Tag Archives: Amazon

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

Monday- 3rd July 2017

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

 

Tuesday- 4th July 2017

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

 

Wednesday- 5th July 2017

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

 

Thursday- 6th July 2017

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

 

Friday- 7th July 2017

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

 

Source: The Economic Times
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Mistry approaches NCLT, Amazon’s grand investment, RBI retracts new rule- Weekly Digest #27

Monday- 19th December 2016

  • PayPal has registered a notice of opposition with the registrar of trademarks over the similarities between their logo and that of PayTm. PayTm had filed its trademark application on July 18 and PayPal registered the complaint on the last day of 4-month timeframe.
  • Cyrus Mistry resigned from the six Tata Group companies and in a statement said that he plans to take the battle against Ratan Tata to the court.
  • Amazon has invested Posted Image2,010 crores in its Indian unit, making its largest single infusion in Indian unit so far. It takes the investment to over Posted Image7,000 crores.
  • RBI announced that deposits of over Posted Image5,000 can be made only once per account until December 30th. Further, the depositors will be asked to provide reasons for not depositing the amount earlier in front of two bank officials.
  • S Chand and Company has filed its draft red-herring prospectus with the Securities and Exchange Board of India and has initiated its Posted Image300 crore IPO to hit the market next year.

Tuesday-20th December 2016

  • Cyrus Mistry has filed a complaint in National Company Law Tribunal (NCLT) against Tata Sons board, its directors, Ratan Tata, two of the Tata Trusts and its trustees for oppressing minority shareholders and mismanagement and has asked to scrap the Tata Sons Board.
  • Amazon’s largest seller Cloudtail overtook the country’s largest department chain Shoppers Stop as it posted a 300% jump in the revenues to Posted Image4,591 crores, slightly higher that that of Shoppers Stop ie Posted Image4,582 crores.
  • International Finance Corporation (IFC), the investment arm of the World Bank has invested an amount of $15 million in online education company Byju’s. The funds are expected to expand the offerings across India.
  • Yatra Online, which owns and operates travel portal Yatra.com announced that it had completed its reverse merger and began its trading on Nasdaq.
  • Taro Pharmaceutical, the American unit of India’s Sun Pharmaceutical Industries, has been sued by it investors for making misleading statements on fixing the price of generic drugs in violation of US antitrust laws.

Wednesday- 21st December 2016

  • Tata Steel’s EGM regarding voting out the current independent director Nusli Wadia from the board over its continued support for former chairman Cyrus Mistry saw high support for Ratan Tata. The results of the voting are not officially out.
  • After an overwhelmingly negative response from bank officials and depositors over harassment for depositing old currency over Posted Image5,000 in bank accounts, the government has relaxed the rules as now questioning will be done only for non-KYC compliant accounts.
  • Reliance Communication is selling its 51% stake in its tower unit Reliance Infratel to Canada’s Brookfield Infrastructure for Posted Image11,000 crores. The proceeds are expected to be used to lower the debt burden.
  • Two investment companies- Cyrus Investments and Sterling Investment Corp have filed a petition with NCLT linked Tata Sons and Ratan Tata with the Posted Image22 crore fraud transactions in AirAsia.
  • Private equity fund, Advent International has invested for a 41% stake in unlisted financial services group, ASK Group for an amount of $350 million.

Thursday- 22nd December 2016

  • NCLT has refused to give any interim relief to the ousted Chairman of Tata Group, Cyrus Mistry and has asked him to back his allegations of oppression of minority shareholders and mismanagement.
  • Edelweiss Financial Services is planning to raise Posted Image600-750 crores through a public issue of its consumer lending unit, ECL Finance.
  • Rohit Thakur, Microsoft’s human resources head in India has resigned from his position and per the rumours in the industry, he is to soon join Accenture.
  • Sensex saw a bearish impact for the 7th consecutive session, making its largest losing streak since March 2015. Sensex fell 1% to 25,979 points while Nifty breached the 8,000 mark to reach 7,979 points.
  • Uber has gone past its Indian rivals such as Meru and Easycabs as its revenue has grown to Posted Image374 crores, while Meru reported the revenue of Posted Image323 crores and Easycabs reported Posted Image216 crores. Ola is yet to declare their numbers.

