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Ola Electric invests $100 million in battery cell R&D

July 13, 2022 by economictimes.indiatimes.com Leave a Comment

Synopsis

Currently, Ola Electric sources battery cells from South Korea-based LG Chem for its electric scooters. Battery cells are the most expensive component in an EV, and manufacturing these can cut costs by around 30%.

Ola Electric, the electric vehicle ( EV ) arm of ride-hailing app Ola, has invested $100 million in research and development (R&D) of lithium-ion battery cells, according to reports from brokerages

ICICI Securities

and

Edelweiss

.

Ola Electric has employed over 200 researchers for the R&D process, according to reports.

Currently, Ola Electric sources battery cells from South Korea-based LG Chem for its electric scooters. Battery cells are the most expensive component in an EV, and manufacturing these can cut costs by around 30%.

Ola cofounder Bhavish Aggarwal took to Twitter to reveal the firm’s first indigenously made Li-ion cell on Wednesday.

“The cell is the heart of the EV revolution. We need to make our technology to scale faster and innovate. Much more in the pipeline on our cell technology roadmap!” he tweeted.

Our first indigenously made Li-ion cell!The cell is the heart of the EV revolution. We need to make our own techn… https://t.co/oj69hwJJFc

— Bhavish Aggarwal (@bhash) 1657512382000

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The company will start with a 20GWh initial cell manufacturing capacity with 60% localisation to cater to its near-term needs instead of being fully dependent on LG Chem.

Ola Electric was shortlisted for the government’s Rs 18,000-crore production-linked incentive (PLI) scheme for producing 130 GWh worth batteries.

Ola’s 500-acre Futurefactory near Krishnagiri in Tamil Nadu will eventually have an annual manufacturing capacity of 10 million two-wheelers, including scooters and e-bikes, one million cars, and 100 GWh of battery cells.

ICICI Securities said the company will take longer to realise some of its goals.

“We believe, with India being at the cusp of gradual electrification across personal mobility segments from internal combustion engine (ICE vehicles), it is too early to envisage capacities of the scale of 10 million and 1 million in two-wheelers and passenger vehicles respectively,” the broking house said.

ET reported on June 24 that Ola Electric is far from utilising its capacity and that its daily sales had dropped to 130-200 units.

Edelweiss is, however, bullish on Ola Electric’s vertical integration.

“Since 1990, the ICE industry has resorted to outsourcing as the focus was standardisation and cost,” it said in the report. “In the EV world, control over design and patent protection is key to ensure faster scale-up given the disruptive nature of technology. Ola’s strategy is to design and develop in-house. This would help it stay agile and not rely on supplies or vendors. And, insourcing offers control on design, R&D, among others.”

Ola Electric’s discussions of its plans with the brokerage firms come at a time when the company has come under the scanner following incidents of its scooters catching fire.

The government had served a show-cause notice to the company asking why penal action should not be taken against it for delivering faulty electric two-wheelers to the public.

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Filed Under: Tech ola electric investments, ola electric..., bhavish aggarwal, battery cell r&d, ev, electric vehicles, ev manufacturing, icici securities, edelweiss, gerber soothe 100 million cell, bungie 100 million investment, d cell battery electric fence

Swarup Mohanty on why Mirae is getting into EV and AI theme based investing

August 18, 2022 by economictimes.indiatimes.com Leave a Comment

Synopsis

“When one looks at thematic investing, it is very important to catch some of the themes early and as any theme grows and unfolds, the investors get the advantage of carrying on with the growth of that theme. That is the rationale behind getting into funds allowing EV and AI based investing themes.”

Related

  • Mirae Asset Mutual Fund launches ETFs investing in Electric Vehicles and Artificial Intelligence
  • Never say never and expect the unexpected in the market, says Mahendra Jajoo of Mirae Asset MF
Mirae Asset Mutual Fund has launched two new funds – Mirae Asset Global Electric & Autonomous Vehicles ETFs Fund of Fund and Mirae Asset Global X Artificial Intelligence and Technology ETF Fund of Fund. The vehicle-themed fund will invest in overseas ETFs, which are based on companies involved in development of electric and autonomous vehicles and related technology, components and materials. The AI themes scheme will invest in units of Global X Artificial Intelligence & Technology ETF. Swarup Mohanty , CEO, Mirae Asset Global Investments India , discusses the funds with ET Now .

Mirae has been offering a lot of passive as well as active ETF products to Indian investors. Why have you chosen these two different kinds of products now?
We have been able to attract some of the attention on the passive side. It is not just about these two themes in isolation. EV and AI are long term disruptive products which will not only disrupt their own area but through AI probably will disrupt every product that will come globally going forward.

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What are the other kinds of global investment products that are in the pipeline? Are you looking for more such different kinds of launches?
We have this unique backing of Global X behind us. They are far ahead of us when it comes to global thematic thinking of products and delivering products. If you look at just the lithium products, it is already a decade old in track record so we have a backend ready for us thanks to them backing us on this product. But the problem now is regulation. If they are willing to open global investing, we are ready with our products whenever we want.

