Category Archives: Financial

Vishal Sikka quits Infy, Aircel-Rcom merger approved, RIL fined- Weekly Digest #51

Monday- 14th August 2017

  • SEBI is examining the purchase of 8.9% stake credit rating firm CARE Ratings by CRISIL after the former complained that the transaction was an attempt at a potential hostile takeover.
  • The Bombay High court has put up debt-ridden Sahara Group’s Aamby Valley property at Lonavala for a public auction. The reserve price for the property is ₹37,392 crores.
  • NCLT admitted proposals for the merger between Aircel and Reliance Communications’ wireless business, as well as the RCom’s sale of its tower business to Canada’s Brookfield. RCom’s share price soared 19% to ₹24.
  • FIH Mobile, the Hong Kong-listed unit of Foxconn Technology Solutions has written down its $200 million investment in Jasper Infotech which operates Snapdeal to $40 million.
  • PB Balaji to succeed C Ramakrishnan as chief financial officer of Tata Motors with effect from November 2017.

 

Tuesday-  15th August 2017

  • The government has disallowed Reliance Industries and partners to recover $264 million of cost of developing KG-D6 fields for 2015-16 as the output from the field fell short of the target
  • Glory Entities and Twickenham Investment are selling 10 million shares of Genpact to public shareholders, diluting their combined shareholding from 35.1% to 29.9%
  • The process of hearing and disposing of bankruptcy cases at the Mumbai Chapter of the National Company Law Tribunal may quicken as it is likely to get 4 new judges and two benches, and support staff to handle the extra load.

 

Wednesday-  16th August 2017

  • The board of Tata Sons under N Chandrasekaran has ordered its group companies to scrap all business dealings with Cyrus and Shapoor Mistry’s SP Group. This is likely to put transactions worth crores at risk.
  • SoftBank Group Corp is in talks with Rivigo Services to invest at least $100 million in the surface -transport logistics provider. This could value the company at $1 billion.
  • Canteen Stores Department (CSD) has slapped an over ₹250 crore fine on United Spirits for violating a pricing agreement. United Spirits is alleged to have supplied products to the CSD at inflated prices.
  • Sanjay Chandra, the promoter of developer Unitech Ltd jailed in a cheating case, urged the Supreme Court to release him on bail for three months to mop up funds to pay back flat buyers. He was sent to jail in connection with a cheating case registered against them by flat-owners in a Gurgaon project.
  • The stock market extended its recovery for the second-straight session as the Sensex climbed to 31,770. while the Nifty reached 9,897 points as domestic institutions stepped up their purchases, helping absorb the selling by foreign investors.

 

Thursday-  August 2017

  • Ahead of Infy’s board meeting, the stock jumped 4.5% to close at ₹1,021.15 as shareholders are expecting a buyback from the company.
  • Nasdaq-listed Ebix Inc. is set to buy the business of Wall Street Finance Ltd in a two-leg transaction for ₹47 crore. In the first leg, the company will acquire Wall Street Finance’s wholly-owned subsidiary Goldman Securities for ₹5.1 crore. Subsequently, the GSPL will buy out the international money transfer business of Wall Street Finance for ₹42.2 crore.
  • HDFC Life is likely to offload 15% of existing shares through its proposed initial public offering in the coming months. HDFC will sell 9.57% holding in the insurance firm while its partner Standard Life will sell 5.43%

 

Friday-  August 2017

  • Vishal Sikka resigned as the CEO of Infosys as the Board alleges that the founder, NR Narayana Murthy bullied him into quitting. Chief operating officer UB Pravin Rao has been appointed interim MD and CEO. This news wiped out ₹22,000 crore mcap of the company.
  • Infosys shares touched a three-year low after the news of Sikka quitting the company. It slipped 13% to ₹923.10. Sensex plunged 271 points, to close at 31524.68, while the Nifty fell 66.75 points, to close at 9737.40.
  • Bharti Airtel and Vodafone India sparred with newcomer Reliance Jio Infocomm at an open house discussion over modalities of testing of a network. The incumbents said the users acquired for trial purposes should be restricted, not allowed to enroll for commercial services and not offered mobile number portability.

