Tag Archives: Rcom

Rcom-Ericsson Settlement, Air Asia woes worsens, ICICI investigates Chanda Kochhar- Weekly Digest #62

Monday- 28th May 2018

  • HUL is suing Kwality Ltd claiming sole rights over Kwality Walls, the brand used for HUL’s ice creams. The Calcutta High Court directed Kwality Ltd to not use the original writing style of Kwality Walls for any of its dairy products, but continue to use its currently operational registered trademark KDIL’S Kwality.
  • Tamil Nadu government ordered the closure of the Sterlite Copper factory of Vedanta unit in Thoothukudi amidst violent agitation led by residents who claim the smelter has caused widespread pollution of air and water.
  • Lenders of Binani Cement have agreed upon selling the bankrupt cement maker to the country’s biggest cement producer, Aditya Birla owned UltraTech. UltraTech had offered to pay ₹7,600 crore to lenders.
  • SBI to initiate bankruptcy proceedings against fugitive businessman Vijay Mallya in the UK to mount additional legal pressure on him for the recovery of loans.
  • RCom has said that its lenders will oppose the insolvency court’s decision to start bankruptcy proceedings against the debt-laden telco at a hearing in the appellate tribunal. The market reacted positively as the share price rose 11%  to ₹15.85.

 

Tuesday-  29th May 2018

  • CBI has filed a case against AirAsia (India), AirAsia Berhad, and its top executives, including CEO Tony Fernandes, for allegedly entering into a criminal conspiracy with the UPA government to change rules to get overseas flying rights. The case is based, among other findings, on a clutch of internal emails between senior executives of AirAsia and the Tata Group.
  • Qtrove, a curated marketplace for natural, handmade and sustainable products have raised ₹350 crore from Springboard Ventures, an investment arm of Bennett, Coleman & Co Ltd (BCCL)
  • Singapore Exchange will continue listing Nifty derivatives contracts on its platform till August after the Bombay High Court on Tuesday referred the dispute between it and National Stock Exchange to arbitration. Both exchanges are locked in a legal tussle after SGX said it would launch Indian futures and options contracts in June.
  • The reconstituted board of Fortis Healthcare has decided to begin a fresh bidding process with interested investors for a deal and has sought expressions of interest by May 31. Interested parties will receive 10 days to conduct financial and legal due diligence.

 

Wednesday-  30th May 2018

  • The board of ICICI Bank has ordered an independent enquiry into new whistleblower allegations that CEO Chanda Kochhar violated the bank’s code of conduct, rules on conflict of interest and was part of quid pro quo dealings with certain bank borrowers.
  • Reliance Communications agreed to pay ₹550 crore to Ericsson to settle an eight-month legal dispute over dues, paving the way for Rcom to exit bankruptcy proceedings and sell assets to Reliance Jio Infocomm and Brookfield to repay lenders.
  • State Bank of India has increased its fixed deposit interest rates on select tenures. The range of hike in the rates in the range of 5 bps (basis points) to 25 bps and came into effect from May 28.
  • Price Waterhouse (PW), a network firm of PwC India has quit as auditor to BSE-listed construction and infrastructure company Atlanta Limited after it apparently refused to share details of an ongoing income tax investigation and the resignation of an independent director.

 

Thursday- 31st May 2018

  • India’s economy grew at its fastest at 7.7% in seven quarters in the January-March 2018 period, owing to strong performance in construction, manufacturing and public services.
  • Chinese smartphone maker Coolpad may move Indian courts against IPO-bound rival Xiaomi over patent infringement, after the company filed several such cases in China this year.
  • PoS deploying company Pine Labs has raised $125 million from Temasek, a global investment company, and PayPal, the largest digital payments company in the US. The aim was to reducing stake of Sequoia India in Pine Labs and enable partial exit, even though they still remain the largest shareholder.
  • Online marketplace CoinTribe has raised $10 million in a Series-B round of funding led by private equity fund Sabre Partners. CoinTribe’s existing investor Puneet Dalmia also participated in the round. The funds to be utilised to reach out to more borrowers and expand operations to newer locations in the country.
  • The Enforcement Directorate (ED) to file a case under the PMLA against AirAsia’s global chief Tony Fernandes, some of his colleagues as well as erstwhile top executives and non-executive director R Venkataramanan at AirAsia India. A case under FEMA has already been filed.

