Category Archives: News

HDFC’s Bond Issue, Relief for Rcom, Rupee recovery – Weekly Digest #71

Monday- 26th November 2018

  • Co-founder of Flipkart, Sachin Bansal, to establish a holding company through which he will run and invest in the emerging sectors- agri-tech and fin-tech. This comes after Bansal’s resignation from Flipkart following its acquisition by Walmart.
  • IIFL Securities has acquired a 15% strategic stake in the Bengaluru-based fin-tech startup, Trendlyne, a stock market analytics platform for retail investors, analysts, fund managers and advisors for an undisclosed amount.
  • Yum! Brands-owned KFC India has divested an additional 13 restaurants to Devyani International. This comes in line with its global strategy of reducing ownership of restaurants and being a brand custodian.
  • After Morgan Stanley’s double upgrade of emerging markets, the Sensex climbed 373 points to close at 35,354 points and the Nifty gained 102 points to close at 10,629 points.

 

Tuesday-  27th November 2018

  • Bharti Airtel is planning to raise an amount of ₹12,000-15,000 crore through issue of fresh equity in the current fiscal year, with the objective to reduce debt and financing costs, bolster cash flows and meet capital expenditure to fight the price war
  • Lodha Developers is nearing materializing the sale of its two residential projects in London — Lincoln Square on Carey Street and 1 Grosvenor Square in Mayfair — to an international fund to reduce borrowings. The transaction is expected to fetch about ₹4,200 crore.
  • Spotify is in the final stages of negotiations with top Indian labels such as T-Series, Times Music, Eros Music and Zee Music to provide services in India. The company’s earlier plan to enter India through an acquisition failed after those talks collapsed.
  • WhatsApp’s chief business officer, Neeraj Arora has resigned from his position as he joins the list of top executives who have parted ways with Facebook and its group companies in the past year.
  • The rupee recovered by 8 paise to close at 70.79 against the US dollar. The rupee’s rise was supported by dollar-selling by exporters and banks after the Chinese foreign ministry announced a mutually beneficiary agreement with the US.

 

Wednesday-  28th November 2018

  • Shares of Sun Pharma fell as much as 3% but recovered to close at ₹486, as Aussie brokerage firm Macquarie raised concerns over corporate governance practices at the firm prompting an angry rebuttal from India’s largest drugmaker.
  • Unilever is likely to acquire Glaxo SmithKline’s nutrition business with a $3.4-billion all-cash offer for a 72.5% stake. This comes after nearly a year-long contest for Horlicks, the popular malted drink brand in India.
  • Retail-focused nonbanking financial company Kogta Financial has raised an amount of ₹154 crore in a financing round led by a fund managed by Morgan Stanley Private Equity Asia and existing backer IIFL Seed Ventures. The amount to be used to expand the company’s operations and enter new geographies.
  • VC firm Kalaari Capital has roped in KPMG India executive Sreedhar Prasad as a partner. This comes after the departure of at least three partners from the company in the past one year.
  • The three-member committee set up by the National Green Tribunal to decide on reopening the Vedanta-owned Sterlite Copper factory in Tamil Nadu’s Thoothukudi district, termed the state government order that led to its closure as “unsustainable” and violating the principles of natural justice.

 

Thursday- 29th November 2018

  • The NPCI has sought clarifications from Google and WhatsApp about plans to store all data pertaining to Indian users on their respective UPI-based payment apps exclusively within the country. RBI had set a deadline of October 15 for all payments companies to store data exclusively within India.
  • India’s benchmark indices rose to a two-month high as the Sensex ended up 453 points to close 36,170 points while the Nifty ended up 130 points to close at 10,859 points. This has been due to mirroring the global market strength.
  • A US jury ruled in favour of Tata Consultancy Services (TCS), clearing the company of discriminating against local Americans. The ruling will likely help other Indian IT companies that are facing similar lawsuits.
  • The rupee appreciated by 77 paise to a three-month high of 69.85 per US dollar. This has been attributed to easing crude oil prices and fresh foreign capital inflows.

 

Friday- 30th November 2018

  • The Supreme Court allowed Reliance Communications to sell its spectrum to Reliance Jio Infocomm, rejecting the telecom department’s objections. This will enable Reliance Communications to complete the transaction and pare debt by repaying creditors.
  • UrbanClap has raised $50 million in primary capital in its latest round of funding, led by Hong Kong-based hedge fund Steadview Capital along with existing investor Vy Capital. The proceeds to be used to accelerate onboarding of both customer and service partners, build stronger teams, build training capabilities as also enhance its supply chain of consumables.
  • HDFC ₹9,000 crore bond sale received an overwhelming response with bids totalling to ₹13,000 crore, or nearly one-and-a-half times the issue size, in an otherwise lacklustre bond market.

