Here are the Business Headlines as on 16th May 2017:
- Indian companies raised Rs 6.41 lakh crore last FY through private placement of corporate bonds for expansion of business plans, repayment of debt and to support working capital requirements. This shows a surge of 40 per cent from the preceding year.
- The government has fixed at Rs 5,000 as the levy on scheduled flights, (being charged from the airlines flying on major routes), to fund its regional connectivity scheme ‘UDAN’. The levy will be applicable from June 1, 2017.
- After Dena Bank declared Videocon NPA, the company plans to use profits from its overseas oil and gas assets and selectively divest its domestic consumer durable business to repay debts. The company has debts of Rs 44,000 cr despite Rs 20,000 cr asset sales in last three years.
- With the Real Estate Act, or Rera, implementation in many states, leading developers or those promoted by corporates are seeing a surge in requests for buyouts and joint ventures from smaller and stressed companies. There has been a significant jump of in the number of such proposals in recent months.
- In the largest private equity deal in the logistics space, the Canadian pension fund manager Canada Pension Plan Investment Board (CPPIB) and IndoSpace, promoted by PE firm Everstone and US-based Realterm, have entered into investment deal of $1.3 billion (Rs 8,320 crore). In the joint venture, called IndoSpace Core, CPPIB will invest $500 million (Rs 3,200 crore) and get a majority stake.
- Due to growing competition and decline of 3% in growth in the March quarter, Colgate is set to ramp up its herbal portfolio.
- Netflix, the world’s leading video-on-demand (VOD) service, proposes to set up a production facility in India. Their rival, Amazon Prime Video has lined up 18 original shows for India.
- Flipkart-Snapdeal merger update : Several important investors have yet to sign on to the Flipkart-Snapdeal deal, including the family offices of Azim Premji and Ratan Tata.
- International Finance Corp. (IFC), the private sector investment arm of the World Bank, has proposed to invest up to $100 million in securities issued by Mahindra and Mahindra Financial Services Ltd via five-year non-convertible debentures.
- 66.3% internet users reside in non-metros out of a total of 46.5 Crore users as projected by Ministry of Electronics & Information Technology. Approx. 40 Crore users access internet on mobiles.
- AIOVA (All India Online Vendor Association), a body of over 2000 online merchants who sell on multiple e-commerce platforms, raises concerns about payment of dues from Snapdeal and writes to MCA Secretary and Commerce Ministry.
- One97 communications, Paytm’s parent company, is now owned to the extent of 45% by Chinese Companies Alibaba and its payment affiliate AliPay.
- Fashion marketplace Fynd has raised $500,000 from US-based investor Rocketship. It had earlier raised $500,000 from Venture Catalysts in March.
- Niki.ai, founded by IIT Alumini, has attracted 1st investment in India from SAP.iO, the fund launched by SAP. Niki.ai is backed by Ratan Tata.