Category Archives: Financial

Rupee hits an all-time low, Amazon India receives fresh infusion, Fortis-IHH deal approved by shareholders- Weekly Digest #69

Monday- 13th August 2018

  • The Indian Rupee hits a 5 year low as it fell by 1.58% against USD to reach 68.93 amidst selloff in emerging market currencies led by the collapsing Turkish lira. In the derivative trading, the rupee crossed 70 to the USD.
  • Bain Capital Private Equity is competing with US private equity firm KKR to buy a 47% stake in Max Healthcare from South Africa’s Life Healthcare for between $450 million and $540 million. This comes after Life Healthcare held discussions with its Indian partner on leaving the venture.
  • Amazon India has received a fresh infusion of ₹2,700 crore from its parent company. This brings the total infusion into Amazon India to over $1 billion since January 2018. The Seattle company also pumped in ₹100 crore into its food retail business Amazon retail.
  • Tata Steel reported a Q1 profit of ₹1,934 crore, an increase of 53% on YoY basis. However, it missed the market expectations of ₹2,700 crore.  The consolidation of Bhushan Steel’s financials did not translate into commensurate profits.
  • Retail inflation in the country eased to a nine-month low in July at 4.17% due to a sharp decline in the price increase of food and beverages. It brings hopes that the Reserve Bank of India will stop raising interest rates.

 

Tuesday-  14th August 2018

  • The rupee hit an all-time record low as it crossed the psychological mark of 70 per dollar before bouncing back to end slightly higher at 69.89. The currency has lost about 8.6% so far this year.
  • JSW Steel raised its offer for Bhushan Power & Steel to ₹19,500 crore, making it the highest among the three bids for the bankrupt company as Tata Steel and Liberty House refrained from revising their proposals. They have their bids at ₹17,000 crore and ₹18,000 crore, respectively.
  • Spicejet reported a loss of ₹38 crore in Q1, sharp decline from a profit of ₹175.2 crore a year earlier. This has been its first loss reporting quarter in three years owing to provision for arbitration.
  • Shareholders of Fortis Healthcare approved its proposed $1 billion deal with Malaysian healthcare group IHH BHD. 99.7% of the shareholders who voted were in favour of the Fortis-IHH deal. IHH will have the rights to control two-thirds of the seats on the Fortis board.

 

Wednesday-  15th August 2018

  • Hotel chain OYO is in advanced talks to raise up to $1 billion in a deal that could usher the company into India’s crowding Unicorn club with a valuation of over $4 billion.
  • Online gaming company Nazara Technologies has made its first move towards offline gaming with a minority investment in InstaSportz Consultancy which builds VR gaming lounges across the country. Nazara, which has picked up 10% stake in InstaSportz, will raise it to 26% by November.
  • A day after the rupee plunged to its record low, Union Minister Arun Jaitley said India has comfortable foreign exchange reserves at $402.70 billion to deal with any undue volatility in the currency market.

 

Thursday- 16th August 2018

  • In a bid to expand its play in the content space, Girnar Software, which owns and operates auto portals CarDekho.com, Gaadi.com, ZigWheels.com and Bike-Dekho.com, has acquired PowerDrift Studios Private Limited which operates content platform PowerDrift.
  • Benchmark Sensex tumbled over 188 points to close at 37,663 on Thursday, tracking weak global cues on concerns over Turkey’s financial crisis amid sustained foreign fund outflows. Rupee further slumped from its all-time low to 70.40 per dollar.
  • The founder of Smaaash Entertainment is in talks with investors in the US to raise $25-30 million (about ₹175-200 crore) to fund the sports-based entertainment company’s expansion.

