Read Weekly India Business News 24th to 28th September 2018:
– Jet Airways has told its lenders that it will raise around Rs.3,500 crore over the next six months through stake sale and infusion of fresh funds. It has also informed lenders that it will shave off costs of around Rs.2,000 crore over the next two years.
– Vikram Pandit, former CEO of Citigroup, GIC, JM Financial and other investors have invested Rs.875 crore in JM Financial Credit. The funds will allow the firm to reduce its leverage and grow the loan book.
– Lifestyle has been penalized by the national anti-profiteering authority for not passing on lower GST benefits of a product in 2017.
– Reliance Communications is reportedly in talks to sell a controlling stake after it exits India’s consumer wireless business. Two investors are said to be conducting the due diligence.
– Flipkart has made it mandatory for all its sellers to use only Flipkart branded packaging for delivering goods to consumers. The company said that its eco-friendly and meets with regulations imposed by some states on the use of plastic.
– BNP Paribas wants to sell its 33% stake in Geojit Financial Services, 2 years after it acquired Sharekhan and has reportedly already mandated the work. It’s not clear as of now whether promoters and existing shareholders of Geojit would seek to increase their interest.
– Jet Airways has delayed part payment of August salaries to pilots and management personnel. Salaries for August were to be paid in two instalments — 50% by 11 September and the remaining by 26 September, which may now be paid by October 9.
– BoI shall withdraw its plea in NCLT against Housing Development and Infrastructure Ltd as HDIL has agreed to repay the bank in installments and clear all dues by August 2019.
– Paytm has moved NCLT against Reliance Telecom for recovery of its dues worth around Rs.20 Crores.
– Yes Bank would ask RBI for an extension of eight months for Rana Kapoor on the grounds of finalization of financial accounts and holding AGM.
– General Motors is in advanced talks with JSW Energy of Sajjan Jindal to sell its last car plant in India for approx. Rs.3,500. If the deal goes through, this will lead to GM’s complete exit from India.
– After entering the mutual fund segment, Paytm Money now wants to start share trading and may submit its application with the stock exchange within two weeks.
– Promoters of Essel Propack, part of the Essel Group, are in preliminary talks with two foreign packaging companies, Amcor Ltd and Huhtamaki Oyj to sell a controlling stake. Morgan Stanley has been mandated to manage the sale.
– Profectus Capital, a UK-based PE Actis LLP backed non-banking finance company, is working to achieve a loan book of around ? 10,000 crores in the next five years. Profectus lends between ? 5 crore to ? 50 crore to SMEs.
– Due to increasing demand in services, Blue Dart is planning to invest Rs 20 bn to reach out for lower-tier towns and upgrading technology.
– Infosys has won $700 Million contract from Verizon which involves the development of ADM and BPM services. After AT&T, Verizon is Infosys’ second largest account in the telecom sector.
– Sebi is reported to be reviewing DHFL and Yes Bank for trading irregularities, whether brokers and investors colluded during the sharp sell-off and subsequent recovery in financial stocks.
– Amazon and Flipkart shall reportedly spend an estimated ? 400 crore on advertising to promote Diwali sales in October.
– Helo, the social networking app of Toutiao, the Chinese content giant, is said to have spent more than $20 million to catch up with ShareChat. Within just 3 months of its launch, Helo has been downloaded over 10 million times in India.
– US-based hedge fund Davidson Kempner is reportedly seeking a forced sale of Essar Global Fund’s shares in Essar Energy, which owns and runs the Stanlow refinery in the UK.
– Ola is in talks with Naspers to raise funding at a valuation of $7-8 billion. It is also reportedly in talks with Temasek Holdings and two other funds to raise $1 billion in fresh capital.
– pi Ventures, which invests in AI and IoT startups, has raised final tranche of its ?225 crore first fund. The fund will invest in various deep-tech startups over the next four years.
– Inox Leisure has terminated its contract with BookMyShow due to payments disagreement. BMS, which generated 32% of Inox’s box office revenue, has challenged the termination in Bombay High court.
– V-Mart is exploring omnichannel route to expand its business and is also planning to spend around Rs.100 Crores in setting up new stores and a warehouse in the next fiscal year.
– Paytm has said to have started testing a facial recognition tool which will enable customers to pay at merchant outlets by simply looking at their smartphones.
Policies & Practices:
– Union cabinet on Wednesday approved the new telecom policy aimed to attract $100 billion investments in India by 2022 and create 4 million jobs.
– PNB shall seek ?5,431 crore capital infusion from the govt by way of preferential issue of equity share. This will help the bank to meet regulatory capital requirements.
– PNB and Indian Bank plan to sell their entire stake in Experian Credit Information Company of India. Experian was set up in 2010 to provide credit information services.
