LIC’s investment cleared, Market stays sluggish, Discontent against IBC tweaks -Weekly Digest #54

Monday- 27th November 2017

  • Finance Ministry of India has confirmed that LIC’s proposed investment ₹1.5 lakh crore in the Indian Railways. Earlier, concerns were raised regarding that it would take LIC’s exposure to more than 25% of IRFC’s net worth.
  • Goldman in its year-end forecast predicted that India’s economic growth will touch the mark of 8% in FY19 as it expects the effects of demonetisation and GST to wear off due to the formalisation of the economy, strong global growth and recapitalisation of public sector banks.
  • PNB to raise over ₹1,324 crores by selling off its 6% stake in PNB Housing Finance in an OFS for ₹1,325 per share.
  • China Development Bank (CDB) has filed an insolvency petition against RCom in the bankruptcy court to recover $1.78 billion which amounts to 37% of its total secured debt.
  • Essar group sold its BPO business Aegis for about ₹2,000 crore to Capital Square Partners to raise funds to monetise assets and trim debt.

 

Tuesday-  28th November 2017

  •  CPP Investment Board to acquire 15% stake in ReNew Power Ventures for $350 million making it the third largest investor in the company.
  •  The Bharat 22 Exchange Traded Fund made a steady debut at 3.8% over the issue price. The ETF closed at ₹37.33 over its issue price of ₹35.97 a piece.
  • A group of promoters of defaulting companies have approached the SC against the move to prevent promoters of defaulting companies to buy back assets at discounted prices under IBC as it prevents them from settling dues of creditors.
  • SoftBank Group Corp is offering to purchase shares of Uber Technologies at a valuation of $48 billion, a 30% discount to its most recent valuation of $68.5 billion

 

Wednesday-  29th November 2017

  • The Insolvency and Bankruptcy Board of India (IBBI) to allow lenders to act against individuals, including promoters of companies, who have given personal guarantees to corporate loan defaulters by encashing their personal assets.
  •  Jet Airways and Air France-KLM signed an agreement that will former an unrestricted access to Europe and North America. It is likely to reduce the scope of its existing partnership with Etihad Airways.
  • The Overseas Private Investment Corporation (OPIC), a financial institution of the US government, has proposed $1 billion investments in infrastructure and lending projects in India.

 

Thursday-  30th November 2017

  • Owing to fiscal deficit t readings for the April-October period and SBI’s move to raise bulk deposit rates, the stock market tumbled with the Sensex falling 453 points to 33,149 points while the Nifty fell 135 points to 10,227 points.
  • UIDAI has asked Airtel to explain its actions of allegedly opening bank accounts of its customers without their informed consent. The company has been given the deadline of December 4th to respond.
  • RCom said that majority of its lenders have decided to oppose CDB’s insolvency filing to recover its $1.78 billion debt. It is a=inviting the bank to have an open discussion regarding the debt.
  • Shares of tea producer McLeod Russel recovered 21% from its intraday low to touch a 52-week high of 248.30 after its promoter announced that he has sold 1 crore shares, representing 9.14% stake in the company to Nomura at ₹205.09.
  • IFCL has filed an insolvency petition against Reliance Naval and Engineering Ltd at NCLT Ahmedabad.

 

Friday- 1st December 2017

  • RIL chairman Mukesh Ambani, responded to Sunil Mittal blaming Reliance Jio Infocomm for the telecom industry’s woes by saying “there’s no need to cry so much.”
  • Japanese car maker Nissan Motor has initiated a lawsuit against India, seeking more than $750 million in supposedly tax incentives owed to it since 2015 by Tamil Nadu state government. However, the state has said that there has been no default and these are pressure techniques.
  • Harish Salve, one of India’s highest-paid lawyer to charge Re 1 to represent the Enforcement Directorate in a court case involving alleged money laundering by Sterling Biotech Ltd.
  • The stock market declined for the fourth consecutive session as investors brushed aside the strong GDP reading for the Q2. The Sensex dropped 316 points to 32,833 while the Nifty declined 105 points to 10,122 points.

