Rcom-Ericsson Settlement, Air Asia woes worsens, ICICI investigates Chanda Kochhar- Weekly Digest #62

Monday- 28th May 2018

  • HUL is suing Kwality Ltd claiming sole rights over Kwality Walls, the brand used for HUL’s ice creams. The Calcutta High Court directed Kwality Ltd to not use the original writing style of Kwality Walls for any of its dairy products, but continue to use its currently operational registered trademark KDIL’S Kwality.
  • Tamil Nadu government ordered the closure of the Sterlite Copper factory of Vedanta unit in Thoothukudi amidst violent agitation led by residents who claim the smelter has caused widespread pollution of air and water.
  • Lenders of Binani Cement have agreed upon selling the bankrupt cement maker to the country’s biggest cement producer, Aditya Birla owned UltraTech. UltraTech had offered to pay ₹7,600 crore to lenders.
  • SBI to initiate bankruptcy proceedings against fugitive businessman Vijay Mallya in the UK to mount additional legal pressure on him for the recovery of loans.
  • RCom has said that its lenders will oppose the insolvency court’s decision to start bankruptcy proceedings against the debt-laden telco at a hearing in the appellate tribunal. The market reacted positively as the share price rose 11%  to ₹15.85.

 

Tuesday-  29th May 2018

  • CBI has filed a case against AirAsia (India), AirAsia Berhad, and its top executives, including CEO Tony Fernandes, for allegedly entering into a criminal conspiracy with the UPA government to change rules to get overseas flying rights. The case is based, among other findings, on a clutch of internal emails between senior executives of AirAsia and the Tata Group.
  • Qtrove, a curated marketplace for natural, handmade and sustainable products have raised ₹350 crore from Springboard Ventures, an investment arm of Bennett, Coleman & Co Ltd (BCCL)
  • Singapore Exchange will continue listing Nifty derivatives contracts on its platform till August after the Bombay High Court on Tuesday referred the dispute between it and National Stock Exchange to arbitration. Both exchanges are locked in a legal tussle after SGX said it would launch Indian futures and options contracts in June.
  • The reconstituted board of Fortis Healthcare has decided to begin a fresh bidding process with interested investors for a deal and has sought expressions of interest by May 31. Interested parties will receive 10 days to conduct financial and legal due diligence.

 

Wednesday-  30th May 2018

  • The board of ICICI Bank has ordered an independent enquiry into new whistleblower allegations that CEO Chanda Kochhar violated the bank’s code of conduct, rules on conflict of interest and was part of quid pro quo dealings with certain bank borrowers.
  • Reliance Communications agreed to pay ₹550 crore to Ericsson to settle an eight-month legal dispute over dues, paving the way for Rcom to exit bankruptcy proceedings and sell assets to Reliance Jio Infocomm and Brookfield to repay lenders.
  • State Bank of India has increased its fixed deposit interest rates on select tenures. The range of hike in the rates in the range of 5 bps (basis points) to 25 bps and came into effect from May 28.
  • Price Waterhouse (PW), a network firm of PwC India has quit as auditor to BSE-listed construction and infrastructure company Atlanta Limited after it apparently refused to share details of an ongoing income tax investigation and the resignation of an independent director.

 

Thursday- 31st May 2018

  • India’s economy grew at its fastest at 7.7% in seven quarters in the January-March 2018 period, owing to strong performance in construction, manufacturing and public services.
  • Chinese smartphone maker Coolpad may move Indian courts against IPO-bound rival Xiaomi over patent infringement, after the company filed several such cases in China this year.
  • PoS deploying company Pine Labs has raised $125 million from Temasek, a global investment company, and PayPal, the largest digital payments company in the US. The aim was to reducing stake of Sequoia India in Pine Labs and enable partial exit, even though they still remain the largest shareholder.
  • Online marketplace CoinTribe has raised $10 million in a Series-B round of funding led by private equity fund Sabre Partners. CoinTribe’s existing investor Puneet Dalmia also participated in the round. The funds to be utilised to reach out to more borrowers and expand operations to newer locations in the country.
  • The Enforcement Directorate (ED) to file a case under the PMLA against AirAsia’s global chief Tony Fernandes, some of his colleagues as well as erstwhile top executives and non-executive director R Venkataramanan at AirAsia India. A case under FEMA has already been filed.

 

Friday- 1st June 2018

  • The Allahabad High Court ruled that a power company can’t be taken to the bankruptcy court for not repaying loans unless it has been declared a wilful defaulter. It has also directed the finance secretary to meet power producers in June to discuss their financial woes.
  • The annual financial numbers Cloudtail India, a JV between Amazon and Infosys co-founder Narayana Murthy’s family office Catamaran Ventures have kicked up a row with AIOVA accusing the online marketplace of according preferential treatment to a few select sellers as they plan to move to CCI.
  • The board of Idea Cellular has called for an EGM on June 26 to approve changing the name of ‘Idea Cellular Limited’ to ‘Vodafone Idea Limited’, as the merger of Idea and Vodafone India is near completion.
  • Supreme Court said it cannot interfere in the dispute between IHCL and civic body NDMC concerning the Taj Mahal Hotel auction tender at this stage, which led IHCL to withdraw its petition against NDMC. IHCL had moved the Supreme Court after the Delhi HC rejected its plea against the revised tender on the Taj Mansingh auction.
  • The Enforcement Directorate has attached assets estimated to be worth more than ₹4,700 crore belonging to the Sterling Biotech group from Gujarat in relation to anti-money laundering proceedings.

 

Source: The Economic Times

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