Tag Archives: Market

SBI cuts lending rate, Rupee hits a 3-year high, CDB withdraws insolvency proceedings against RCom- Weekly Digest #59

Monday- 1st January 2018

  • China’s e-commerce giant Alibaba to acquire a minority stake in logistics company XpressBees for an estimated amount of $100 million as it looks to break into Indian markets to compete with global rival Amazon, and homegrown rival Flipkart.
  • BoB failed to sell bad loans amounting to ₹2,300 crore due from Bhushan Steel and Essar Steel as the reserve price was above market rates and only overseas investors and private equity funds were allowed to bid.
  • SBI gave a new year gift to its borrowers as it lowered the base rate by 30 points to 8.65%. The move is expected to prevent rivals from poaching the existing customers.
  • SBI to initiate insolvency proceedings against at least a dozen defaulting companies including Visa Steel, Monnet Power, Uttam Steel, Essar Projects, Videocon Telecom, Jaiswal Neco and Jai Balaji after failing to recast their loans by the December 31 deadline.
  • Following the steps of IOB,  Axis Bank to put its ₹2,000-crore loan to Bhushan Steel up for sale in the distressed-assets market. The bank may get as much as ₹1,200 crore.

 

Tuesday-  2nd January 2018

  • India’s largest retailer, Future Group is in talks with Snapdeal to acquire its logistics arm, Vulcan Express for about ₹50 crore in an all-cash deal.
  • Tata Technologies, a subsidiary of Tata Motors, suspended some of its employees for allegedly issuing forged letters of employment to 60 people.
  • The rupee hit its highest level against the dollar as it closed at 63.48 a dollar, up 0.31% from its previous closing.

 

Wednesday-  3rd January 2018

  • The RBI has ordered banks to recalibrate ATMs to ensure that more numbers of the ₹200 denomination note are dispensed to the public in a move to step up the supply of lower-denomination currency.
  • The RBI has ordered the banks not to initiate bankruptcy proceedings against Jaiprakash Associates. This comes amidst anticipation of legal complications after a Supreme Court ruling barred its promoters from selling or transferring assets.
  • South African Internet group Naspers has emerged as the frontrunner for an estimated $200 million investment in Swiggy. The investment is expected to increase the valuation of the food delivery venture to $650 million.
  • Online retailer Flipkart has infused approximately ₹1,632 crore into its logistics arm Ekart in an effort to further strengthen its delivery and warehousing capabilities.
  • Warburg Pincus India managing director Nitin Nayar has resigned from his position to launch his own investment fund with an expected corpus of $150-200 million, focusing on technology-related bets.

Thursday- 4th January 2018

  • India’s top seven Bitcoin exchanges including Zebpay, Unocoin, CoinSecure and BtcxIndia, to approach the AAR for clarity regarding levy of GST on transactions relating to Bitcoins.
  • After receiving criticism over exorbitant salaries paid to top executives, Infosys has crafted a transparent compensation package for the new CEO, Salil Parekh. He will be eligible for a fixed salary of ₹6.5 crore and a variable pay of ₹9.75 crore, which is much lower than what his predecessor was offered, i.e. ₹70.4 crore.
  • As a part of the ₹500-crore pre-IPO fund raised by EtechAces, it has committed an amount of ₹200 crore for its subsidiary; the digital marketplace for loans, mutual funds and credit cards, Paisabazaar.
  • Idea Cellular to raise a total of ₹6,750 crore ahead of its merger with Vodafone India to pare debt and free up cash for expansion. The amount to be raised in two tranches, by raising ₹3,250 crore through preference shares in first and balance ₹3,500 crores through preference shares @₹99.50.

Friday- 5th January 2018

  • The rupee gained 0.06% to 63.37 per dollar to a near three-year record on Friday as overseas investments flooded into India amid global dollar weakness.
  • Executive Chairman of Religare Enterprises, S Lakshminarayanan, a retired IAS officer and independent director Kishori Udeshi, a former RBI deputy governor resigned from the board of the company.
  • Rohit Gothi, executive director of market operations at beverage maker Coca-Cola’s bottling partner has resigned from his position after the company announced a large-scale restructuring of its business, which would make some jobs redundant.
  • CDB has withdrawn its insolvency filing against RCom. However, Swedish gear maker Ericsson to its battle against the Anil Ambani-owned telecom operator to recover its dues of ₹1,150 crore.