 

Source: The Economic Times

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IBA Comes in Defense of Bankers, BOM’s CEO arrested, IPO Norms relaxed- Weekly Digest #64

Monday- 18th June 2018

  • ICICI Bank CEO, Chanda Kochhar to proceed on leave to facilitate an independent investigation into charges of favouritism and impropriety. The group’s life insurance head, Sandeep Bakhshi will assume the responsibilities meanwhile.
  • HUL has filed a caveat petition in the Mumbai HC against Emami, anticipating the rival to approach the court against an HUL regarding advertisement that takes a shot at Emami’s Fair and Handsome. Emami said it is evaluating the latest television commercial for HUL’s Men’s Fair and Lovely brand and “will take all necessary action as deemed fit”
  • In a letter to RBI, Payments Council of India has asked  to delay implementation of its stringent customer verification rules until mobile wallet providers are allowed to access the Aadhaar database for user authentication.
  • Workspace solutions provider IndiQube has raised ₹100 crore in a WestBridge Capital-led funding round to fuel its expansion plan. The capital will be used for expansion to new cities, for increasing team size, brand building, and for technology.
  • After a report of top management reshuffle, ICICI Bank shares rose as much as 4%. The shares of the bank ended at ₹293.20, up 3.86%.

 

Tuesday-  19th June 2018

  • Due to escalation of trade dispute between the US and China, the financial market tumbled.  Sensex fell 262 points to close at 35,287 points while Nifty dropped 89 points to close at 10,710 points.
  • India’s top shipbuilder Larsen and Toubro has sought the Niti Aayog’s intervention againts government’s proposal to move a ₹60,000-crore project to build submarines to the public sector. L&T is asking that it be reserved for the private industry as per the original plans.
  • Amazon India has brought changes to its seller fees as it looks to take on Flipkart in several categories. The global ecommerce company has lowered seller fees in categories such as furniture and luggage where Flipkart has sharpened its focus, as both look to get aggressive in these categories.
  • Uber has appointed Pradeep Parameswaran as new President of India and South Asia, the company said in a statement. This comes after Amit Jain was elevated to head the Asia Pacific region for Uber in May this year.
  • IIFL Holdings’ wealth management arm has raised ₹745.71 crore by selling 5.1% stake to various investors. After the transaction, IIFL Holdings will own 51.11% of its wealth management arm on a fully diluted basis

 

Wednesday-  20th June 2018

  • Bank of Maharashtra’s CEO, Ravindra Marathe has ben arrested for allegedly colluding with real estate developer DS Kulkarni to divert money and cheat shareholders. Sushil Muhnot, the bank’s former CMD, was also nabbed from Jaipur.
  • Celebrity chef Sanjeev Kapoor-promoted appliances brand Wonderchef has raised ₹70 crore from Amicus Capital Partners which valued the firm at ₹700 crore.
  • Russia’s Sistema JSFC has fully sold its 10% stake in Reliance Communications in multiple tranches, becoming the latest foreign operator to exit the troubled Indian telecom market, having lost about $4 billion on its investments.
  • Adani Wilmar, the highest bidder acquire debt-laden Ruchi Soya, has secured ₹4,000-crore credit line from Standard Chartered and DBS to finance its likely acquisition of the country’s largest edible oil maker.

 

Thursday- 21st June 2018

  • The Indian Banks’ Association has condemned the spate of chargesheets and arrests of bankers by investigative agencies and has called an emergency meeting to discuss the alleged high-handedness of the investigative agencies.
  • The SEBI okayed a revamp of IPO norms and a governance framework for stock exchanges and depositories. It also signalled moves to bring chartered accountants and company secretaries under its ambit. The board eased and updated IPO rules to bring them in line with current laws and market structure.
  • India to raise duties on 29 products from the US, striking back against Trump’s move to impose higher tariffs on Indian steel and aluminium exports amid a global trade war that’s broken out as President Donald Trump seeks to combat what he perceives as unfair terms. The duties to take effect from August 4.
  • Online food-delivery startup Swiggy has raised $210 million in its latest round of funding with Russian billionaire Yuri Milner’s DST Global and existing backer Naspers leading a $210-million round in the firm. The round values Swiggy at $1.3 billion.
  • HCL Technologies has signed a five-year $500 million global IT infrastructure and application services deal with Nokia as the latter consolidates its vendors and streamlines its outsourced IT management services.