 

Source: The Economic Times
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Market down on global cues, Sebi after shell companies, SoftBank adds fund to Flipkart- Weekly Digest #50

Monday- 7th August 2017

  • SEBI has presented at least half a dozen angel firms with notices within one and a half month, asking them to spell out details of their fund-raising business and explain whether they operate within the contours of the securities market law.
  • InCred Finance, backed by former Deutsche Bank co-CEO Anshu Jain, is competing with US private equity giant Warburg Pincus and Aion Capital for a controlling stake in Catholic Syrian Bank
  • SoftBank founder Masayoshi Son said that the Tokyo-headquartered conglomerate remains “engaged“ with Flipkart, despite its recent failed attempts to acquire Snapdeal.
  • The SEBI has given approval to the merger between Idea Cellular and Vodafone India subjected to the regulator’s ongoing probe and approvals from public shareholders and the NCLT.

 

Tuesday- 8th August 2017

  • Sensex declined 0.8% to 32,014 points and nifty declined by 0.78% to 9,978 points as SEBI announced that investigations will be launched against 331 suspected shell companies and that trading will be severely restricted in those that are listed.
  • Trai to begin a consultation process to address the issues of ownership, privacy and security of data which flows through the network of telcos. At the end of the process, Trai will issue recommendations to the telecom department which will take a final decision on implementation.
  • Bharti Airtel has raised ₹2,570 crore by selling 3.65% stake in its tower unit to a clutch of global investors, including Fidelity International. The proceeds to be used to pare debt and stay aggressive in the price war.

 

Wednesday- 9th August 2017

  • Tata Motors posted a 42% increase in first-quarter consolidated net profit to ₹3,200 crores owing to one time gain on account of changes to the automaker’s pension benefit plans masking a poor operational performance.
  • Reliance Communications to hold its board meeting on 12th August 2017 to review matters regarding the proposed merger with Aircel and look into the conversion of debt to equity shares.
  • Jindal Steel and Power reported a 33% increase in consolidated operating profit on a YoY basis to ₹1,350 crores owing to strong performance of power division.
  • State-run lender Bank of India has recalled a ₹306-crore loan given to HDIL subsidiary Privilege Power and Infrastructure. This comes after Union Bank dragged group firm Guruashish Construction to the NCLT.

 

Thursday- 10th August 2017

  • SoftBank has bought a fifth of India’s most valuable startup -Flipkart -for an amount of $2.5 billion, in a deal that marks the biggest private investment in the country’s consumer technology sector.
  • Midcap and smallcap stocks fell the most in nine months as sentiments soured due to escalating geopolitical tensions between the US and North Korea. Sensex closed at 31,531 points and Nifty closed at 9,820 points.
  • Gopal Vittal, MD and CEO (India & South Asia) of Bharti Airtel sold 1.21 lakh shares in the telco to a promoter firm for around ₹5 crore at ₹416.05 per share.
  • The Reserve Bank of India (RBI) slashed the surplus it transfers to the government by more than half amid speculation that government’s demonetization move imposed a cost on the regulator. It would transfer ₹30,659 crore to the treasury, down from ₹65,876 crore a year earlier.

 

Friday- 11th August 2017

  • Amidst escalating tensions between US and North Korea, the market took a fall for the 5th consecutive day. The Sensex ended down 317.74 points, or 1%, at 31,213.59 and the Nifty lost 109.45 points, or 1.1%, to close at 9,710.80.
  • Tata Steel signed an agreement on segregating the company’s UK business from its pension scheme. This can possibly lead to a merger with ThyssenKrupp AG of Germany.
  • Hike Messenger has acquired Creo, a Bengaluru-based technology startup for an undisclosed amount.

 

Source: The Economic Times

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GST negative impacts, RBI cuts rate, Rupee touches 2-year high- Weekly Digest #49

Monday- 31st July 2017

  • After many weeks of uncertainty, the HDFC Life Insurance-Max merger plans have been called off. The parties were unable to obtain required approvals from the regulatory authorities.
  • Jasper Infotech has called off proposed sale to Flipkart, seven months after the discussions were initiated by its largest investor Softbank. Snapdeal to follow an ‘independent path’ onwards.
  • State Bank of India on Monday cut the interest rate on savings bank accounts by 50 basis points to 3.5% on balance of 1 crore and below, after over 6 years of status quo.
  • BSE’s Sensex gained 205 points, or 0.6%, to close at 32,514. The NSE Nifty ended at 10,077.10, up 0.63%, or 63 points, over the previous close. The gain was led by SBI which rose over 4.5% after shedding savings bank interest rate.

