Tag Archives: Fortis

DMart’s Historic IPO, Reliance’s Capital Gains, Delhi HC blocks Assets Sale- Weekly Digest #38

Monday- 6th March 2017

  • The National Company Law Tribunal said that the Mistry family’s firms aren’t qualified to file a petition alleging mismanagement of Tata Sons and oppression of minority shareholders.  A shareholder needs a stake of at least 10% to file a petition in NCLT.
  • Delhi HC told former Ranbaxy promoters Malvinder and Shivinder Singh that they will have to seek its permission before selling any of their unencumbered assets. This comes after Daichi moved to HC for blocking of the sale of assets till their penalty is paid by Singh Brothers.
  • Television broadcaster Star India has picked up a minority stake in Bengaluru-based media-tech startup Zapr Media Labs for an estimated value of $8 million.
  • Punjab National Bank is looking to sell an around 7% stake in mortgage lender PNB Housing Finance which will, in turn, raise an amount of estimated ₹1,200 crores.

 

Tuesday- 7th March 2017

  • Jasper Infotech, the owner of Snapdeal, is in negotiations with SoftBank Corp, its biggest shareholder, to raise an amount of $100-150 million. However, this can lead to a reduction in value of company below $3 billion.
  • Brookfield Asset Management is in talks with lenders  Jaiprakash Power Ventures to acquire the firm’s three power plants. The deal is estimated to be valued at ₹4,500-5,000 crores
  • Reliance Capital has sold its share in One97 Communications, the parent company of digital payments provider Paytm to China’s Alibaba in a deal estimated ₹275 crore. The return was 2650% from the investment.
  • Ahead of exit polls, Sensex slipped off its 2-year high to end a tad below the 29,000 mark. Nifty slipped to 8,947 points.

 

Wednesday- 7th March 2017

  • RBI has opposed a pact between the Tata Group and NTT Docomo aimed at resolving a two-year-old dispute between the two over the enforcement of a $1.17-billion arbitral award as it would amount to transfer of shares and was hence illegal.
  • Westinghouse conveyed its decision of proceeding with the plan to build six nuclear reactors in Andhra Pradesh in partnership with Larsen & Toubro to the Indian government at a recent meeting in Delhi after Toshiba Corp., the US company’s Japanese parent, to quit the business of setting up atomic power stations.
  • Axis Bank is withdrawing credit limits it had sanctioned to several merchants on online marketplace Snapdeal as Snapdeal finding itself victim to the competition in Indian marketplace against Flipkart and amazon and is struggling to raise fresh capital.
  • Hewlett Packard Enterprise has acquired San Jose-based Nimble Storage for $1.09 billion. Nimble Storage is listed as Nasdaq and founded by Varun Mehta and Umesh Maheshwari.
  • Uday Kotak has sold 2.76 crore shares from his personal stake in Kotak Mahindra Bank in two separate block deals to Canadian pension fund managers, Caisse de Depot et Placement du Quebec and Canada Pension Plan Investment Board (CPPIB) at ₹817 per share.

 

Thursday- 8th March 2017

  •  India has incorporated a new definition of `agriculturalist’ in the goods and services tax law to enable select farm items to be brought under the tax net nationwide. Registered buyers will have to pay GST on such goods on reverse charge basis.\
  • Debt-laden GVK Group faces a threat of its assets being auctioned off for the first time as it has defaulted on repayment of overdue debts.
  • Over 396 million equity shares of Reliance Industries (RIL), representing about 12.2% equity stake, changed hands on the BSE through three block deals. RIL closed at ₹1,287.35, down by ₹4.55 or 0.35% from its previous closing of ₹1,291.9 on the BSE.

 

Friday-9th March 2017

  • The index of industrial production (IIP) rose 2.7% in January on YoY basis. It had shown negative progress since demonetisation.
  • Retail chain DMart’s owner Avenue Supermarts’ IPO saw a historical mark as it roped in nearly ₹2 lakh crore. The 1,870-crore offer was oversubscribed 105.93 times and is behind Adani Ports’ oversubscription of 115 times.
  • Public sector lender Canara Bank sold 13.45% stake in its mortgage unit Can Fin Homes to Singapore-government backed Caladium Investment for ₹753.77 crore.
  • ITAT has ordered UK’s Cairn Energy Plc to pay ₹10,000 crore capital gains tax on the transfer of ownership from Cairn UK Holdings to Cairn India.

