Tag Archives: Flipkart

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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Flipkart’s Biggest Funding, Service Charge Issues, Infosys disappointing results- Weekly Digest #40

Monday- 10th April 2017

  • Religare Enterprises Ltd (REL) is selling its entire 80% stake in Religare Health Insurance Co (RHI) to private equity firm True North. This values the health insurance company at ₹1,300 crores.
  • Flipkart to buy Indian arm of its rival eBay and has announced the funding for the same for ₹9,000 crores.
  • Ruptub Solutions, which owns and operates budget hotel chain Treebo, has delisted all its properties from the MakeMyTrip and Ibibo platforms. The reason has been cited as higher commission charged by these platforms.

 

Tuesday- 11th April 2017

  • Reliance Jio Infocomm unveiled a new plan for mobile phone subscribers, offering three months of freebies besides 1 GB data a day for a one-time recharge of `309 and above. It has been criticized by Bharti Airtel as it deems it to be extension of its Happy New Year Plan.
  • HackerEarth has raised a $4.5 million in Series-A investment round led by DHI Group, owner of US-based career site Dice. The startup plans to use the money to grow in the space of innovation management, strengthen its product team, and expand its business internationally.
  • The National Bank for Agriculture and Rural Development (Nabard) plans to raise ₹50,000 crore in the current fiscal,  ₹10,000 crore higher than the previous year, as it wants to achieve the government’s target of lending ₹10 lakh crore for agriculture.
  • Anil Aggarwal has announced the merger of Cairn India with Vedanta has been completed. The merged company would preserve the “Cairn“ brand.

 

Wednesday- 12th April 2017

  • The Securities and Exchange Board of India (SEBI) plans to make it mandatory for companies raising less than ₹500 crore through IPO to appoint a monitoring agency to keep track of the use of funds.
  • Technology company Mindtree has notified stock exchanges that its executive chairman Krishnakumar Natarajan has informed the company that he inadvertently violated its insider trading programme as his portfolio management services company bought 240 equity shares of the company without informing him.
  • The Cabinet Committee on Economic Affairs gave its go ahead to list 11 central public sector enterprises (CPSEs), which include five railway entities and a defence company.  The government will reduce its stake in these firms by up to 25%.
  • Following rising military tension in the Middle East and the Korean peninsula, the Sensex lost 145 points to close at 29,643 and Nifty ended lower by 33.55 points at 9,203.45 after cracking below 9,200.
  • Qualcomm announced that it was asked to refund Canada’s BlackBerry $814.9 million in an arbitration over royalties for certain past sales.

 

Thursday- 13th April 2017

  • Tata Trust Trustees along with five others have filed a (PIL) in the Bombay HC against the union government, IRDAI and five state-run life insurance companies for investing in tobacco companies including ITC and VST Industries as they contradict the anti-tobacco stance of the government of India.
  • Infosys said it would pay shareholders up to ₹13,000 crore, through dividends and share buybacks in FY18. Despite this, Infosys fell 3.86%, pulling down the stock of rivals Tata Consultancy Services and Wipro as investors expect the gloom to spread. Infosys fell as much as 4.31% before closing at ₹931.40.
  • Bharti Airtel has approached the telecom tribunal against Reliance Jio Infocomm, asking it to restrain Jio from providing free services, including those offered under its `Summer Surprise’ offer that was withdrawn on order from the sector regulator.
  • Federal Bank is planning to sell up to 26% stake in its non-bank finance unit, Fedbank Financial Services, to private equity firms to raise ₹400-500 crore
  • Ola has raised an amount of ₹1,675 crores in fresh funding from Japanese telecom and internet major SoftBank Corp.

 

Friday-14th April 2017

  • The Income Tax Department has identified more than 60,000 persons under the second phase of Operation Clean Money launched on Friday to detect the generation of black money after demonetization.
  • Prime Minister Narendra Modi launched the BHIM-Aadhaar platform, a biometric-based indigenous payment solution will enable real-time bank-to-bank money transfers even for those without a phone and at no additional cost.
  • The government may dismantle the PPP Approval Committee (PPPAC), the finance ministry committee that approves public-private partnership (PPP) projects, and hand over that duty to Niti Aayog.
  • Ram Vilas Paswan, minister of consumer affairs, food and public distribution said that there is no such thing as service charge and if it is being charged by restaurants, it is wrong. He also said that an advisory has been issued in this regard and sent to PMO.

