Here’s a roundup of all the India business news that created the buzz in India this week: India business news headlines weekly roundup 13th to 17th May
- The Board of Infosys has approved granting of annual performance-based stock incentives worth Rs.10 crore to its CEO Salil Parekh. It has also approved giving company stocks worth Rs.4 crore to U.B. Pravin Rao, the COO. The company has decided to give shares worth Rs.3200 Crores to its employees depending upon their performance.
- Tata Global Beverages will be renamed as Tata Consumer Products.
- National Consumer Disputes Redressal Commission has held that if the delivery of property is delayed by the builder by more than one year, the homebuyers can claim a refund from the builder.
Some more news from Corporates
- Amazon is encouraging Indian sellers to sign up for selling on its UAE platform. Amazon recently acquired Souq which has been rebranded as amazon.ae.
- Panasonic is planning to generate around Rs.700 crore revenue by 2021 from its energy-related vertical.
- Panasonic is also planning to set up around one lakh charging stations and telematic solutions across 25 cities in India by 2024.
- IndiGo founders, Rakesh Gangwal and Rahul Bhatia, have hired law firms to pre-empt their differences over a shareholders’ agreement which expires later this year and has emerged as one of the main causes of difference.
- UrbanClap has reported unaudited revenue of Rs.116 Crores in fy 18-19.
- Paytm founder Vijay Shekhar Sharma has informed that the recent fraud of cashbacks of around Rs.10 Crores at Paytm Mall involved hundreds of sellers and tens of employees.
- Apple has started rolling out its TV app in over 100 countries including India. The App would run across devices, including iPhones, iPads, Apple TVs and Samsung smart TVs that are part of its 2019 line-up.
Also read: The journey of Oberoi Group of Hotels
There’s more in India business news headlines weekly roundup 13th to 17th May
- Paytm has launched a credit card with Citigroup expecting it may help Paytm stay ahead of rivals in the Indian digital payments market.
- NCLAT has refused banks plea to stay voting by the creditors’ panel of Jaypee Infratech on the revised offer of NBCC.
- Fortis Healthcare has submitted an affidavit in the Delhi High Court informing it of Sebi’s order to recover Rs.403 crores from Singh brothers who allegedly diverted funds.
- HUDCO has approached NCLAT to recover its ₹60 crore loan from Vikram Bakshi.
- Xiaomi is planning to set up vending machines to sell its mobile phones and mobile accessories in India. Consumers will be able to purchase the products and pay through debit/credit card, cash or UPI.
- Sebi has reportedly issued show-cause notices to HDFC and Kotak Mahindra Mutual Funds asking for details about their investments in Essel Group.
- To simplify its corporate structure, Tata Group will bring all its FMCG businesses under one firm.
- SBI has offloaded its ₹929-crore exposure in Indian Steel Corp. to India Resurgence ARC, a 50:50 joint venture between Piramal Enterprises and Bain Capital Credit, to recover ₹362 crore in cash.
- IBM is said to have sacked 300 employees from its Services division, majorly from software services roles. The firm says it is looking to reinvent itself to meet changing user demands.
- NCLAT has dismissed a plea of Ramco Systems for the initiation of insolvency proceedings against Spicejet for want of proof of debt and default. Ramco Systems had created an ‘Aviation Software Solutions’ for Spicejet in 2014.
More in India business news headlines weekly roundup 13th to 17th May
- The Competition Commission of India has ordered an investigation into alleged abuse of the dominant position by Google of its popular Android mobile operating systems to block rivals.
- Lenders of RCom are likely to claim their dues of around Rs.90, 000 Crores. The amount is almost double what is said to be in the books of RCom.
- Crisil has downgraded the rating of Dewan Housing Finance Corporation’s commercial papers worth Rs.850 crore to “A4” for a more-than-expected reduction in the firm’s liquidity.
M&As and tie-ups
- Mahindra Partners has acquired a stake in eye care chain, Centre for Sight, for Rs.206.5 crore from Matrix Partners.
- Facebook India has partnered with creative agencies to launch an initiative called ‘Thumbstoppers’ to boost 10-sec short-form mobile video advertisements.
- Ola has launched a credit card in partnership with Visa and SBI.
- Taco Bell is set to scale up its presence in India and has tied up with Burman Hospitality as its India master franchise partner. It plans to open 600 restaurants over a period of 10 years. India’s quick service restaurants market was estimated at ₹32,880 crore in 2018.
- Goldman Sachs Group has agreed to buy United Capital Financial Partners for $750 million. United Capital is said to have 22,000 clients and $25 billion of assets under management in its portfolio.
Start-up world, funds, funding and investments
- Locus, a Logistics management software start-up, has raised $22 million in a Series B round of funding led by Tiger Global and Falcon Edge.
- HYPE Technologies, a luxury car rental startup, is in early talks to raise around $25-30 million in funding, from VCs and car makers including BMW and Mercedes. Reportedly it had gross revenue of $400,000 in fy 18.
- Accor Hotels group is reportedly in talks with Treebo Hotels to invest around $50 million.
- Falcon Edge, a New-York based investment firm, may invest around $30 million in Stanza Living, a student accommodation venture.
- Grofers has raised $220 million from SoftBank Vision Fund and other investors in a series F round of funding.
- Cars24 is in the final stages of a fresh funding round of around $70-80 million.
- InnoVen Capital has raised $200 million in equity from its shareholders Temasek and United Overseas Bank. InnoVen offers debt to start-ups across India, China, and Southeast Asia. Firm’s portfolio includes Swiggy, Oyo and Byju’s.
- JP Morgan has made an undisclosed investment in Global PayEx, a provider of electronic invoice presentment and payment and B2B payments space.
- Morgan Stanley India has committed to invest Rs.145 crores in Manipal Health Enterprise. The tie-up involves an investment of ₹100 crore in Healthmap, a Public Private Partnership for diagnostic imaging.
Practices & Policies
- Ministry of Corporate Affairs has amended the rules pertaining to the incorporation of companies to provide more clarity and uniformity in choosing company names.
- A part of RBI vision 2019-2021 is to promote the use of data analytics to identify fraud cases and help immediate response and recovery actions.
- RBI has asked NBFCs having an asset size of over Rs.5000 crores to appoint board approved Chief Risk Officer for a fixed tenure. The move is aimed to augment risk management practices.
- The government has ordered State Drug Controllers not to allow companies to market tweaked compositions under the old brand name.
- Jet Airways update:
- Jet Airways lenders shall now begin reaching out to unsolicited bidders after Etihad Airways declined to raise its stake beyond the current 24%. Etihad offered to infuse around ₹1,400 crore only.
- Etihad Airways has said that it can invest only Rs.1700 Crores in the Jet Airways. Its bid for a minority stake in Jet is reportedly subject to fulfilment of certain conditions by airlines’ lenders and is non-binding.
- Vinay Dube, Jet Airways CEO resigned citing personal reasons. Amit Agarwal, Dy CEO & CFO also resigned a day before.
- After the demise of Mr.Y.C Deveshwar, Sanjiv Puri, current MD of ITC, has taken over the role of the Chairman of ITC Group.
- Myntra-Jabong has appointed Harish Narayanan as Head of Marketing. Narayanan was previously with YouTube as Head of B2B Marketing (Asia Pacific).
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