 

Source: The Economic Times

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IBC Tweaks approved, GST benefit ensured, E-cabs by Uber- Weekly Digest #53

Monday- 20th November 2017

  • CBEC Chairman, Vanaja Sarna has written to the biggest companies to ensure that the GST cut from 28% to 18% on 178 consumer products is passed on to the consumers.
  • Infibeam is in talks with Prem Watsa’s Fairfax Financial Holdings to sell a minority stake. The company is also considering strategic investment in and buyouts of retail chains that are using its platform to sell online.
  • Government bonds rallied the most in a year after the RBI on Friday scrapped plans to sell bonds in the open market to absorb excess liquidity.
  • Adani Ports & Special Economic Zone Ltd (APSEZ) announced the appointment of former AirAsia CEO Mrithyunjay Chandilya as Chief Executive Officer of their Logistics Business.
  • Lenders of debt-ridden Reliance Communications have approved the sale of real estate assets in Delhi and Chennai to Canada-based asset management firm Brookfield for ₹801 crores.

 

Tuesday-  21st November 2017

  • Apple has reduced margin for retailers from 6.5% to 4.5%, making it further frustrating for its dealers in India as they struggle to meet the demand of the flagship phone in India.
  • Paytm has picked up an equity stake in a digital loan startup CreditMate for ₹6 crores to help its customers access to credit to buy two-wheelers.
  • TRAI has proposed removing the 50% limit put for companies on holding spectrum within each band. The move is expected to encourage mergers and acquisitions and spectrum trading.Trai also suggested increasing the overall spectrum holding limit for companies to 35% from 25%.
  • A consumer court has ordered  builder Amrapali to deposit over ₹10 crores as the compensation payable to the home buyers of its delayed Sapphire project in Noida
  • Citigroup sold more than 3.5 crore shares of L&T Finance Holdings (1.92%), for over ₹637 crore through an open market transaction.

 

Wednesday-  22nd November 2017

  • The government has sought to tighten the Insolvency and Bankruptcy Code to ensure that wilful defaulters and promoters of companies in loan default over an extended period of time won’t be able to get their hands back on assets during the resolution process.
  • Tiger Global Management to sell off its early shareholdings in Ola ($300 million) and Flipkart ($600-$700 million) for estimated $1 billion to Japan’s Soft-Bank.
  •  Paytm’s parent company One97 Communications and its founder Vijay Shekhar Sharma have together invested ₹60 crores and ₹62 crore in Paytm Payments Bank, taking their total fund infusion to ₹400 crore.
  • NHAI has borrowed ₹5,000 crore from EPFO by selling long-tenure bonds to aid the government’s Bharatmala road project.
  • Shares of Future groups companies surged between 3% and 12%  after the company announced that it plans to open 10,000 member-only Easyday Stores by 2022.

 

Thursday-  23rd November 2017

  • The president signed off on an ordinance amending the Insolvency and Bankruptcy Code to help prevent defaulters from bidding for their assets in resolution proceedings and regaining control at discounted prices. Now it is allowed only if they pay up dues to lenders before resolution plans are put in place.
  • The government has told consumer goods firms and industry stakeholders that new price tags on existing stocks should clearly show the difference that the recent cut in GST has made.
  •  The Mittal family, promoters of Bharti Airtel, pledged ₹7,000 crore, 10% of its wealth, to support the Bharti Foundation, the Bharti Group’s philanthropic arm.

 

Friday- 24th November 2017

  • Standard & Poor’s retained its sovereign rating for India at BBB with a stable outlook. Its rival Moody last week lifted its rating for India by a notch after a gap of nearly 14 years.
  • The government appointed RBSA Advisors as valuation advisors on Air India, to advise them on the disinvestment of the national carrier. RBSA had advised both Air India and Indian Airlines during their merger in 2007.
  • Mahindra & Mahindra has entered into a partnership with Uber India to deploy electric vehicles in Delhi and Hyderabad from February 2018, and later expanding to other cities.
  • Satin Creditcare Network to raise ₹205 crore from private sector lender IndusInd Bank, as well as from existing overseas shareholders. The funds to be utilized to support growth.

