Read Weekly India Business News 22nd to 26th October 2018:
– At the India Mobile Congress, Mukesh Ambani said India will be ready for 5G and a fully-4G country by 2020. Sunil Mittal requested government for tax relief while Kumar Mangalam Birla asked for technology leverage and investments before moving to 5G.
– Canada Pension Plan Investment Board is in discussions to purchase part of the shares of Goldman Sachs to increase its stake in ReNew Power.
– BigBasket, which entered into milk-delivery earlier this month by acquiring inCan and Morning Cart, is expecting to increase orders ten-fold by March 2019.
– Global Infrastructure Partners, AviAlliance and AMP Capital have submitted non-binding bids for buying a minority stake in Mumbai International Airport from GVK group which owns 50.5%.
– In a report, IATA has said that India may become the third largest aviation market by 2024.
– For the first time, IndiGo has reported a loss of Rs.652.1 Crore in the last quarter as against a profit of Rs.551.6 Crore in the same period last year. It has attributed the loss to high oil prices, weak rupee and fares.
– TPG Capital and Manipal Health combined are in talks with Medanta to buy a majority stake in the hospital. As of now Carlyle Group owns 27%, Temasek Holdings 18% and the rest is with Naresh Trehan, his family and Sunil Sachdeva, Medanta’s co-founder. Medanta’s valuation is likely to be Rs.6,000 crore.
– Kraft Heinz has agreed to sell a part of its Indian business including Complan to Zydus Wellness. Zydus Wellness is in talks to raise private equity funding.
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– Supreme Court has given RCom time till 15 December to clear pending payment of Ericsson India of Rs.550 crores. Ericsson India had initiated insolvency proceedings against RCom but later accepted RCom’s offer to pay ₹550 crore by 30 September.
– Tata Steel will sell a majority stake in an iron ore mine in South Africa to IMR Metallurgical for around Rs 188 crore.
– Tata Sons and Singapore Airlines have infused Rs.20 billion in Vistara, the largest single equity infusion since its launch in 2015. The move is part of strategy of its expansion plan. This is the largest single dose of equity infusion into the joint venture (JV) since its launch in January 2015.
– Kotak Realty Fund has exited $356 million worth of investments from its managed account of Abu Dhabi Investment. The fund also made an exit of around Rs 8.38 billion from Lodha Developers’ township project earlier this year.
– Due to the consolidation of telcos, the sector may see loss of around 60,000 jobs by the end of this financial year, majorly in the customer support and financial functions.
– Oyo rooms is now entering into long-term fully managed housing rental segment under the brand name Oyo Living. They are starting with 35 properties with 2000 beds in Pune, Bengaluru, Noida and Gurugram.
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– A real estate fund managed by Morgan Stanley is in advanced talks with KSH Group to invest approx. Rs.400 crore in its warehousing business. KSH Group operates in domestic logistics, distribution sectors, service and manufacturing.
– As per the terms of a contract between Reliance and SkyTran, RIL will finalize the site for India’s first pod taxi prototype. Reliance will help SkyTran with multiple technologies to run the pod taxi.
– A leading foreign bank may take Kwality Ltd. to NCLT for Rs.12 billion default. As per resources, the firm has a debt of around Rs.20 billion.
– NDTV has informed Bombay Stock Exchange and National Stock Exchange of having received a defamation notice from Reliance Infrastructure & Others, claiming damages of Rs 100 billion on account of a story ‘The Ideal Partner in Rafale Deal’ broadcasted on NDTV’s weekly show ‘Truth vs Hype’ on September 29, 2018.
– TCS has restructured its Industry Solutions Units and has given control with a quarterly target to around 200 employees. The move is focussed to free the senior management to focus on long-term startegies.
– To tap into the ethnic wear market, Myntra, along with Saif Ali Khan, has launched an ethnic brand House of Pataudi.
– Jet Airways has promised to disburse 25% of September salary to its sr management, pilots and engineers. However, the firm has given no date for payment of rest of the 75%.
Policies & Practices:
– The Indian government has asked Google, Facebook, WhatsApp and Twitter to have local grievance officers to curb misuse of sites.
– Supreme Court has asked the Government to submit its views on cryptocurrency within two weeks. Cryptocurrency exchanges had filed petitions against the order of RBI disallowing entities regulates by these exchanges.
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– Govt has told RBI that it wants easier Capital and other norms for banks, just in line with global rules.
– Deptt of Telecom is launching a mobile app enabling single-click onboarding through one-time OTP authentication for accessing any public WiFi hotspot within India.