 

Source: The Economic Times

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Service Charge optional, PayTm’s new investment, SEBI approves BSE’s IPO- Weekly Digest #29

Monday- 2nd January 2017

  • Industrialists Sunil Munjal and Saroj Poddar are in talks to buy a minor stake in digital payments platform, Paytm. Sunil Munjal is the chairman of Hero Corporate Services and Saroj Poddar is the chairman of fertiliser and engineering services conglomerate Adventz Group.
  • Anshu Jain, the former coCEO of Deutsche Bank has joined the New York-based investment banking firm Cantor Fitzgerald (CFLP) as the president.
  • Department of Consumer Affairs has made service charges billed by the restaurants as optional at the discretion of the consumers.
  • Banks stock saw a fall in prices in the market as investors took the selling stance on the stock.The SBI stock shrank about 2.50%, State Bank of Travancore fell 2.02%, and HDFC tumbled 3.4%.

 

Tuesday-3rd January 2017

  • Tata Sons has issued a notice to remove former chairman Cyrus Mistry from its board. Tata Sons is looking to severe the Mistry family’s direct involvement in the board decisions of the Tata Group’s holding company.
  • As per a top Government Official, Foxconn Technology’s plans to take over Nokia’s manufacturing facility in Tamil Nadu will not be affected by Indian Taxation regime.
    Foxconn had said that it won’t bear the tax liability slapped on Nokia’s plant.
  • According to its founder Vijay Shekhar, Paytm has received approval from the central bank to launch the Paytm Payment Bank. The first branch will open in Noida in Uttar Pradesh by next month
  • SEBI has given its final approval for IPO of Bombay Stock Exchange (BSE). It is expected to raise INR 1,200-1,300 crores and hit the market in the later part of January 2017.

 

Wednesday- 4th January 2017

  • In another effort against black money, the finance ministry has sent a joint secretary to Reserve Bank of India to coordinate the central bank’s currency chest operations. It also advised that at least 40% of banknotes are supplied to rural areas.
  • Novelis Inc, Atlanta-headquartered arm of Aditya Birla group flagship Hindalco is refinancing $1.8 billion of its term loans for a period of five-and-a-half years to lower borrowing costs.
  • Xiaomi India reported a $1 billion revenue for the year 2016, as its sales doubled in the offline market. Xiaomi had entered the Indian market just 2 years back and is currently ranked 4th in India.
  • Tata Power Co has appointed S Padmanabhan as its chairman, in place of Cyrus Mistry who resigned last month.

 

Thursday- 5th January 2017

  • Flipkart’s largest vendor, WS Retail reported 33% increase in sales of INR 13,921 crores for the year ended March 2016. WS Retail’s net profit surged to INR 5.2 crore from 84 lakh a year ago. The company accounts for nearly 90% of goods sold on Flipkart
  • Shares of Tata Motors rose more than 3% to their highest closing in two months on Thursday, after the automaker’s Jaguar Land Rover subsidiary reported strong US sales for December.
  • Apple Inc has confirmed its plan for an investment of $1 billion in a tech fund being set up by Japan’s SoftBank Group. SoftBank has said it is investing at least $25 billion in the fund.

Friday- 6th January 2017

  • Due to proposed changes in H-1B visa, Indian IT companies saw a plunge in their prices in the market. Investors are now cautious to buy stock of IT companies with operation in the US. Infosys fell 2.5%, TCS was down 2.2%, HCL Tech declined 3.55% and Tech Mahindra 3.8%.
  • Tata Sons has called an extraordinary general meeting (EGM) on February 6 to seek the removal of Cyrus Mistry from the board of the group’s holding company.
  • Founders of Fortis Health Care, Malvinder Singh and Shivinder Singh are looking to carry out elaborate transactions to divest management controls in all their key businesses to raise an amount of INR 5,500 crores and tide over the cash crunch at the group level. They will retain a significant minority stake in most of these companies.

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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