Tag Archives: Reliance Jio

Reliance Jio new 4G device, Wipro buyback, $3billion fine to RIL, Shell and ONGC- Weekly Digest #48

Monday- 17th July 2017

  • Diageo plc to hold back the remaining $35 million of the $75 million it had agreed to pay Vijay Mallya as part of a settlement. It will now seek to recover dues from him.
  • The Gujrat HC has quashed Essar Steel’s plea against the RBI directive asking lenders to initiate bankruptcy proceedings against the company. The HC observed that RBi was in its legal power to take such steps.
  • The government has ordered Reliance Industries, Shell and ONGC to pay a combined $3 billion in penalty following an arbitration award in the Panna Mukta Tapti (PMT) oil field dispute that went in favour of the government
  • HDFC has scrapped its plans for the merger with Max Life after nearly a year of negotiations and has instead hired Morgan Stanley and Credit Suisse to raise ₹10,000 crore through IPO.
  • Reliance Industries crossed the ₹5 lakh crore mark in valuation after the share price climber to ₹1,551 per share amidst hopes that new tariff plans will help recover Jio’s losses.


Tuesday- 18th July 2017

  • Reliance Industries and Shell India have challenged the government decision to demand $3 billion from the contractors of Panna, Mukta and Tapti fields stating that the action is premature as the legal process has not been completed.
  • Sensex fell 364 points while nifty fell by 89 points as ITC took lead in the fall of indices. Due to the government increasing taxes on the cigarettes under GST, ITC was down by 12.6% to ₹284.60
  • India’s leading clean-energy company Greenko raised $1 billion in an overseas debt sale, making it Asia’s largest green bond offer to date, and the world’s largest high-yield corporate issue by a closely held company.
  • The NCLT on Tuesday admitted insolvency proceedings against textile company Alok Industries, which owes about ₹23,000 crores to a consortium of lenders. The plea was made by SBI in order to recover its ₹3,772 crores to the company.


Wednesday- 19th July 2017

  • The cabinet has approved the sale of the government’s entire 51% stake in Hindustan Petroleum Corp Ltd to ONGC in order to create a state-run integrated oil major that can compete with private and foreign players.
  • HDFC Life, a joint venture between mortgage lender HDFC and UK-based Standard Life, has applied to IRDA for an IPO after proposed merger with Max Life failed to actuate.
  • Indian media conglomerate Zee Entertainment Enterprises is in advanced talks to buy 9X Media, which owns a clutch of Hindi and regional music channels. The deal is expected to be valued at around ₹200 crores.


Thursday- 20th July 2017

  • RIL’s consolidated net profit rose 28% to ₹9,108 crore in the June quarter owing to its core refining business. The turnover grew 26.7% to ₹90,537 crores.
  • Reliance Jio Infocomm plans to raise ₹20,000 crore through a rights issue of optionally convertible preference shares (OCPS) to shareholders as it prepares for expansion in the market.
  • Finance Minister Arun Jaitley to head a panel to oversee and speed up the acquisition of Hindustan Petroleum Corporation by ONGC.
  • Zee Media Corporation is in advanced discussions to acquire Business Broadcast News, an Anil Ambani-owned company that operates English business news channel BTVi in a deal estimated to be valued at ₹100 crores.
  • Kotak Mahindra Q1 rose 23% to ₹912.7 crores owing to growth in all businesses, from retail to treasury to corporate lending.


Friday- 21st July 2017

  • Reliance unveiled a 4G feature phone aimed at attracting millions of low-spending users for a refundable security of ₹1,500 and announced 1:1 bonus issue and a dividend of ₹13 per share. The stock rose to its highest in a decade to ₹1586.20
  • State-run Hindustan Petroleum Corp may acquire two subsidiaries of ONGC. which are Mangalore Refinery and Petrochemicals (MRPL) and ONGC Petro Additions (OPaL) before ONGC takes over HPCL.
  • The Delhi High court has asked CJ International Hotels to pay an amount of ₹500 crores NDMC or vacate the land on which it currently operates Le Meridien Hotel, located on Windsor Place, Janpath.
  • Wipro’s stock gained 6.5% to close at ₹286.40 after the company announced a buyback of shares worth ₹11 crores.


