Tag Archives: Reliance

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
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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
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US Election Jitters, Government fines RIL, Air Asia accused- Weekly Digest #21

Monday- 31st October 2016

  • After allegations by the ousted Tata Sons chairman, Cyrus Mistry, regarding irregular personal expense claims and certain company charges in AirAsia India, the airline owned by Tata Sons and Malaysia’s AirAsia Bhd, AirAsia India said it will take strict action against anyone found guilty in the ongoing probe.
  • Ap per latest data released by SEBI, Mutual funds have pumped in over INR 8,000 crores in equity markets this month, taking the total investment to more than INR 21,000 crores so far in the current fiscal.
  • Brickwork Ratings has revised outlook of Tata Steel to negative while revising the ratings of its NCDs worth INR 6,500 crores. It has cited the reason as  “heightened management risk” following the release of Cyrus Mistry.
  • Halfway through the Fy 2016-17, the government has run up a fiscal deficit of 83.9% of the full-year budget estimate. This has been largely on account of  lower non-tax revenue growth.

 

Tuesday-1st November 2016

  • Airtel has entered into a deal with Nokia to acquire and implement voice-over-LTE (VoLTE) calling technology which may be launched within this year. The deal has been valued at $60 million.
  • Passenger vehicle sales in the local market are estimated to have expanded 5% in October, a pace which has been considered healthy by the industry.
  • Enterprise software maker Freshdesk has raised $55 million in a new round of funding led by Sequoia Capital India, along with existing investor, Accel Partners.
  • Twitter India Head Rishi Jaitly announced his exit after a 4-year tenure as the head. Jaitly said he is quitting for “a personal civic calling“ in Chicago.

 

Wednesday- 2nd November 2016

  • Indian stocks slumped on Wednesday concerning the tightly contested US presidential elections. Earlier the market had perceived Clinton as ahead in the race. However, latest polls showed a different image, causing a volatility in the market which led to Sensex slipping by 350 points.
  • S&P Global ratings have ruled out an upgrade on India’s rating for the next 2 years. It is still stable on its `BBB-‘ long-term and `A-3’ short-term sovereign credit ratings.
  • Bajaj Auto, India’s second-largest motorcycle maker is likely to reach 2.4 million units in sales in FY17, on the back of strong double-digit sales during the festive season.

 

Thursday- 3rd November 2016

  • India finalized a four tier Goods and Services tax structure, with slabs being 5%, 12%, 18% and 28%. The rate for precious metals such as gold has not been decided yet and it will be the 5th rate, apart from the four mentioned above.
  • The Specified Undertaking of the Unit Trust of India (SUUTI) has initiated  the sale of government’s stakes in various companies by selling 3% stake in Larsen &Toubro worth INR 4,000 crore. The sale will be held by block deal on Friday.
  • Housing Development Finance Corp (HDFC) and ICICI Bank reduced their home loan rates by 15 basis points each. SBI had announced rate cuts the previous day.
  • Since its second quarter results on October 21, Mindtree has witnessed 11% fall in 9 trading sessions, reaching a 52 week low of INR 425.
  • Bharti Airtel is set to receive $129 million from Zain Telecom to settle the Indian telco’s claims around litigation in Nigeria and other tax matters.

 

Friday- 4th November 2016

  • The government has asked Reliance Industries to pay about INR 10,000 crores for pumping out gas that flowed through field owned by ONGC. It has been given one month’s time to respond.
  • After a positive start, GST council has failed to reach a unanimous decision on the distribution of administrative power between center and state. The council is to meet again on 20th November to sort out the issue.
  • Heightened nervousness around the outcome of the US Presidential election outcome next week dragged down Sensex by 156 points to 27,274 points. Nifty ended at 8,434.
  • Following the news that US authorities could file charges against generic drug makers on suspicion of price collusion, shares of domestic pharma companies stumbled. Sun Pharmaceutical shed 7.41% to end at INR 652.