 

Friday- 17th August 2018

  • Safecrop Holdings, a consortium of WestBridge AIF, Rakesh Jhunjhunwala and Madison Capital, has signed definitive agreements with the shareholders of Star Health & Allied Insurance Co to purchase their stock in the country’s largest independent health insurer. The company has been valued at ₹6,500 crore.
  • Air India pilots have threatened to stay away from flying duties, thus disrupting flight schedules, as their flying allowances have not been paid. While Air India paid salaries on Tuesday, it didn’t pay the flying allowances that constitute about 70% of a pilot’s pay.
  • Malaysia’s Axiata Group Berhad will recognise a non-cash impairment of RM3.32 billion (about ₹5,692 crore) in the carrying value of its investment in Idea Cellular.
  • The Supreme Court has asked Bharti Airtel to reply to a notice in two weeks while admitting bankrupt telecom firm Aircel’s petition seeking ₹453 crore dues from the Sunil Mittal-owned mobile phone operator.
  • Hundreds of Google employees have signed a protest letter over the company’s reported work on a censor-friendly search engine to get back into China. The employees are demanding more transparency so they can understand the moral implications of their work.

Source: The Economic Times
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RBI increases repo rate, Jet Airways in trouble, RIL wins against the govt- Weekly Digest #68

Monday- 30th July 2018

  • Axis Bank reported a 46% fall in net profit in the Q1 to ₹701 crore from ₹1,306 crore on YoY basis. This has been attributed to a rise in provisions and muted other income.
  • DLF Brands is shuttering the India store network of US women’s accessories brand Claire’s amid trouble at the American brand that filed for bankruptcy in May.
  • The Delhi HC has issued notices to Flipkart and Amazon in a PIL filed by Telecom Watchdog, which alleged they had violated FDI norms and circumvented them by routing popular products at much cheaper rates and pushing out small businesses and brick-and-mortar retailers.
  • A total of 22.64% of the shareholders of HDFC Ltd voted against the continuance of chairman Deepak Parekh as director in a shareholders’ meet in Mumbai. Parekh is one of the longest-serving chairmen of HDFC. It is believed that a major foreign fund was not happy with Parekh.
  • IndiGo posted a net profit of ₹28 crore in the Q1, a 97% drop from ₹811.1 crore on YoY basis. This has been its worst quarterly performance since listing and has been attributed to operational stress, higher fuel and maintenance costs, and foreign exchange losses.

 

Tuesday-  31st July 2018

  • An arbitration panel has issued an award in favour of Reliance-led consortium in the gas migration dispute case. The panel has rejected the government’s contention that Reliance and its partners unjustly gained by producing gas from ONGC’s fields in the KG basin and must return the gains by paying $1.55 billion to the government.
  • The government has denied Whatsapp to start their payment service until they set up an office and recruit a team in India. The government also seeks RBI’s views on whether payment solutions controlled remotely violate rules on setting up such financial services in India.
  • Jet Airways has informed its employees that they will have to take an up to 25% cut in their salaries as the cost of operations for airlines is increasing due to rising crude prices and a falling rupee. The move is expected to reduce annual salary of about ₹3,000 crores by about ₹500 crore.
  • Tata Motors has reported its worst quarterly results in 9 years as it reported a consolidated loss of ₹1,863 crore for Q1. It has been attributed to troubling JLR performance due to an anti-diesel wave in the UK and Europe, vehicle stock correction in China and US’ higher incentives.
  • Reliance Industries topped TCS to become the most valued company on D-Street. RIL’s market valuation stood at ₹7.51 lakh crore at the closing of trade, which is ₹8,192 crore more than TCS. RIL shares surged 3.14% to ₹1,185.8.

 

Wednesday-  1st August 2018

  • RBI raised repo-rate by 25 basis points to 6.5%, its second hike this year to fight rising prices and stressed on maintaining macroeconomic stability. However, it kept its stance neutral.
  • The Delhi High Court has directed former Ranbaxy promoters Malvinder and Shivinder Singh to personally appear for its proceedings in Daiichi Sankyo case to enforce a ₹3,500-crore arbitration award against them.
  • The Supreme Court has ordered to seize the assets of the Amrapali Group and freeze the bank accounts of 40 of its companies and their promoters, holding that the real estate developer was dilly-dallying on completing its delayed projects and taking the system for a ride.

