Times Group To Stop Physical Copies Of Pune Mirror

Times Group To Stop Physical Copies Of Pune Mirror

Covid pandemic has hit almost all businesses in some way or the other. Times Group recently announced that it will stop the print publication of Pune mirror. Let’s take a look at the media business of Times Group and how the pandemic has affected its business.

Crux of the Matter

Recent Announcement
Times Group has decided to stop print publication of both Pune Mirror and Mumbai Mirror. The decision comes after the financial stability of the company worsened due to the pandemic. However, Mumbai mirror will be published as a weekly and the company will continue to have a digital presence. The company has not made any official comment on Bangalore Mirror and Ahmedabad Mirror.

Times Group
Bennett, Coleman and Company Limited is the legal name of Times Group. Founded in 1838, its headquarter is situated in Mumbai. Indu Jain is the current chairperson of the company and Raj Jain is the CEO. Time Group runs 45 dailies and periodicals.

Let’s take a look at the financial position of Time Group and how it has been affected by Covid-19.

The infographic below compares the segment wise revenue earned by the Times Group.

Digital News
As per the ‘India Digital News Report 2019’, 68% of those surveyed were using smartphones as their main device for online news with Facebook and WhatsApp as the primary sources of news for 52% of them. Whereas Instagram, Twitter, and Facebook Messenger contribute 26%, 18%, and 16% respectively.

Concerns Of Newspaper Industry
Print media is facing problems such as decreasing profit margins, slump in demand, high import tax for materials, etc. Covid-19 has worsened the situation as people switched to digital news platforms for news. However, on digital news media, people are concerned about the authenticity of the news and rumors, say experts.

  • Tabloid journalism is a popular style of largely sensationalist journalism that takes its name from the format: a small-sized newspaper. The size became associated with sensationalism, and tabloid journalism replaced the earlier label of yellow journalism.
  • A broadsheet is the largest newspaper format and is characterized by long vertical pages, typically of 57 cm. Other common newspaper formats include the smaller Berliner and tabloid–compact formats. Broadsheet newspapers were developed after the British in 1712 placed a tax on newspapers based on the number of their pages.
  • The Times Group is India’s largest media conglomerate. The Audit Bureau of Circulations reported in May 2014 that The Times of India had the largest circulation of any English-language newspaper in the world.

Ola Announces Largest E-Scooter Production Facility In India

Automobile companies are developing vehicles for sustainable transportation. Ola will set up India's largest e-scooter production facility.

Nowadays, many automobile companies are venturing into developing electronic vehicles (EVs). For instance, the US’s largest automaker General Motors in February 2020 announced its plans to exit from the Australian and New Zealand market to make room for EV production. Recently, India’s ride-hailing service startup Ola announced that they will set up the world’s largest e-scooter production facility in India. Let’s dive deeper into Ola’s plans.

Crux of the Matter

About Ola
Ola is a mobility platform and ride-hailing company founded by Ankit Bhati and Bhavish Aggarwal in 2010. The company has received funds of $3.8 billion to date. The company headquarters is in Bangalore.

Launching E-Scooter
Ola Electric, a subsidiary of Ola, announced to launch e-scooters in New Zealand to help its government achieve the vision of on-roading over 64,000 new EVs by 2021. Moreover, it will help in making the public sector carbon neutral by 2025. Tiger Global, Matrix India, Ratan Tata, and other high-profile investors have invested ~$400 million in Ola Electric.

Largest E-Scooter Facility
Ola has announced that it will set up the world’s largest e-scooter production unit in India. Ola Electric and Tamil Nadu government signed MoU worth ₹2,400 crores to set up an e-scooter production factory at Hosur. It is expected to create +10,000 jobs. The factory will have the capacity to produce 20 lakh units per year. These e-scooters will cater to the domestic as well as foreign markets.

‘We are excited to announce our plans to set up the world’s largest scooter factory. This is a significant milestone for Ola and a proud moment for our country as we rapidly progress towards realising our vision of moving the world to sustainable mobility solutions across shared and owned mobility.

Bhavish Aggarwal, Chairman and Group CEO, Ola

Ola’s Edge
Electric scooters are the most efficient and cleanest solution for urban mobility. Ola acquired Amsterdam-based EV startup Etergo developed an e-scooter called AppScooter. In 2018 the company released AppScooter. It has a range of 240 km with swappable high energy density batteries.

  • FAME India – Faster Adoption and Manufacturing of Hybrid and Electric vehicles in India – is a part of the National Electric Mobility Mission Plan 2020 of the Indian government in the Union Budget for 2015-16 with an initial outlay of ₹75 crores. Under this scheme, the government announced that it will offer incentives on electric and hybrid vehicles of up to ₹29,000 for bikes and ₹1.38 lakh for cars.
  • In India, Scooters that have their top speed capped at 25km per hour need not be registered by the road transport authorities. Also, since they are not motorbikes, you also do not have to worry about obtaining a license to drive them on the road.
  • Ola initially started off as Olatrip.com, a website that offered package weekend trips. Bhavish Aggarwal, the CEO, used to give handouts of tour/travel packages to visitors at the Commonwealth Games in Delhi.

