Tag Archives: Cyrus Mistry

Wipro lays off staff, Mallya Arrest and Release, Mistry’s woes continue- Weekly Digest #41

Monday- 17th April 2017

  • A senior official of the Finance Ministry said that after SBI merger, the government is looking to adopt a similar roadmap for other state-run lenders such as PNB and BoB including raising fresh capital and restructuring policies.
  • Citi has pointed out to the Finance Ministry that global banks and funds are taking advantage of India’s treaty with France to escape tax and effectively Paris is replacing Mauritius as Tax Haven.
  • NCLT has refused to grant a waiver to Cyrus Mistry’s family firms on the minimum shareholding requirement to petition against Tata Sons as they had alleged oppression of the minority shareholders.
  • The SC has directed the Bombay HC liquidator to begin the process of selling the Sahara Group’s Aamby Valley project following the company’s failure to pay ₹37,000 crore in dues to the SEBI. It has also asked group chairman Subrata Roy to appear in court in person and explain the failure to pay the due amount.
  • Daiichi Sankyo has objected to Religare Enterprises’ decision to sell its stake in Religare Health Insurance as it violates a Delhi High Court order in its legal tussle against former Ranbaxy promoters Malvinder and Shivinder Singh.

 

Tuesday- 18th April 2017

  • Vijay Mallya was arrested on behalf of Indian authorities by British police and received bail from a lower court in London the same day. However, this will begin the extradition process.
  • Tata Steel is planning to write a cheque of £520 million to its UK pensioners as a one-time settlement under a rarely used scheme, called the Regulated Apportionment Arrangement (RAA). The process is used to separate an employer from its pension scheme in circumstances where the employer would otherwise become insolvent.
  • Japanese company SoftBank Corp is considering an investment in Paytm owner One97 Communications for a 20% stake in the parent company.  This could up the valuation of the company to $7 billion.
  • RIL briefly surged past TCS to top the list of most valuable companies listed in India as it surged 1% early during the session. However, later due to sell-offs it could not retain its position as the share price tumbled by 1.48%. At the end of the session, m-cap of RIL was at  ₹4.45 lakh crore and TCS at ₹4.54 lakh crore.

 

Wednesday- 19th April 2017

  • After raising equity capital from marquee institutional investors, Aditya Birla flagship Hindalco has decided to pay off ₹6,800 crore to its lenders. This would be the largest loan prepayment to domestic banks by a corporate in India.
  • Holachef has raised $5 million in its Series B round led by existing investor Kalaari Capital. SIDBI Venture Capital and India Quotient also participated. This now values the company at ₹143 crores.
  • Yes Bank posted a net profit of ₹914.1 crore for the Q4, up from last quarter’s ₹702.11 crore on YoY basis.
  • Book publisher S Chand & Co is looking to raise ₹728 crore through an IPO which will open on April 26. The price band will be at ₹660-₹670 and lot size of 22 shares.

 

Thursday- 20th April 2017

  • Wipro Sacks 600 employees after a rigorous appraisal process.  Wipro said it undertakes a rigorous performance appraisal process on a regular basis to align its workforce with the business objectives, strategic priorities of the organisation, and requirements of its clients.
  • Flipkart has tightened return policy for several popular items sold on its platform as now return policy will not be applicable to electronics among other products. Only exchange policy will be applicable to them. This move is expected to cut costs but alienate customers.
  • The SC has allowed New Delhi Municipal Council (NDMC) to invite bids for the Taj Mahal Hotel situated in Delhi. If Indian Hotels will not be able to match the highest bid, then it will have to vacate the property within 6 months.
  • Conduent Inc has filed a lawsuit against outsourcing major Cognizant Technology Solutions alleging breach of contract and fraud action in a court in the state of New York. It seeks to recover damages of over $150 million.