 

Thursday- 2nd August 2018

  • Jet Airways has informed its employees that the airline will not be able to operate beyond 60 days unless cost-cutting measures, which include pay cuts, are put in place.
  • Apple Inc became the first $1 trillion publicly-listed US company as the company’s stock rose 2.8% to as high as $207.05. Apple had recently reported its strong Q1 performance.
  • The food-delivery firm Swiggy has acquired Mumbai-based on-demand delivery firm Scootsy, under an all-cash deal. The deal is estimated to be valued at about ₹50 crore.
  • The Sensex slipped 356 points to 37,165 points and the Nifty ended down 101 points, at 11,245 points, tracking the weakness in Asian markets after the Trump administration threatened to expand tariffs on $200 billion worth of Chinese imports.

 

Friday- 3rd August 2018

  • Shares of Jet Airways fell the most in three weeks and ended 7% down at ₹308 on fears that the ongoing financial turbulence would further affect its fortunes.
  • US manufacturer Textron is winding down its defence operations in India after being hit by penalties for failing to meet stringent offset guidelines and seeing a bleak revenue stream in the country. It was recently penalised $300,000 by the defence ministry for not meeting offset obligations.
  • The SC has permitted RCom to go through with the sale of its assets to Reliance Jio and allowed the Rcom’s management to give an undertaking that it will pay ₹550 crore to Ericsson by September 30.
  • Markets rallied on Friday after two days of selling as the Sensex surged 391points to settle at 37,556 points while Nifty rose 116 points to close at 11,361 points amidst the weather department forecasting a recovery in the monsoon in August and September.

Source: The Economic Times
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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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Market hits all-time high, IHH wins bid for Fortis, TCS strong Q1 results- Weekly Digest #66

Monday- 9th July 2018

  • The NCLT has dismissed the lawsuit filed by two Cyrus Mistry family firms against Tata Sons, stating that it did not find any merit in allegations of mismanagement at Tata Sons.
  • The DoT has conditionally approved the merger of Vodafone India with Idea Cellular. The conditions include  an upfront payment of ₹7,268 crore. The demand is split between a bank guarantee of ₹3,342 crore to cover what Idea owes on account of one-time spectrum charges and cash of ₹3,926 crore by Vodafone towards the market price for non-auctioned airwaves.
  • Aurobindo Pharma is in final negotiations to acquire Mallinckrodt’s specialty generics business in the US for $850-900 million. The transaction will be among the largest cross-border acquisitions by a domestic pharmaceutical company in recent times.
  • The Sensex surged by around 277 points to close at more than five-month high of 35,935 points while the NSE Nifty ended 80 points higher at 10,853 points. This has been due to heavy buying in energy, capital goods, power and banking stocks following positive leads from global markets and a strengthening rupee.
  • Realty developer Lodha Group has received the SEBI’s approval for its proposed IPO. The ₹5,500 crore IPO would be the country’s second biggest property IPO.

 

Tuesday-  10th July 2018

  • Banks to ask the SEBI to allow Alternate Investment Funds (AIFs) to own more than 51% in listed securities. They will also ask the RBI to treat the risk weight of their investments in AIFs as determined by credit rating agencies. If the norms are eased, banks will save about ₹5,000 crore, speed up the loan resolution process and get more capital for lending.
  • Bharti Airtel plans to raise about $1 billion through overseas loans. The funds to be used to refinance its high-cost debt to free up cash for capex investments needed to expand its 4G network to take on Reliance Jio Infocomm and the Vodafone-Idea Cellular combine.
  • TCS reported its Q1 results with profit of of $1.08 billion and revenue stood at $5.05 billion. This has been its fastets growth in nearly four years and has been attributed to a pipeline of new deals and a revival in business from the banking and finance sector as well as in the US.
  • BlackRock has cut its stake in the American Depositary Shares of Infosys to under 5%.  It is the latest among various instances of institutional investors reducing their exposure to the Indian IT services.
  • Indian stock indices gained for the third consecutive session with the Sensex ended up 305 points at 36,240 points and the Nifty closed 94 points higher at 10,947 points. Indices are at their highest in nearly 5 months.