 

Source: The Economic Times

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Hindalco Returns with QIP, Flipkart Marked down, 7% GDP growth for Q3- Weekly Digest

Monday- 27th February 2017

  • Sunil Bharti Mittal called on global carriers to pool spectrum in entities that could be run by third-party network operators. This could help drive down costs in the financially stressed sector.
  • Vikas Gupta, the former CEO of Cello Writing Group of Companies, has been appointed as the CEO of ITC’s Wills Lifestyle and John Players stores.
  • Logistics company Delhivery is in talks with private equity major The Carlyle Group and Chinese conglomerate Fosun to raise fresh funding of about $100 million, which could raise the valuation of the company to $700 million.
  • LIC of India plans to pick a 5% stake in the India’s biggest engineering company Larsen & Toubro (L&T) for ₹6,500 crores at market prices.
  • Reliance Industries’ market capitalisation crossed the mark of ₹4,00,000 crores

Tuesday- 28th February 2017

  • India achieved the GDP Growth target of 7% for the October-December 2017 quarter as it shrugged off the worries of the impact of demonetization. It’s now forecast to achieve 7.1% growth in the year to March.
  • Tata Sons and NTT Docomo proposed a joint resolution to the Delhi High Court on settling a dispute over the $1.17 billion due to the Japanese telco for exiting their joint venture. They said they will not oppose the intervention of RBI accept court’s decision.
  • A Morgan Stanley MF has marked down Flipkart’s valuation to about $5.37 billion. It was valued at $15.2 billion in July 2015.
  • Hitachi Payment Services is likely to face a liability claim of ₹10 crores for a security breach in their systems which compromised 3.2 billion debit cards last year. Banks have filed compensation for amount stolen and bank expenses incurred thereon.

Wednesday- 1st March 2017

  • KP Singha & Family, plan to sell their 40% stake in DLF Cyber City Developers Ltd (DCCDL) to GIC of Singapore to help repay debt. The transaction will be valued at an estimate of ₹12,000 crores.
  • Multiple corporate players including DBS Bank, Reliance Jio and Chinese mobile handset manufacturer Vivo are in the race to grab sponsorship rights of the Indian cricket team for the next five years. BCCI is expected to raise a minimum ₹538.3 crores from the auction.
  • Shares of Maruti Suzuki reached the price of ₹5,921 per share as they inch closer to the ₹6,000 mark. Current market capitalisation is ₹1.8 lakh crores which can soon reach the mark of ₹2 lakh crore.
  • Avenue Supermarts, the owner of supermarket chain D-Mart, has set the price band of its ₹1,870-crore initial public offering at ₹295-299 per share.

Thursday- 2nd March 2017

  •  Alibaba to invest $177 million to increase its holding in Paytm Mall. This brings Alibaba closer to compete in Indian market against Amazon and Flipkart.
  • LeEco has fired 85% of staff from its Indian unit and allow 2 leadership exits, as the company possibly aims towards exiting the country. This comes four months after Chinese billionaire Jia Yueting acknowledged his company LeEco was fast running out of cash.
  • NDMC announced the auction of Taj Mansingh Hotel. It also cancelled Le Meridien Hotel’s licence over dues of ₹523 crore.
  • Hindalco Industries launched a $500 million share sale to institutional investors. The floor price per share will be ₹184.45 per share. The proceeds to be used to reduce debt.

Friday-3rd March 2017

  • A group of sellers have approached the Competition Commission of India alleging that Flipkart’s WS Retail and Amazon’s Cloudtail indulge in predatory pricing and discounting when selling their private label products. This hampers the growth of other small sellers.
  • Hindalco raised an amount of $500 million through its QIP. The issue was subscribed over 3 times as investment offers were made for over 1.5billion.
  • Online marketplace Snapdeal is in talks with US online payment system PayPal to sell Freecharge. The deal has been valued at approximate $500 million.
  • Amidst rift between Apollo Hospitals and Malaysia’s IHH Healthcare, the latter sold its 6% stake in Apollo Hospitals, out of total 10.85% stake for ₹1,070 crores. The share price stumbled to 5.3% to ₹1,246.

