Tag Archives: SBI

Jio to rollout broadband, Rupee hits all time low, a hope for recovery for SBI- Weekly Digest #65

Monday- 2nd July 2018

  • Anil Agarwal’s Volcan Investments, the holding company of Vedanta Resources Plc, has announced its plans to acquire 33.5% of the public shareholding and delist the group flagship company from the London Stock Exchange (LSE). The transaction is expected to cost Volcan $1.1 billion.
  • The SEBI has directed ICICI Prudential AMC to pay ₹240 crore, the amount of the bids made on the final day of the ICICI Securities IPO to all the five schemes that subscribed to it. The amount would have to be paid with 15% interest p.a.
  • Railway consultancy firm RITES made a strong debut on the stock exchanges. It got listed at ₹190 on the BSE, over its issue price of ₹185 and closed for the day at ₹212.7.
  • Competition Commission of India has cleared the merger of Bharti Infratel with Indus Towers, which will create a $14.6 billion company which will have 1.63 lakh towers worldwide.

 

Tuesday-  3rd July 2018

  • After witnessing a slew of exits, restaurant discovery and food-delivery firm Zomato, in order to strengthen its top management has brought on-board former COO of MakeMyTrip, Mohit Gupta as the CEO of its food- delivery business.
  • IHH Healthcare Bhd and Manipal Health Enterprises backed by TPG Asia are left in the race to acquire India’s second-largest hospital chain, Fortis Healthcare. This comes after withdrawal of Sunil Kant Munjal of Hero Enterprises and the Burman family of the Dabur group besides Radiant Life Care.
  • The rupee made a strong comeback against the US currency, rising by a steep 23 paise to end at 68.57. Heavy intervention by the Reserve Bank along with the positive trend in local equity markets largely supported the home currency.
  • Due to talks about the TATA group possibly merging its food businesses into a single company to put more focus on the FMCG segment, the group stock saw a general lift. Shares of Tata Coffee jumped nearly 13% to ₹12.86, while beverage company Tata Global surged 6% to ₹280.95.

 

Wednesday-  4th July 2018

  • Biyani’s Future Lifestyle Fashion to buy nearly 30% in Koovs for about ₹140 crore. The transaction is expected to make the Future Group the largest shareholder in the AIM London-listed fashion e-commerce company.
  • Shriram Transport Finance shares fell 12% amid concerns of a potential loss after it disclosed an off-balance sheet exposure of ₹870 crore to a group company. The share price closed at ₹1,144.85 on BSE.
  • Hong Kong-headquartered brokerage CLSA has removed ICICI Bank, Zee Entertainment Enterprises and Ramco Cements from its model portfolio and added weight to Sun Pharma and Maruti Suzuki India. The foreign brokerage said the changes were in line with its cautious view on equity markets.
  • CDC Group, the UK Government-owned private equity company, has invested ₹325 crore in rupee-denominated masala bonds issued by IIFL Finance, reflecting increasing investor interest in domestic nonbanking companies.

 

Thursday- 5th July 2018

  • Reliance Industries chairman Mukesh Ambani unveiled the group’s ambitious plans for a fibre-based home broadband service which will be rolled out across 1,100 cities and target 50 million homes. This triggered a sell-off in the shares of cable companies amid anticipation of disruption, with the share price of RIL falling 2.5% to ₹965.
  • After the announcement of Reliance Jio to spread to the cable TV and broadband space, Hathway’s scrip crashed 15.4% to close at ₹20.6 apiece on the BSE, DEN Network’s shares closed 10.7% down at ₹66.55.
  • The valuation gap between TCS and Infosys reached its widest after the latter’s stock closed 4.5% lower at ₹1,284.5 on the BSE. The stock of TCS touched a 52-week high of ₹1,887.
  • The rupee fell for the second straight session to hit a fresh closing low of 68.95, sliding by 21 paise. This has been due to a panic demand for the US dollar coupled with savage capital flight worries.