Friday- 23rd December 2016

  • At the EGM of Tata Chemicals held on Friday, more than 75% shareholders displayed their belief for Ratan Tata as they voted out the independent director Nusli Wadia. Bhaskar Bhat and S Padmanabhan were appointed as directors.
  • ONGC to pay an amount of $1.2 billion to Gujarat State Petroleum Corp for its 80% stake in Deen Dayal West field and six other finds in the KG Basin.
  • Airtel becomes the second company after Vodafone to drag TRAI to Telecom Tribunal after it found Jio’s free voice and data offer to be in compliance with rules on predatory pricing.
  • Wipro has agreed to pay an amount of $5 million to the US Securities and Exchange Commission as civil money penalty to end the six-year-old embezzlement investigation. Wipro has neither confirmed nor denied the accusations.

Source- The Economic Times

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RBI rates unchanged, SBI Life’s Stake, Domestic players seek Government Support- Weekly Digest #25

Monday- 5th December 2016

  • Investment Giants such as Blackstone Group, KKR & Co and Bain Capital, Government of Singapore Investment Corp and Canada Pension Plan Investment Board are contenders for acquiring 10% stake in SBI Life. The sale is expected to raise an amount of ₹4,000 crores.
  • Former Chairman of Tata Sons, Cyrus Mistry has asked the government to intervene in the functioning of Tata Trust, alleging misgovernance and interference by trustees in the business decisions of group companies.
  • Infosys co-founder Nandan Nilekani acquired 2% stake in ethnic fashion wear FabIndia, joining Aziz Premji who holds 25% stake in the company.

 

Tuesday-6th December 2016

  • Bank of India and Bank of Baroda have lowered the lending rates by 5-20 bps. State Bank of India, has said it will pass on the benefit of lower rates if RBI removes increased CRR imposed on banks.
  • The shares of Sun TV fell 4% to ₹474.50 after climbing 12.6% on Monday. The stock is anticipated to reach ₹520 by the end of the month.
  • Smartphones sale in November fell by 18% owing to the demonetization. E-commerce portals have reported similar trends, with an increase in online transaction and a drastic reduction in cash transactions.
  • Amazon India has invested an amount of ₹160 crores in Amazon India’s wholesale business, to enhance its B2B transactions.

 

Wednesday- 7th December 2016

  • In a shocking move, RBI kept the interest rates unchanged as investors were expecting an interest cut to support growth since demonetization aftereffects have continued to slow down the growth oh the nation.
  • Flipkart’s Sachin Bansal and Ola’s Bhavish Aggarwal have sought support from the government for combating their foreign origin rivals, Amazon and Uber by playing the nationalism card. They have asked government to formulate policies to help domestic companies compete against foreign companies.
  • State-owned Canara Bank has taken the lead in reducing lending rates, even though the RBI decided not to lower policy rates. The bank has cut its one-year MCLR by 15points to 9.15.
  • The stock market slumped after a disappointing announcement by RBI to keep the rates unchanged. However, the shocks were absorbed well as FPIs invested an amount of ₹193 crores in the equities.The Sensex fell 0.59%, to end at 26,236.87, while the Nifty declined 0.50%, to close at 8,102.05.

 

Thursday- 8th December 2016

  • American fast-food chain Burger King, in the first year of its India operations, has posted sales of ₹141 crores and a net loss of ₹38 crores. This has been attributed to affordable pricing by the fast food chain.
  • JP Morgan Assets Management has invested an amount of ₹200 crores in Singapore-headquartered Assetz Property Group, which develops residential and commercial properties in southern India.
  • Private equity firm Samara Capital has acquired a stake in Gujarat-based stent-maker Sahajanand Medical Technologies (SMT) in a deal valued at close to ₹170 crores.

 

Friday- 9th December 2016

  • KKR & Co and Singapore’s Temasek Holdings will buy 3.9% of SBI Life Insurance for `   ₹1,800 crores. This effectively values the Insurance company at  ₹ 46,000 cores, surpassing its ICICI Prudential.
  • Sheela Foam, the maker of Sleepwell brand of mattresses, made a strong debut on the stock market with the stock closing 41% above its issue price at ₹730 per share.
  • ICICI Banks has raised an amount of $88 million by issue of Japenese pro-bonds. It is the first Indian Company to issue such a bond.

