Read Weekly India Business News 27th to 31st August 2018:
– Kerala Government is planning to begin talks with the World Bank for a loan of about ₹ 3,000 crores to rebuild the infrastructure of Kerala that has been destroyed in the flood.
– GVK Group is in advanced talks with India’s sovereign wealth fund National Investment and Infrastructure Fund, German airport operator AviAlliance, Abu Dhabi Investment Authority and Singapore’s Changi Airport to sell a minority stake in Mumbai International Airport Pvt. Ltd. They are expected to make a non-binding offer by 10th September.
– As part of a strategy to rationalize international operations, Bank of Baroda is planning to sell its offshore subsidiaries in Ghana and Trinidad and Tobago. It shall be the first attempt by the bank to sell its international units. The subsidiaries constitute to the business of fewer than ₹ 1,000 crores.
– With the deadline of resolution of stressed assets worth Rs 3.8 trillion, set up by RBI, coming to an end, the petitioner is waiting for the judgement of the Allahabad High Court. RBI has tightened the norms for settling the bad debts of non-performing assets.
– Google and Alibaba backed- Paytm mall is planning to form a consortium and invest up to ₹4kcr for 7-10% to Shop for Future Retail Stake, the flagship listed company of Kishore Biyani.
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– Tata Steel has started the process of cancelling the Power Purchase Agreement (PPSs) between Bhushan Steel and Bhushan Energy. Cancelling the agreement will save Bhushan Steel about ₹30-40 crore every year.
– A team of students from IIM, Calcutta, has chalked out a revival plan for the loss-making Kolkata Metro. The plan is to set up virtual grocery stores at Kolkata Metro stations by Amazon and Flipkart. If the plan goes through, Kolkata Metro might become the first one to have virtual grocery stores.
– SBI, lead banker in a lenders’ consortium to Bombay Rayon Fashions, is planning to sell loans of Bank of India, Allahabad Bank and Karnataka Bank to an asset reconstruction company.
– After the Sequoia Capital’s announcement of having wrapped up a $695 million fund to invest in India and South East Asia, the firm saw another senior exit from the India investment team with Abhay Pandey, a MD, who spent over 11 years with them, decided to quit. Earlier two other managing directors, V.T. Bharadwaj and Gautam Mago left the firm recently.
– Investec is looking to expand its investment banking services in India as also add a lending business to its existing operations. It has so far executed close to 50 transactions across all its business verticals in India.
– Polyester and petrochemicals manufacturer JBF Industries has decided to sell 100% stake of its petrochemicals business to KKR and Co. to stay the insolvency proceedings being initiated against it. The deal amount has not been disclosed yet.
– AION Capital, the Special situations investor, is raising its second India-focussed fund with a targeted corpus of over $1 billion. AION closed its maiden fund in 2014 at $825 million.
– Gautam Adani’s energy unit is close to closing a deal to acquire a 1,370-megawatt thermal power plant backed by GMR Infrastructure. Adani Power will take over around ₹3,800 crore of loans out of a total of ₹5,800 crore that GMR Chhattisgarh Energy owes. It will also assume non-funded liabilities of about ₹1,400 crore.
– A local language health content app called MyUpchar has raised $5 million from Nexus Venture Partners Omidyar Network and Shunwei Capital, to offer various health content across disciplines like Allopathy, Ayurveda and Homeopathy. The content shall be translated into 13 different languages.
– Asia’s richest banker Uday Kotak, is supposed to reduce his stake in Kotak Mahindra Bank Ltd below 20% in 2018 and below 15% by end of the financial year 2019-20. Kotak Mahindra is on its $17 billion acquisition trail of buying another financial firm after the rejection by Reserve Bank of India for preference sale proposal.
– Toyota is planning to invest $500 million in Uber to work on developing self-driving cars together. It is a bid by both the companies to catch up with the rival companies.
– WhatsApp Pay and Google Tez are chasing the $1 trillion digital payments market, which is currently being dominated by Paytm. The other string of names who plan to compete in the same market is Reliance Jio and India Post Payments Bank.