 

Friday- 6th July 2018

  • India has rejected the Chinese government’s request to allow its carriers to add more flights on the India-China route after strong opposition from Indian carriers which felt that the move would jeopardise their own expansion plans.
  • A UK Court has ruled in favour of Indian banks by granting permission to local authorities to enter the estate of Vijay Mallya and seize possessions. This gives SBI another hope to recover their dues. 
  • Care has upgraded Yes Bank’s credit rating to the highest AAA from AA+ for infrastructure bonds and tier-II bonds. The rating upgrades reflect the bank’s “robust financial performance, creditworthiness, and increasing share of current and savings account (CASA) as well as retail deposits.
  • RKM PowerGen, Jaiprakash Associates, IL&FS and MB Power are among seven companies that have bid the lowest in an auction of three-year power supply contracts with stressed plants, quoting a price of ₹4.24 per unit.

 

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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FIIs invest in HDFC, Tata Motors shocking Quarter, SBI merger approved- Weekly Digest #35

Monday- 13th February 2017

  • Infosys CEO, Vishal Sikka, denied the involvement of any wrongdoing in the $200 million acquisition of Panaya, saying that the company has been a victim of malicious rumours.
  • GIC of Singapore is in talks with promoters of DLF Limited, KP Singh and his family to acquire their 40% stake in DLF Cyber City Developers Limited for a value of ₹12,000 crores.
  • DSP Blackrock Microcap, a small capital mutual fund, has decided to stop fresh inflows after February 17. Earlier, lump sum investments had been restricted to ₹1,00,000 per person.
  • Motherson Sumi Systems reported a Q3 profit of ₹416 crores, a 34% increase on a year-to-year basis.

 

Tuesday- 14th February 2017

  • Infosys chairman R Seshasayee informed the investors about his talks with the founders of the company which was aimed at ensuring that the dispute did not spill over media.
  • Vodafone India has awarded a 4G contract to Swedish gear maker, Ericsson for UP West, Rajasthan, Odisha, North East and Assam telecom zones for a value of $300 million.
  • Tata Motors posted a Q3 profit of ₹112 crores, down by 96% from last year’s profit. This has been attributed to demonetization, lower wholesale volumes at Jaguar Land Rover and higher expenses.
  • Telecom Regulatory Authority of India (Trai) has directed Videocon Telecom to continue its mobile services operations in Punjab and maintain the quality of service until the time its licence is operational or valid, rejecting the telco’s decision to shut services from February 15.

 

Wednesday- 15th February 2017

  • The Cabinet approved a proposal to merge the five subsidiaries of State Bank of India with the parent. This will enhance dominance of India’s largest bank as combined entity will have over 23,000 branches all over the country.
  • Private equity firm Warburg Pincus is in advanced negotiations to acquire a significant minority stake of up to 40% in Tata Technologies for around ₹2,300 crores
  • Shares of Intellect Design Arena fell up to 12% on Wednesday to touch a 52-week low after investor Rakesh Jhunjhunwala and his wife Rekha sold more than 42 lakh shares in the company through bulk deals.

 

Thursday- 16th February 2017

  • TCS announced that it is considering a buyback of its shares next week. This move comes after rival Cognizant adopted similar policies. TCShad $5.69 billion in cash and cash equivalents and investments on its books as of December 31 last year.
  • Havells India is in talks with Llyod Electronics to acquire the latter’s consumer durables business for a value of ₹1200-1500 crores.
  • Housing mortgage company Indiabulls Housing Finance and oil marketing major Indian Oil Corporation will replace BHEL and Idea Cellular in NSE’s benchmark index Nifty. The changes will come into effect on March 31, 2017.

 

Friday-17th February 2017

  • Foreign Investors invested an amount of ₹8043 crores in HDFC Bank as RBI lifted FII investment restrictions on HDFC Bank. The stock rose to ₹1,450 but slipped later on as RBI clamped down FII buying as it cannot exceed 74% as per the rules framed on this behalf.
  • UK’s Vodafone Groups is seeking help from Marten Pieters, the former CEO of its Indian arm to stir up the process of Vodafone and Idea merger.
  • Hindalco is planning to raise funds through qualified institutional placement (QIP) to raise ₹3,500 crore. Hindalco postponed its capital raising plans at the last minute in July-August 2014 due to poor market sentiment.
  • Sensex and Nifty closed at 28,469 and 8,822 respectively, hitting their 5 months high due to strong FII in HDFC Bank.

 

Source: The Economic Times
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