Source: The Economic Times


TCS buybacks, Update on Jio, AXIS merger rumours- Weekly Digest #36

Monday- 20th February 2017

  • Infosys denied allegations made in an anonymous letter to SEBI accusing members of Infosys management having prior investments in Panaya.
  • TCS announced a buyback of ₹16,000 crores shares. 56 million shares will be bought back for a value ₹2,850 per share, which is equal to 3% of all equity shares. This caused a 4% surge in the share price.
  • NCLT said that it will decide about the maintainability of the petitions filed by two Cyrus family owned companies against the removal of Cyrus  Mistry until 6th March 2017. If petitions are held maintainable, hearing to start from 7th March.
  • The Supreme Court has ordered Unitech to pay interest @14% p.a. on the amount deposited by buyers due to delay in completion Vistas project in Gurgaon.


Tuesday- 21st February 2017

  • India’s Tata Motors and German’s VW are said to be in advanced stage of finalising a partnership. The details are yet unknown.
  • Mukesh Ambani announced that Reliance Jio to charge from its customers from April 1, 2017. However, the calls to remain free even after 1st April. The data will be charged at nominal rates of ₹303 per month for 1GB data daily.
  • The Supreme Court of Singapore has disallowed senior advocate Harish Salve from appearing before it on behalf of corporate sellers of Ranbaxy in its ongoing case against Daiichi. Ranbaxy is seeking to bar the award to $500 million.
  • After a TV channel reported that ICICI Bank, HDFC Bank, IndusInd Bank and Kotak Mahindra Bank have approached the government with informal merger proposals with the Axis Bank, the shares of the latter rose up to 5%. However, Axis CEO, Shikha Sharma denied any such plans.


Wednesday- 22nd February 2017

  • SoftBank is looking to invest in the proposed entity to be formed by the Vodafone- Idea merger. They are likely to pick a 15-20% stake in the new telecom company.
  • To conserve cash and cutting costs, co-founders of Snapdeal, Kunal Bahl and Rohit Bansal have announced that they will forego their salaries from immediate effect.
  • FPIs can hold the shares of HDFC Bank they bought on Friday even after the stock exchange notification to stop buying mid-way through the trading session till the Reserve Bank of India (RBI) asks them to offload them.
  • Bharti Airtel bought a stake in Fintech Company Seynse Technologies at over ₹100 crores to enhance its financial operations platform and Airtel Payments Bank.


Thursday- 23rd February 2017

  • Telenor India sold its Indian Business unit to Bharti Airtel, which help the latter to enhance its 4G airwaves to survive the competition against Reliance Jio.
  • Infosys is seeking the shareholders’ approval for amendment in its AoA for a buyback of its shares from the market, mimicing its rival’s move.
  •  The government’s sale of its 5% stake in Bharat Electronics was lapped up by retail investors who put in bids for 3.67 times the shares reserved for them. Overall the issue was subscribed 5.3 times, which will, in turn help the government to raise ₹1,670 crores.
  • Nifty hit the 52-week high of 8,982 points during the session. However, it closed marginally lower at 8,939 points.


Friday-24th February 2017

  • Apple has informed the government that it plans to establish a network of partners including contract manufacturers and suppliers to initiate its production in India.
  • The National Pharmaceutical Pricing Authority (NPPA) has sent show cause notices to hospitals across the country, asking them to respond to allegations that they are charging patients higher prices on cardiac stents than allowed.
  • The Central Board of Direct Taxes, has issued a circular clarifying that the provisions relating to the place of effective management (POEM) will apply to companies with over ₹50-crore turnover.

Source: The Economic Times


Jio sets record, Note 7 fiasco, Alibaba’s entry window- Weekly Digest #18


Monday- 10th October 2016

  • Reliance Jio Infocomm announced that its subscriber has crossed the mark of 16 million customers within a month, making this a world record. It has surpassed the likes of Facebook, Whatsapp, and Skype in the pace of growth.
  • Primal Enterprise has entered into a deal with Janssen Pharmaceutica to acquire five injectable anesthesia and pain management products for a value of $175 million.
  • Samsung electronics has halted the production and distribution of Galaxy Note 7 after there were reported incidents of fire hazard in the replacement devices too. This has been the company’s worst recall situation.
  • Industrial output contracted 0.7% in August, marking decline second month in a row. It has been attributed mainly to a sharp decline in capital goods and muted mining activity because of the monsoon. Capital goods declined by 22.2%


Tuesday-11th October 2016

  • Paytm will spin off its marketplace business next month, a top company source said, setting the stage for China’s Alibaba to establish a direct presence in the hotly competitive Indian online retail space.
  • Since scrapping off the flagship device of Samsung, Galaxy Note 7, Samsung share price plunged 8% in the market, causing the company to lose the valuation by $18.8 billion.
  • The investigation wing of the income-tax department has slapped notices on at least five persons in Mumbai, asking them to disclose details of their offshore companies and financial structures in four tax havens -Jersey , Guernsey , Isle of Man and British Virgin Islands.


