Tag Archives: IPO

IBA Comes in Defense of Bankers, BOM’s CEO arrested, IPO Norms relaxed- Weekly Digest #64

Monday- 18th June 2018

  • ICICI Bank CEO, Chanda Kochhar to proceed on leave to facilitate an independent investigation into charges of favouritism and impropriety. The group’s life insurance head, Sandeep Bakhshi will assume the responsibilities meanwhile.
  • HUL has filed a caveat petition in the Mumbai HC against Emami, anticipating the rival to approach the court against an HUL regarding advertisement that takes a shot at Emami’s Fair and Handsome. Emami said it is evaluating the latest television commercial for HUL’s Men’s Fair and Lovely brand and “will take all necessary action as deemed fit”
  • In a letter to RBI, Payments Council of India has asked  to delay implementation of its stringent customer verification rules until mobile wallet providers are allowed to access the Aadhaar database for user authentication.
  • Workspace solutions provider IndiQube has raised ₹100 crore in a WestBridge Capital-led funding round to fuel its expansion plan. The capital will be used for expansion to new cities, for increasing team size, brand building, and for technology.
  • After a report of top management reshuffle, ICICI Bank shares rose as much as 4%. The shares of the bank ended at ₹293.20, up 3.86%.

 

Tuesday-  19th June 2018

  • Due to escalation of trade dispute between the US and China, the financial market tumbled.  Sensex fell 262 points to close at 35,287 points while Nifty dropped 89 points to close at 10,710 points.
  • India’s top shipbuilder Larsen and Toubro has sought the Niti Aayog’s intervention againts government’s proposal to move a ₹60,000-crore project to build submarines to the public sector. L&T is asking that it be reserved for the private industry as per the original plans.
  • Amazon India has brought changes to its seller fees as it looks to take on Flipkart in several categories. The global ecommerce company has lowered seller fees in categories such as furniture and luggage where Flipkart has sharpened its focus, as both look to get aggressive in these categories.
  • Uber has appointed Pradeep Parameswaran as new President of India and South Asia, the company said in a statement. This comes after Amit Jain was elevated to head the Asia Pacific region for Uber in May this year.
  • IIFL Holdings’ wealth management arm has raised ₹745.71 crore by selling 5.1% stake to various investors. After the transaction, IIFL Holdings will own 51.11% of its wealth management arm on a fully diluted basis

 

Wednesday-  20th June 2018

  • Bank of Maharashtra’s CEO, Ravindra Marathe has ben arrested for allegedly colluding with real estate developer DS Kulkarni to divert money and cheat shareholders. Sushil Muhnot, the bank’s former CMD, was also nabbed from Jaipur.
  • Celebrity chef Sanjeev Kapoor-promoted appliances brand Wonderchef has raised ₹70 crore from Amicus Capital Partners which valued the firm at ₹700 crore.
  • Russia’s Sistema JSFC has fully sold its 10% stake in Reliance Communications in multiple tranches, becoming the latest foreign operator to exit the troubled Indian telecom market, having lost about $4 billion on its investments.
  • Adani Wilmar, the highest bidder acquire debt-laden Ruchi Soya, has secured ₹4,000-crore credit line from Standard Chartered and DBS to finance its likely acquisition of the country’s largest edible oil maker.

 

Thursday- 21st June 2018

  • The Indian Banks’ Association has condemned the spate of chargesheets and arrests of bankers by investigative agencies and has called an emergency meeting to discuss the alleged high-handedness of the investigative agencies.
  • The SEBI okayed a revamp of IPO norms and a governance framework for stock exchanges and depositories. It also signalled moves to bring chartered accountants and company secretaries under its ambit. The board eased and updated IPO rules to bring them in line with current laws and market structure.
  • India to raise duties on 29 products from the US, striking back against Trump’s move to impose higher tariffs on Indian steel and aluminium exports amid a global trade war that’s broken out as President Donald Trump seeks to combat what he perceives as unfair terms. The duties to take effect from August 4.
  • Online food-delivery startup Swiggy has raised $210 million in its latest round of funding with Russian billionaire Yuri Milner’s DST Global and existing backer Naspers leading a $210-million round in the firm. The round values Swiggy at $1.3 billion.
  • HCL Technologies has signed a five-year $500 million global IT infrastructure and application services deal with Nokia as the latter consolidates its vendors and streamlines its outsourced IT management services.