 

Friday- 1st June 2018

  • The Allahabad High Court ruled that a power company can’t be taken to the bankruptcy court for not repaying loans unless it has been declared a wilful defaulter. It has also directed the finance secretary to meet power producers in June to discuss their financial woes.
  • The annual financial numbers Cloudtail India, a JV between Amazon and Infosys co-founder Narayana Murthy’s family office Catamaran Ventures have kicked up a row with AIOVA accusing the online marketplace of according preferential treatment to a few select sellers as they plan to move to CCI.
  • The board of Idea Cellular has called for an EGM on June 26 to approve changing the name of ‘Idea Cellular Limited’ to ‘Vodafone Idea Limited’, as the merger of Idea and Vodafone India is near completion.
  • Supreme Court said it cannot interfere in the dispute between IHCL and civic body NDMC concerning the Taj Mahal Hotel auction tender at this stage, which led IHCL to withdraw its petition against NDMC. IHCL had moved the Supreme Court after the Delhi HC rejected its plea against the revised tender on the Taj Mansingh auction.
  • The Enforcement Directorate has attached assets estimated to be worth more than ₹4,700 crore belonging to the Sterling Biotech group from Gujarat in relation to anti-money laundering proceedings.

 

Source: The Economic Times

Image

Advertisements

SBI reports huge losses, Rupee hits new lows, Rcom-Ericsson hit Stalement- Weekly Digest #61

Monday- 21st May 2018

  • UAE has given its banks permission to share information with India related to Winsome Group,  the diamond house which is India’s second-largest wilful defaulter.
  • After initial uncertainty, Softbank has decided to sell its entire 21% stake in Flipkart to US retail giant Walmart. Softbank had invested $2.5 billion in Flipkart and is expected to make close to $4 billion on its investment.
  • Bharti Group firm Cedar Services is in talks with PremjiInvest, the investment arm of Wipro chairman Azim Premji for selling its stake in Future Retail. Cedar’s 9.23% stake is expected to be valued at ₹2,500 crore.
  • The All India Online Vendor’s Association which claims to represent 3,500 sellers has approached CCI against Flipkart for giving “preferential treatment” to a few seller entities and thus enabling steep discounts on its platform.
  • Three members of the Fortis Healthcare board; Tejinder Shergill, Harpal Singh and Sabina Vaisoha resigned ahead of an EGM called on Tuesday. They favoured an offer for the company from the Munjal-Burman combine.

 

Tuesday-  22nd May 2018

  • SBI reported its biggest quarterly loss of ₹1,728 crores for Q4 as bad loan provisions surged on rising defaults, and profits from the securities trading business fell.
  • Aviation secretary RN Choubey has said that the Government may not sell the stake in Air India is the bid price is found to be inadequate. The government had proposed to sell its 76% stake in Air India along with low-fare subsidiary Air India Express and a 50% stake in AISATS.
  • The Delhi High Court on Tuesday dismissed Indian Hotel Company Ltd’s plea challenging the tender procedure of the proposed auction of the Taj Mahal Hotel by the NDMC. IHCL had argued that the tender document fails to take into account its ‘blemish-free’ record as observed by the Supreme Court.
  • Digital payments and e-commerce company Paytm has acquired Orbgen Technologies, the entity that operates Chennai-based online ticketing platform TicketNew. The transaction is expected to be valued between $30 million and $40 million.

