Government had decided to continue with high pricing of the spectrum by auctions. 4 companies which bid for spectrum have committed to Rs 1.5 lakh crores for the spectrum they acquired.
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This, when added to large amounts owed of earlier auctions & payments reduced the number to 3 for private players. Of these, Vodaphone has written off its investment in India, so its in a cautious position.
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5G is also very software intensive so a decent investment in towers & equipment is required. Now, who would pay for these? Till what extent will the companies subsidize the users? Will the "cheap internet" days be over for India soon?
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👉Dividends are distributed from the free cash flow left with the companies after completing all their operating expenses.
👉If the company is not able to find a suitable place to invest or park its surplus money into, they buy back their own shares from the market.
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👉Benefit of buying back shares is that the earnings per share or EPS increases as number of shares go down. Hence, the value of each remaining share rises up.
Following the great traction in passenger vehicles, next in line might be commercial vehicles (CVs) to lead the auto industry sales.
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Pandemic restricted cargo mobility but now, demand for Light commercial vehicles or LCVs (largest segment in auto segment) is picking up boosted by FMCG, e-commerce & logistics sectors.
Jaiprakash Associates has approved divestment of its cement business. The Jaypee group currently has an installed cement capacity of 10.55 mtpa. Ultratech leads to cement sector with an installed capacity of 119.95 mtpa.
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Some people say Jaypee also approached JSW but they declined. Adani group plans to double their cement capacity from 70 mtpa to 140 mtpa in 5 years.