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Filed Under: Uncategorized mirae asset mutual fund, swarup mohanty, mirae asset global investments india, etf, global x, investment themes, expert view, stock market, et now, mirae asset mutual..., ai based chat bots, ai based operating system, ai based projects, faith based investing, asset based investing, uk based investment banks, faith based investment firms, value based investing, theme based interior design of rooms, theme based interior designing

Sebi comes out with guidelines for overseas investment by AIFs, VCFs

August 18, 2022 by economictimes.indiatimes.com Leave a Comment

Synopsis

As per the fresh guidelines, AIFs or VCFs will be allowed to invest in an overseas investee company, which is incorporated in a country whose securities market regulator is a signatory to the International Organization of Securities Commission’s (IOSCO) Multilateral Memorandum of Understanding or a signatory to the bilateral Memorandum of Understanding with Sebi.

Sebi on Thursday came out with new guidelines for Alternative Investment Funds (AIFs) and Venture Capital Funds (VCFs) for making investment abroad, under which overseas investee firms won’t need to have an Indian connection. Under the rules, AIFs can invest in securities of companies incorporated outside India. Besides, VCFs are allowed to make investments in off-shore venture capital undertaking, subject to certain conditions.

One of the conditions was that such overseas investments were allowed only in those companies which had an Indian connection. Like, a company has a front office overseas, while having its back office operations in India.

“The requirement of the overseas investee company to have an Indian connection… has been done away with,” the Securities and Exchange Board of India (Sebi) said in a circular.

As per the fresh guidelines, AIFs or VCFs will be allowed to invest in an overseas investee company, which is incorporated in a country whose securities market regulator is a signatory to the International Organization of Securities Commission’s (IOSCO) Multilateral Memorandum of Understanding or a signatory to the bilateral Memorandum of Understanding with Sebi.

Besides, AIFs or VCFs will not invest in an overseas investee company, which is incorporated in a country identified by Financial Action Task Force (FATF) as a jurisdiction having a strategic anti-money laundering or combating the financing of terrorism deficiencies to which counter measures apply.

Also, such entities have been prohibited from making an investment in a country that has not made sufficient progress in addressing the deficiencies or has not committed to an action plan developed with FATF to address such deficiencies.

AIFs or VCFs will have to file an application before Sebi for allocation of overseas investment limit in the format.

“If an AIF/VCF liquidates investment made in an overseas investee company previously, the sale proceeds received from such liquidation, to the extent of investment made in the said overseas investee company, shall be available to all AIFs/VCFs for reinvestment,” the regulator said.

Further, AIFs or VCFs will sell the investment in overseas investee companies only to the entities eligible to make overseas investments.

AIFs or VCFs will have to furnish the divestment details of the overseas investments to the capital markets regulator in a specified format within three working days for updating the overall limit available for overseas investment by these entities. Also, all the overseas investments sold/divested by them till date, will also be reported to Sebi within 30 days.

AIFs are funds established or incorporated in India for the purpose of pooling in capital from Indian and foreign investors for investing as per a pre-decided policy, while VCF is an AIF which invests primarily in unlisted securities of startups, early-stage venture capital undertakings mainly involved in new products, new services, technology or intellectual property right based activities or a new business model.

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Filed Under: Uncategorized Sebi, Venture Capital Funds, VCFs, Alternative Investment Funds, AIFs, Venture Capital..., overseas investment act 2005, why overseas investment, for overseas investment, to overseas investment, recognised overseas investment exchange, tepco overseas investment, smsf overseas investment, sebi qip guidelines, exim bank for financing overseas investment, darby overseas investments ltd

Banks should tighten assessment control of their corporate bonds investments: experts

August 18, 2022 by en.vietnamplus.vn Leave a Comment

Banks should tighten assessment control of their corporate bonds investments: experts hinh anh 1 Illustrative image (Photo: VNA)

Hanoi (VNS/VNA) – Banks must tighten their assessment control of corporate bond investment s to avoid excessive risk and the misuse of funds raised by firms, experts said.

In early April, the Banking Supervision Agency, under the State Bank of Vietnam ( SBV ) conducted an inspection of corporate bond investment activities at seven banks, while the Ministry of Finance inspected one bank.

According to the SBV, by the end of 2021, there are 41 credit institutions holding 274 trillion VND (11.7 billion USD) of corporate bonds, of which more than 75% of them are held by ten major banks – Techcombank, MBBank, VP Bank , TPBank, BIDV, Vietcombank, VietinBank, HDBank, ABBank and SeABank. At some banks, the value of corporate bonds exceeds 10% of total assets.

Although the inspection results were not published, a SBV senior leader said in an interview with Vietnam Investment Review that a number of credit institutions failed to accurately assess bond issuance plans.