– Google has tied up with ICICI, HDFC and other banks to provide instant, pre-approved loans to the app users within Google Tez. Google Pay has rivals in Paytm and WhatsApp, targeting the Indian payments market.
– In India’s maiden open acreage auction, Vedanta Ltd has bagged 41 oil and gas exploration blocks offered while Oil India won 9 blocks and ONGC could only manage to win 2 blocks. Vedanta aims at making the best out of this opportunity to reduce India’s oil import dependency.
– Jet Airways received ₹2,000 crore in terms of advance lease incentives and debt from banks to repay costly loans and cover cash losses. It further plans to save ₹1,000 crore on maintenance and use more lease incentives to cut debts.
– IOC is waiting for approval of raising Rs 20,000 crore via debentures through private placement on its Annual General Meeting on 29th August.
– NCLAT has admitted the plea of Cyrus Mistry against the order of Mumbai bench of NCLT which upheld his removal as a chairman. NCLAT has asked Tata to respond within 10 days.
– Paytm looks like a value buy for Berkshire Hathaway, which invested about $300-400 million, in buying 3-4% stake in the company.
– Toyota is planning to invest about $500 million in Uber Technologies. The investment might not be huge, but it is definitely going to be an important strategic step for both the companies.
– Reliance Infrastructure completed the sale of one of its profitable ventures of Mumbai city power distribution business to Gautam Adani for ₹18,800 crore, which will help Reliance to repay its debt by two-thirds to ₹ 7,500 crores. The current accumulated debt is ₹22,000 crore and Reliance expects to pay ₹13,800 crore after the sale.
– Resurgent Power Ventures Pte Ltd, backed by Tata Power has placed a bid to buy 75.01% controlling stake in the debt-laden company Prayagraj Power Generation Co. Ltd. The lenders to Prayagraj have approved the bid and the deal is said to be the first acquisition by Resurgent.
– ICICI Prudential has sold 2.05% stake, that is, over 52 lakh shares in Tata Chemicals in the open market. After the sale, ICICI Prudential’s stake has come down to 2.97% from 5.02% in Tata Chemicals.
– DoT has asked Bharti Airtel to pay ₹ 1,626.89 crores in cash or bank guarantee in order to clear the merger with Bharti Digital Networks. Airtel has approached the Telecom Disputes Settlement and Appellate Tribunal seeking a stay in the order of DoT.
– Paytm Mall is looking to tie up with BigBasket to compete with Flipkart and Amazon India. Paytm had earlier entered into a revenue sharing agreement with Future Retail.
– NCLT has admitted the insolvency plea of Lavasa Corp., which owes about ₹3,000 crore to lenders and has around 20,000 acres in Maharashtra. Lavasa is a subsidiary of Hindustan Construction.
– NCLT has approved the merger between Idea Cellular and the Indian unit of Vodafone Group. The merger was announced in March 2017 and together both the companies will have around 438.8 million subscribers.
– Confederation of All India Traders has filed a petition with the Delhi High Court to investigate the business model of Flipkart. It had previously filed a complaint with the ED against the ‘malpractices’ of Flipkart but to no avail.
– The Government has ordered a formal inspection of accounts of Jet Airways to ascertain if there was any siphoning of funds. The move is the result of a preliminary scrutiny by ROC.
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– WhatsApp has notified its users that the end-to-end encryption it offers for messages and media, will cease to exist if the data is stored as back up on Google’s servers.
– Canadian Pension Plan Investment Board is expecting its India investments to grow multiple times and is exploring verticals like new economy internet firms and sovereign debt. It currently has India portfolio of about C$7 billion.
– After the deadline set by RBI for resolution of stressed assets ended on Monday, the lenders have decided to refer 20 out of the 32 NPA accounts to bankruptcy courts. The remaining 12 NPA accounts will either see a restructuring of the debt or initiation of sale proceedings; the list includes Videocon Oil Ventures, GMR Rajahmundry and Jaiprakash Power Ventures.