 

Wednesday-  11th July 2018

  • The Telecom Commission, the highest decision-making body in the DoT, accepted the TRAI’s recommendations of November 2017 in total, underscoring India’s stance supporting an open internet. Supporters of net neutrality welcomed the move while telcos said it could stifle innovation.
  • Vistara, the joint venture carrier between Tata Sons and Singapore Airlines that it has signed a preliminary pact with Airbus and Boeing to buy 19 narrow and wide-bodied planes valued at $3.1 billion at list prices.
  • Malaysian healthcare giant IHH Healthcare nearing to win the bid for Fortis Healthcare after it offered to pay ₹180/share, valuing India’s second-largest hospitals chain at ₹9,335 crore.

 

Thursday- 12th July 2018

  • The Sensex ended up 282 points at 36,548 points after touching an all-time high of 36,700 points while the Nifty ended up 75 points at 11,023 points. This all time high has been due to continued purchases in select bluechips like Reliance Industries, HDFC and Hindustan Unilever.
  • The CCI dismissed petitions of  Vishal Gupta/Audney Infotel and Albion Infotech against Google and defended latter’s right to suspend advertising accounts of companies that violate its terms.
  • HCL Technologies approved a share buyback worth ₹4,000 crore at the price of ₹1,100 per share. The shares of the company earlier in the day closed at ₹1,005.30, up by ₹10.25.
  • The DoT has rejected a complaint by RCom of unfair treatment vis-à-vis Vodafone in the matter of one-time spectrum charges on grounds that the two cases were different.
  • Shares of private sector lender Yes Bank touched a record high of ₹385, riding on strong investor sentiment. However, it closed at at ₹374.8 apiece.

 

Friday- 13th July 2018

  • Malaysia’s IHH Healthcare Berhad wins bid for Fortis Healthcare after the board of the troubled hospital chain chose its $1.1 billion offer over a rival bid from a consortium of Manipal Health Enterprises and TPG Capital.
  • The SEBI has approved HDFC Asset Management Company’s IPO after distributors and financial advisers, who had received shares of the company in an exclusive share sale before the IPO, sold them to private equity firm KKR.
  • The buyback price of HCL Technologies disappointed investors, dragging the share price down by 2% to ₹984.85. The buyback was offered at ₹1,100 apiece, below market expectations of ₹1,150-1,200 per share.

Source: The Economic Times

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Jio to rollout broadband, Rupee hits all time low, a hope for recovery for SBI- Weekly Digest #65

Monday- 2nd July 2018

  • Anil Agarwal’s Volcan Investments, the holding company of Vedanta Resources Plc, has announced its plans to acquire 33.5% of the public shareholding and delist the group flagship company from the London Stock Exchange (LSE). The transaction is expected to cost Volcan $1.1 billion.
  • The SEBI has directed ICICI Prudential AMC to pay ₹240 crore, the amount of the bids made on the final day of the ICICI Securities IPO to all the five schemes that subscribed to it. The amount would have to be paid with 15% interest p.a.
  • Railway consultancy firm RITES made a strong debut on the stock exchanges. It got listed at ₹190 on the BSE, over its issue price of ₹185 and closed for the day at ₹212.7.
  • Competition Commission of India has cleared the merger of Bharti Infratel with Indus Towers, which will create a $14.6 billion company which will have 1.63 lakh towers worldwide.