M&As and tie-ups:
– Dorco has picked up 10% stake in LetsShave, an Indian grooming product range startup. Dorco is one of the leading razor blades manufacturers in the world and exports to 130 countries.
– Vijaya Bank, Bank of Baroda and Dena Bank have decided to set up individual valuers to arrive at share swap ratios for the merger. Each valuer will evaluate all the three banks separately.
– To expand offline reach and customers in Tier II cities OnePlus is getting into an agreement with Reliance Digital for launching its products across Reliance Digital Stores.
Start-up world, funds and fundings
– As per a report of Nasscom, India added 1200 tech start-ups in 2018. The number was 1000 in 2017.
– Cyrus Mistry and his brother Shapoor Mistry are turning investors with Mistry Ventures LLP and will incubate new ventures and offer funding to startups.
– A group of four global investors has invested Rs 1539 Crores in Indiabulls Ventures. The investment shall be in the form of convertible debentures.
– Lightspeed India has emerged as an influential investor in India’s startup world having invested in Oyo, Byju’s, Udaan and ShareChat. Current valuation of all the four startups put together is around $8.5 billion.
– Airtel Africa has raised $1.25 billion from SoftBank and 5 other investors before its IPO offering. The money will go towards paying off its debt of $5 billion and expand operations in Africa.
– FirstCry is in early-stage talks with SoftBank and Alibaba for raising $100-150 mn in funding. Though an online firm, a bulk of the firm’s revenue comes from its network of around 300 stores.
– Naspers is planning another investment in Swiggy and has indicated that it may support a funding to raise more than $600 million.
– Motilal Oswal’s Private Equity fund has raised Rs.2,300 crore for its third fund. 60-70% of the fund will be invested in financial services, consumer and healthcare sectors while the rest shall be invested in the industrial sector.
– ClearTax, an online tax filing startup, has raised $50 million in fresh funding led by Composite Capital. The firm claims to have served 2.5 million individual taxpayers this year.
– TVS Capital Funds has made the first close of Rs.832 crore for its latest fund called TVS Shriram Growth Fund 3, promoted jointly by TVS and Shriram groups. Total capital raised by TVS Capital so far is more than ₹2,000 crore.
– Tiger Global has raised $3.75 billion for private market investments. It had stopped investing in new ventures around three years back.
– As per an analysis by EY, the investible capital available with private investors in India is around $40 billion.
– Crayon Data, having investments from Ratan Tata and Kris Gopalakrishnan, is planning to raise $11 million in a Series B round of funding for expansion in western markets and for technology development.
Updates on ongoing cases:
– Essar Steel update:
– Based on the offer of ArcelorMittal, shareholders of Essar Steel have offered to pay Rs.54,389 crore to clear all dues of lenders. The move is aimed to pull out the company out of insolvency proceedings.
– ArcelorMittal has offered Rs.8,000 crore as an additional equity infusion over and above the ₹42,000 crore offered so far.
– Videocon case update – Law firm Cyril Amarchand Mangaldas has withdrawn its 2016 report giving a clean chit to Chanda Kochhar in the allegations made against her.
– Bhushan Power update – Tata Steel has objected to JSW Steel’s final bid for Bhushan Power, whose lenders allowed JSW Steel to change basic parameters of the bid after having previously declared Tata Steel as the highest bidder.
– IL&FS update:
– The new Board of IL&FS has appointed Arpwood and JM Financial as advisors for debt resolution plan, who will undertake valuations across divestments and monetization.
– The government may have to bail out IL&FS and the company board is said to be in talks with the government, The company failed to raise ₹4,500 crore through a rights issue.
– Zenith India, a Publicis Group-owned media agency, has appointed Jai Lala as COO. Lala was previously associated with MediaCom as Chief Strategy and Growth Officer and has 20 years of industry experience.
– Satish Kumar Gupta has been appointed MD & CEO of Paytm Payments Bank. Gupta had been with National Payments Corporation of India and SBI.
– Roshni Nadar, the only daughter of Shiv Nadar has been appointed Vice President on the Board of Directors of HCL Technologies, the flagship company of $8.2 billion group. She is currently CEO and ED of HCL Corporation, the holding company controlling HCL Tech, HCL Infosystems and HCL Healthcare.
– It’s been announced by the KKR & Co. that Ananya Tripathi, ex-Chief Strategy Officer of Myntra shall be joining them from January 2019 as Director.
– Publicis India has terminated Ishrath Nawaz, its executive creative director after acquisition on him for sexual misconduct. Nawaz had joined Publicis in April this year from McCann Worldwide. Dentsu Aegis Network had also sacked its four employees after an internal investigation on allegations of sexual misconduct.
News credit: Livemint, Economic Times, Business Standard