Friday-21st April 2017

  • A research note, a part of Federal Reserve System’s series of International Financial Discussion Papers (IFDP)has estimated that implementation of GST will boost the economy’s GDP by up to 4.2%, or ₹6.5 lakh crore.
  • Cyrus Mistry has appealed the NCLT’s order this week dismissing his petition against Tata Sons to the appellate authority.
  • HDFC reported a Q4 profit of ₹3,990 crores, up from last year’s ₹3,374 crores on YoY basis. This has been attributed to exploit of digital technology to reach out to customers.

 

Source: The Economic Times

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Market begins recovery, DTA with Singapore revised, Holding SBNs Criminalised- Weekly Digest #28

Monday- 26th December 2016

  • eBay India reported a three times rise in the sales in 2015-16 to Posted Image392 crores. However, its loss widened from  Posted Image172 crores to  Posted Image262 crores this year despite various cost-cutting measures.
  • Godrej Nature’s Basket has initiated its process of shutting all the eight stores it operated in NCR. It has already closed two stores and will be closing remaining in the coming weeks.
  • Sensex slipped below Brexit Day low, to attain its 7-month low by closing at 25,807 points. Nifty closed at 7,908 points.

Tuesday-27th December 2016

  • Tata Sons accused Cyrus Mistry of passing on confidential information to Cyrus Investments and Sterling Investment Corporation as such information has been included in their petition against Tata Sons before NCLT.
  • After Finance Minister Arun Jaitley’s remarks about possible low tax regime in future, Sensex gained 406 points to reach 26,213 points and Nifty reclaimed the 8,000 mark by reaching 8,032 points.
  • Central Depository Services Limited (CDSL) has filed a draft red herring prospectus with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) of up to 3.52 crore shares.
  • Panasonic Corp will invest $256 million in Elon Musk’s Tesla Motors to make photovoltaic (PV) cells and modules, deepening a partnership of the two companies.

 

Wednesday- 28th December 2016

  • The Cabinet approved the ordinance of extinguishing RBI’s liability towards old 500 and 1,000 notes. Also, a penalty for holding such notes will be imposed on those holding such currency in excess of ten units combined after 31st March 2017.
  • ICICI Bank and Twitter announced a partnership which will enable digital customer care support features for the bank, benefiting millions of its customers with direct online response to their queries and feedback in real-time.
  • The National Stock Exchange (NSE) has filed an application for an initial public offering. The size of the IPO is expected to be around Posted Image10,000 crores and will be the third largest IPO in the last six years.
  • Real Estate firm Vatika has raised an amount of Posted Image495 crores as term debt for supporting the growth plans of its hospitality arm, Vatika Hotels.

 

Thursday- 29th December 2016

  • Digital payments and financial services company instantPay has raised an amount of $3-5 million from Singapore-based investors RB Investments and Kaleden Holdings.
  • Tata Sons sent a legal notice to former chairman Cyrus Mistry to return all confidential information he has in his possession and declare in writing that none of it had been shared with Shapoorji Pallonji Group companies, family members and affiliates.
  • Marico chairman, Harsh Mariwala, an independent board director of L&T Finance bought 46,000 shares from open market. L&T Finance has gained over 26% in this sluggish year.

 

Friday- 30th December 2016

  • IDBI bank slashed interest rates by announcing a 40bps cut to 9.30% for three-year loans. State Bank of Travancore slashed benchmark lending rate by up to 0.3% and other banks are expected to follow a similar path.
  • RBI relaxed the daily ATM withdrawal limit to Posted Image4,500 from earlier Posted Image2,500. However, bank withdrawal limit per week stands at Posted Image24,000.
  • India has amended its 2-decade old tax treaty with Singapore that will allow it to tax capital gains on investments from Singapore. Recently, STAs were amended with Cyprus and Mauritius too, plugging round-tripping of funds
  • Prime Minister Narendra Modi launched a mobile app for the Unified Payment Interface (UPI) across different banks and financial institutions, called BHIM (Bharat Interface for Mobile).