In particular, how companies planned to use the proceeds of corporate bond sales lacked clarity and transparency. Results from the inspection showed there are signs that firms have spent money from bond issuance for the wrong purposes, including cases where funds were used to repay bank loans, buy shares, lend, and transfer the money back to the issuers.

Economist Nguyen Xuan Nghia said that there is a phenomenon where capital raised from the issuance of bonds is circulated around to organisations and individuals that have relationships with each other or where the money is withdrawn in large quantities, causing the cash flow to be very complicated and difficult to determine the ultimate use of funds raised.

Pursuing growth and huge profits may have caused banks and other investors to overlook potential malfeasance in the corporate bond activities, Nghia added.

The violations also resulted from a lack of close attention by the board of directors, the executive board, and the leaders of units/divisions of some credit institutions in promptly correcting the shortcomings and mistakes internally. Inspection, control, and internal audits of credit institutions are not always effective, and internal regulations have not been regularly reviewed, updated, and completed, he added.

The issuers’ financial capacity can also be weak, including a high debt-to-equity ratio, no or low net revenue from main business activities, and undistributed profit in recent years, the SBV senior leader said.

“The determination of demand and term of bonds is not based on the actual bond issuance plans of the issuers,” the officer said, adding that the monitoring, supervision, and collection of documents proving the purposes of the money raised from bond issuances by issuers are still a formality, but investors often fail to fully exercise the rights permitted by law to manage and supervise the use of funds raised from bond issuance.

Moreover, the valuation and management of collateral have not been strictly controlled due to professional limitations, while some borrowers have not fully followed the provisions of the law, the SBV and the regulations of the credit institutions in their loan relationship.

According to a VNDIRECT Securities Company analyst, credit institutions must increase their capacity for rating and appraising debt, particularly corporate bond investments, in order to reduce risks.

Accordingly, the expert suggested that credit institutions need to step up inspection and supervision of the issuers’ use of capital to ensure that the capital is used for the right purposes, and strengthen risk management for corporate bond investments.

In addition, increasing the responsibility of credit institutions in the service provision agreements related to signed corporate bonds, implementing the responsibilities of the bondholders’ representatives in accordance with regulations. In particular, exercise all the rights permitted by law to control and supervise to ensure that funds raised from the bond issuance are used for the right purposes stated in the plan of the issuer./.

VNA

Filed Under: Uncategorized Bank, SBV, excessive risk, corporate bond investment, tighten, Vietnamplus, Vietnam news, Vietnam News Agency, Business, ..., corporate to investment banking, corporate e investment banking, corporate e investment banking roma tre, corporate e investment banking forestieri pdf, france tightens bank capital requirements amid corporate borrowing binge, nikko am sgd investment grade corporate bond etf, which corporate bonds to invest in, corporate owned investment bond, highest yielding investment grade corporate bonds, investment banking to corporate development

Korea’s SK invests $100 million in EV-focused startup Atom Power

August 18, 2022 by auto.economictimes.indiatimes.com Leave a Comment

SK Inc has invested $100 million in North Carolina startup Atom Power , which aims to upgrade the electric vehicle (EV) charging experience in the United States with new hardware and software, the companies said Thursday.

Based in Huntersville, North Carolina, eight-year-old Atom Power has developed a digital circuit breaker that provides more control, flexibility and reliability to EV charging , especially for commercial fleet operators and managers of multi-family dwellings, according to Chief Executive Ryan Kennedy.

Atom Power’s EV pedestal and wall chargers include an Internet-connected digital panel that houses the company’s solid-state circuit breakers. The devices enable safer charging, the company says, because high voltage is eliminated at the pedestal or wall box while vehicles are not charging.

The EV market is “desperate for a new way to scale, drive revenue and accelerate adoption,” Kennedy said, adding that Atom Power’s device can be used in other industries to shift from analog to digital power delivery.

SK said Atom Power’s core technology was “the primary driver” behind its decision to invest.

The SK group, Korea’s second-largest conglomerate after Samsung, also acquired an additional $50 million stake in Atom Power from earlier investors, making SK the largest outside shareholder.

SK said it intends to expand Atom Power’s business across the U.S. “and ultimately globally.”

Atom Power previously had raised funds from the corporate investment arms of Siemens and ABB, according to investor website PitchBook. The two European industrial giants are key players in EV charging technology and systems.

SK has a multibillion-dollar joint venture with Ford Motor to build EV batteries in Kentucky and Tennessee, and supplies batteries to Volkswagen’s U.S. operation from its Georgia plant.

Filed Under: Uncategorized Atom Power, sk inc, investment, international, ev charging, ev battery, yacht 100 million, 100 millions de consommateur, 100 millions de consommateur telephone, 100 millions euromillions, invest 1 million, invest 1 million dollars, invest 1 million dollars guaranteed income, invest 3 million dollars, invest 50 million dollars, sk investments

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