 

Source: The Economic Times
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LIC’s investment cleared, Market stays sluggish, Discontent against IBC tweaks -Weekly Digest #54

Monday- 27th November 2017

  • Finance Ministry of India has confirmed that LIC’s proposed investment ₹1.5 lakh crore in the Indian Railways. Earlier, concerns were raised regarding that it would take LIC’s exposure to more than 25% of IRFC’s net worth.
  • Goldman in its year-end forecast predicted that India’s economic growth will touch the mark of 8% in FY19 as it expects the effects of demonetisation and GST to wear off due to the formalisation of the economy, strong global growth and recapitalisation of public sector banks.
  • PNB to raise over ₹1,324 crores by selling off its 6% stake in PNB Housing Finance in an OFS for ₹1,325 per share.
  • China Development Bank (CDB) has filed an insolvency petition against RCom in the bankruptcy court to recover $1.78 billion which amounts to 37% of its total secured debt.
  • Essar group sold its BPO business Aegis for about ₹2,000 crore to Capital Square Partners to raise funds to monetise assets and trim debt.

 

Tuesday-  28th November 2017

  •  CPP Investment Board to acquire 15% stake in ReNew Power Ventures for $350 million making it the third largest investor in the company.
  •  The Bharat 22 Exchange Traded Fund made a steady debut at 3.8% over the issue price. The ETF closed at ₹37.33 over its issue price of ₹35.97 a piece.
  • A group of promoters of defaulting companies have approached the SC against the move to prevent promoters of defaulting companies to buy back assets at discounted prices under IBC as it prevents them from settling dues of creditors.
  • SoftBank Group Corp is offering to purchase shares of Uber Technologies at a valuation of $48 billion, a 30% discount to its most recent valuation of $68.5 billion

 

Wednesday-  29th November 2017

  • The Insolvency and Bankruptcy Board of India (IBBI) to allow lenders to act against individuals, including promoters of companies, who have given personal guarantees to corporate loan defaulters by encashing their personal assets.
  •  Jet Airways and Air France-KLM signed an agreement that will former an unrestricted access to Europe and North America. It is likely to reduce the scope of its existing partnership with Etihad Airways.
  • The Overseas Private Investment Corporation (OPIC), a financial institution of the US government, has proposed $1 billion investments in infrastructure and lending projects in India.

 

Thursday-  30th November 2017

  • Owing to fiscal deficit t readings for the April-October period and SBI’s move to raise bulk deposit rates, the stock market tumbled with the Sensex falling 453 points to 33,149 points while the Nifty fell 135 points to 10,227 points.
  • UIDAI has asked Airtel to explain its actions of allegedly opening bank accounts of its customers without their informed consent. The company has been given the deadline of December 4th to respond.
  • RCom said that majority of its lenders have decided to oppose CDB’s insolvency filing to recover its $1.78 billion debt. It is a=inviting the bank to have an open discussion regarding the debt.
  • Shares of tea producer McLeod Russel recovered 21% from its intraday low to touch a 52-week high of 248.30 after its promoter announced that he has sold 1 crore shares, representing 9.14% stake in the company to Nomura at ₹205.09.
  • IFCL has filed an insolvency petition against Reliance Naval and Engineering Ltd at NCLT Ahmedabad.

 

Friday- 1st December 2017

  • RIL chairman Mukesh Ambani, responded to Sunil Mittal blaming Reliance Jio Infocomm for the telecom industry’s woes by saying “there’s no need to cry so much.”
  • Japanese car maker Nissan Motor has initiated a lawsuit against India, seeking more than $750 million in supposedly tax incentives owed to it since 2015 by Tamil Nadu state government. However, the state has said that there has been no default and these are pressure techniques.
  • Harish Salve, one of India’s highest-paid lawyer to charge Re 1 to represent the Enforcement Directorate in a court case involving alleged money laundering by Sterling Biotech Ltd.
  • The stock market declined for the fourth consecutive session as investors brushed aside the strong GDP reading for the Q2. The Sensex dropped 316 points to 32,833 while the Nifty declined 105 points to 10,122 points.

 

Source: The Economic Times

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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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