Tag Archives: Wipro

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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Wipro lays off staff, Mallya Arrest and Release, Mistry’s woes continue- Weekly Digest #41

Monday- 17th April 2017

  • A senior official of the Finance Ministry said that after SBI merger, the government is looking to adopt a similar roadmap for other state-run lenders such as PNB and BoB including raising fresh capital and restructuring policies.
  • Citi has pointed out to the Finance Ministry that global banks and funds are taking advantage of India’s treaty with France to escape tax and effectively Paris is replacing Mauritius as Tax Haven.
  • NCLT has refused to grant a waiver to Cyrus Mistry’s family firms on the minimum shareholding requirement to petition against Tata Sons as they had alleged oppression of the minority shareholders.
  • The SC has directed the Bombay HC liquidator to begin the process of selling the Sahara Group’s Aamby Valley project following the company’s failure to pay ₹37,000 crore in dues to the SEBI. It has also asked group chairman Subrata Roy to appear in court in person and explain the failure to pay the due amount.
  • Daiichi Sankyo has objected to Religare Enterprises’ decision to sell its stake in Religare Health Insurance as it violates a Delhi High Court order in its legal tussle against former Ranbaxy promoters Malvinder and Shivinder Singh.

 

Tuesday- 18th April 2017

  • Vijay Mallya was arrested on behalf of Indian authorities by British police and received bail from a lower court in London the same day. However, this will begin the extradition process.
  • Tata Steel is planning to write a cheque of £520 million to its UK pensioners as a one-time settlement under a rarely used scheme, called the Regulated Apportionment Arrangement (RAA). The process is used to separate an employer from its pension scheme in circumstances where the employer would otherwise become insolvent.
  • Japanese company SoftBank Corp is considering an investment in Paytm owner One97 Communications for a 20% stake in the parent company.  This could up the valuation of the company to $7 billion.
  • RIL briefly surged past TCS to top the list of most valuable companies listed in India as it surged 1% early during the session. However, later due to sell-offs it could not retain its position as the share price tumbled by 1.48%. At the end of the session, m-cap of RIL was at  ₹4.45 lakh crore and TCS at ₹4.54 lakh crore.

 

Wednesday- 19th April 2017

  • After raising equity capital from marquee institutional investors, Aditya Birla flagship Hindalco has decided to pay off ₹6,800 crore to its lenders. This would be the largest loan prepayment to domestic banks by a corporate in India.
  • Holachef has raised $5 million in its Series B round led by existing investor Kalaari Capital. SIDBI Venture Capital and India Quotient also participated. This now values the company at ₹143 crores.
  • Yes Bank posted a net profit of ₹914.1 crore for the Q4, up from last quarter’s ₹702.11 crore on YoY basis.
  • Book publisher S Chand & Co is looking to raise ₹728 crore through an IPO which will open on April 26. The price band will be at ₹660-₹670 and lot size of 22 shares.

 

Thursday- 20th April 2017

  • Wipro Sacks 600 employees after a rigorous appraisal process.  Wipro said it undertakes a rigorous performance appraisal process on a regular basis to align its workforce with the business objectives, strategic priorities of the organisation, and requirements of its clients.
  • Flipkart has tightened return policy for several popular items sold on its platform as now return policy will not be applicable to electronics among other products. Only exchange policy will be applicable to them. This move is expected to cut costs but alienate customers.
  • The SC has allowed New Delhi Municipal Council (NDMC) to invite bids for the Taj Mahal Hotel situated in Delhi. If Indian Hotels will not be able to match the highest bid, then it will have to vacate the property within 6 months.
  • Conduent Inc has filed a lawsuit against outsourcing major Cognizant Technology Solutions alleging breach of contract and fraud action in a court in the state of New York. It seeks to recover damages of over $150 million.

Friday-21st April 2017

  • A research note, a part of Federal Reserve System’s series of International Financial Discussion Papers (IFDP)has estimated that implementation of GST will boost the economy’s GDP by up to 4.2%, or ₹6.5 lakh crore.
  • Cyrus Mistry has appealed the NCLT’s order this week dismissing his petition against Tata Sons to the appellate authority.
  • HDFC reported a Q4 profit of ₹3,990 crores, up from last year’s ₹3,374 crores on YoY basis. This has been attributed to exploit of digital technology to reach out to customers.

 

Source: The Economic Times

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