Read Weekly India Business News 19th to 23rd November 2018
– As per a Red Seer report called ‘Festive Sale Month Performance’ around 24 million people shopped online during the one-month 2018 festive season. Mobile phones and electronics goods contributed to 80% of the total gross merchandise value.
– NBFCs have recorded fivefold growth in loan sanctions in fy 17-18 from the previous year. They sanctioned over Rs.27,000 Crores of loans against their target of Rs.9050 Crore.
– To stop dilution of brand equity, companies are taking steps to stop sale of their products online at deep discounted prices by making direct selling arrangements with the online marketplaces.
– Jet Airways is in active discussions with various investors to secure sustainable financing. The airlines is also said to have saved Rs.500 crore in the first half of the current fiscal with cost optimization efforts.
– Kumar Mangalam Birla, Vodafone Idea Chairman, has flagged concerns about a severe liquidity crunch in the telecom sector and high spectrum payments.
– Paytm will now provide online premium payment solutions from over 30 insurance companies including LIC, ICICI Prudential, Reliance Life and Max Life Insurance.
– Indian Railways has tied up with Reliance Jio for providing mobile phone services for its 1.95 Lakh connections. Railways expect that the move will slash their phone bills by around 35%. Railways has been using Bharati Airtel for over six years.
– Reliance Jio has announced the launch of VoLTE-based inbound international roaming between India and Japan. Jio has become India’s first 4G mobile operator to provide VoLTE-based international roaming services in India.
– Sebi has initiated an enquiry into DSP Mutual Fund selling bonds of Dewan Housing Finance in September to check if there was a violation of model code of conduct while selling the highly rated paper at a loss.
– The meeting of Board of Directors of Yes Bank has been advanced to 13 December from 16th January. The board will consider appointment of a new chairman, a new CEO and a new independent director.
– Panasonic is expecting sales of Rs 140 crore in the next one year from its Bluetooth-based trackers which will be available online from the first week of December. Using their mobile phones, users can find out the location of keys and other items to which the tracker is attached.
– As per a report by Boston Consulting Group, OTT video streaming market in India may touch $5 billion by 2023.
– Shapoorji Pallonji Group is planning to raise around $1 billion by selling around 30% stake in its solar engineering arm to reduce debt.
– Acting on a complaint by Singapore’s PSA International, Competition Commission of India has ordered a probe into alleged anti-competitive practices by Denmark’s A.P. Moller-Maersk and Dubai’s DP World at the terminals they operate at the Mumba container port.
– SoftBank may hire Sumer Juneja, currently a partner with Norwest Ventures, as its India head. SoftBank Group has invested in companies like Ola, Flipkart and Paytm.
– KKR backed Radiant Life Care is said to be in talks to take over operations and management of Mumbai’s Jaslok Hospital. It had previously made an unsuccessful bid for Fortis Healthcare.
– Supreme Court has asked Amrapali Group to reveal details of all its properties in the name of directors, their family members, relatives, CFO and statutory auditors in India and abroad by 3rd December.
– Reliance is planning a new plant at its Jamnagar refinery having a refining capacity of around 30 million tonnes of crude oil per year.
– Rentala Chandrashekhar, an independent director on the board of Yes Bank has resigned. The Bank may overhaul its board after getting permission from the promoters.
– Tata group has said that it has not made a proposal to acquire a stake in Jet Airways but is only in the preliminary talks to assess the situation.
– ICICI Bank is planning to raise around Rs.25,000 crore through NSDs and other fixed-income securities for on-lending to fill in the vacuum left by NBFCs, which are facing a liquidity squeeze.
– Air India is planning to raise around Rs.6100 Crore through sale and leaseback of its seven aircrafts.
– Liberty House is keen to resolve issues in Amtek and Adhunik deals to complete the acquisition process. It has also offered to increase its earnest money deposit from Rs.55 crore to ₹100 crore.
– Zee Entertainment may divest 20% in OTT business as it eyes music, gaming segments. It is said to have already put together an aggressive strategy to take on Reliance Jio.
– Losses of State-owned banks have increased almost 3.5 times to around Rs.14,716 Crores during July-September quarter, majorly due to bad loans.
Policies & Practices:
– The government has now authorized CEOs of PSBs to make a request for issuance of look-out circulars against wilful defaulters and fraudsters to stop them from fleeing the country.
– IT department shall scan the accounts of restaurants to ensure that service charges, if not being passed on to the employees, are taxed as income. The move comes after the ministry of consumer affairs flagged its concerns.
– Sebi has released new rules for re-classification of a promoter as a public investor. An outgoing promoter will have to relinquish special rights and control over affairs of the listed firm. He will not be allowed to hold over 10% stake or have any representation on the board of directors or act as a key managerial person in the listed entity.
– Sebi has levied a penalty of Rs 6.5 million on Apollo Tyres for violation of buy-back regulations in a matter pertaining to 2003.
– The government is considering taking away the power to approve or reject M&As from NCLT and give it to the regional directors of MCA. The proposal is aimed to ease the burden on NCLT benches and ensuring that they only hear cases related to the Companies Act and the Insolvency and Bankruptcy Code.
