Weekly India Business News from (25th June – 29th June)

Read Weekly India Business News from 25th June to 29th June 2018.

india business news from 25th june to 29th june

Corporates:

– Asian Infrastructure Investment Bank shall invest $200 million in National Investment and Infrastructure Fund in 2 phases. It’s the largest investment of AIIB.

– Visa, the digital payments network, is close to investing around $250 million in BillDesk. BillDesk is the largest payment processing company in India. The funding will help BillDesk to further strengthen its position.

– Temasek Holding is set to unveil a $250-million stake (around 20%) buy in UST Global. The investment will make UST one of the largest privately held domestic technology services companies. UST Global plays on domain expertise in BFSI, retail and manufacturing and offers off-the-stack platform solutions.

– Hero cycles is planning for a Rs 250 crore investment for its Punjab factory. It is also working to sign around 10 Joint ventures in countries like Germany, China, Taiwan and Japan which will help Hero motors to be valued at Rs 3 trillion in the market.

– Reliance Industrial Investments Holdings may lend around ₹ 750 crores to Indian Film Combine Pvt. Ltd for corporate purposes. RIIHL had earlier acquired a 65% stake in the firm for ₹ 1,105 crores. The loan would, however, be disbursed in tranches.

– Morgan Stanley has raised close to $300 million in commitments for its India-focused infrastructure fund and is expected to make a formal first close soon. It is looking to raise around $600-700 million in total for the fund.

– The Government is in preliminary discussions with LIC for infusion of money in IDBI Bank. It would not be a stake sale but LIC would be able to use that amount to capitalize the bank to maintain its capital adequacy ratio.

– Jaguar Land Rover, owned by Tata Motors, shall invest Rs.1.2 Lakh Crore over the next three years. The funds will help the firm to stay ahead in the electric vehicle race from its rivals like Audi, Mercedes.

– Housing Development Finance Corp. and Kotak Bank are competing for a controlling stake in PNB Housing. PNB Housing and Carlyle want to sell 66% stake to a large investor and the deal may fetch around Rs.6000 Crores.

– DoT has given up hopes to recover Rs.6000 Crores from Aircel, which has a debt of around Rs.19,000 Crores just to the lenders.

– SigTuple, a Bengaluru-based health technology start-up, has raised $19 million in its Series B round of funding led by Accel Partners and IDG Ventures. The company has used AI to develop hardware and software to digitise pathological tests for hospitals and clinics.

– Policybazaar, which raised more than $200 million in a funding round led by SoftBank Group’s Vision Fund yesterday, is the latest Indian start-up to achieve the unicorn status. It currently accounts for nearly 25% of India’s life cover, and over 7% of India’s retail health insurance business.

– As per a report released by Knight Frank, a global consultancy firm, capital inflow into Indian real estate market saw a jump of 31% to $2.6 billion in 2017, primarily on the back of the government’s reforms initiatives and new regulations.

– The International Solar Alliance is planning to approach multilateral development banks such as Asian Infrastructure Investment Bank to create an SPV to specifically finance solar projects. The SPV, aimed to finance $150 billion, would become a World Solar Bank.

– Reliance Jio has raised a $1 billion equivalent term loan facility from Korea Trade Insurance Corp. to finance procurement of goods and services from Samsung Electronics and Ace Technologies. The facility is K-SURE’s largest deal in India as also the largest deal supported by K-SURE in the telecom sector, globally.

– United Spirits has picked up 26% equity stake for ₹27 crore in HipBar, a payment technology start-up, which caters to alcoholic beverage market through its mobile wallet and delivery app. HipBar will continue to be run as an independent enterprise.

– Apple has started commercial production of iPhone in India since last week at the Bengaluru facility of Wistron. The move is to insulate phone from any changes in import duties as also to help the company consolidate market share.

– Tata Steel plans to buy an additional 2.5 percent stake in Bhushan Steel from lenders, taking its stake from 72.65 percent to over 75 percent. This would make the merger with Bhushan Steel easier.

– Tata Steel plans to buy an additional 2.5 percent stake in Bhushan Steel from lenders, taking its stake from 72.65 percent to over 75 percent. This would make the merger with Bhushan Steel easier.

– Australian asset manager Macquarie has moved NCLT to start insolvency proceedings against Ind-Barath. Macquarie had given a loan of Rs780 crore to Ind-Bharat against convertible bonds to build a 700-megawatt thermal plant in Odisha and help existing investors exit. Macquarie now owns more than 99% stake in the firm.

– Idea Cellular’s shareholders have approved a change in the name of the company and issue of non-convertible securities.