 

Tuesday- 1st August 2017

  • Manufacturing took a hit in July, due largely to the rollout of GST at the beginning of the month, plummeting to its lowest in more than eight years. The Nikkei India Manufacturing Purchasing Manager’s Index (PMI) slowed to 47.9 in July, its lowest since February 2009, compared with 50.9 in June.
  • After the announcement of major layoff to cut down 80% of its employee strength in the company, Snapdeal on Tuesday witnessed exit from many senior members. Vice-president product, Pradeep Desai; vice-president, engineering, Viraj Chatterjee and head of IT, Gaurav Gupta are first few to exit the company.
  • Benchmark share indices closed at fresh record highs on Tuesday ahead of the Reserve Bank of India’s monetary policy decision. The Nifty ended up 38 points or 0.4% at 10,115 after scaling a lifetime high of 10,128.6. The BSE Sensex closed at 32,575, up 60.23 points or 0.2%, after hitting a record high of 32,632.
  • The rupee racked up strong gains to end at a fresh two and-a-half month high of 64.07 against the dollar, appreciating by 12 paise on heavy dollar selling amid expectations of a rate cut by the Reserve Bank.

 

Wednesday- 2nd August 2017

  • The RBI cut the key interest rate by a quarter point to 6%. It hasn’t changed its stance as it would remain on guard as price pressures may return in the wake of a house rent allowance payout and the July 1 rollout of the GST.
  • To gradually reduce subsidy on Kerosene, the government has asked state oil companies to keep raising prices of subsidised kerosene by 25 paise every fortnight until the subsidy is eliminated. The aim is to attract investment from private companies which were hesitant due to excessive controls, controversies and untargeted subsidies.
  • Early investors in Snapdeal such as Nexus Venture Partners and Kenneth Glass have come out in support of the online marketplace’s decision to terminate its merger talks with larger rival Flipkart and move forward as an independent entity.
  • Global alternative asset management fund Brookfield, American Tower Corp, and local infrastructure fund IDFC Project Equity Infra have separately bid for the 11,000 individual towers of Vodafone India, valued at $600 m.
  • The rupee hit a two-year high to close at 63.70 after exporters sold their foreign-currency receivables on expectations that positive real interest rates would induce further buying of Indian debt assets by overseas funds.

 

Thursday- 3rd August 2017

  • The Nikkei India Services PMI Business Activity Index plunged from June’s eight-month high of 53.1 to all time low since September 2013 at 45.9 in July amidst the GST worries.
  • After the RBI held to its neutral stance, Public sector bank shares dragged down the Nifty to 10,013 and the Sensex 32,273 points. The Bank Nifty index fell 1.52% as State Bank of India and ICICI Bank fell more than 2% each to ₹300.50 and ₹295.70 respectively.
  • An SBI-led consortium of lenders has ordered a forensic audit of Videocon Industries’ accounts. The move is preliminary to the start of debt restructuring after Videocon defaulted on loans worth ₹43,000 crore.
  • The ₹1,468-crore initial public offering of Cochin Shipyard ended on a strong note as The offer received bids for 258.69 crore shares compared to 3.39 crore shares offered, being oversubscribed by 76 times.

 

Friday- 4th August 2017

  • The government announced a new exchange-traded fund (ETF), Bharat-22, comprising of 22 scrips including blue chips such as ONGC, IOC and SBI and stake in private companies it holds through SUUTI.
  • The Sebi has mandated listed companies to inform stock exchanges if they default on interest or loan repayments to banks and financial institutions within one working day.
  • The government has announced that from 1st October, death certificates will need to have the person’s Aadhaar number “for the purpose of establishing the identity of the deceased.”
  • JSW Steel is in advanced talks with a distressed fund jointly floated by Piramal Enterprises and Bain Capital Credit to bid for Bhushan Steel. Bhushan Steel has been admitted to bankruptcy courts for revival.
  • Vedanta Resources announced raising $1 billion through a bond sale, the proceeds of which would largely be used to refinance expensive debt.