 

Source- The Economic Times

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Reliance dominates news, Amazon’s​ new CMO, SEBI disappoints PSBs- Weekly Digest #14

Monday- 12th September 2016

  • The Government has shortlisted three merchant bankers , Citi, Morgan Stanley and ICICI Securities to divest minority stakes held in listed and unlisted companies through the Specified Undertaking of the Unit Trust of India (SUUTI).
  • To protect the consumer interests, India is looking to set a maximum cap for surge pricing  for cab providers such as Ola and Uber, especially in the economy segment.
  • Anil Ambani’s plan for Reliance defence may have to face a hurdle as bankers are now seeking his personal guarantee on loans to Reliance Defence and Engineering to replace that of former promoter Nikhil Gandhi. Reliance group took over Pipavav Defence from Gandhi last year and renamed it Reliance Defence.
  • Amazon India has appointed Ravi Desai of ITC as their Chief Marketing Officer, creating the position for the first time in the country as e-retailers anticipate stiff competition near the festive season.
  • Reliance Jio Infocomm announced that it has decided to raise an amount of INR 15,000 crores by the issue of 9% non-cumulative optionally convertible preference shares of INR 10 each for cash, at a premium of INR 40 per OCPS.

 

Tuesday-13th September 2016

  • To counter the competition due to the entry of Reliance Jio in the market, Vodafone is planning to infuse an amount of $3 billion as equity in its India unit to replace debt. Another reason being the upcoming sale of spectrum in the upcoming month.
  • Naspers-owned online payments service provider PayU has acquired Mumbai-based Citrus Pay for an amount of $130 million, marking one of the biggest deal in the emerging e-wallet market. It will create a new entity to compete with PayTm, Freecharge and others.
  • Amazon India has expanded its delivery network to 12,500 local stores and retail outlets in 50 cities to address both express and regular deliveries within a radius of 2 to 4 km. This comes ahead of expected competition due to the festive season.
  • Three foreign funds are looking to invest an amount of $250 million for a 30% stake in Edelweiss Asset Restructuring Company (ARC). This highlights a growing interest of foreign investors in Indian stressed assets

 

Wednesday- 14th September 2016

  • Sovereign wealth funds, private equity firms and family offices are in the race to acquire two Hotel Leelaventure Ltd properties, one in Delhi and the other in Chennai. The combined deal value would be about INR 3,000 crore.
  • Equitas, a new small finance bank is looking to prepay INR 3,000 crores of its existing loans to reduce the cost of funds.
  • SunPharma to initiate the buyback of its equity shares for INR 900 per share on 22nd September 2016 and will close the same on October 5 2016. The offer will be up to 75 lakhs shares, thus strengthing the promoters share in the company.
  • The Securities and Exchange Board of India (Sebi) has struck down requests of state-owned banks, such as State Bank of India, to sell perpetual bonds to smaller investors citing potential risks of mis-selling.

 

Thursday- 15th September 2016

  • Reliance Jio has accused Bharti Airtel, Vodafone India and Idea Cellular of rejecting most of the requests by customers to port their numbers to the Jio network. It wants regulators to impose a penalty for the same.
  • Delhi High Court refrained from passing an interim order on Britannia Industries’ plea challenging a single judge’s order restraining them from using the packaging of its ‘Nutri Choice Digestive Zero’ biscuits after it was sued by ITC as the packaging resembled that of Sunfeast ‘Farmlite Digestive All Good’ biscuits.
  • To lower its debts, Reliance Communication is now looking to narrow down its focus on completing the sale of its telecom tower and optic fibre assets. It has advanced negotiations with Canada’s Bakersfield for a value of $2.5-$3 billion.
  • L&T Technology’s IPO ended on Thursday, with the issue being subscribed 2.5 times. The IPO was for INR 900 crores for a value of INR 850-860per share.

 

Friday- 16th September 2016

  • Reliance Jio has shown his aggressive intent for the upcoming spectrum sale by depositing an amount of INR 6,500 crores ad EMD, which is almost equal to that of top telecoms combined.
  • The government has replaced SK Roy as chairman of state-owned Life Insurance Corporation of India with Managing Director VK Sharma. Roy had already submitted his request for voluntary retirement from the country’s largest insurer.
  • Intel to acquire Soft Machines,  Silicon Valley-based chip-design company founded by an Indian-origin entrepreneur for nearly $300 million. Cash component of the deal is expected to be $250 million and balance to be equity.
  • Shares of Reliance Industries (RIL), which has lagged the benchmark Sensex since 2008, moved to a 27-month high of . 1,093.25 on Friday as it has been continuously showing positive results.

 

Source: The Economic Times

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