Reddy family mulls selling entire stake in Apollo Munich

Australia and India have concluded a market access agreement to allow the entry of Australian walnuts in the huge Indian market. Australian Agriculture minister David Littleproud, said the two countries signed a market access agreement on February 6 with trade set to formally commence once the import conditions are officially gazetted. In the interim, 10 trial shipments of Australian walnuts will be sent to India before the trade doors officially open. The Bombay High Court rejected Anil Ambani led Reliance Group petition seeking relief against pledged share sale by Edelweiss Financial Services Group.

Anil Dhirubhai Ambani Group (ADAG) had moved the Bombay High Court seeking a stay on the sale of pledged shares of its three listed firms -Reliance Power, Reliance Infra and Reliance Capital by Edelweiss Group.

On Tuesday, Reliance Power had asked the Securities and Exchange Board of India to immediately ban Edelweiss Group from the capital market, alleging “illegal and market disruptive activities” that caused a steep plunge in the company’s share price. It also asked Sebi to order an investigation into the sale of its pledged shares.

Last week, the Reliance Group had accused L&T Finance and Edelweiss Group entities of “illegal” and “motivated” actions in invoking the pledged shares of Anil Ambani group’s three listed firms and selling them in the open market causing a steep fall in share values.

L&T Finance and Edelweiss Group had refuted the allegations saying the sale of shares of Reliance ADAG Group companies was as per contractual rights and was legal. “As per loan and pledge agreements, borrower (Reliance ADAG Group) did not cure various events of defaults including providing margin for shortfall in the stipulated security cover. Despite various notices in the past few months, events of defaults continued. Consequently, L&T Finance enforced its rights of invocation and sold pledged shares to the extent of its outstanding dues by following the due process of contract and law,” said L&T Finance. New Delhi, Feb. 13: In a boost to firms like ONGC and Reliance Industries, the government is likely to raise the price of domestically produced natural gas by over 10 per cent to over $3.72 per million British thermal unit with effect from April 1, sources in the know said.

The price of gas produced from difficult fields will rise to about $9 per million British thermal unit (mmBtu) from current $7.67, they said. This will be the fourth straight increase in gas prices.

Natural gas prices are set every six months - on April 1 and October 1 every year—based on average rates in gas-surplus nations like the US, Russia and Canada.

— Prathap C. Reddy and his family, founders of India’s Apollo Hospitals Enterprise Ltd., plan to sell their holdings in an insurance venture with Munich Re AG to repay debt, people with knowledge of the matter said.

The family is seeking to sell its entire holding of 41 per cent in Apollo Munich Health Insurance Co, for about `1,200 crore ($170 million) in six months, the people said, asking not to be identified as the discussions are private. The proceeds will be used to repay part of the debt raised by pledging Apollo Hospital’s equity as collateral, the people said.

Investors have been concerned about leveraged companies, including Subhash Chandra’s Essel Group and Anil Ambanicontrolled firms that have borrowed by offering shares as collateral, leaving them vulnerable to margin calls as stocks plummet. Shares of Apollo, India’s biggest hospital chain operator, which has about `3,430 crore of debt, plunged the most in seven years on Monday after the founders pledged more shares to raise funds to repay debt.

“We are aware of the recent increase in our pledge levels,” Apollo’s Managing Director Suneeta Reddy said in a text message, “We have clear plans to reduce the same by at least 50 per cent over the next six months.” She didn’t comment about the plan to sell stake in the insurance venture.

More than three-fourths of about 34 percent stake that the Reddy family holds in the hospital operator is kept as collateral for loans, the people said. Four companies, including two private equity funds, have shown interest in acquiring the family’s holdings in the venture with the world’s largest reinsurer, one of the people said, declining to disclose further details.

Munich Re is also planning to sell its stake in the venture, the Economic Times reported in November. The German company is in talks with HDFC Ergo General Insurance Co., according to the report.

Lenders dumped shares of Anil Ambani companies after the value of the collateral plummeted following a selloff that wiped

`12,600 crore off the group’s market value this month. Media tycoon Chandra’s Essel Group signed a pact with its lenders that protects the group’s borrowings against shares from being counted as default until Sept. 30, even if their value erode.

Apollo Munich Health’s gross written premiums, or the revenue from insurance contracts, jumped by a third to `1,720 crore in

FY18. Apollo Hospitals’ owns about 10 per cent of the venture.