 

Friday- 22nd June 2018

  • ICICI Bank said that an internal investigation of 31 loan accounts involving ₹6,082 crore, following a whistleblower complaint over incorrect asset classification.
  • The IBA has suggested setting up of an independent committee and to include a RBI official as a part of the panel to scrutinise charges against bankers. The association is also contemplating buying insurance to ensure indemnity against charges by investigating agencies and protect against indiscriminate arrest of bankers.
  • Reliance Industries in partnership with JM Financial ARC is set to take over bankrupt Alok Industries at less than a third of the total loan value, with 72% of the lenders voting in favour of the deal. The partnership had offered ₹5,050 crore in the second round, translatimg into an 83% haircut on dues of ₹29,500 crore.
  • The ED has moved a special Mumbai court to be allowed to confiscate ₹12,500-crore worth of assets of Vijay Mallya and to have him declared a ‘fugitive offender’.

 

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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SBI cuts lending rate, Rupee hits a 3-year high, CDB withdraws insolvency proceedings against RCom- Weekly Digest #59

Monday- 1st January 2018

  • China’s e-commerce giant Alibaba to acquire a minority stake in logistics company XpressBees for an estimated amount of $100 million as it looks to break into Indian markets to compete with global rival Amazon, and homegrown rival Flipkart.
  • BoB failed to sell bad loans amounting to ₹2,300 crore due from Bhushan Steel and Essar Steel as the reserve price was above market rates and only overseas investors and private equity funds were allowed to bid.
  • SBI gave a new year gift to its borrowers as it lowered the base rate by 30 points to 8.65%. The move is expected to prevent rivals from poaching the existing customers.
  • SBI to initiate insolvency proceedings against at least a dozen defaulting companies including Visa Steel, Monnet Power, Uttam Steel, Essar Projects, Videocon Telecom, Jaiswal Neco and Jai Balaji after failing to recast their loans by the December 31 deadline.
  • Following the steps of IOB,  Axis Bank to put its ₹2,000-crore loan to Bhushan Steel up for sale in the distressed-assets market. The bank may get as much as ₹1,200 crore.

 

Tuesday-  2nd January 2018

  • India’s largest retailer, Future Group is in talks with Snapdeal to acquire its logistics arm, Vulcan Express for about ₹50 crore in an all-cash deal.
  • Tata Technologies, a subsidiary of Tata Motors, suspended some of its employees for allegedly issuing forged letters of employment to 60 people.
  • The rupee hit its highest level against the dollar as it closed at 63.48 a dollar, up 0.31% from its previous closing.

 

Wednesday-  3rd January 2018

  • The RBI has ordered banks to recalibrate ATMs to ensure that more numbers of the ₹200 denomination note are dispensed to the public in a move to step up the supply of lower-denomination currency.
  • The RBI has ordered the banks not to initiate bankruptcy proceedings against Jaiprakash Associates. This comes amidst anticipation of legal complications after a Supreme Court ruling barred its promoters from selling or transferring assets.
  • South African Internet group Naspers has emerged as the frontrunner for an estimated $200 million investment in Swiggy. The investment is expected to increase the valuation of the food delivery venture to $650 million.
  • Online retailer Flipkart has infused approximately ₹1,632 crore into its logistics arm Ekart in an effort to further strengthen its delivery and warehousing capabilities.
  • Warburg Pincus India managing director Nitin Nayar has resigned from his position to launch his own investment fund with an expected corpus of $150-200 million, focusing on technology-related bets.

Thursday- 4th January 2018

  • India’s top seven Bitcoin exchanges including Zebpay, Unocoin, CoinSecure and BtcxIndia, to approach the AAR for clarity regarding levy of GST on transactions relating to Bitcoins.
  • After receiving criticism over exorbitant salaries paid to top executives, Infosys has crafted a transparent compensation package for the new CEO, Salil Parekh. He will be eligible for a fixed salary of ₹6.5 crore and a variable pay of ₹9.75 crore, which is much lower than what his predecessor was offered, i.e. ₹70.4 crore.
  • As a part of the ₹500-crore pre-IPO fund raised by EtechAces, it has committed an amount of ₹200 crore for its subsidiary; the digital marketplace for loans, mutual funds and credit cards, Paisabazaar.
  • Idea Cellular to raise a total of ₹6,750 crore ahead of its merger with Vodafone India to pare debt and free up cash for expansion. The amount to be raised in two tranches, by raising ₹3,250 crore through preference shares in first and balance ₹3,500 crores through preference shares @₹99.50.

