Tag Archives: Reliance Communications

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

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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
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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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