 

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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Tata’s Battle continues, PayTm duped, Cashback on fuel- Weekly Digest #26

Monday- 12th December 2016

  • Malvinder and Shivinder Singh are in negotiations with private equity group TPG Capital to sell a 26% share in Fortis Healthcare, the country’s second-largest private hospital chain. The current market cap of Fortis Healthcare is  INR 7,909 crore.
  • Tata Industries removed Cyrus Mistry as director after a shareholder’s meeting. This is expected to be followed by similar voting in other group companies.
  • Indian Oil Corp announced that from Tuesday, consumers will get an assured 0.75% cashback on cashless payment for fuel from state-owned outlets. The cashback will be credited within 3 working days.
  • Online B2B commerce company OfBusiness has raised an amount of INR 75 crores in a round of funding led by Zodius Technology Opportunities Fund. This takes the total capital raised by the venture to INR 110 crores.

Tuesday-13th December 2016

  • Shareholders of Tata Consultancy Services voted in favour of the removal of Cyrus Mistry as the director on Tuesday. 93% votes were in favour of removal while only 7% voted against the proposition.
  • Chinese smartphone maker Nubia is looking to invest $100 million in India over the period of next five years to expand its operations in India.
  • DLF is looking to split the sale of its rental commercial property arm between US private equity major Blackstone Group and Singapore’s sovereign wealth fund GIC, each getting a 20% stake. Total sale is expected to fetch INR 12,000 crores.
  • Retail inflation fell to a two-year low in November owing to cash shortage following demonetization. It fell from 4.2% in October to 3.63% in November.

Wednesday- 14th December 2016

  • Shareholders of Tata Teleservices voted to remove Cyrus Mistry as a director from the company. This is the third straight day where Cyrus Mistry was voted out as a director.
  • VK Sharma, acting chief of LIC of India has been officially appointed as chairman and MD of LIC of India for five years after the Cabinet’s Appointments Committee recommended his candidature.
  • Nusli Wadia has sent a letter to the shareholders of Tata Motors regarding his removal as an independent director for his “totally independent” decision of backing the former chief, Cyrus Mistry.
  • Amazon launched its Prime Video service in India along with 241 other countries. In India, it comes at no extra cost for existing Amazon Prime subscribers. Introductory price is INR 500 for a year and later as INR 1,000 for a year.
  • Coal India’s stock corrected to INR 292.25 on Wednesday as many brokers slashed their target prices after a weak Q2 was reported by the company.

Thursday- 15th December 2016

  • Nusli Wadia has filed an INR 3,000 crore defamation suit against Ratan Tata and Tata Sons for the accusations imposed against him in public statements to shareholders.
  • Renowned Investor Rakesh Jhunjhunwala has invested in Mandhana Retail Ventures to acquire a 12.74% stake in the company. It holds the licence to manufacture Being Human’s merchandise.
  • Axis Bank has suspended its 24 employees and is now examining over 50 accounts under suspicion after some of its branches were investigated by Government agencies for suspicious transactions in the wake of demonetization.
  • Telenor is in talks with Idea Cellular for the sale of former’s India’s business to the latter. Telenor has marked down the value of its India unit significantly throughout the year.
  • Indraprastha Gas shares hit an all-time high of INR 911.17 per share after traders were bullish on this stock and brokers raised their target price.

Friday- 16th December 2016

  • The government has offered a final window for income declaration under Pradhan Mantri Garib Kalyan Yojana 2016, which will start from December 17, 2016, to 31st March 2017. The assessee will be charged 50% tax and 25% declared income will compulsorily be deposited into a non-interest account of Pradhan Mantri Garib Kalyan Deposit Scheme with the lock-in of 4 years.
  • The government is proposing an equalisation levy on the revenues of cloud computing companies and content providers from next financial year. This will be known as Google tax and companies like IBM, Microsoft, Amazon Web Services will fall under it.
  • CBI has filed a case against 15 people from Delhi after PayTm accused them of duping the mobile payment platform for INR 6.15 lakh for over 2 years.
  • Reserve Bank of India has reduced merchant discount rates for card payments below INR 2,000. It has also instructed banks to not levy charges on transactions up to INR 1,000 through USSD, IMPS or UPI. This comes as a welcome move in an economy facing aftermaths of demonetization.