Proposed Wage Bill May Reduce Your Take-Home Salary

Proposed Wage Bill May Reduce Your Take-Home Salary

Expected to come into effect in April 2021, the Code on Wages 2019 is likely to reduce your salary in-hand while increasing your social security investment (PF and Gratuity). Let’s understand what the proposed wage bill changes and how it impacts your salary.

Crux of the Matter

Understanding Salary In-Depth
Employee’s salary is determined by various factors like profession, skill sets, years of experience, location of the profession, salary structure, etc. It consists of various components such as take home wage, allowances, LTCs, etc

Understanding Terms

  • Basic Salary: It is a constant component of salary. It is also known as an in-hand salary. Provident Fund and Gratuity sum are determined on the basis of the basic salary.
  • Allowances: Money paid over the basic salary for daily expenses like travel to and from work, place of stay, etc.
  • House Rent Allowance (HRA): HRA is money paid for renting accommodation and employees don’t have to pay tax on it.
  • Leave Travel Allowance (LTA): It is an allowance that offers tax exemptions on annual travel expenditures within India.
  • Phone Allowance: Amount paid by the employer on Phone bill expenses.
  • Vehicle/fuel allowance: Amount paid by the employer on fuel expenses.

Recent Announcement
As per the proposed wage bill, government companies are restructuring their employees’ salary packages. It is anticipated that the take-home salary might come down from the next financial year. However, the final wage rule will be notified only after taking public comments into consideration.

New Wage Rule
The new wage rule draft says that the allowances component of the total cost to the company (CTC) cannot exceed 50% of the total compensation. It means that now the basic salary must be 50% and thus more money will go into PFs and gratuity fund. It also means there will be an increase in gratuity as well as provident fund (PF) contributions.

What Experts Have To Say?
Currently, most private companies are keeping basic allowance high and keep the non-allowance portion (like basic salary) less than 50% of employee’s CTC. Financial experts say “the new measures will help in improving the social security and retirement-related benefits for the salaried”.

Though the new wage code will give more social security to the employees at the time of retirement by way of increased corpus of gratuity and provident fund, it will reduce the monthly net take-home salary because as proposed 50 percent of total salary to be considered for the purpose of contributions to retirement funds.

Gopal Bohra, Partner, NA Shah Associates

Let’s understand how the take-home salary will reduce through an example. Have a look below.

  • Cost to company (CTC) is a term for the total salary package of an employee. It is calculated by adding salary to the cost of all additional benefits an employee receives during the service period.
  • A cuneiform inscribed clay tablet dated about 3100 BC provides a record of the daily beer rations for workers in Mesopotamia. The beer is represented by an upright jar with a pointed base. The symbol for rations is a human head eating from a bowl.
  • A gig economy is a free market system in which temporary positions are common and organizations hire independent workers for short-term commitments. The term “gig” is a slang word for a job that lasts a specified period of time; it is typically used by musicians.

For The First Time In History, Water Trading On Wall Street

For The First Time In History, Water Trading On Wall Street

Back in September 2020, CME – world’s largest futures exchange – had announced that soon Water Futures linked to the $1.1 billion California spot water market would be launched. And now water has officially started trading on the Wall Street for the first time history. But what caused this move? Will water become cause of wars? Hope not.

Crux of the Matter

Water Trading On Wall Street
Water Futures will enable traders to hedge against, or bet on the potential for water scarcity. There is speculation that the high-profile investor Michael Burry of “The Big Short” is eyeing to invest in this water contracts.

What Is A Futures Contract Though?
An agreement to buy or sell an asset, like water, at a specific time in the future at an agreed-upon price is known as a futures contract. Oil, precious metals, food commodities, natural gas, even electricity, etc have historically been traded via Futures Contracts.

HowWill Water Be Traded?
An acre feet is the amount of water it takes to cover an acre over land in one foot of water. One contract would represent 10 acre feet of water – a contract’s price will be determined by demand and supply of the underlying asset, water. In metric system, it is equal to the amount needed to cover 40,468 square metres in about 30 cm of water.

With nearly two-thirds of the world’s population expected to face water shortages by 2025, water scarcity presents a growing risk for businesses and communities around the world, and particularly for the $1.1 billion California water market.

Tim McCourt, Global Head of Equity Index and Alternative Investment Products, CME Group

Water Scarcity
“Water shortages could affect around five billion people worldwide by 2050,” says the UN. The reason for water contracts linked to California is that this area is severely affected by water scarcity where record temperatures and raging wildfires have made it more critical.

Climate Change
Scientists and advocates for action against climate change have warned about the potential of water to create wars between countries. Water demand for drinking, household purposes, agriculture, energy, and in developing cities is increasing with each day. Looking at the availability of less freshwater on the Earth, it is likely that in the coming times water contracts may have huge value.