 

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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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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Reliance Jio new 4G device, Wipro buyback, $3billion fine to RIL, Shell and ONGC- Weekly Digest #48

Monday- 17th July 2017

  • Diageo plc to hold back the remaining $35 million of the $75 million it had agreed to pay Vijay Mallya as part of a settlement. It will now seek to recover dues from him.
  • The Gujrat HC has quashed Essar Steel’s plea against the RBI directive asking lenders to initiate bankruptcy proceedings against the company. The HC observed that RBi was in its legal power to take such steps.
  • The government has ordered Reliance Industries, Shell and ONGC to pay a combined $3 billion in penalty following an arbitration award in the Panna Mukta Tapti (PMT) oil field dispute that went in favour of the government
  • HDFC has scrapped its plans for the merger with Max Life after nearly a year of negotiations and has instead hired Morgan Stanley and Credit Suisse to raise ₹10,000 crore through IPO.
  • Reliance Industries crossed the ₹5 lakh crore mark in valuation after the share price climber to ₹1,551 per share amidst hopes that new tariff plans will help recover Jio’s losses.

 

Tuesday- 18th July 2017

  • Reliance Industries and Shell India have challenged the government decision to demand $3 billion from the contractors of Panna, Mukta and Tapti fields stating that the action is premature as the legal process has not been completed.
  • Sensex fell 364 points while nifty fell by 89 points as ITC took lead in the fall of indices. Due to the government increasing taxes on the cigarettes under GST, ITC was down by 12.6% to ₹284.60
  • India’s leading clean-energy company Greenko raised $1 billion in an overseas debt sale, making it Asia’s largest green bond offer to date, and the world’s largest high-yield corporate issue by a closely held company.
  • The NCLT on Tuesday admitted insolvency proceedings against textile company Alok Industries, which owes about ₹23,000 crores to a consortium of lenders. The plea was made by SBI in order to recover its ₹3,772 crores to the company.

 

Wednesday- 19th July 2017

  • The cabinet has approved the sale of the government’s entire 51% stake in Hindustan Petroleum Corp Ltd to ONGC in order to create a state-run integrated oil major that can compete with private and foreign players.
  • HDFC Life, a joint venture between mortgage lender HDFC and UK-based Standard Life, has applied to IRDA for an IPO after proposed merger with Max Life failed to actuate.
  • Indian media conglomerate Zee Entertainment Enterprises is in advanced talks to buy 9X Media, which owns a clutch of Hindi and regional music channels. The deal is expected to be valued at around ₹200 crores.

 

Thursday- 20th July 2017

  • RIL’s consolidated net profit rose 28% to ₹9,108 crore in the June quarter owing to its core refining business. The turnover grew 26.7% to ₹90,537 crores.
  • Reliance Jio Infocomm plans to raise ₹20,000 crore through a rights issue of optionally convertible preference shares (OCPS) to shareholders as it prepares for expansion in the market.
  • Finance Minister Arun Jaitley to head a panel to oversee and speed up the acquisition of Hindustan Petroleum Corporation by ONGC.
  • Zee Media Corporation is in advanced discussions to acquire Business Broadcast News, an Anil Ambani-owned company that operates English business news channel BTVi in a deal estimated to be valued at ₹100 crores.
  • Kotak Mahindra Q1 rose 23% to ₹912.7 crores owing to growth in all businesses, from retail to treasury to corporate lending.

 

Friday- 21st July 2017

  • Reliance unveiled a 4G feature phone aimed at attracting millions of low-spending users for a refundable security of ₹1,500 and announced 1:1 bonus issue and a dividend of ₹13 per share. The stock rose to its highest in a decade to ₹1586.20
  • State-run Hindustan Petroleum Corp may acquire two subsidiaries of ONGC. which are Mangalore Refinery and Petrochemicals (MRPL) and ONGC Petro Additions (OPaL) before ONGC takes over HPCL.
  • The Delhi High court has asked CJ International Hotels to pay an amount of ₹500 crores NDMC or vacate the land on which it currently operates Le Meridien Hotel, located on Windsor Place, Janpath.
  • Wipro’s stock gained 6.5% to close at ₹286.40 after the company announced a buyback of shares worth ₹11 crores.

 

Source: The Economic Times
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