– IndusInd Bank has signed a Share purchase agreement with Infrastructure Leasing and Financial Services and other minority shareholders to acquire 100% of IL&FS Securities Services Limited. This will help IndusInd Bank increase its capital market business and bring new specialized products.

– DBS bank of Singapore will launch its subsidiary in India this October. It is further looking to add 50 branches and 70 banking outlets over the next one year.

– Government officials have refused to use electric cars made by Mahindra, Tata Motors as it failed to run even 80-82km on a single charge within the city.

– Google has announced the rebranding of its advertising software by retiring DoubleClick and AdWords brands in order to streamline entry points for advertisers and ad sellers. The basic tool for buying ads will now be called Google Ads.

– JSW Steel has invested $1 billion in the US and says that it is looking for more deals in US and Europe to expand its global footprint. JSW Steel is also planning to invest Rs7,500 crore to expand its Vijayanagar facility which will improve hot metal availability.

– Google has announced the launch of “Launchpad Accelerator”, an accelaerator programm to support game developers in India and Southeast Asia. The program will help them build, scale, launch, and market next generation mobile games.

– Zomato has launched operations in 25 new cities across India. With this, the firm is now present in 63 cities in India.

– As part of the rationalization of overseas operations, SBI will either close down small branches or merge two-three branches into one at some foreign locations. SBI has operations in around 36 countries having nearly 190 branches.

– IRDA, in order to let LIC buy IDBI Bank, may grant exemptions to the Insurance Act, which prohibits an insurer from acquiring more than 15% stake in any company.

– Mindtree founders may sell their entire stake to NEC Corp., a private equity firm. Their 13.35% stake is valued at ₹ 2,087.15 crores at current share price. Rest of the company remains with the public.

– Microsoft is in talks with InMobi to serve ads on Bing globally. InMobi has a reach of over 1.5 billion mobile users globally and expertise in mobile video ads. Bing powers a third of desktop searches in the US.

– Jio is planning to offer online tutorials and vocational training programs to help tie in long-term revenue for the firm.

– Jio has overtaken Vodafone to become 2nd largest carrier by revenue in Indian telecom space. It generated revenues of Rs.6,217 crore in the quarter ending March 2018.

– WOW Express, the e-commerce delivery platform, has raised Rs.30 Crore from its existing investors, Tamarind Family Trust. WOW express does 20,000 shipments per day and its clients include Nykaa, Amazon, Limeroad, Tata CliQ among others.

– Walmart is bringing together a bunch of companies at Flipkart to fight two of its common global enemies; Amazon and Alibaba. Walmart retained Tencent Holdings and Microsoft as Flipkart investors and is in talks to also bring in Google as an investor.

– The transaction between Reliance Infrastructure and Adani Transmission for 100% stake sale for an estimated value of Rs18,800 crore, received a nod from Maharashtra Electricity Regulatory Commission and is expected to be closed in July 2018.

– The digital payments industry will seek access to Aadhaar database from UIDAI for customer authentication. The move is to comply with the stringent customer verification rules set by RBI.

– As per the official annual data released by Swiss National Bank, money parked by Indians in Swiss banks rose over 50% to CHF 1.01 billion (Rs.7,000 crore) in 2017.

– Cashify, an online used-phone seller, has raised $12 million in a funding round led by CDH Investments and Morningside Ventures along with AiHouShou. Cashify will now also focus on building its offline presence by partnering with small vendors.

– KaiOS Technologies, developer of KaiOS operating systems for smart feature phones, has raised $22 million from Google. Now Google maps, Google assistant, Google search and YouTube will be available on its platform.

Policies & Practices:

– To aid economic growth, GST Council will consider a proposal in its 19th July meeting to reduce GST rates to 18% from 28% on more items used in construction. If the GST Council approves the proposal, it could be a shot in the arm for both homebuyers and builders.

– Now Insurance firms will be able to decide on the hereditary commissions in life insurance. Once they leave the insurer, agents or their nominees will no longer automatically be entitled to commissions for the insurance policies they sold. The company will decide whether to pay or not.

– With the aim of strengthening the governance in these banks, RBI has come out with draft guidelines on constituting a board of management (BoM) for urban cooperative banks, which will be responsible for credit, risk and liquidity management of the bank.

– NCLAT has refused to direct Mumbai bench of NCLT to defer its pronouncement on SBI’s appeal seeking initiation of insolvency plea against Uttam Value Steel and Uttam Galva Metallics Ltd. NCLT is set to pronounce its order on the admission of SBI’s insolvency plea on 26 June after it was reserved earlier this month.