 

Tuesday-  3rd July 2018

  • After witnessing a slew of exits, restaurant discovery and food-delivery firm Zomato, in order to strengthen its top management has brought on-board former COO of MakeMyTrip, Mohit Gupta as the CEO of its food- delivery business.
  • IHH Healthcare Bhd and Manipal Health Enterprises backed by TPG Asia are left in the race to acquire India’s second-largest hospital chain, Fortis Healthcare. This comes after withdrawal of Sunil Kant Munjal of Hero Enterprises and the Burman family of the Dabur group besides Radiant Life Care.
  • The rupee made a strong comeback against the US currency, rising by a steep 23 paise to end at 68.57. Heavy intervention by the Reserve Bank along with the positive trend in local equity markets largely supported the home currency.
  • Due to talks about the TATA group possibly merging its food businesses into a single company to put more focus on the FMCG segment, the group stock saw a general lift. Shares of Tata Coffee jumped nearly 13% to ₹12.86, while beverage company Tata Global surged 6% to ₹280.95.

 

Wednesday-  4th July 2018

  • Biyani’s Future Lifestyle Fashion to buy nearly 30% in Koovs for about ₹140 crore. The transaction is expected to make the Future Group the largest shareholder in the AIM London-listed fashion e-commerce company.
  • Shriram Transport Finance shares fell 12% amid concerns of a potential loss after it disclosed an off-balance sheet exposure of ₹870 crore to a group company. The share price closed at ₹1,144.85 on BSE.
  • Hong Kong-headquartered brokerage CLSA has removed ICICI Bank, Zee Entertainment Enterprises and Ramco Cements from its model portfolio and added weight to Sun Pharma and Maruti Suzuki India. The foreign brokerage said the changes were in line with its cautious view on equity markets.
  • CDC Group, the UK Government-owned private equity company, has invested ₹325 crore in rupee-denominated masala bonds issued by IIFL Finance, reflecting increasing investor interest in domestic nonbanking companies.

 

Thursday- 5th July 2018

  • Reliance Industries chairman Mukesh Ambani unveiled the group’s ambitious plans for a fibre-based home broadband service which will be rolled out across 1,100 cities and target 50 million homes. This triggered a sell-off in the shares of cable companies amid anticipation of disruption, with the share price of RIL falling 2.5% to ₹965.
  • After the announcement of Reliance Jio to spread to the cable TV and broadband space, Hathway’s scrip crashed 15.4% to close at ₹20.6 apiece on the BSE, DEN Network’s shares closed 10.7% down at ₹66.55.
  • The valuation gap between TCS and Infosys reached its widest after the latter’s stock closed 4.5% lower at ₹1,284.5 on the BSE. The stock of TCS touched a 52-week high of ₹1,887.
  • The rupee fell for the second straight session to hit a fresh closing low of 68.95, sliding by 21 paise. This has been due to a panic demand for the US dollar coupled with savage capital flight worries.

 

Friday- 6th July 2018

  • India has rejected the Chinese government’s request to allow its carriers to add more flights on the India-China route after strong opposition from Indian carriers which felt that the move would jeopardise their own expansion plans.
  • A UK Court has ruled in favour of Indian banks by granting permission to local authorities to enter the estate of Vijay Mallya and seize possessions. This gives SBI another hope to recover their dues. 
  • Care has upgraded Yes Bank’s credit rating to the highest AAA from AA+ for infrastructure bonds and tier-II bonds. The rating upgrades reflect the bank’s “robust financial performance, creditworthiness, and increasing share of current and savings account (CASA) as well as retail deposits.
  • RKM PowerGen, Jaiprakash Associates, IL&FS and MB Power are among seven companies that have bid the lowest in an auction of three-year power supply contracts with stressed plants, quoting a price of ₹4.24 per unit.

 

Source: The Economic Times

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TCS ₹16k Cr. Buyback, HDFC’s India’s largest QIP, Jio to raise money from bonds- Weekly Digest #63

Monday- 11th June 2018

  • The government has said that it wants NCLT and NCLAT to work through the summer, without a break, to resolve the corporate insolvency cases that have been piling up. The move was sparked by the NCLAT posting a vacation notice on its website announcing a break from June 1 to July 1.
  • Supply chain financing firm CredAble has raised ₹100 crore in Series-A funding from private equity firm Alpha Capital. The funds are to be utilised for scaling up operations and technology, as well as for onward lending.
  • Avenue Supermarts briefly became part of the elite club of companies after its market capitalisation crossed ₹1 lakh crore as the share price hit the mark of ₹1,619.9. It closed at ₹1593.8, with the company being valued at ₹99,466.5 crore.