 

Source: The Economic Times
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Another window for old currency?, Amazon keeps the investment flowing, IDFC-Shriram partnership- Weekly Digest #47

Monday- 3rd July 2017

  • Price cuts by companies and tax concessions for ITC helped investors confidence as Sensex claimed 31,000-mark to close at 31,221 and Nifty jumped beyond 9,600-mark to close at 9,615.
  • Munjals-owned Hero MotoCorp has decided to put a complete halt on royalty payments to its former joint venture partner Honda. It will now use its in-house R&D unit, CIT in Jaipur for all technological purposes.
  • Tata Chemicals sold last of its Indian Operations at Haldia, West Bengal, as it looks forward towards exiting fertiliser business to focus on on consumer and inorganic chemicals.
  • Byju’s, the ed tech company, has acquired TutorVista and Edurite from UK-based Pearson. It will help Byju’s to expand international research and creating a diverse product portfolio.
  • Online movie and event ticketing platform BookMyShow has acquired Mumbai-based local food and restaurant recommendation engine Burrp for ₹6.7 lakh in an all-cash deal. It was acquired by Network18 in 2009 for ₹4.25 crores.

 

Tuesday- 4th July 2017

  • The Jasper Infotech has rejected Flipkart’s initial offer of around $800-$900 million for its online marketplace Snapdeal. However, the talks are still expected to continue.
  • The government has issued a statement clarifying that manufacturers and retailers can stamp new prices on their preGST stock of goods and sell them until end September.
  • Chief Justice of India JS Khehar has asked the government to consider another window for people who have not been able to deposit old notes due to genuine reasons.
  • The Delhi High Court has ordered Malvinder and Shivinder Singh to respond to Daiichi Sankyo’s application alleging they had violated court orders by selling their stake in Fortis Healthcare in the open market through their holding companies.
  • NCLT has given the go-ahead to banks to initiate insolvency proceedings against Jyoti Structures, making it the first among the 12 companies identified by the Reserve Bank of India for bankruptcy proceedings.

 

Wednesday- 5th July 2017

  • Bharti Airtel likely to sell a controlling stake in arm Bharti Infratel and to utilise the proceeds to pay off $14 billion debt and help in network expansion.
  • In response to Supreme Court’s observation that the government should provide another window for the exchange of demonetised currency, the officials have said that they will consider the proposition but feel that opening such window will defeat the purpose of the radical change.
  • After a fresh investment of ₹1,680 crores, online marketplace giant has crossed $2billion mark in its investment in the Indian arm. The total funding is now $2.1 billion. Amazon has committed to $5billion investment in India.
  • Anil Ambani-owned Reliance Communications has accused Mukesh Ambani-owned Reliance Jio’s free offers as one of the causes of the financial stress of the telecom industry.
  • Shares of IDFC and IDFC Bank rose about 10% each on speculation that IDFC Bank may announce a large acquisition shortly. IDFC Bank gained 9.97% to close at ₹62.30 while IDFC rose 10.11% to end at ₹60.45.

 

Thursday- 6th July 2017

  • The Tata Group and Bharti Enterprises are in talks to form an alliance involving their telecom, overseas cable and enterprise services, and direct-to-home TV businesses.
  • IDFC and Shriram Group are in talks to combine all or some of their businesses that could straddle traditional banking, consumer lending and truck financing. It will also provide billionaire Ajay Piramal with an entry into a highly regulated industry.
  • Amazon has infused another amount of ₹341 crores into its Indian subsidiary Amazon Wholesale. This will take the total capital infused to ₹756 crores.
  • Founders of IndiGo, Rakesh Gangwal and Rahul Bhatia have clarified that their primary interest in Air India is in the carrier’s international operations that include the low-cost Air India Express.