 

Wednesday-  23rd May 2018

  • India’s oil ministry has ordered Reliance Industries, Royal Dutch Shell and Oil & Natural Gas Corp to pay $3.8 billion as the share of the government’s earnings from the Panna-Mukta and Tapti fields. The liability is to be shared by the companies in proportion to their interests in the oil and gas fields in the Arabian Sea – ONGC (40%), RIL (30%) and Shell (30%).
  • Samara Capital is in advanced talks to buy Aditya Birla Retail’s supermarket chain More for about ₹2,500 crore.
  • The Union Cabinet approved The Insolvency and Bankruptcy Code Amendment (Ordinance) 2018, easing rules to enable promoters of SMEs to bid for their companies and giving homebuyers a stronger say in the resolution plan for developers.
  • Madras HC directed the Vedanta Group to halt construction of the second unit of its Sterlite copper smelter in Thoothukudi among various protests across the city situated in southern Tamil Nadu.
  • The rupee plunged to an 18-month low against the dollar to close at 68.42. This has been attributed to demand surging for the US currency from corporates amid a tangible lack of overseas interest in emerging-market assets.

 

Thursday- 24th May 2018

  • The Tamil Nadu Pollution Control Board has ordered the closure of the Vedanta-Sterlite copper factory in Thoothukudi. Locals and environmental activists claim emissions from the plant, one of the country’s biggest, are polluting the air and water in the district, affecting people’s health.
  • The income-tax department has started issuing notices to several multinational consumer firms, disallowing deductions on expenses of advertising, marketing and sales promotion as they are not relevant to Indian business but outside India. The tax demand is expected to be ₹10,000 crore.
  • DoT cleared Idea Cellular’s sale of nearly 9,000 standalone towers to a local arm of American Tower Corp (ATC) for Rs 4,000 crore. This marks the conclusion of the US tower company’s two-stage buyout of Vodafone India and Idea’s near 20,000-odd combined standalone towers for Rs 7,850 crore.
  • Negotiations between Reliance Communications (RCom) and Ericsson over the payment of pending dues have hit a fresh hurdle, with neither side agreeing on a timeline. Rcom is insisting on 6 months while Ericsson wants its ₹1,000 crore in 3 months.
  • SEBI has issued a SCN to ICICI Bank and its CEO Chanda Kochhar for alleged violation of disclosure requirements under securities law in the case involving Videocon Group and NuPower Renewables, a firm run by her husband Deepak Kochhar.

 

Friday- 24th May 2018

  • Owing to crude oil price retreat, the Nifty ended 91.30 points higher at 10,605 points while the Sensex ended up 261.76 points higher at 34,925 points.
  • IDBI reported Q4 loss of ₹5,663 crore, up from last year’s ₹3,200 crore on YoY basis. This has been attributed to bad loans continuing to pile on forcing the public-sector lender to provide for potential losses.
  • Sun Pharma posted profit rising 7% to ₹1,375.6 crore for Q4 on YoY basis. This has been attributed to a strong showing in emerging markets and a slight improvement in its US business.
  • The rupee gained as much as 57 paise to close at 67.67 a dollar as banks across the economy sold dollars on behalf of their clients. This is the highest intra-day gain in the last 14 months.
  • Negotiations between RCom and Ericsson for a settlement have hit a roadblock with the latter rejecting two proposals of the Rcom. Rcom had offered either a payment guarantee by an Anil Ambani-controlled company or an undertaking by the directors of the telco and its two units — Reliance Infratel and Reliance Telecom.

 

Source: The Economic Times
Image

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
Image

McDonald’s in trouble again, RCom enters an awaited resolution, Mobile Wallets KYC extended- Weekly Digest #58

Monday- 25th December 2017

  • Serial entrepreneur C Sivasankaran is set to take the DoT to the Supreme Court in the wake of the 2G case acquittals, seeking ₹3,400 crore in damages that he lost after the apex court had cancelled 122 licences, including six of STel’s in 2012.
  • HDFC Ltd and its JV partner Standard Life Investments to raise ₹4,000 crore by selling a 10% stake in asset management company HDFC Mutual Fund.
  • SoftBank executive Lydia Jett, who recently stepped down as a director at Snapdeal, joined the board of Flipkart. This comes after the merger talks between the two e-commerce companies failed.
  • McDonald’s former JV partner Vikram Bakshi said in a statement that nearly all outlets of the fast-food chain in east India has been shut and several others in the north are on the verge of close down due to discontinuation of supplies by its logistics partner.