Wednesday- 12th October 2016

  • Russian energy giant Rosneft PJSC and global commodities trader Trafigura Group Pte have acquired 49% and 24% stake respectively in Essar Oil refinery, effectively leaving about 10% stake for the promoters, Shashi and Ravi Ruia.
  • French car maker Renault’s best-selling small car Kwid hit a bump has the company has recalled more than half the cars sold in India so far to carry out a preemptive and voluntary inspection.
  • Subhash Chandra-promoted Zee Entertainment Enterprises has entered into a deal to acquire Anil Ambani-owned Reliance Broadcast Networks for a value  of INR 1,872 crores.
  • Stepping up investments on projects, state-owned BSNL will pump in about Rs 2,500 crore during the second half of this fiscal in various projects such as the expansion of wifi hotspots, installation of mobile towers and strengthen core network.


Thursday- 13th October 2016

  • Tata Consultancy Services’ Q2 revenue grew at its slowest rate  in over a decade and missed already-low expectations. Shares of TCS closed 1.95% lower at INR 2,334 on the National Stock Exchange before the results were announced.
  • An influential section of the government is pushing for an additional investment of INR 60,000 crores in the infrastructure. Roads, railways and rural electrification will be among the main beneficiaries.
  • ICICI bank has raised an amount of INR 4,000 crores via an issue of 7-year infra bonds. The move comes amid hopes of better credit growth during the busy season from October to March. The interest rate being 9.75% on such bonds.
  • PNB Housing Finance has received capital markets regulator Sebi’s go ahead to raise INR 2,500 crore through an initial public offering.


Friday- 14th October 2016

  • Anil Ambani-led Reliance Communications has entered into a deal with Canada’s Brookfield Infrastructure Group to sell a majority stake in the Anil Ambani company’s tower for INR 11,000 crores. Amount to be used to bring down debt. This caused a rise of 2.5% in the stock.
  • Infosys’ Q2 results saw revenue beating the market expectations but the company cut its full-year target for the second time this year. This caused a 2.5% decline in the share price of the company.
  • Saudi Arabia and Japan’s SoftBank Group will create a technology investment fund that could grow as large as $100 billion, making it one of the world’s largest private equity investors and a potential kingpin in the industry.


Source: The Economic Times


Reliance dominates news, Amazon’s​ new CMO, SEBI disappoints PSBs- Weekly Digest #14

Monday- 12th September 2016

  • The Government has shortlisted three merchant bankers , Citi, Morgan Stanley and ICICI Securities to divest minority stakes held in listed and unlisted companies through the Specified Undertaking of the Unit Trust of India (SUUTI).
  • To protect the consumer interests, India is looking to set a maximum cap for surge pricing  for cab providers such as Ola and Uber, especially in the economy segment.
  • Anil Ambani’s plan for Reliance defence may have to face a hurdle as bankers are now seeking his personal guarantee on loans to Reliance Defence and Engineering to replace that of former promoter Nikhil Gandhi. Reliance group took over Pipavav Defence from Gandhi last year and renamed it Reliance Defence.
  • Amazon India has appointed Ravi Desai of ITC as their Chief Marketing Officer, creating the position for the first time in the country as e-retailers anticipate stiff competition near the festive season.
  • Reliance Jio Infocomm announced that it has decided to raise an amount of INR 15,000 crores by the issue of 9% non-cumulative optionally convertible preference shares of INR 10 each for cash, at a premium of INR 40 per OCPS.