 

Friday- 7th July 2017

  • Axis Bank has emerged as the frontrunner for acquiring digital payments platform owned by e-commerce marketplace Snapdeal, Freecharge. The deal is expected to be valued around $20-$40million.
  • A Bengaluru court has ordered the attachment of property belonging to former AirAsia India CEO Mittu Chandilya following a complaint filed by the airline that accused him of fund diversion.
  • Japanese major Tokio Marine has hiked its stake in non-life insurance venture IFFCO-Tokio to 49% by acquiring additional shares in the company for ₹2,530 crore.
  • RBL Bank has raised an amount of ₹1,680 crores by selling shares to existing investors at a slight discount to the bank’s closing price of ₹527 on Friday at ₹515 per share.

 

Source: The Economic Times
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McDonalds faces major shutdown, Provisioning halts insolvency recovery, VIVO wins IPL bid- Weekly Digest #46

Monday- 26th June 2017

  • The government has relaxed GST provisions for e-commerce as it has deferred provision that required e-commerce players such as Amazon and Flipkart to deduct tax on payments made to their vendors and small businesses that sell through these e-commerce platforms don’t have to register themselves immediately.
  • SBI has mandated Alvarez & Marsal to act as interim resolution professional to reorganise Ruias-owned Essar Steel that defaulted on ₹4,000 crores. PwC, EY and Deloitte have also been hired to handle insolvency proceedings.
  • Apple CEO Tim Cook has reportedly told the Prime Minister that Apple had started production of iPhone SE in Bengaluru last month, during a meeting with American business leaders in Washington on Sunday.

 

Tuesday- 27th June 2017

  • After RBI announced banks to have hefty provisions for proceedings under the bankruptcy code, major tumble in prices of the banks’ stocks was observed. The Nifty PSU Bank dipped 3.4% to 3,328 points, its one month low.
  • Vivo won the sponsorship of IPL for the next five years by bidding a record-breaking sum of ₹2,199 crores. The base price was ₹120 crore per season.
  • Coca-Cola is shutting down its biggest analytics, technical and innovation centre in India which is located in Pune. This comes as a part of a restructuring to head towards a leaner organisation.
  • To comply with the RBI norms, RIL is seeking shareholders’ approval for a limit on non-promoter investors’ holding to 5%.

 

Wednesday- 28th June 2017

  • Banks to lobby RBI to relax its strict provisioning norms for accounts referred to the country’s bankruptcy courts. Banks feel it will hamper heir ability to find buyers at a good price.
  • The cabinet has cleared formation of a panel under the Finance Minister Arun Jaitely to decide on the extent to which Air India would be privatised and process to be followed for the same.
  • The internal conflict between Connaught Plaza Restaurants, a local joint venture between Vikram Bakshi and the US-headquartered McDonald’s took an ugly turn as with the CPRL board deciding to shut down 43 out of 55 restaurants in Delhi.
  • Zomato India reported a 34% decline in loss from ₹590 crores to ₹389 crores owing to a strategy that excluded self-fulfilled deliveries. It has enabled the startup to be valued at more than $1 billion.
  • Japanese drugmaker Daiichi Sankyo has moved to NCLT to stop former Ranbaxy promoters, Singh brothers from splitting hospital and diagnostics businesses of Fortis Healthcare. Daiichi has claimed that demerger will make the recovery from Singh brothers more difficult.

 

Thursday- 29th May 2017

  • IndiGo has expressed its interests in buying a stake in debt-laden Air India after the cabinet approved a proposal to dilute state ownership in the company.
  • As a part of changes in the Legal Metrology (Packaged Commodities) Rules, 2011, w.e.f. January 1, 2018, companies will be forbidden from selling the same product at different MRPs at locations such as restaurants and airports.
  • Credit-rating agency Crisil has acquired a 8.9% stake in in local rival Credit Analysis & Research which can potentially lead to acquiring the company. Crisil purchased 26.22 lakh shares at ₹1659.79 per share in a deal valued at ₹435.26 crores.
  • Ministry of Corporate Affairs has amended the Legal Metrology (Packaged Commodities) Rules, 2011 to make it compulsory for e-commerce companies to declare expiry dates and maximum retail prices of packaged consumer products online.