 

Source- The Economic Times

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Demonetization crashes Market, Tata-Cyrus battle, Kingfisher Airlines Winding Up- Weekly Digest #23

Monday- 14th November 2016

  • IRDA (Insurance Regulatory and Development Authority) has raised its concerns over proposed merger of Max Financial Services and Max Life into HDFC Life as it may not be in the lines with the act. The Insurance Act does not permit the merger between an insurance company and a financial services company.
  • The Indian unit of Walmart posted a 7% rise in revenue and narrowed losses in consumer goods market that saw decade low sales growth. Loss declined to ₹140.4 crores. Sales grew 34%, from ₹2,991 crores to ₹3,997 crores.
  • Tata Motors’ independent directors are backing Cyrus Mistry and his strategy and that of the management. The statement was drafted by Nasser Munjee and was endorsed by every independent director.

 

Tuesday-15th November 2016

  • Tata Global Beverages sacked Cyrus Mistry as chairman of the company. However, the decision was declared illegal by the former chairman. Harish Bhat will be the new chairman.
  • A group of foreign institutional investors (FIIs) in Tata Steel have written to its independent directors raising concerns about cross holdings between the steel company and Tata Group firms.
  • India’s stock market plunged after overseas investors went on a selling spree amongst higher aversion to riskier assets and also due to the demonetization scheme .
  • Shares of listed jewellery companies hit their 52-week lows on Tuesday. This has been due to the government’s decision to curb black money by regulating the gold market.

 

Wednesday- 16th November 2016

  • Massive deposits in the bank accounts by people holding old ₹500 and ₹1,000 currency has lead to a decline in the interest rates. State Bank of India (SBI) reduced rates on deposits from one year to 455 days to 6.90%.
  • The Sensex gave up its initial gains and ended marginally lower, pulled down by consumer durables, healthcare and metal counters following a bout of fag-end profit booking; while the Nifty managed to close above the 8,100-mark. Sensex ended at 26,298 and Nifty at 8,111
  • Snapchat has filed for an initial public offering, which could make it the biggest US stock market debut since 2014. It will be valued at $20 billion to $25 billion.

 

Thursday- 17th November 2016

  • TCS has called for a shareholder meet on December 13th to oust the former chairman Cyrus Mistry. Tata Sons is expected to take a similar decision, by calling an EGM to sack the former chairman.
  • Banks across the country are scrambling to meet the demand for the new currency as well as continuously changing regulations of the demonetization. Various limits have been changed and restrictions gave been imposed and bank officials are finding it difficult to orient themselves according to them.
  • Raghav Chandra, chairman of the National Highways Authority of India (NHAI), announced Paytm has won the contracts for automatic toll collections at highways in various states. Now users will be able to pay tolls through their Paytm wallets.

 

Friday- 18th November 2016

  • The Income-Tax department has asked two Tata Trusts to explain investments flagged by Parliament’s Public Accounts Committee. It is also reconsidering the tax exemptions claimed by the trusts.
  • Near 700 petrol pumps in rural areas started dispensing cash to ease the pressure on the banking sector to exchange the currency. However, the daily limit of ₹1 lakh will only be able to meet the needs of 50 customers.
  • The Karnataka High Court on Friday ordered winding up of bankrupt businessman Vijay Mallya’s defunct carrier Kingfisher Airlines, paving way for an official liquidator to take charge of assets and books.
  • Indian market ended weak on Friday, with benchmark indices falling for the 4th straight week. this has been due to continuous selling in the market and fears amongst demonetization scheme.
  • The rupee declines to a 9-month low against US dollar. It closed at 68.14, its weakest since 29th February 2016 .