Tuesday-13th September 2016

  • To counter the competition due to the entry of Reliance Jio in the market, Vodafone is planning to infuse an amount of $3 billion as equity in its India unit to replace debt. Another reason being the upcoming sale of spectrum in the upcoming month.
  • Naspers-owned online payments service provider PayU has acquired Mumbai-based Citrus Pay for an amount of $130 million, marking one of the biggest deal in the emerging e-wallet market. It will create a new entity to compete with PayTm, Freecharge and others.
  • Amazon India has expanded its delivery network to 12,500 local stores and retail outlets in 50 cities to address both express and regular deliveries within a radius of 2 to 4 km. This comes ahead of expected competition due to the festive season.
  • Three foreign funds are looking to invest an amount of $250 million for a 30% stake in Edelweiss Asset Restructuring Company (ARC). This highlights a growing interest of foreign investors in Indian stressed assets


Wednesday- 14th September 2016

  • Sovereign wealth funds, private equity firms and family offices are in the race to acquire two Hotel Leelaventure Ltd properties, one in Delhi and the other in Chennai. The combined deal value would be about INR 3,000 crore.
  • Equitas, a new small finance bank is looking to prepay INR 3,000 crores of its existing loans to reduce the cost of funds.
  • SunPharma to initiate the buyback of its equity shares for INR 900 per share on 22nd September 2016 and will close the same on October 5 2016. The offer will be up to 75 lakhs shares, thus strengthing the promoters share in the company.
  • The Securities and Exchange Board of India (Sebi) has struck down requests of state-owned banks, such as State Bank of India, to sell perpetual bonds to smaller investors citing potential risks of mis-selling.


Thursday- 15th September 2016

  • Reliance Jio has accused Bharti Airtel, Vodafone India and Idea Cellular of rejecting most of the requests by customers to port their numbers to the Jio network. It wants regulators to impose a penalty for the same.
  • Delhi High Court refrained from passing an interim order on Britannia Industries’ plea challenging a single judge’s order restraining them from using the packaging of its ‘Nutri Choice Digestive Zero’ biscuits after it was sued by ITC as the packaging resembled that of Sunfeast ‘Farmlite Digestive All Good’ biscuits.
  • To lower its debts, Reliance Communication is now looking to narrow down its focus on completing the sale of its telecom tower and optic fibre assets. It has advanced negotiations with Canada’s Bakersfield for a value of $2.5-$3 billion.
  • L&T Technology’s IPO ended on Thursday, with the issue being subscribed 2.5 times. The IPO was for INR 900 crores for a value of INR 850-860per share.


Friday- 16th September 2016

  • Reliance Jio has shown his aggressive intent for the upcoming spectrum sale by depositing an amount of INR 6,500 crores ad EMD, which is almost equal to that of top telecoms combined.
  • The government has replaced SK Roy as chairman of state-owned Life Insurance Corporation of India with Managing Director VK Sharma. Roy had already submitted his request for voluntary retirement from the country’s largest insurer.
  • Intel to acquire Soft Machines,  Silicon Valley-based chip-design company founded by an Indian-origin entrepreneur for nearly $300 million. Cash component of the deal is expected to be $250 million and balance to be equity.
  • Shares of Reliance Industries (RIL), which has lagged the benchmark Sensex since 2008, moved to a 27-month high of . 1,093.25 on Friday as it has been continuously showing positive results.


Source: The Economic Times

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Jio’s Stellar Launch, Paytm raises funds,Cement companies fined- Weekly Digest #12

Monday- 29th August 2016

  • To acquire the UK and Irish business of Israeli generics maker Teva, last remaining contenders are two local companies, namely Aurobindo and Intas. Both the companies have submitted an offer of near $1 billion. The decision to be taken in a next few weeks.
  • Niti Aayog Vice-Chairman Arvind Panagariya has said in a statement that India’s economic growth will accelerate to 8% in the current fiscal year, owing to good monsoon policy reforms and PM Narendra Modi’s focus on implementation at the grassroots level.
  • Taiwanese company MediaTek is looking to invest an amount of INR 400 crores into India’s One97 Communications, which runs mobile payment and e-commerce platform Paytm. Its current capital is INR 2,000 crores, with leading investors being Alibaba, Alipay and SAIF partners.
  • DHFL has raised record sum on a single day by selling bonds through public issue. The subscription was opened for allotment for INR 10,000 crores bonds. The Issue was subscribed for INR 12,645 crores, setting a record for a private entity.
  • Indian Oil Corporation has reported a 25% in its net profit for the quarter ended June at INR 8,269 crore, attributed to increased inventory gain and expansion in petrochemicals margin. The bonus of one share for every share held was announced too.