Source: The Economic Times

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GST deadline postponed, ATM withdrawal enhanced, Flipkart devalued- Weekly Digest #31

Monday- 16th January 2017

  • The government is expected to roll out GST by 1st July 2017 as it finally reached an agreement between Centre and State over administration issues. 90% of assessees with turnover up to ₹1.5 crore will be scrutinised by state and balance 10% by Centre. Remaining assessments will be in 50:50 ratio.
  • ATM withdrawal limit per card has been raised to ₹10,000 per day from the earlier ₹4,500 per day.
  • Daiichi Sankyo has moved in Delhi HC to block former Ranbaxy Lab promoters Malvinder and Shivinder Singh from selling their stake in Fortis Healthcare. Singapore Tribunal had ordered Singh Brothers to pay ₹2,562 crores for concealing information at Ranbaxy and Daiichi fears that sale will dilute the assets earmarked for recovery of the penalty.
  • Reliance Industries’ Q3 profits rose to 3.6% to ₹7,506 crores. This has been attributable to its booming petrochemicals business. Consolidated turnover grew 16% to ₹84,189 crores.

 

Tuesday- 17th January 2017

  • Former Tata Sons chairman Cyrus Mistry has opposed the appointment of Natarajan Chandrasekaran as his successor. He has called the appointment as illegal and might get involve in another legal tussle against the Tata Sons.
  • Mutual fund investor T Rowe Price has slashed the valuation of Flipkart by 4% to $9.9 billion. The latest move pegs Flipkart’s valuation per share at $93.15 at the end of December quarter, from $96.29 during the September quarter.
  • Videocon Telecom, one of the smallest telcos in India, will shut down operations in the Punjab circle from February 15, bringing to an end its mobile services in the country.
  • Reliance Industries (RIL) has written down ₹39,570 crores of investments in its Krishna Godavari Basin D6 block and US shale gas assets attributing it to change in accounting policy. Earlier it was valuation was done at full cost method. However, new Ind-As allows valuation at only successful efforts method which led to the devaluation.
  • SBI has raised an amount of $500 million by selling 5-year bonds to investors in Asia and Europe. The bond will yield @ 3.30%.

 

Wednesday- 18th January 2017

  • A consortium of lenders led by State Bank of India has made an application to SC  to leave Aircel out of the corruption case against the telecom operator’s promoter as nearly ₹30,000 crore debt will become irrecoverable if the licence is cancelled.
  • RBI Governer Urjit Patel told the parliamentary standing committee on finance that new currency worth ₹9.2 lakh crore had been pumped into the economy and cash crunch was no longer an issue. However, it was not specified when the restrictions on withdrawals will be lifted.
  • Bharti Airtel appointed Raj Pudipeddi as director of consumer business and chief marketing officer for its India operations. The position was lying vacant after Srini Gopalan had resigned from the position.
  • Idea cellular has filed a plea against TRAI for allowing Reliance Jio Infocomm’s Happy New Year offer as it hampers the competitiveness in the market. Airtel had filed a similar complaint last year.

 

Thursday- 19th January 2017

  • KKR & Co, which ended its partnership with TVS Logistics three months ago, has offered a long-term structured credit partnership with the promoters of TVS Logistics. The loan amount of ₹400 crore will be utilised to buy shares from PE investors.
  • Saama Capital, a venture capital firm that has invested in startups such as Paytm and Snapdeal, has made a final close for its third fund at $58 million. With this, the corpus of the Bengaluru and Silicon Valley-based VC firm will reach nearly $140 million.
  • Myntra’s largest seller Vector E-Commerce posted a 40% jump in revenue at ₹1,747 crore for the fiscal year ended March 2016. However, the seller also posted a loss of ₹8.7 crores due to deep discounts and expansion.

 

Friday- 20th January 2017

  • Motherson Sumi Systems Ltd has agreed to acquire Finnish wiring harness maker PKC Group for an amount of ₹4150 crores. This is expected to be one of the biggest buyouts by an Indian auto parts maker.
  • The Competition Commission of India has approved the proposed merger of online travel firm MakeMyTrip’s Indian travel business with rival Ibibo Group, owned by South African media conglomerate Naspers.
  • Mahindra & Mahindra (M&M) announced an acquisition of Hisarlar Makina Sanayi ve Ticaret Anonim irketi (Hisarlar), a farm equipment company based in Turkey for $19 million.