 

Tuesday-  26th December 2017

  • RCom to sell its telecom assets, including spectrum, towers and fibre, worth ₹25,000 crore by March 2018 to pre-pay lenders and exit the ongoing strategic debt restructuring programme. It announced it had reached an out-of-court settlement with CDB.
  • After RCom announced its plan to sell off its assets, its shares rose 31% to ₹21.33. The Sensex went past 34,000 points mark to close at 34,010.61 points. The Nifty ended up 38.50 points at 10,531.50.
  • Connaught Plaza Restaurants, a JV between Vikram Bakshi and McDonald’s to sue its logistics partner, Radhakrishna Foodland for abruptly halting supplies to its stores in North and Eastern areas due to alleged non-payment of dues. The requirement of a 30d notice was not met as per the CPR.
  • The insolvency professional supervising the Alok Industries bankruptcy process has called for fresh bids to resolve the ₹29,000-crore default to attract more bidders for the textile company.
  • SEBI has imposed a penalty on 63 Moons Technologies, formerly known as Financial Technologies, for failing to seek prior approval for the name change from stock exchanges.

 

Wednesday-  27th December 2017

  • The Aion Capital-JSW Steel consortium submitted a ₹3,500-crore resolution plan for bankrupt Monnet Ispat and Energy that involves paying ₹2,500 crore to lenders and an equity investment of ₹1,000 crore.
  • Lupin Ltd has dragged the Government of India to court, claiming the stock lying in its godowns could face double taxation when it’s sold due to GST regulations.
  • Japanese drug-maker Daiichi Sankyo has alerted regulatory bodies and the stock exchanges against any potential stake sale in the Fortis hospital chain by the promoters, the Singh brothers, saying such a transaction would violate a Supreme Court order.
  • The SEBI has asked Axis Bank to strengthen its internal processes and systems after the regulator noticed leakage of price-sensitive information relating to financial results on WhatsApp groups before they were officially announced.
  • Castex Technologies, a subsidiary of automotive component maker Amtek Auto with the debt of over ₹6,000 crore, has been led to the bankruptcy court by the SBI.

 

Thursday-  28th December 2017

  • Mukesh Ambani-led Reliance Jio Infocomm to buy the wireless assets of Anil Ambani’s debt-ridden RCom for about ₹24,000 crore, a deal that was signed on the 85th birth anniversary of  Dhirubhai Ambani.
  • The RBI has turned down the requests from banks to extend the deadline of Dec 31 for restructuring the debt of companies on a second list of bad loan accounts that it had issued in August.
  • Asset manager Brookfield and Kotak Mahindra group have jointly bid for 2,200 megawatts of power assets belonging to Jaypee Power Ventures, The deal is expected to be valued at an estimated ₹3,500-4,000 crore.
  • McDonald’s India claimed that it has not been able to verify if its outlets operated by CPRL in North and East India are complying with applicable standards of the firm or not, further adding that these restaurants need to be closed immediately.
  • US buyout giant KKR & Co gets an RBI approval to fully own an Asset Restructure Company in India

 

Friday- 29th December 2017

  • The market closed 2017 on a high with the Sensex rising 209 points to close at 34,057 points while the Nifty rose 53 points to close at 10,531 points. Tata Motors, Axis Bank and Tata Consultancy Services logging gains of about 3% each.
  • Finance Minister Arun Jaitley said in a statement that loan defaulters can bid for an insolvent entity or its assets during bankruptcy proceedings after paying interest due and making bad loan accounts operational
  • RBI extended the deadline for fulfilling mobile wallets KYC norms from December 31 to February 28, giving much respite to the mobile wallet companies and users.
  • The Interim Resolution Professional has moved the NCLT against the ailing media house Deccan Chronicle Holdings’ for creating hurdles in the insolvency proceedings.