 

Friday- 30th May 2017

  • CDSL made a stellar debut in the market, with shares listed at 67.7% premium at ₹250, over the issue price of ₹149. The share price surged further and closed at ₹260.70.
  • ICICI bank to raise an amount of ₹25,000 crores by issuing securities on a private placement basis. the proceeds are to be utilised for increasing lending operations.
  • The Competition Commission of India has approved Bharti Airtel’s acquisition of Videocon Telecom and Aircel Ltd’s airwaves

 

Source: The Economic Times
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GST Council set rates, Bad loans under Bankruptcy Code, Hyundai Fined by CCI- Weekly Digest #44

Hello, readers. I hope you are doing fine. I would like to apologise for the absence for over five weeks. It was due to medical necessities. I hope this will not repeat anytime soon.

Monday- 12th June 2017

  • GST council lowers rate on 66 household and other essential items such as Cashew nuts, insulins, cutlery, printer and others and raised the threshold for the scheme as it inches closer towards July 1 deadline.
  • As per the Finance Minister Arun Jaitley, RBI is drawing up a list of debtors with bad loans that need to be resolved under the Insolvency and Bankruptcy Code.
  • Anticipated acquisition of  Snapdeal by Flipkart will have to deal with RBI on Foreign Exchange to protect the interests of the shareholders. Issuance of shares by Flipkart Singapore to Indian shareholders of Snapdeal would need a specific permission from RBI.
  • Catholic Syrian Bank has proposed a 51% stake sale to Canada’s Fairfax Financial Holdings Ltd at ₹160 per share. The proposed deal will value the company at ₹1,300 crores.

 

Tuesday-13th June 2017

  • RBI issued a statement that under new Insolvency and Bankruptcy code, 12 accounts totalling about 25% of the current gross NPAs of the banking system would qualify for immediate reference under the Insolvency and Bankruptcy Court.
  • CBEC has stated that import of 4G equipment by Indian telecom firms doesn’t fall within the purview of the global Information Technology Agreement and hence won’t be exempted from the customs duty.
  • The Broadband India Forum has written a letter to IT and telecom secretary Aruna Sundararajan that India could attract serious legal challenges and retaliatory action from key Asean countries if it decides to slap customs duty on imported handsets. However, Indian Cellular Association’s president, Pankaj Mohindroo said that government is elected not for Asean but to serve the people, and industry, in India.
  • Ola raises an amount of $50 million from New York-based investment firm Tekne Capital Management. This pushes the value of the company to $3.65 billion.

 

Wednesday- 14th June 2017

  • Tata Sons is considering a forensic audit of last year’s purchase of Welspun Renewables Energy for ₹9,249 crore by Tata Power Ltd because of concerns over corporate governance, allegedly inflated valuations and the unusual swiftness in execution.
  • The union cabinet approved the Financial Resolution and Deposit Insurance Bill, 2017. This will complete the country’s bankruptcy framework after it’s passed by parliament.
  • Competition Commission of India has imposed a penalty of ₹87 crores on Hyundai as it imposed arrangements upon its dealers that resulted in resale price maintenance -a deal not to sell a product below a specified price -in the sale of passenger cars manufactured by it. This is in contravention to the Competition Act.
  • Anil Ambani has voluntarily given up all his salary and commission until March 2018 from debt-laden and loss-making telecom arm, Reliance Communications.

 

Thursday- 15th June 2017

  • RIL and BP to invest an amount of ₹40,000 crores in the Krishna-Godavari Basin to produce 30-35 million cubic metres a day of gas.
  • India is close to imposing a 10% basic customs duty on smartphones. The decision is expected to be announced shortly before the rollout of the GST.
  • A Warburg Pincus affiliate to invest $360 million for a 43% stake in Tata Technologies Limited. 30% stake will be acquired from Tata Motors and 13% stake from Tata Capital.
  • A consortium of 24 lenders, led by the SBI to sell a majority stake in Adhunik Power & Natural Resources to Edelweiss Group. The lenders will receive cash upfront on sale of distressed assets.

 

Friday- 16th June 2017

  • The government has made it mandatory to furnish aadhaar along with PAN to enable bank opening and any financial transaction over ₹50,000.
  • Airtel, Vodafone and Idea have claimed that Jio’s claims for losses due to debt are false and loss has been incurred due to high government fees as well as the newcomer’s free offers.
  • Optical network equipment manufacturer Tejas Networks’ IPO to raise an amount of ₹776 crores ended as the issue was subscribed 1.9 times. The offer was priced at ₹250-257 per share.
  • Amazon to acquire Whole Foods Market Inc for $13.7 billion. However, Whole Foods’ founder John Mackey will continue to run the business.