 

Friday- 22nd June 2018

  • ICICI Bank said that an internal investigation of 31 loan accounts involving ₹6,082 crore, following a whistleblower complaint over incorrect asset classification.
  • The IBA has suggested setting up of an independent committee and to include a RBI official as a part of the panel to scrutinise charges against bankers. The association is also contemplating buying insurance to ensure indemnity against charges by investigating agencies and protect against indiscriminate arrest of bankers.
  • Reliance Industries in partnership with JM Financial ARC is set to take over bankrupt Alok Industries at less than a third of the total loan value, with 72% of the lenders voting in favour of the deal. The partnership had offered ₹5,050 crore in the second round, translatimg into an 83% haircut on dues of ₹29,500 crore.
  • The ED has moved a special Mumbai court to be allowed to confiscate ₹12,500-crore worth of assets of Vijay Mallya and to have him declared a ‘fugitive offender’.

 

Source: The Economic Times

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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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Voda-Idea merger, Union Budget 2017, BSE listing- Weekly Digest #33

Monday-30th January 2017

  • Vodafone Group and Idea Cellular confirmed that they are in initial talks to merge the two entities, which will biggest consolidation in Indian Telecom History in a cashless deal. Both entities to hold equal rights in the new entity. Idea shot up 26% to ₹97.95 after the announcement.
  • Jaguar Land Rover has suspended its plans to manufacture SUVs in India as feasibility study didn’t favour the project.
  • District Court in Delhi has turned down an appeal by  Sweden’s IKEA against Bengaluru-based consulting company Aikya Global for using a phonetically similar name.
  • HDFC reported a 12% rise in its Q3 results, with its profit increasing from ₹1,521 crores to ₹1,701 crores on YoY basis. This has been attributed to growth from non-individual loans.
  • Tech Mahindra posted a 14% increase in net profit to ₹856 crores for Q3 at ₹856 crores owing to “the strong deal wins”.

 

Tuesday- 31st January 2017

  • The government said that it had identified 18 lakh accounts where substantial cash deposits took place post demonetization and they will be required to divulge the source. This comes as a part of the tax department’s Operation Clean Money Swachh Dhan Abhiyan initiative.
  • Honda announced that it is recalling around 41.580 cars over the issues of the faulty airbag inflators. This has been Hinda’s fourth recall during the period of last 2 years.
  • The possible merger of Idea and Vodafone along with the strong impact of Jio in the market caused Bharti Infratel’s Share to dip to its52 week low of ₹283.10.
  • ICICI Bank posted a 19% drop in net profit for the Q3 at ₹2,442 crores owing to slow loan growth rate.

 

Wednesday- 1st February 2017

  • Finance Minister Arun Jaitley presented the Union Budget 2017, highlights of which can be found here.
  • The market responded positively to the presentation of the Union Budget, as the Sensex surged nearly 486 points to close at 28,141 and the Nifty gained 155 points to 8,716.40. Both indices closed at their highest levels since October 25. Bank Nifty rose 2.6%.
  • Due to incentives to affordable housing in the budget, shares of housing companies such as Ashiana Housing, Puravankara surged up to 19%, while companies like Gruh Finance and DHFL, which provide loans to affordable housing, rose up to 8%.

 

Thursday- 2nd February 2017

  • The world’s largest e-commerce company, Alibaba is leading an investment round between ₹1,350crores and 1,700 crores in the online retail marketplace of PayTm. This will ensure formal entry of Alibaba in the Indian market to compete with Amazon and Flipkart.
  • Amazon has applied to the government of India to invest $500 million in a wholly owned venture in India to stock locally produced food items and sell them online.
  • Vodafone Group’s CEO Vittorio Colao said in a statement that the proposed merger between Vodafone India and Idea Cellular should not be looked upon as Vodafone’s exit from the market but a move against the competitive threat posed by Reliance Jio Infocomm.
  • A special CBI court has acquitted Dayanidhi Maran and Sun TV promoter Kalanithi Maran in a case involving bribery allegations.
  • TRAI said Reliance Jio’s second promotional offer. Happy New Year offer is not an extension of its previous welcome offer and has passed the same opinion to Telecom Disputes Settlement Appellate Tribunal (TDSAT). Airtel and Idea had alleged that it was an extension of free offer hence not allowable.

 

Friday- 3rd February 2017

  • BSE made a record-setting debut in the market at 32.8% premium over the issue price of ₹806 at ₹1085 and reached the day’s high of ₹1,200. It closed at ₹1,070.55
  • The Supreme Court has refused to let Aircel go off the hook regarding corruption allegations as T Ananda Krishnan failed to appear for the hearing. This further casts doubt on proposed merger of Reliance Communications with Aircel.
  •  Reliance Jio Infocomm and PayTm received notices from the Government over the use of  Prime Minister Narendra Modi’s photographs on their advertisements and they have been asked if they had obtained prior approval regarding the same.
  • Managing Director and CEO of IFDC, Vikram Limaye is set to become the new MD & CEO of the National Stock Exchange.
  • After a clean chit was issued to the company’s founder, Sun TV network soared 25% to ₹699, its 52-week high.

 

Source: The Economic Times
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