 

Source: The Economic Times
Image

Vishal Sikka quits Infy, Aircel-Rcom merger approved, RIL fined- Weekly Digest #51

Monday- 14th August 2017

  • SEBI is examining the purchase of 8.9% stake credit rating firm CARE Ratings by CRISIL after the former complained that the transaction was an attempt at a potential hostile takeover.
  • The Bombay High court has put up debt-ridden Sahara Group’s Aamby Valley property at Lonavala for a public auction. The reserve price for the property is ₹37,392 crores.
  • NCLT admitted proposals for the merger between Aircel and Reliance Communications’ wireless business, as well as the RCom’s sale of its tower business to Canada’s Brookfield. RCom’s share price soared 19% to ₹24.
  • FIH Mobile, the Hong Kong-listed unit of Foxconn Technology Solutions has written down its $200 million investment in Jasper Infotech which operates Snapdeal to $40 million.
  • PB Balaji to succeed C Ramakrishnan as chief financial officer of Tata Motors with effect from November 2017.

 

Tuesday-  15th August 2017

  • The government has disallowed Reliance Industries and partners to recover $264 million of cost of developing KG-D6 fields for 2015-16 as the output from the field fell short of the target
  • Glory Entities and Twickenham Investment are selling 10 million shares of Genpact to public shareholders, diluting their combined shareholding from 35.1% to 29.9%
  • The process of hearing and disposing of bankruptcy cases at the Mumbai Chapter of the National Company Law Tribunal may quicken as it is likely to get 4 new judges and two benches, and support staff to handle the extra load.

 

Wednesday-  16th August 2017

  • The board of Tata Sons under N Chandrasekaran has ordered its group companies to scrap all business dealings with Cyrus and Shapoor Mistry’s SP Group. This is likely to put transactions worth crores at risk.
  • SoftBank Group Corp is in talks with Rivigo Services to invest at least $100 million in the surface -transport logistics provider. This could value the company at $1 billion.
  • Canteen Stores Department (CSD) has slapped an over ₹250 crore fine on United Spirits for violating a pricing agreement. United Spirits is alleged to have supplied products to the CSD at inflated prices.
  • Sanjay Chandra, the promoter of developer Unitech Ltd jailed in a cheating case, urged the Supreme Court to release him on bail for three months to mop up funds to pay back flat buyers. He was sent to jail in connection with a cheating case registered against them by flat-owners in a Gurgaon project.
  • The stock market extended its recovery for the second-straight session as the Sensex climbed to 31,770. while the Nifty reached 9,897 points as domestic institutions stepped up their purchases, helping absorb the selling by foreign investors.

 

Thursday-  August 2017

  • Ahead of Infy’s board meeting, the stock jumped 4.5% to close at ₹1,021.15 as shareholders are expecting a buyback from the company.
  • Nasdaq-listed Ebix Inc. is set to buy the business of Wall Street Finance Ltd in a two-leg transaction for ₹47 crore. In the first leg, the company will acquire Wall Street Finance’s wholly-owned subsidiary Goldman Securities for ₹5.1 crore. Subsequently, the GSPL will buy out the international money transfer business of Wall Street Finance for ₹42.2 crore.
  • HDFC Life is likely to offload 15% of existing shares through its proposed initial public offering in the coming months. HDFC will sell 9.57% holding in the insurance firm while its partner Standard Life will sell 5.43%

 

Friday-  August 2017

  • Vishal Sikka resigned as the CEO of Infosys as the Board alleges that the founder, NR Narayana Murthy bullied him into quitting. Chief operating officer UB Pravin Rao has been appointed interim MD and CEO. This news wiped out ₹22,000 crore mcap of the company.
  • Infosys shares touched a three-year low after the news of Sikka quitting the company. It slipped 13% to ₹923.10. Sensex plunged 271 points, to close at 31524.68, while the Nifty fell 66.75 points, to close at 9737.40.
  • Bharti Airtel and Vodafone India sparred with newcomer Reliance Jio Infocomm at an open house discussion over modalities of testing of a network. The incumbents said the users acquired for trial purposes should be restricted, not allowed to enroll for commercial services and not offered mobile number portability.

 

Source: The Economic Times
Image