7 times
What is it? The multiple by which borrowings of top 10 indebted corporate groups, including Reliance ADAG, Vedanta Ltd and GMR Group, increased in the last eight years. Together these 10 groups have debt of Rs.7.35 trillion or 27% of corporate loans.
Why is it important? Situation has reached a level where their operating profits are not enough to service at least the interest payments. Any further deterioration will classify these loans as bad loans and will adversely impact banks.
Tell me more: Already credit rating for four out of the 10 groups—Jaypee, Lanco, Essar and GMR—have been downgraded to ‘default’, says a Credit Suisse report titled, ‘House of debt’.
Rs.21,000
What is it? The new upper limit to claim bonus, according to a proposed change in Payment of Bonus Act. The current upper limit is Rs.10,000.
Why is it important? This will benefit 12.15 million workers employed in 88,474 factories, as per the latest Annual Survey of Industries. The quantum of maximum bonus payable is doubled to Rs.7,000 as against Rs.3,500.
Tell me more: Under the Payment of Bonus Act, companies that employ more than 20 employees have to give a minimum bonus of 8.33% of salaries paid for that year even if the company didn’t make any profits. The maximum can be 20% of salaries paid.
Rs.7,635 core
What is it? Amount paid by US-based American Tower Corp (ATC) to acquire 51% stake in Viom Networks from existing shareholders like Tata Teleservices and Srei Group.
Why is it important? ATC, at present, owns 14,000 mobile towers. Along with 42,000 towers belonging to Viom, the combined entity will hold 15% of all mobile towers in India. ATC is taking a bet on next wave of growth in telecom industry that will mainly driven by data consumption.
Tell me more: With Bharti Infratel owning 42% stake in Indus Towers—the market leader with 31% market share—the Bharti Group is the dominant player.
$9.8 billion
What is it? The market value of iconic luxury sports car maker Ferrari on the issue price of its initial public offering (IPO) of $52 per share, announced on Wednesday.
Why is it important? For Ferrari car owners—a devoted lot, who bought 60% of the new cars the company sold in 2014—this is the first time that they can also own shares in the company, as many of them did in the IPO. For Ferrari parent, Fiat Chrysler Automobiles, which offloaded 9.1% of its 90% stake in Ferrari for $893 million, it is cash to pump into brands and gain share.
Tell me more: In 2013, Fiat Chrysler posted earnings before interest and tax (EBIT) of €1.9 billion on revenues of €86 billion. Of this, Ferrari accounted for 2.7% of revenues, but 18% of EBIT, underscoring its importance to the group.
16%
What is it? The percentage by which applications for Common Admissions Test (CAT), the MBA entrance exam for IIMs, went up in 2015. About 2.18 lakh candidates applied in 2015, compared to 1.87 lakh last year.
Why is it important? One, the network of IIMs is expanding, while the number of applications had dropped from the levels of 2008. Two, this might be an early indicator that efforts taken by IIMs to diversify the classroom composition has started to work.
Tell me more: B-Schools are trying to diversify the class composition by including more students from non engineering backgrounds, by making the entrance less math-intensive for example. In this they are following some American B-Schools which try to have a mix of quants (students with math/engineering background) and poets (students with liberal arts background).
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