The Sensex mounts 37K, HDFC AMC saw a stellar demand, Voda-Idea merger approved- Weekly Digest #67

Monday- 23rd July 2018

  • LIC has tightened its grip on Infrastructure Leasing & Financial Services (IL&FS) by appointing its own senior executive as chairman. Hemant Bhargava, LIC managing director and its nominee on IL&FS’ board, will be its new non-executive chairman.
  • Flipkart to shut down eBay.in, which it had been operating for the last one year, and eBay is expected to relaunch in India shortly. Flipkart to launch a new platform to sell refurbished goods.
  • In response to an RTI, RBI has said that cash-on-delivery by e-commerce marketplaces such as Flipkart and Amazon could be a regulatory grey area as “Aggregators/payment intermediaries like Amazon and Flipkart are not authorised”.
  • Xiaomi has announced the appointment of Eshwar Chandrasekaran, former head of online business, Lenovo-Motorola, to lead its Mi TV business in the country. This comes as a step towards penetrating the highly competitive Indian TV market.

 

Tuesday-  24th July 2018

  • HDFC Bank has changed its share sale plan to include more of American Depository Receipts than a pure domestic offering. This has been due to buoyant US market attracting more investors without Indian registration and better pricing.
  • A UK biopharmaceutical company, AstraZeneca has filed a lawsuit in the Delhi HC against Indian drugmaker Dr Reddy’s Laboratories to block it from launching generic versions of Brilinta, its medicine for heart ailments.
  • HDFC Asset Management Company has raised ₹732 crore from anchor investors, ahead of its initial share sale. The fund house has allotted 66.53 lakh shares at ₹1,100 per share to 61 anchor investors garnering ₹732 crore.
  • Alchemy Capital, an investment fund co-founded by Rakesh Jhunjhunwala, has bought about 3.5% stake in restaurant chain Barbeque-Nation Hospitality for ₹90 crore, valuing it at around ₹2,300-2,400 crore.

 

Wednesday-  25th July 2018

  • Anil Agarwal, the owner of Vedanta Resources that has announced delisting of the resources conglomerate from the London Stock Exchange (LSE) and will raise up to $1.1 billion from three or four foreign banks. The funds to be used to purchase the outstanding stock from public shareholders on the LSE.
  • L&T reported a revenue of ₹28,283 crore for Q1, up by 18% in YoY basis and consolidated net profit of ₹1,215 crore, up by 36% on a YoY basis. This has been driven by a pick up in execution momentum.
  • Domestic steel major JSW Steel’s consolidated net profit jumped 275% to ₹2,339 crore in the Q1 owing to strong demand and higher steel prices in the domestic market.
  • The government has moved Delhi High Court to enforce a $3.8 billion recovery from Reliance Industries, Shell and ONGC following an English court ruling over its share from the Panna-Mukta and Tapti fields in western offshore. ONGC has 40% interest while RIL and Shell hold 30% each.
  • The ₹2,800-crore IPO of HDFC AMC, offered at a price band of ₹1,095-1,100, received a strong response on the first day, with the QIB portion and retail portion being subscribed 1.19 times and 1.34 times, respectively.

 

Thursday- 26th July 2018

  • Hindalco’s US subsidiary Novelis has agreed to buy rival aluminium products company Aleris in a deal valued at $2.58 billion. Novelis will pay $775 million as equity and assume Aleris’ debt of $1.8 billion as part of the transaction.
  • The Sensex hits 37K mark for the first time as it hit the intraday high of 37,061 points to close at 36,985 points. The Nifty closed at 11,167 points.
  • The DoT has given the final nod to the merger of Vodafone India with Idea Cellular to create Vodafone Idea Limited, the largest carrier in India by subscribers and revenue market share. This was the last hurdle for the merger to take place.
  • ITC reported a 10.1% jump in its Q1 net profit to ₹2,818.7 crore, aided by a 13.5% increase in gross sales to ₹18,171.7 crore. This has been attributed to higher revenue from packaged foods, cigarettes, personal-care products, stationery items and agri-output businesses.
  • A PMLA court here summoned jeweller Nirav Modi and his uncle Mehul Choksi to appear before it on September 25 and 26 respectively on the ED’s plea seeking action against them under the new fugitive economic offenders law in the alleged $2-billion PNB fraud case.

 

Friday- 27th July 2018

  • Reliance Industries reported a consolidated net profit of ₹9,459 crore in the Q1, up 17.9% on a YoY basis, fuelled by its petrochemical and consumer businesses. The revenue increased by 9.7% to ₹141,699 crore and has surpassed the market expectations.
  • ICICI reported its widest loss of ₹120 crore for Q1 as the provisions doubled from ₹2,609 crore a year ago to ₹5,971 crore. This has also been attributed to complying with the Reserve Bank of India (RBI) guidelines on old non-performing assets (NPAs).
  • The Sensex closed up 352.21 points, or 0.95%, at 37,336.85 after hitting a life-high of 37,368.62. The Nifty jumped 111.05 points, or 1%, at 11,278.35 after having hit a lifetime high of 11,283.40.
  • The ₹2,800-crore initial share sale of HDFC Asset Management Company got over-subscribed by 83 times, by receiving 25.31 lakh applications and ₹1.71 lakh crore in aggregate.

Source: The Economic Times
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