  • Michael Burry is an American physician, investor, and hedge fund manager. Burry was the first investor to recognize and profit from the impending subprime mortgage crisis. He was the founder of the hedge fund Scion Capital, which he ran from 2000 until 2008.
  • Water conflict is a term describing a conflict between countries, states, or groups over the rights to access water resources. The United Nations recognizes that water disputes result from opposing interests of water users, public or private. A comprehensive online database of water-related conflicts—the Water Conflict Chronology—has been developed by the Pacific Institute. This database lists violence over water going back nearly 6,000 years.
  • Rajendra Singh is an Indian water conservationist and environmentalist from Alwar district, Rajasthan in India. Also known as “waterman of India”, he won the Magsaysay Award in 2001 and Stockholm Water Prize in 2015. He runs an NGO called ‘Tarun Bharat Sangh’ (TBS), which was founded in 1975. The NGO based in village Hori-Bhikampura in Thanagazi tehsil, near Sariska Tiger Reserve, has been instrumental in fighting the slow bureaucracy, mining lobby and has helped villagers take charge of water management.
  • Presented annually since 1991, the Stockholm Water Prize is an award that recognizes outstanding achievements in water related activities. The Stockholm Water Prize Laureate is announced each 22 March at the UN World Day for Water and honoured each August during the World Water Week in Stockholm at a Royal Prize Ceremony and Banquet in the Stockholm City Hall.

How Do IPOs Work?

How Do IPOs Work?

The December IPO season has already started with the Burger King IPO being a blockbuster with 157x subscription. Retail investors have been pumping in money in almost every IPO since July. So far there have been 3 IPOs this year with subscription of over 150 times, Burger King, Mazagon Dock Shipbuilders, and Happiest Minds. So, what is the procedure followed by these companies? How do they get listed? Let’s get clear with the basics.

Crux of the Matter

What Is IPO?
An IPO is the selling of securities to the public in the primary market. Book Building is the most common process followed – it aides in price and demand discovery. In this mechanism, when the book is open, bids are collected from investors at various prices within a price band. The issue price is determined based on the demand generated in the process.

Process Of IPO
1. Merchant Bankers with regional and national reach are hired. Among them, one is chosen as the Book Running Lead Manager (BRLM).

2. Red Herring Prospectus is submitted to the exchanges, SEBI & ROC. It contains information on the company’s past performance, future plans, etc.

3. Company (issuer) specifies the number of securities to be issued and the fixed-price or price band. The price band must have a maximum spread of 20%. For instance, if the floor price (lower limit) is ₹10, then the ceiling price (upper limit) of the price band must not be more than ₹12.

4. Syndicate members with whom orders are to be placed are appointed. The syndicate members input the orders into an ‘electronic book’. This process is called ‘bidding’ and is like an open auction. The bidding window normally remains open for 3 days. Bids must be entered within the specified price band.

5. Different categories as defined by SEBI: Retail Investors, Non-Institutional Investors, & QIB have their own Quotas.

6. At the close of the book-building period, the book runners evaluate the bids based on the demand at various price levels.

7. The final price is decided by the issuer post the closing of the bid. Allocation of securities is made to the successful bidders, the rest get refund orders by the Registrar & Transfer Agents.

Payment Method
The payment method is ASBA, i.e., Application Supported by Blocked Amount. It simply means that an applicant authorizes its bank to block the required funds in her savings or current account.

If one fills the Burger King IPO at a price of ₹60 and a fixed lot of 250 shares, the total blocked amount in your bank account is ₹15000. If one is allotted the shares, the money will be deducted from the bank account, whereas it will be unfreezed if the investor does not receive the allotment.

Face Value Of Equity Share
Subject to provisions of Companies Act/ SEBI Act/ regulations, an issuer (other than a government company/ statutory authority/ corporation/ any SPV set by them engaged infrastructure sector) making an IPO may determine the face value of shares in this manner:

1) Face Value ≥ ₹ 500 – If the issue price is ₹500 and more, then the face value of shares must be between ₹10 and ₹1 per share.
2) Face Value <₹ 500 – If the issue price is below ₹500, then the face value must be ₹10 per share.

Read More: Why Is Ant Group IPO Making A Buzz?

Summachar brings you this story in collaboration with Finmedium that can be found on Instagram at @finmedium and on the web here.

  • Bootstrapping in business means starting a business without external help or working capital. This financing approach allows owners to maintain control of their business and forces them to spend with discipline. In addition, bootstrapping allows startups to focus on customers rather than investors, thereby increasing the likelihood of creating a profitable business.
  • Book building is a systematic process of generating, capturing, and recording investor demand for shares. Usually, the issuer appoints a major investment bank to act as a major securities underwriter or bookrunner.
  • The Whopper is the signature sandwich and an associated product line sold by international fast food restaurant chain Burger King. The hamburger is well known in the fast-food industry, with Burger King billing itself as “the Home of the Whopper” in its advertising, signage, and in its concept store, the BK Whopper Bar.