 

Tuesday-  12th June 2018

  • Adani Wilmar emerged as the highest bidder for bankrupt Ruchi Soya, trumping Ramdev-backed Patanjali Ayurved. Adani Wilmar has offered to settle ₹4,300 crore of debt and invest ₹1,174 crore in equity to revive the bankrupt firm.
  • The SEBI has formed an expert committee to examine the listing of equity share capital of Indian companies abroad and also allow foreign companies to list directly on Indian stock exchanges.
  • Axilor Ventures has launched a ₹200-crore seed fund, Axilor Technology Fund, with the company’s founders as its partners. The fund is structured as a Category I AIF and will make investments up to ₹3 crore.
  • The rupee set off its initial gains to close down by 7 paise at 67.49 against the USD due to fag-end dollar demand from banks and importers.

 

Wednesday-  13th June 2018

  • HDFC Bank has received government approval to sell fresh shares in India and abroad worth about ₹15,500 crore in what could result in the country’s largest QIP. The approval includes a ₹8,500-crore infusion from parent HDFC.
  • The All India Bank Officers’ Confederation (AIBOC) has filed a writ petition in the Delhi HC challenging the RBI’s controversial February 12 circular that bankruptcy proceedings will kick in 180 days after a borrower misses a payment without allowing even a day’s extension as it will cause a loss of ₹1 lakh crore.
  • Reliance Jio Infocomm has approached the bond market to raise about ₹2,000 crore @ 8.7% after the RBI raised the policy rate for the first time in more than four years.

 

Thursday- 14th June 2018

  • The Anil Ambani-led Reliance Naval & Engineering Ltd (RNEL) has filed a complaint with the defence ministry against a senior naval officer, alleging that he has been favouring its competitor, Larsen & Toubro, in a contract because his son is employed there. It has halted a ₹20,000-crore ‘Make in India’ naval warship deal.
  • Former Supreme Court judge BN Srikrishna will conduct an investigation into various allegations of impropriety against ICICI Bank chief executive Chanda Kochhar. Srikrishna will investigate whether Kochhar violated the bank’s code of conduct and was involved in quid pro quo transactions with certain bank borrowers.
  • Fortis Healthcare has withdrawn its scheme to demerge its diagnostics arm from the group and merge it with a step-down subsidiary “due to reasons beyond the company’s control” and its recently launched fresh bidding process for a deal. The company said that the process has taken over 19 months and is still not complete.
  • Shriram Transport Finance is raising ₹5,000 crore in retail bonds, extending the latest series of public issuances amid rising interest rates.
  • Adani Wilmar has decided not to revise its bid of ₹5,474 crore for the bankrupt Ruchi Soya after both, Adani Wilmar and Ramdev’s Ayurveda were offered by the lenders to revise their bid.

 

Friday- 15th June 2018

  • TCS to initiate a ₹16,000-crore buyback soon after its buyback in 2017. The company said it would repurchase about 76 million shares at ₹2,100 per share, nearly a 15% premium to the price on the Bombay Stock Exchange. TCS shares closed at ₹1,841.45 on BSE.
  • Deloitte Touche Tohmatsu’s 2016 audit of AirAsia India, mired in corruption allegations, has come under the scanner of the country’s investigating agencies; CBI and ED.
  • ICICI Venture has sold its 30% stake in Hyderabad-based hospital chain Krishna Institute of Medical Sciences to rival General Atlantic for ₹ 850 crores. ICICI Venture had invested about ₹220 crore in 2014 in the hospital chain.

 

Source: The Economic Times

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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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