 

Source: The Economic Times
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ICICI Q4 results, Patanjali now second in race, NPA Ordinance- Weekly Digest #43

Monday- 1st May 2017

  • Ola reported a consolidated PBT of ₹2,313 crores for FY 16 in comparison to FY 15 loss of ₹796 crores. This has been attributed to heavy spending to maintain market leadership against Uber.
  • Xander Group to acquire 100% interest in Shriram’s Gateway SEZ in Chennai for $190 million. This is the largest private equity buyout so far in India’s real estate sector.
  • SBI has cut deposit rates by up to 50 basis points for maturities above two years. however, it has retained the 7.40% on one-year deposits for senior citizens.

 

Tuesday-2nd May 2017

  • PepsiCo to roll out Pepsi Black, a zero-sugar cola in cans, to counter Coke Zero, reflecting the shifting consumer preference towards less sugary drinks in India.
  • China Development Bank has objected to the $6billion merger of debt-ridden telecom operators RCom and Aircel even as regulators including the Competition Commission of India have signed off on the deal. The assets transferred are offered as security to Chinese Bank and thus they seek a lender’s meeting.
  • Infosys said that it would hire 10,000 US workers over the next two years as Indian IT industry looks to mitigate the impact of the tighter work visa rules.
  • SIPs in MFs rose to an all-time high of ₹4,200 crores in the month of April 2017.
  • Promoters of HDFC Life and Max Life have extended the deadline for the merger of the two life insurers by a year to June 2018 because the sector regulator has yet to give its nod for the proposed deal.

 

Wednesday- 3rd May 2017

  • The cabinet cleared the NPA resolution package that includes an ordinance to empower the RBI to more effectively deal with bad assets. It also approved a new policy to boost consumption of locally produced steel and modifications to recommendations of the Seventh Central Pay Commission with respect to pensioners.
  • Private Equity Investors TPG and General Atlantic (GA) have joined forces in a bid to acquire a controlling stake in Fortis Healthcare. This also involves the purchase of the diagnostics arm SRL.
  • Ratan Tata’s venture fund RNT Capital Advisors and US hedge fund Falcon Edge have invested an amount of $100 million in Ola in exchange of shares of the company at ₹13,521 each.
  • Brinton Pharmaceuticals has raised an amount of $4 million from Tata Capital Healthcare Fund, as the firm looks to enter into newer areas such paediatrics and gynaecology and expand its international operations.
  • ICICI posted 3 times rise in net profit for Q4 on the YoY basis at ₹2,025 crores from last year’s ₹702 crores.  It announced a dividend of ₹2.5 per share and a bonus share for every 10 shares.

 

Thursday- 4th May 2017

  • The Nifty closed at an all-time high while the Sensex ended above the 30,000 mark, a day after ICICI Bank posted times increase in its profits and cabinet approved NPA resolution. Sensex closed at 30,126 points and nifty closed at 9,360 points.
  • India urged the UK to expedite extradition of Vijay Mallya and other fugitives besides raising the issue of visa-related difficulties faced by Indian students and skilled professionals at the maiden home secretary-level talks.
  • Patanjali reported a revenue of ₹10,561 crores for FY17, making it the second largest FMCG player, behind HUL.
  • Facebook has tied up with Bharti Airtel to deploy 20,000 Wi-Fi hotspots across the country to offer affordable internet services through the social networking major’s Express WiFi service over the next few months.

 

Friday-5th May 2017

  • Sachin Tendulkar and Pepsico are coming together to produce a raft of nutrition-focused food products and beverages through a new firm, Liquefy Innovations LLP.
  • Cement giant LafargeHolcim has initiated a process that could lead to the union of its Indian operations ACC and Ambuja Cement.
  • Sensex and Nifty fell over 1% as banks reversed previous day’s gains. Nifty ended at 9,285 points and the Sensex at29,859 points.

 

Source: The Economic Times

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