Tuesday-30th August 2016

  • Stocks rallied on Tuesday as Sensex hits its 13 months high, while the Nifty hits its 16 months high. The total market capitalization of companies listed on BSE crossed INR 110 lakh crore to set a new record high. Maruti Suzuki and Bajaj Auto scaled lifetime highs.
  • E-commerce firms, including Urban Ladder, Zivame, FabAlley, and Yepme, are looking to convert themselves into a single brand retailer, taking benefits of the amendment brought in single-brand retail policy to allow foreign-funded retailers to sell in physical as well as online stores.
  • Mumbai-based online fashion rental portal Flyrobe raised an amount of INR 35 crores in its second round of funding. Funding was led by IDG ventures, with the participation of Tokyo-based Gree Ventures and existing investor Sequoia India.
  • Apple Inc was ordered to repay a record 13 billion euros plus interest after the EU said Ireland illegally slashed the iPhone maker’s tax bill by ‘selective tax treatment’. Both Apple and Irish Government are looking to challenge the decision, which can lead to a dispute with the US.


Wednesday- 31st August 2016

  • An official panel has ruled that Reliance Industries has made unjust gains by pumping natural gas that flowed from ONGC’s adjoining block but a proper inquiry is needed to ascertain if both companies knew about the connectivity of reservoirs and chose to conceal the information for years.
  • The Competition Commission of India has fined 11 cement companies of India and their lobby group Cement Manufacturer’s Association (CMA) INR 6,714 crores for alleged cartelization. The lobby group of these manufacturers guilty of facilitating price collusion.
  • India experienced the slowest Quarter 1 growth in 5 years at 7.1%. This has been attributed to  sluggish investments and farm output. However, the government is still confident to achieve the fiscal target of 8% for the year.
  • Sony Pictures Networks India (SPN) will acquire Ten Sports for INR 2,600 crore from Subhash Chandrarun Zee Entertainment Enterprises (ZEE). ZEE had paid $107 million to acquire Ten Sports from Dubai-based Abdul Rahman Bukhatir’s Taj Group.
  • RBL Bank made a stellar debut in the market, listing at INR 274.20, at a premium of near 22% from the issue price. The stock closed at INR 299.95 and hit the Intraday high of INR 305.50.


Thursday- 1st September 2016

  • Mukesh Ambani announced the much anticipated launch of Reliance Jio Infocomm’s services on Thursday, stating that the telecom will launch the services from 5th September. It plans to revolutionise the telecom industry by offering free calls and data at one fifth of the prevailing rates. All services to be free til 31st December 2016.
  • During the 45 minute launch of services of Reliance Jio, Bharti Airtel, Indea Cellular Services, and Reliance Communications slumped, as capitalisation of Bharti Airtel plunged by INR 9,800 crores and Idea Cellular’s by INR 2,450 crores.  Reliance Communications slumped 7% intraday.
  • Indian handset maker Lava has inked a joint venture with Easy Group, to sell its products in the markets of Egypt.The companies signed a memorandum of understanding (MoU) that will enable Lava to start exporting its products to Egypt, while Easy Group will provide necessary support to promote and distribute products in the country.
  • Realty developer Lodha Group has raised debt of INR 2,320 crore from Piramal Fund Management. The amount has been raised for a portfolio of projects in south and central Mumbai, including the World Towers.
  • With a brewing price war in the telecom industry, industry insiders and analysts predicting Bharti Airtel, Vodafone and Idea Cellular to slash their rates to respond to the enticing tariffs that Reliance Jio Infocomm is offering.


Friday- 2nd September 2016

  • Faulty battery is causing explosions in Galaxy Note 7, causing Samsung to recall all its models and launch a replacement program for the faulty models. Sales will be halted in the 10 countries in which it has been launched.
  • Launch of Reliance Jio and its strategy for free calls and cheap data will cause telecos to revise their strategy for the upcoming auction. They are expected to take more aggresive approach towards the auction to stay in competeion with price strategies of Jio.
  • The Tata Group filed an objection in the Delhi High Court to prevent enforcement of an international arbitration award in favour of Japan’s DoCoMo. This move is expected to reignite feud between the already sour realtions between the two companies.


Source: The Economic Times

Image: Wikipedia