 

Source: The Economic Times

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Surgical Strike’s Impact, RIL all time high, ICICI Prud Life weak debut: Weekly Digest #16

Monday- 26th September 2016

  • The world’s biggest retailer Walmart Stores is exploring an equity partnership with Flipkart to take on common rival Amazon in India. The companies are engaged in early talks and a meeting is scheduled this week.
  • Godrej Consumer Products has filed a case against former managing director Arumugham Mahendran in the Bombay High Court, accusing him of breach of trust by misusing classified information for his insecticide business that will compete with Godrej brands Good Knight and Hit.
  • Zomato has acquired logistics technology startup Sparse Labs, as it looks to improve the delivery experience for consumers. The financial details of the transaction were not disclosed.
  • Shares of Reliance Industries (RIL) hit a seven-year high on the National Stock Exchange on Monday at INR 1,129.Experts said the rally is not over yet.

 

Tuesday-27th September 2016

  • A decade after the Ambani brothers split, Reliance Communications (RCom) Chairman Anil Ambani announced that his telecom company has “virtually“ merged with Reliance Jio Infocomm, owned by elder brother Mukesh.
  • Air India’s turnaround -announced by Prime Minister Narendra Modi in his Independence Day Speech -seems unlikely, as the national carrier has reported operating loss of INR 246 crore during the first quarter of the current fiscal.
  • State-run Coal India plans to repurchase 1.7%, or INR 10.89 crore shares in the mining company at INR 335 each. Of the total shares it is aiming to buy back, 15% has been earmarked for purchase from small shareholders.

 

Wednesday- 28th September 2016

  • Exactly a year after strengthening regulation of the 13-year-old commodity derivatives market, the Securities and Exchange Board of India (Sebi) has taken the first steps towards its growth by allowing exchanges like MCX and NCDEX to launch options in commodities.
  • MRF became only the third company in the country’s stock market history to break past the INR 50,000 per share mark on Wednesday as an all-around rally in tyre stocks helped the Chennai-based firm to outperform the Sensex and Nifty in 2016.
  • The Union Cabinet has approved strategic disinvestment of Bharat Pumps and Compressors and closure of Hindustan Cable.
  • The Cabinet has approved an INR 2,256-crore makeover of the IT  backbone for indirect taxes in anticipation of the Goods and Services Tax.

 

Thursday- 29th September 2016

  • Following a surgical strike by India in the PoK, benchmark indices dropped by 1.6% -their biggest single-day fall in three months. The rupee also weakened 0.6% to INR 66.86 against the dollar.
  • Unocoin, a Bengaluru-based Bitcoin startup, has raised $1.5 million in a funding round from Blume Ventures, Mumbai Angels and ah! Ventures along with international investors such as Digital Currency Group, Boost VC, Bank to the Future and FundersClub.
  • Amidst a selloff trend in Indian equity markets, NSE-listed Jubilant Life Sciences has raised $300 million through a sale of unsecured bonds by its pharmaceuticals arm in Singapore, according to people directly familiar with the details of the offering.
  • Shares of ICICI Prudential Life Insurance Company extended their losses and ended 11% down at Rs 297.65 after debuting at a discount to its issue price on Thursday. The issue price was INR 334 per share.

 

Friday- 30th September 2016

  • The Goods and Services Tax (GST) Council approved draft rules for the proposed levy and agreed to a refund mechanism for central and state tax holidays that will continue under the new GST regime. India’s biggest indirect tax reform is set to roll out by April 1 next year.
  • The Directorate General of Civil Aviation has allowed use and in-flight charging of Samsung’s Galaxy Note 7 manufactured after September 15 after the ban was put on the same following incidents of the battery getting blasted while it was charging.
  • Stepping up action in the Rs 5,600-crore NSEL money laundering case, the Enforcement Directorate today attached assets worth INR 1,170 crore of Financial Technologies India Ltd (FTIL).
  • State oil firms have raised the price of petrol by 28 paise and cut that of diesel by 6 paise.The new prices will be effective Saturday, Indian Oil Corp said in a statement.

 

Source: The Economic Times

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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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