

By

New Delhi, June 16 (IANS) Collective action is required to achieve renewable energy targets, making India a leader in wind energy and creating a greener, brighter future for all, Minister of State of New and Renewable Energy and Power, Shripad Yesso Naik, said.

Speaking on the ‘Global Wind Day’, MoS Naik congratulated Gujarat, Karnataka and Tamil Nadu for achieving the highest wind capacity addition in the country during FY 2023-24.

Bhupinder Singh Bhalla, Secretary, MNRE, said that combining solar and wind energy is essential for a reliable grid and meet the country’s target of 500 GW renewable energy capacity by 2030 and net zero by 2070.

India has a history of wind energy generation spanning more than four decades.

With a cumulative installed wind power capacity of 46.4 GW by May, it has progressed to become the fourth largest in the world.

Bhalla highlighted the previous year’s achievements and motivated the stakeholders to collaborate to realise the short term as well as long term goal for the sector.

ALSO READ:  RBI beefs up Enabling Framework for Regulatory Sandbox

The event witnessed panel discussions on the potential of both onshore and offshore wind energy, with the active participation from Central and state government authorities, manufacturers and developers, academia, think tanks, and other key stakeholders.

–IANS

na/kvd

Continue Reading

Trending