Source: The Economic Times
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Tata Sons’ new Chairman, Flipkart ropes in Top-Exec, NYLIC re-enters Max- Weekly Digest #30

Monday- 9th January 2017

  • Kalyan Krishnamurthy has been named the new chief executive of Flipkart while co-founder BinnyBansal has moved to the position of group CEO.  Krishnamurthy was a former executive in the New-York based investment firm,
  • New York Life Insurance Company has picked up a 22.51% stake for ₹121 crores in Max-Ventures and Industries Limited. The company will invest the proceeds in education and real estate, the focus areas for its future businesses.
  • Mondelez International has agreed to pay $13 million in civil penalties without admitting or denying charges. It was accused of bribing the government officials for obtaining licences and approvals.
  • Rockman Industries, the auto component arm of Hero Group, has acquired a majority stake in Moldex Composites at a valuation of ₹100 crore.
  • To compete with private banks for market share in the digital banking, SBI has waived off the merchant discount rate (MDR) to businesses with a turnover of less than ₹20 lakhs till the end of the calendar year.

 

Tuesday-10th January 2017

  • News Corp-backed real estate website PropTiger has merged with Housing.com in an all-stock deal. This will create country’s largest digital platforms for property listing through a digital platform.
  • A day after Kalyan Krishnamurthy was appointed as CEO of Flipkart, three top-level executives are leaving the company. Saikiran Krishnamurthy, who headed the e-tailer supply chain unit Ekart; senior vice president Surojit Chatterjee, who headed product and chief marketing officer Samardeep Subandh are leaving the company.
  • IndusInd Bank reported a 29%increase in the net profit for the third quarter at ₹751 crores, shrugging off the demonetization worries.
  • ICICI Prudential Life Insurance and general insurer ICICI Lombard have bought a 12% stake in fledgeling payments bank Fino Paytech for ₹150 crores.
  • Marissa Mayer along with5 other directors to leave Yahoo! after the closing of the deal with Verizon Communications. Yahoo Inc to be renamed as Altaba Inc.

 

Wednesday- 11th January 2017

  • Snapdeal has appointed online real estate firm Housing.com’s CEO Jason Kothari as its chief strategy and investment officer.
  • IDFC Alternatives, the private equity arm of IDFC group, has raised $100 million from domestic institutional investors and large family offices towards the first close of its fourth fund.
  • Japanese drugmaker Daiichi Sankyo has shut down its India research division as its now plans to focus the research on cancer treatment.
  • Oil marketing company BPCL on raised an amount of $600 million by selling 10-year dollar bonds to investors in Asia and Europe. NTPC is planning a similar sale in few weeks.

 

Thursday- 12th January 2017

  • Natarajan Chandrasekaran, CEO of Tata Consultancy Services, was handed over the position of chairman of Tata Sons. He will take over the position from the interim chairman, Ratan Tata.
  • Tata Consultancy Services (TCS) reported a 2.9% increase in the profits for Q3. It reported revenue of $4.38 billion and a net profit of $1 billion.
  • The rupee, owing to spectacular recovery surged by 24 paise to end at a week high of 68.08.  This has been due to rally in domestic equity as well as along with the weakening of dollar after US President-elect Donald Trump’s press conference.
  • Adani Ports has raised an amount of $500 million by selling bonds to overseas investors. The amount is to be used to refinance its existing debt.

 

Friday- 13th January 2017

  • Tata Consultancy Services dropped almost 4% due to a shuffle in its management after its CEO, Natrajan Chandrasekaran was appointed as the chairman of Tata Sons. It nullified all the optimism investors gathered after Q3 results.
  • HDFC Ergo General Insurance Company raised an amount ₹350crores by the issue of non-convertible debentures through investors like Ergo, General Insurance Corporation and Life Insurance Corporation.
  • Reliance to invest ₹3,000 crores in Reliance Jio, to expand its coverage and capacity. This will take the total investment in the telecom venture to ₹2 lakh crores.
  • Environment ministry under Anil Dave gave a red flag to the  ₹50,000crore proposal from ArcelorMittal for a mining project in the dense Saranda forest area of Jharkhand.

 

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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