Friday- 5th January 2018

  • The rupee gained 0.06% to 63.37 per dollar to a near three-year record on Friday as overseas investments flooded into India amid global dollar weakness.
  • Executive Chairman of Religare Enterprises, S Lakshminarayanan, a retired IAS officer and independent director Kishori Udeshi, a former RBI deputy governor resigned from the board of the company.
  • Rohit Gothi, executive director of market operations at beverage maker Coca-Cola’s bottling partner has resigned from his position after the company announced a large-scale restructuring of its business, which would make some jobs redundant.
  • CDB has withdrawn its insolvency filing against RCom. However, Swedish gear maker Ericsson to its battle against the Anil Ambani-owned telecom operator to recover its dues of ₹1,150 crore.

 

Source: The Economic Times
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Disney acquires Fox, SC stays order in Unitech Case, Warburg acquires Airtel DTH stake- Weekly Digest #56

Monday- 11th December 2017

  • Ericsson has roped in senior counsel Darius Khambata to represent it in its insolvency petition against RCom at NCLT. Khambata is also representing CDB in its insolvency plea against the Rcom company to recover dues worth $1.78 billion
  • Simility, a provider fraud prevention solution, has secured $17.5 million in Accel-led series-B funding. The proceeds are to be utilised to fuel its expansion plans.
  • Owing to high investor expectation regarding BJP retaining majority in the crucial state of Gujrat, the market stayed on a positive note. The Sensex gained 205 points to close at 33,456 points while the Nifty rose 57 points to close at 10,322 points.

 

Tuesday-  12th December 2017

  • Consumer inflation touched a 15-month high in November at 4.88%, while industrial growth dropped to a 3-month low in October. This has been a blow for an economy recovering from effects of tax revamp and demonetisation.
  • A consortium of Aion Capital Partners and JSW emerged the strongest contender for acquiring Monnet Ispat and Energy Ltd. The latter was one of the 12 companies listed by the RBI for insolvency proceedings.
  • Private equity firm Warburg Pincus to acquire 20% stake in DTH arm of Bharti Group for an amount of $350 million. The proceeds are likely to be utilised to stay in competition with Reliance Jio.
  • Owing to oil prices climbing $65 per barrel, the market broke a 3-day bullish streak with the Sensex falling 228 points to 33228 points and the Nifty falling 82 points to 10240 points.
  • PNB raised an amount of ₹5,000 crore through QIP of equity shares issued @₹168 per share. The majority was subscribed by LIC.

 

Wednesday-  13th December 2017

  • E-retailer Flipkart has successfully completed its employee stock ownership repurchase plan worth over $100 million, making it the biggest such scheme in the Indian startup sector.
  • The board of Tata Communications has approved a proposal to transfer about 773 acres of surplus land to Hemisphere Properties India. This matter dates back to 2002 disinvestment of VSNL.
  • The SC stayed NCLT order directing the government to take over real estate firm Unitech. The Centre apologised for approaching the NCLT over a matter that was being dealt with by the SC,
  • The RBI has imposed a penalty of ₹3 crore on IndusInd Bank for breaching rules on income classification norms regarding non-performing loans and extension of non-fund based limits.

 

Thursday-  14th December 2017

  • Walt Disney has acquired a stake in 21st Century Fox for an amount of $52.4-billion. The deal will enable the former to land into the Indian entertainment sector by giving rights to some of the country’s biggest media properties such as IPL.
  • Cognizant said it was beginning a $300-million accelerated share repurchase programme as part of its plan to buy back $1.2 billion of shares in 2018.
  • CCI has approved the Chinese e-commerce giant Alibaba’s stake purchase in the grocery e-retailer BigBasket. Alibaba to acquire 33% stake for $300 million.

 

Friday- 15th December 2017

  • Import duty on various electronics raised by the government through a notification. The move has been made to promote the Make in India initiative and will prompt companies like Apple to favour local production.
  • The government has announced March 31, 2018, as the new deadline to link Aadhar number with phone numbers.
  • Real estate developer, Jaiprakash Associates, to sell all its five hospitality assets under the brand Jaypee Hotels and Resorts for an estimated amount of ₹2,500 crore.
  • The SC has given  Jaypee Infratech time until January 25 to pay the last ₹125 crore instalment for distribution to homebuyers in its delayed projects. It has warned it of contempt of court action if it fails to meet the new deadline.

 

Source: The Economic Times

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UBHL attached by SEBI, Rupee strengthens against dollar, Airtel-Tata Tele takeover approved- Weekly Digest #52

Hi everyone. Sorry was away from the blog due to exams. But hoping to pick it back up. So here is the summary of this week’s news. Also, suggestions about what else content can be posted on this blog are most welcome.