– FSSAI has recommended amendment in the present state food safety law to curb food adulteration and introduced imprisonment and penalty up to Rs 10 lakh for the same.

M&As:

– The merger of Idea and Vodafone may not meet the expected 30 June timeline as DoT is looking to raise a fresh demand of around Rs4,700 crore related to one-time spectrum charges.

– Sebi has ordered Vishvapradhan Commercial (VCPL) to make an open offer for NDTV within 45 days, which it failed to do after it indirectly acquired majority control of NDTV in 2009 after advancing  Rs 350-crore convertible loan to the promoters of NDTV.

– RBL Bank acquired the remaining 39.52% stake in Swadhaar Finserve Pvt. Ltd from US-based non-profit organization Accion. The acquisition has increased its total holding in the firm to 100%. Swadhaar has a network of 331 branches customer base of 750,000.

– Brookfield Asset Management is looking to increase its focus on renewable energy in India. The firm has so far been focussing largely on the real estate and roads segment. Brookfield Last year Renewable Partners closed 100% acquisition of TerraForm Global Inc. for $750 million.

Start-ups:

Ongoing cases:

– Within days of receiving a whistleblower’s complaints, RBI has initiated a second probe into the affairs of ICICI Bank for allegedly delaying provisioning for stressed loans, among other wrongdoings. The latest revelations have raised serious questions about corporate governance practices, transparency and Chanda Kochhar.

– The board of PNB Housing Finance has approved the proposal to raise Rs.10,000 Crores by way of public issue of secured and /or unsecured non-convertible debentures.

– Go Air said that it would like to pursue the case against Wolfgang Prock-Schauer, the former CEO, as he has taken away confidential data along with him.

– PNB Fraud- Belgium Ambassador has assured cooperation in extraditing Nirav Modi.

– Infosys, in connection to the whistleblower complaint, said that it has sufficient time to file the key US regulatory documents and the filing shall be done within “stipulated time”. It further said that the “speculations” are “baseless and incorrect”.

– Fortis Healthcare has once again deferred the approval of Annual Financial Results for the period ending 31st March 2018 saying that the issue requires more deliberation.

– After receiving in-principle approval from PM Narendra Modi to sell Air India building at Nariman Point, Mumbai, the Government has started discussions for its sale with JNPT, India’s biggest container port.

– An investigation into the accounts of Fortis Healthcare by Luthra and Luthra has concluded that Malvinder Singh and Shivinder Singh are to blame for mismanagement of company’s finances. Systematic lapses were found in inter-corporate deposits and the company has initiated legal action for the recovery of the outstanding ICDs and other advances from Singh brothers. Meanwhile, a unit of Fortis Healthcare found that it has granted loans worth Rs 445 crore to three firms affiliated to Singh brothers—Malvinder Singh and Shivinder Singh without the approval of the board and despite objections from the management.

– A third whistleblower has complained that ICICI bank has inflated the profits by $1.3 billion over 8 years by delaying provisioning for 31 NPA accounts. It accused top executives of breaching wilfully the rules.

– Bhushan Steel update – Liberty House has been disqualified by the lenders as it failed to provide critical information on funding arrangement for acquiring the firm.

– Fortis case – Sebi has ordered a forensic audit and Serious Fraud Investigation Office into the affairs of Fortis on suspicion of financial fraud of around Rs.473 crore. Fortis is in the process of recasting Board of its unit SRL Diagnostics after removing Malvinder Singh, who has been accused of misusing company funds.

– PNB fraud- ED has filed a charge sheet against Mehul Choksi and 13 others, including five companies. Mehul Choksi moved an application before a special court in Mumbai seeking cancellation of a non-bailable warrant issued against him, citing the reason of his inability to travel because of his medical conditions. He also cited that his case was completely different from that of Nirav Modi.

People:

– Sanjay Kumar, the chief commercial officer of IndiGo, has resigned, less than two months after the president and whole-time director Aditya Ghosh put in his papers. William Boulter will now take over from him.

– ITC group shall extend the tenure of Y C Deveshwar by two years. He was earlier appointed as non-exec chairman until 2020.

– SBI Managing Director, B. Sriram, has resigned after his appointment by the Government as chief executive of IDBI Bank for a temporary period of three months.

– Anand Mahindra, the Chairman of Mahindra Group, took to Twitter and asked people to suggest him a ‘desi’ name for Mahindra’s next car.

– CBI has filed charge sheet against two ex-chairmen of Canara Bank, AC Mahajan and SR Raman in connection with Rs.146 Crore loan default by Winsome Diamonds

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