– BSE has received Sebi’s approval to launch delivery based futures contract in gold for 1 kg and silver for 30 kg.
– Trai has suggested imposition of a penalty of ?10,000 on telecom operators for providing false information regarding a mobile number porting request and for each wrongful rejection of a porting request.
– The government is planning to sell its stake in SJVN and Power Finance Corporation to NTPC and Rural Electrification Corporation, to raise ? 20,000 crores to rein in India’s fiscal deficit.
– The government has extended the deadline for filing ITR and audit report for fy 2017-18 till October 15.
– Govt has started consultation with states for mergers of regional rural banks to bring down their number to 36 from the current 56.
– As per the data released by DoT, women’s share of India’s mobile subscriber base was just 17.4% as on 31st March last year. There were over 990 million mobile subscriptions in India.
M&As and tie-ups:
– Paytm Board has approved the investment of $300 Million from Berkshire Hathway through equity share subscription. This is Berkshire’s first investment in an Indian firm.
– Board of Dena Bank has approved government proposal to merge the bank with Bank of Baroda and Vijaya Bank.
– IndoSpace and GLP have formed a JV to co-invest in the infra sector. The joint venture will see GLP co-investing in IndoSpace’s managed investment vehicles. GLP’s real estate platform is one of the largest in the world.
– Reliance Jio has signed a five-year partnership deal with Star India to make India-cricket matches available to its users of JioTV. This partnership covers all formats of cricket matches.
Must Read: Indian Brands Foreign labels
Start-up world news:
– PharmEasy has raised $50 Million in series C round of funding led by Eight Roads Ventures India. Funds will be used to scale up operations in cities beyond metros.
– RIL has invested again in San-Diego based automotive AI start-up NetraDyne through its subsidiary. It had also invested $16 million in NetraDyne in June. NetraDyne focuses on fleet management, security and surveillance.
– Licious, the Meat start-up, has raised $25 million in series C round of funding. The firm had earlier raised $13 million in previous rounds of funding.
– Swiggy has expanded Swiggy Access to four metros – Delhi, Mumbai, Kolkata and Hyderabad and is planning to onboard new restaurants in over 30 cities by 2020. Swiggy Access allows its restaurant partners to set up kitchen spaces in neighbourhoods where they don’t currently operate.
-Flipkart has acquired Upstream Commerce, an Israel-based analytics start-up. Upstream builds cloud-based and automated competitive pricing products and solutions.
– Stanza Living, a student housing start-up, has raised $10 million in a Series A round led by Sequoia Capital. It had raised seed money of $2 million from Matrix and Accel in November 2017.
Updates on ongoing cases:
– Aditya Birla Group is reportedly in talks with IL&FS to buy out its education and training arm, IETS. IETS operates computer labs in government schools under the BOO model and manages around 16000 schools in 11 states.
– Essar steel update – Numetal has offered to match the bid of ArcelorMittal of Rs.42000 Crore.
– PNB fraud: A special court has given Mehul Choksi time till 30 October to reply to ED’s plea to declare him a ‘fugitive’.
Fortis update – CCI is likely to approve Fortis-IHH deal by the end of October. In July, the Board of Fortis Healthcare had unanimously accepted the binding offer from IHH Healthcare Berhad to invest ?4,000 crore.
– Videocon case – Resolution professional of Videocon Industries has invited bids from prospective buyers to take control of the firm going through insolvency proceedings. Videocon has a debt of around Rs.20,000 crores.
– CBI has written to Interpol Nigeria asking for information about Nitin Sandesara and his family which are believed to be in hiding there. Nitin and Chetan Sandesara, the promoters of Sandesara Group, are accused of duping a consortium of banks of more than ?5,000 crore.
– IL&FS is planning to approach NCLT to not admit a bankruptcy case against the group as it is already in the process of settling dues through various capital-raising programs and monetization of firm’s assets. Meanwhile, IL&FS Investment Managers MD Ramesh Bawa has resigned.
– Minority shareholders of Apollo Tyres have rejected re-appointment of Neeraj Kanwar as MD.
– Flipkart has roped in Amitabh Bachchan, Virat Kohli and Deepika Padukone to promote Big Billion Days sale scheduled from 10th to 14th October.
– Facebook has appointed Ajit Mohan as MD & VP of Facebook India. Ajit is currently serving as chief executive of Hotstar and will join Facebook early next year.
– Flipkart may appoint a new group CEO at the group level in place of Binny Bansal. Both internal and external candidates are being considered. Flipkart’s current CEO Kalyan Krishnamurthy is also said to be among the candidates.
– WhatsApp has appointed Komal Lahiri as its grievance officer to curb fake news in India, who will be based in US. The move partially fulfills demands of the Indian government to curb the spread of rumours.
News credit: Livemint, Economic Times, Business Standard