 

Source- The Economic Times

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Mystery behind Mistry, Varun Beverages IPO, Next phase of Privatisation- Weekly Digest #20

Monday- 24th October 2016

  • TATA Sons sacked their chairman Cyrus Mistry as Ratan TATA takes the position as interim chairman while the replacement is announced. Cyrus Mistry had held this position for four years. The new chairman to be announced within four months.
  • Everstone Capital has invested INR 220 crore in contract research and drug-delivery company Rubicon Research, the latest investment by the mid-market private equity firm.
  • The share price of software player Mindtree hit a 52-week low at INR 452.70 as the Q2 results failed to shine. The revenue shrank by 3%, as there has been a delay in spending decisions by the clients.
  • Varun beverages to launch its IPO to raise an amount of INR 1,100 crores from the primary market. 60% of the issue will be a fresh issue and 40% as an offer for sale
  • Idea cellular Q2 results disappointed the stakeholders, as the net income shrank by 88%. It reported a net income of INR 90 crores, against last year’s income of INR 758 crores.

 

Tuesday-25th October 2016

  • In response to being sacked as the chairman of TATA Sons, Cyrus Mistry retaliated by calling this move “unparalleled in the annals of corporate history” and that it had left him “shocked beyond words”. He also called his termination as invalid and illegal.
  • Textiles firm Arvind has raised INR 740 crore by selling 10% stake in its retail arm to Multiples, a private equity firm, in an effort to pare debt.
  • Bharti Airtel’s Q2 profit slipped by 5 %, as its voice business faced heavy competition by the entry of Reliance Jio in the market and heightened volatility that followed.
  • Stocks of TATA group companies shed by 1%-5% in the market due to the surprising removal of the chairman of TATA Sons, Cyrus Mistry. Tata Metaliks fell 5% , Indian Hotels declined 3.2% and Tata Steel dropped 2.5%.
  • The government has allowed 100% foreign direct investment (FDI) in `other financial services’ carried out by non-banking finance companies (NBFCs).

 

Wednesday- 26th October 2016

  • Apple’s iPhone sales in India surged more than 50% in the year ended September. This news comes as a silver lining since the company recently reported its first annual sales and profit decline in 15 years.
  • Hero MotoCorp reported a record net profit of INR 1,004 crore for the second quarter. Goos results have been attributed to strong sales and improved operational performance.
  • Alibaba Group’s global managing director K Guru Gowrappan has joined Paytm as additional director, becoming the third top-level executive to join the e-commerce and payments company in the last one week.
  • HDFC Property Fund has made an exit worth over INR 1,500 crore from Lodha Group’s high-end residential project, World Towers, at Lower Parel in Mumbai. This happens to be this year’s  largest private equity real estate exit.
  • HDFC on Wednesday reported a 14% jump in its net profit for the quarter ended September 30 at INR 1,827 crores, attributing to a significant fall in tax outgo.

 

Thursday- 27th October 2016

  • Within days of removal of Cyrus Mistry, the Tata Group has lost over INR 26,000 crores in the market capitalization.
  • The government approved an ambitious plan to sell loss-making state-owned companies, subsidiaries and select manufacturing plants to strategic buyers, setting the stage for the return of privatization after more than a decade.
  • Hero MotoCorp has invested an amount of INR 205 crores in electric automotive startup Ather Energy for a 26-30% stake in one of the biggest deals in the nascent sector.
  • Maruti Suzuki beat market expectations with a record quarterly profit of INR 2,398 crore for the second quarter. This has been attributed to a strong demand for its new models, better utilisation of its factories and reduced discounts.
  • ONGC reported a 6.3% rise in its Q2 net profit on the back of lower write-offs, even as it announced a bonus share to increase liquidity ahead of government disinvestment.

 

Friday- 28th October 2016

  • Amazon reported a significant increase in its losses for the overall international business for the Q2, mainly due to its aggressive stance on claiming leadership in Indian online retail market. The reported loss for Q2 is $541 million.
  • Amazon has bought out Tata Group’s publishing business Westland for an amount of INR 39.8 crores.
  • The Rs 1,100-crore initial public offering (IPO) of Varun Beverages, the world’s second largest PepsiCo bottler, ended with the issue being subscribed 1.84 times.

 

Source: The Economic Times

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