Latest Weekly India Business News 10th to 14th December 2018
– SBI has ordered a forensic audit of books of Jet Airways. EY LLP has been awarded the work to audit airlines account from 1st April 2014 till 31st March 2018.
– Yes Bank is likely to name Brahm Dutt, an independent director of the bank, as the non-executive interim chairman.
– Supreme Court has refused to allow Reliance Communications the requested additional two weeks to clear Ericsson dues of Rs 5.5 billion. The deadline for the repayment ends on 15th December.
– Standard Chartered has reportedly laid off more than 200 retail banking employees in India.
– Google has unveiled a new search experience in India. It will allow users to easily filter through offers/prices from multiple retailers. The experience is available across various Google products – The Shopping Homepage, the Shopping tab on Google Search and Google Lens. This could post a serious threat to e-com biggies.
– Yes Bank is planning to submit the final list of candidates for the position of MD & CEO to RBI after their next board meeting on 9th January.
– Mobiistar is ramping up its offline retail market presence and aims to be present in around 50000 retail points within the next two months.
– Truecaller Pay is planning to enter into credit business by early 2019.
– Sebi has started examining whistleblower complaint lodged last month against Dilip Shanghvi-led Sun Pharmaceutical.
– Corporation Bank has filed a bankruptcy case against Premier Ltd to recover dues of ₹52 crore with NCLT Mumbai.
– Xerox has stepped up its on-demand printing services in India. It is looking to digitize documents and is in talks with the Indian government for domestic projects.
– Sodexo has launched an accelerator program to partner and invest in food services startups. The program will provide startups access to Sodexo’s large corporate customer base.
– Competition Commission has cleared Tata Sponge Iron’s acquisition of Usha Martin’s steel business for Rs.4,300-4,700 crores. Deals beyond a certain threshold need CCI approval.
– RBI has slapped a fine of Rs.1 crore on Indian Bank for violating cybersecurity norms.
– All India Online Vendors’ Association, a group of small and medium online retailers selling on Flipkart and Amazon, have written to PMO alleging exploitation at the hands of e-com majors. One of their major concerns is preferential treatment being given to large sellers.
– Board of Reliance Jio has approved the proposal to create separate entities for its fibre and tower businesses. This may provide a better leverage to raise funds.
– RCom has filed contempt of court petition in Supreme Court against DoT for not clearing its spectrum sale to Reliance Jio within the stipulated period.
– Luminous has extended its endorsement contract with Sachin Tendulkar for another five years.
– SC has issued notice on RCom’s plea challenging TDSAT order for refund of the unspent prepaid balance of around Rs.8.1 crores. The amount is the unspent prepaid balance of 4.9 crore customers who did not opt for porting despite notices from RCom.
– Kotak Mahindra Bank has moved Bombay high court against RBI after Uday Kotak was barred from reducing his stake in the bank through a preference share issue.
– To protest against privatization of six airports, employees of Airports Authority of India are going on a three-day relay hunger strike. They have also warned of going on mass casual leave from 28 December.
– Hindalco Industries has moved Bombay High Court against Maharashtra State Pollution Control Board order asking it to shut down its bauxite mine in Kolhapur for alleged violation of Air Act.
– RIL has reportedly created seven subsidiaries to handle its broadcasting, broadband internet, data and hosting services, wireless, cable services distribution, VOIP, VOD businesses.
– PNB has invited bids for the sale of its 24 NPA accounts to recover Rs.1,179 crore. The names include Vandana Vidyut, Moser Baer Solar, Visa Resources India, Birla Surya, Trident Tools, etc.
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Policies & Practices:
– Trai has revamped mobile number portability rules to make the process faster and simpler. It has prescribed 2 days timeline for port in a similar service area and 4 days for outer circles. Each wrongful rejection of request will also attract a penalty of up to Rs.10,000.
– Government’s e-commerce platform GeM and Department of Industrial Policy and Promotion are developing a proof-of-concept corner for startups, where they will be able to list their services.
– Sebi has allowed funds to create a separate portfolio, segregated from its main holding, with bonds of companies that face defaults.
– Irdai has now allowed single personal accident cover for multiple vehicles. Currently, the vehicle buyer has to buy separate insurance cover for every vehicle.
M&As and tie-ups:
– True North is in advance talks to buy 80% in Max Bupa for around Rs.1400 Crores.