– For companies planning to delist from the stock exchanges, Sebi has allowed promoters to make a counteroffer to shareholders.
– The board of RBI has decided to extend the timeline for full implementation of Basel III norms for bank capital by a year, a move which will free up around Rs.3.7 trillion for potential lending.
– RBI has decided to set up an expert panel for examining its economic capital framework. It will review bank’s capital rules as also restructure MSME loans.
– RBI will infuse Rs.8,000 crore into the system through the purchase of government securities on 22nd November.
– Authority of Advance Ruling has said that back offices of multinationals and Indian companies offering back-office services to MNCs are intermediaries and must pay 18% GST.
– Six northeastern states have finally agreed to implement RERA. The move will help in protecting buyers’ interest in these states.
– BSE has decided to snap ties with S&P Dow Jones, which manages and operates Sensex and plans to develop indices through its in-house development team.
– The finance ministry has proposed to generate around Rs.14,000 crore through an acquisition deal between Power Finance Corporation and Rural Electrification Corporation. The power ministry, however, is concerned that the move will hurt two strong firms in the otherwise ailing sector.
M&As and tie-ups:
– Crystal Crop Protection, a specialty chemicals company, shall be acquiring Tilt, Proclaim and Blue Copper brands of Syngenta India, all of which are leaders in their respective industries. The acquisition will enhance Crystal Crop’s penetration in wheat, pulses, rice, cotton, vegetable and grapes markets in India.
Start-up world, funds and fundings
– MagicPin, a discovery and rewards platform, has raised $20 Million in the latest funding round led by LightSpeed Ventures. The latest round has valued the firm at $100 million.
– DeTect, Chennai-based robotics startup, has raised $3.3 million from SAIF Partners and others in a series A round of funding. The funds will be used to hire more people and expand in UK and Europe. DeTect has two major products; Gumps, a sensor that detects leakages and corrosion in oil or gas pipelines, and Noctua, an industrial drone that inspects large-volume assets like boilers and stacks.
– CropIn Technology Solutions has raised $8 million in a Series B round of funding from Chiratae Ventures and Bill and Melinda Gates Foundation Strategic Investment Fund. CropIn provides SaaS-based services for agri-businesses. The firm had earlier raised $4 million.
– SBICAP Ventures has announced the launch of two funds focussed on affordable housing and SMEs. It plans to raise ₹400 crore for the SME fund and ₹350 crore for the affordable housing fund.
– NestAway, the Home rental startup, is in initial talks to raise $100 million, but may actually end up securing $150 million due to strong investor demand.
– Aavishkaar-Intellecap, an impact investment firm, is raising Rs.225 crore from US-based Teachers Insurance and Annuity Association. The firm is looking to scale up its various businesses which include a range of financial products to entrepreneurs.
– Altico Capital has invested Rs.570 crore in the Bengaluru residential market, backing up projects of Assetz Property Group and Century Real Estate Holdings. The firm has so far invested around Rs.1,000 crore in Bengaluru’s property market.
Updates on ongoing cases:
– Vijay Mallya case – Bombay high court has dismissed Vijay Mallya’s plea seeking a stay on the ED’s request to declare him a fugitive economic offender.
– Binani Cement update – Supreme Court has upheld NCLAT order for UltraTech Cement’s revised ₹7,900 crore bid to acquire Binani Cement. The NLCAT order was challenged by Dalmia Bharat.
– Essar Steel update – Getco has challenged the resolution plan of ArcelorMittal and has approached NCLT to recover its dues of more than Rs.827 crore from Essar Steel.
– Usha Martin-Tata Steel deal – Basant and Prashant Jhawar, who owns 25.5 percent equity in the company, may sell their majority stake. However, no official confirmation has come on this.
– Ranjan Mathai has become the second independent Director of Jet Airways to quit the board of Jet Airways in the last few days.
– Uber Eats has appointed Alia Bhatt as its brand ambassador in India.
– Binny Bansal filed a police complaint against the woman whose allegations led to his sudden ouster from Flipkart but later withdrew it after she apologized for making these allegations to Walmart.
– WhatsApp has appointed Abhijit Bose as head of WhatsApp India. He will be joining early next year. Bose was the co-founder and CEO of Ezetap, an enterprise payments solutions firm.
– AirAsia India has appointed Sanjay Kumar its COO with effect from 3rd December. Kumar was earlier working with IndiGo as Chief Commercial Officer and has around 25 years experience in the aviation industry.
– As per the second edition of GROHE Hurun India Real Estate Rich List 2018, Mangal Prabhat Lodha is the richest Indian property developer. Jitendra Virwani of Embassy Group and Rajiv Singh of DLF are at the second and third spot respectively.
– IT department has issued notices to Sachin and Binny Bansal along with 35 other stakeholders to disclose total income arising out of the sale of their share to Walmart.
– Gurpratap Boparai, MD of Skoda Auto, will also head the domestic subsidiary of Volkswagen AG, with effect from January 2019.
– Wipro has appointed former IBM executive Bill Stith to head its healthcare and life sciences division.
News credit: Livemint, Economic Times, Business Standard