Monday- 13th November 2017

  • Owing to the fiscal deficit for the year due to additional costs from rising crude and a possible dip in revenues due to revamp of GST, Nifty fell 96.80 points to close below 10,225 points while the Sensex closed at 33,033.56 points.
  • Coca-Cola, Dabur, Honda Motorcycle and Scooter India and Perfetti Van Melle suspended manufacturing operations in NCR after the National Green Tribunal (NGT) banned the industrial activity in and around New Delhi to curb intense smog conditions.
  • Insolvency and Bankruptcy Code proposed to be tweaked to ensure that the promoters don’t purchase back the bankrupt company’s assets at discounted prices.
  • Vodafone India and Idea Cellular have agreed to sell about 20,000 towers they directly own to a local arm of ATC for $1.2 billion. The proceeds are expected to be utilised for paring the debt of the merging entities.
  • General Insurance Corporation reported an increase 463% in net profits to ₹1,419 crore for Q2, owing to the underwriting profit of ₹757.3 crore earned during the quarter.

 

Tuesday-  14th November 2017

  • Vodafone has valued its 42% stake in Indus Towers, the largest telecom tower company in India, at $5 billion. The group CEO, Vittorio Colao said that competitive market and gradual tariff increase by Jio has shown positive signs.
  • US private equity giant KKR is in early talks with investors to sell its oldest India investment, Flextronics Software, now known as Aricent, for about $1.5 billion.
  • Amazon’s third capital infusion this year, ₹2,900 crore into Amazon Seller Services, making its single-biggest infusion this year. The rival Flipkart mopped up nearly $4 ₹26,180 crore in funding earlier.
  • Malvinder Mohan Singh stepped down from the post of non-executive chairman at Religare Enterprises. He has been replaced by S Lakshminarayanan, a retired IAS officer and chairman of Shriram Transport Finance.
  • Wholesale inflation hit a six-month high in October to 3.59%, driven by an increase in food and fuel prices. Retail inflation also hit a seven-month high of 3.58%.

 

Wednesday-  15th November 2017

  • The SEBI has attached all bank accounts, securities and mutual fund units held by Vijay Mallya-owned United Breweries Holdings corresponding to a default on payment of a penalty of ₹15 lakh imposed in 2015.
  • Fortis Healthcare to buy back the real estate assets that house its 14 existing hospitals from Religare Healthcare Trust for ₹4,650 crore, including ₹1,152 crore of debt. It also involves acquiring balance 49% stake in Fortis Hospotel from Singapore Exchange-listed business trust.
  • Daiichi Sankyo has approached the Delhi HC, seeking initiation of contempt of court proceedings against former Ranbaxy promoters Malvinder and Shivinder Singh for violating a previous order to maintain the status of their unpledged assets.
  • Paytm’s parent company One97 Communications has received $800 million from SoftBank in a private placement to SVF India Holdings (Cayman).
  • The market was in red for third consecutive day owing to worries about the effect of higher oil prices with Sensex declining 181 to 32,760, while the Nifty fell 68 points to 10,118.

 

Thursday-  16th November 2017

  • The RBI to come up with with a fresh list of around 50 loan accounts that are either under stress or close to being classified as NPAs. It will set a deadline for resolution for bankruptcy proceedings.
  • RIL to raise  $1.8 billion through a combination of offshore bonds and syndicated loans with an aim to reduce its high-cost debt.
  • In a litigation case between United Spirits and United Breweries, USL has claimed a recovery of around ₹1,800 crore, including interest from Vijay Mallya’s holding company after it defaulted between 2010 and 2013.
  • CCI has given its approval for Airtel- Tata Tele merger which came as Bharti Airtel’s move to take over the wireless business of Tata Teleservices to boost its market share and 4G airwaves capacity.
  • The market bounced after a 3 day of decline with Nifty gaining 1% to close at 10,215 points and Sensex gained 346 points to 33,106 point swing to strong performances by RIL and Infosys.

 

Friday- 17th November 2017

  • HDFC Standard Life Insurance Company made a strong debut with shares being listed at ₹310, 6.9% up from the issue price of ₹290. It closed at ₹344.25, marking a rise of 18.7% against the issue.
  • The Rupee rose 1% to touch the mark of ₹64.62 per dollar amidst hopes of foreign inflows. However, it closed at  ₹65.01 per dollar.
  • Aircel and RCom have accused larger rivals Bharti Airtel, Idea Cellular and Vodafone India of trying to poach subscribers through misleading campaigns.
  • Tata Sons, the investment holding company of the salt-to-software conglomerate, said it appointed Bhaskar Bhat and Saurabh Agrawal as its directors, raising the board strength to 11.

 

Source: The Economic Times
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