– Supreme Court has sought response of WhatsApp and the government on a plea alleging that WhatsApp has not complied with the provision of appointing a grievance officer and other Indian laws. The government has been reiterating that WhatsApp has to comply with Indian laws to carry on its India operations.
– Instamojo, a payment platform for MSMEs has launched MojoXpress and MojoCapital to be a one-stop service provider by providing logistics services and small loans to MSMEs.It is targeting $1 billion in gross transaction values by the end of 2018-19 from $200 million currently.
– Bharti Airtel has received an FDI clearance for sale of 20% stake in Bharti Telemedia to Warburg Pincus for $350 million. It will sell 15% stake in the direct-to-home arm and the balance shall be sold by another Bharti Airtel entity which holds 5% stake.
– As the Government banks seek to strengthen the banking system in India which is laden with debt, it asks RBI to prepare a list of candidates for a merger among 21 government banks.
– Berkshire Hathaway Inc., led by Warren Buffett, is in talks to acquire a small stake in One97 Communications Ltd, the parent company of Paytm. It is the first investment of the billionaire in the Indian company. Paytm has been in talks with Berkshire Hathaway to raise $300-350 million, at a valuation of about $10-12 billion.
– It has been announced that Warren Buffett’s Berkshire buys a stake in Paytm and the investment manager of Berkshire, Todd Combs, who led the investment discussions with Paytm shall be one of the Board members of One97 Communications.
– Goyal gases shall pay ₹ 2,350 crores to acquire a controlling stake in JPL. Goyal gases emerged as the highest bidder in the auction by a consortium of lenders led by Axis Bank.
– Amazon Pay has acquired Tapzo, a personal assistant platform in order to build on and widen the scope of its payment offering. The deal which is supposed to be part-stock and part- cash is valued at about $40-45 million. Tapzo’s investors are expected to exit with a cash payout.
– Varde Partners Inc. and Aditya Birla Capital Ltd. Are in talks to join hands in a Joint venture to invest $1 billion in distressed assets in India. The venture will scout for deals of up to $100 million and has the possibility of being announced this year.
– Amazon is in talks with Spencer’s Retail for a minority stake in the food and grocery retail chain. Amazon is also in talks with Aditya Birla Group on buying stakes in “More”.
– Soon after PVR acquired south India’s leading multiplex company SPI Cinemas, it is looking to buy north Indian chain Wave Cinemas which is valued at ₹450 cr. The announcement is expected to be made by the end of this year or by the beginning of next year.
– Monish Anand, the founder of Shubh Loans said that it has raised $4.2 million investment which is led by Saama Capital, a venture capital firm. The funds shall be used to enhance the fintech startup’s technology platform. Fintech startup had raised $1.6 million from these investors.
– Binani Cement update – After concluding hearing various appeals, NCLAT has reserved its judgment on the Binani insolvency matter. It has further asked all the parties, including Rajputana Properties and UltraTech Cement, to submit written responses, in case they have any, by 4th September.
– Colgate-Palmolive India has announced the appointment of Mukul Deoras as chairman of its India unit. Deoras was CMO of the parent company since 2015.
– Nestle has sealed the $7.5 billion deal with Starbucks coffee and about 500 employees from the US and Europe will join Nestle.
– Cyrus Mistry, the Chairman of Tata group has approached the NCLAT against the Mumbai bench of NCLT which has, on 9th July upheld his removal as a chairman from the company.
– M.K. Surana, the CMD of HPCL said that the company will invest ₹75000 crore over five years across its business segments, in order to grow and expand.
– RBI has approved the re-appointment of Rana Kapoor as the MD & CEO of YES Bank till further notice. The approval came after RBI has asked the board to reconsider the appointment of Rana Kapoor for a tenure of another 3 years.
– The CFO of Fortis Healthcare, Gagandeep Singh Bedi has resigned effective 30th September 2018 citing personal reasons. The resignation has been accepted by the Board of Directors.