– Amazon India has partnered with Federation of Indian Micro and Small & Medium Enterprises to educate MSMEs about online selling. They will conduct events and workshops across the country
– Walmart has acquired Acqui-hires Int, a data analytics and MI firm. This is Walmart’s second acquisition in AI segment; it earlier acquired Appsfly.
– Cognizant is acquiring Mustache, a privately-held creative content agency based in New York, for an undisclosed amount. Mustache creates content for digital, broadcast and social mediums and its clients’ list include companies like Netflix, A&E Networks, Grammarly, Google, Brand USA and L’Oréal.
– Sequoia Capital has bought a stake of 31.9% in Wakefit, a mattresses and sleep-products company, for Rs.65 crore.
– Nuveen, investment subsidiary of Teachers Insurance and Annuity Association – a US-based asset manager, has bought a stake of around 25% in Aavishkaar Group for approx. $32 million.
– Escorts has entered into a JV with Kubota Corporation fo Japan for producing high-end tractors and will initially invest around Rs.300 Crores.
– Google has acquired Sigmoid Labs, which runs Where is MyTrain app for an undisclosed amount. MyTrain is one of the most downloaded train-based apps.
– Hero group is close to buying solar power generating assets of Waaree Energies. The deal is said to be around Rs.500-550 crores.
Start-up world, funds, and fundings
– Binny Bansal is set to launch a new tech-backed firm called xto10x Technologies. The firm will offer consulting to growth-stage startups.
– NinjaCart has raised Rs 250 crore in a Series B round of funding led by Accel Partners and Syngeta Ventures. Till date, it has raised around $49 million.
– CDC Group, owned by the UK Government, has committed $25 million to the third PE fund of Lighthouse. Lighthouse earlier raised its first fund of $100 million and the second of $135 million. It has invested in 17 companies till now.
– Roposo, a social media app, has raised $10 million in a series C funding round from its existing investors Tiger Global Management and Bertelsmann India Investments.
– Byju’s has raised $400 million in a new round of funding at a valuation of around $4 billion.
– Licious, Gourmet meat start-up, has raised $25 million in the series D funding round led by Nichirei Corp. Funds will be used to expand operations in seven new cities.
– IndiGrid, an infrastructure investment trust, has started roadshows to raise a fresh capital of Rs.2,500-3,000. It had raised ₹2,250 crore through IPO in May 2017.
– WheelsEMI, a lender focused on used two-wheeler financing, has raised funding of Rs.100 crore led by Faering Capital.
– Startup lobby group is in discussions with the government to allow homegrown entities to list their services on Government’s e-marketplace so that Central and State governments can purchase from them. This will also make the process of stock market listing easier.
– Zomato has entered into the events space and has launched Zomato Events.
– As per data from Tracxn Technologies, an analytics firm, investments in deep-tech start-ups such as firms driven by AI, ML and robotics, have touched an all-time high of $247.78 million so far in 2018, more than twice the $96.8 million in 2017.
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Updates on ongoing cases:
– Vijay Mallya case – Westminister Magistrates’ Court in London has ordered the extradition of Vijay Mallya. He has 14 days to challenge the verdict.
– Supreme Court has allowed RBI to ask banks to take forward insolvency proceedings against Jaiprakash Associates.
– As part of a leadership reorganization strategy, Walt Disney has appointed Uday Shankar, as Chairman, of Star and Disney India and President of The Walt Disney Co. Asia Pacific.
– MobiKwik has appointed Sushant Kashyap as business head for the payment gateway and international business. Sushant was previously with Delhivery as senior VP – sales for over four years.
– Netflix, director, international originals and acquisitions, Swati Shetty has resigned. She has earlier worked with Balaji Telefilms, Walt Disney Studios, ABC Television Group and Star India.
– Tata Trusts has appointed Venu Srinivasan, chairman of TVS Group and Vijay Singh, former defence secretary, as vice chairmen. Tata Trusts controls 66 percent of Tata Sons.
– Sriram Venkataraman, Flipkart CFO, will take additional charge of COO. The role of COO has been vacant since mid-2017 after the resignation of Nitin Seth.
– After Urjit Patel’s resignation, Shaktikanta Das, who oversaw demonetization, has been appointed as the new RBI governor.
– Devendra Chawla, COO, Walmart India has resigned after just 15 months of joining the firm.
– Ananth Narayanan, Myntra CEO has resigned and his position is set to be abolished. Amar Nagaram will now be heading Myntra. Mithun Sundar, chief revenue officer and HR head Manpreet Ratia have also resigned.
News credit: Livemint, Economic Times, Business Standard