Weekly India Business News 7th to 11th January 2018
– Ashok Chawla has resigned as NSE chairman over Aircel-Maxis charges. CBI had obtained sanction to prosecute him and four others in the Aircel-Maxis case.
– RBI has imposed a penalty of Rs 3 crore on Citibank India for not complying with directions for directors of the Bank.
– Sebi has imposed a fine of Rs.30 Lakhs on Prompt Commodities, Pragya Commodities and Rajesh Kumar Gagrani for executing fraudulent trades.
– CLP Holdings, Macquarie Infrastructure and Hero Future Energies are among the top companies interested in the acquisition of wind power business of PTC India, valued at approx. Rs.2,000 crores.
– Jet Airways is reportedly now looking to restart talks with Tata Group for fundraising. The airlines is reportedly set to run out of cash in about a month.
– Twitter will bring a new dashboard for enhanced political ad transparency in India. The advertising dashboard provides transparency to the public and users can take a look at spending on the platform during the course of the election. Twitter had started this in the US during the last elections.
– The government is expecting around Rs.7,000 crore from the sale of Air India, for which it will initiate the process of strategic disinvestment in the second half of 2019-20. Air India has a debt of around Rs.55,000 crores.
– An employee union leading the 2-day strike this week has claimed that the strike resulted in non-clearance of cheques valued over Rs 20,000 crore.
– Jio has launched an app for Kumbh with a family locator, lost and found features and other customised services. The various feature of the app will help attendees to stay close to their family and friends by getting their exact location.
– Oyo said that it would take legal action for contract breach if any hotel listed on its platform boycotts bookings.
– Supreme Court has rejected a review petition by Dalmia owned Rajputana Properties against its ruling that upheld an order of NCLAT approving UltraTech’s revised ₹7,900 crore bid to buy Binani Cement.
– MCA has issued summons to Directors and officers of Usha Martin based on the complaints of Basant Kumar Jhawar against the company which had sold its steel business to Tata Steel.
– Yes Bank has sent RBI a list of shortlisted candidates for new CEO’s appointment based on the recommendations by leadership advisory firm Korn Ferry. Rana Kapoor and Madhu Kapur were not consulted by the Board.
– Essel Group is said to be in talks to raise $400 million to refinance its debt. The group has been looking to deleverage by selling stakes in various group businesses, including Zee, Essel Propack and Essel Infraprojects.
– WhatsApp has spent around Rs.120 Crores over the last five months on various tv, print and radio campaigns to combat fake news circulation.
– India’s top telecom firms like Jio, Airtel, Idea, and startups like Paytm, ShareChat have advocated lawful interception of messages as they think it is critical for investigation of anti-national and anti-social activities.
– Supreme Court has allowed employees of Aircel to file contempt plea against Bharti Airtel for not returning Rs.453 Crores to the company as directed by the apex court.
– Adani group is set to enter the IT sector with the construction of world’s first fully green, integrated cloud-based data centre parks in and around Visakhapatnam. It will invest around Rs.10,000 Crore in the first phase and will scale up investment to Rs.50,000 Crores over the next ten years.
– The Board of Bhushan Steel, now Tata Steel BSL Ltd, has approved a proposal to raise around Rs.24,000 crore through an issue of preference shares to Tata Steel.
– NCLT has asked the union of Reid & Taylor to furnish financial details for 2017-18 of SP Growth Partners, their Hong Kong-based investors. Reid & Taylor, owned by the Kasliwal family-run S Kumar Group, is facing bankruptcy proceedings for a debt of over Rs.4,100 crore to banks and other lenders.
– Rudratej Singh has resigned as president of Royal Enfield. Lalit Malik, CFO, Eicher Motors, will take additional responsibility as Royal Enfield’s chief commercial officer.
– Local lenders to Jet Airways, led by SBI have proposed a $900 million resolution plan. The plan comprises fresh equity infusion and restructuring of loans of around $450 million. If the plan is approved by all the stakeholders, Naresh Goyal will have to give away stake from his current holding of 51%.
– Ola is in talks to either invest in or acquire Myra Medicines, a medicine delivery startup. Both Ola and Myra have Matrix Partners as a common investor.
– Myntra’s revenue in fy-17-18 has dropped by 80% to just Rs.427 Crores. It reported a net loss of Rs.151.20 crore in fy 17-18. The figure is a 76% drop from Rs.627.70 crore loss reported in fy 16-17 when its revenue was around Rs.2000 Crores.
– Domestic and foreign lenders of Jet Airways have asked the airlines to explain its liquidity situation. The airline defaulted on a scheduled loan repayment just a few days back.
– Essar Global Fund, the holding company of Essar Group, has said that it has repaid all the overseas debt to its various Indian and foreign lenders. It had also paid Rs.30,000-crore to lenders in 2017.
– NCLAT has asked Liberty House if it is willing to go ahead with its resolution plan for Amtek Auto, where it is the highest bidder. It has also asked Committee of Creditors if they have any other bid higher than Liberty House.
– The central government has received bids for 111 routes from 15 airlines under the third round of auction for the UDAN scheme.
– The Supreme Court has issued a notice to Anil Ambani on a plea by Ericsson India seeking initiation of contempt proceedings against him for allegedly not complying with its order to clear dues of Rs 550 crore.
– The government will allow state-owned ONGC and Oil India to induct foreign and private partners in oilfields to raise output.
– PTC India has initiated a formal process to find a strategic investor for its wind power business. The asset sale is expected to fetch around ₹2,000 crore.
– Traders’ body CAIT has requested the Commerce and Industry Ministry not to approve selling private labels on e-comm marketplaces. It has also requested not to extend Feb.1 deadline for implementation of changes to the FDI policy.
– The government has refused to provide immunity to RJio from past payment liabilities of RCom if it acquires RCom’s spectrum through a trading deal.
– Alibaba has started taking action against thousands of sellers on its platform who were sending goods to India as Gifts. Shipping goods as Gifts allow an entity to avoid paying duties and taxes. The Government had a crackdown on this a few days back.
– CCI has sought details from Samara Capital on the acquisition of ‘More’ – the role of Amazon in the day-to-day operations and if the proposed deal is in line with the revised FDI norms.
– Mumbai airport will be shut for six hours daily from February 7 to March 30 for runway upgrade. There will be no flight movements between 11 am and 5 pm every Tuesday, Thursday and Saturday. Fares to key routes like Delhi, Hyderabad and Bengaluru may shoot up to 80 per cent.
Policies & Practices:
– GST Council has doubled the tax exemption limit to Rs.40 lakh in annual revenue. The turnover limit for businesses availing GST composition scheme, allowing them to pay GST at a flat rate, has also been raised to Rs.1.5 crore.
– The Rajya Sabha has passed the Constitution amendment Bill to provide 10 per cent reservation in jobs and education, including privately run institutes of higher education, to economically backward sections in the general category.
– Finance minister Arun Jaitley will present an interim budget on 1 February.
– National Restaurant Association of India has forwarded its concerns over deep discounting and data masking by food ordering and delivery firms during a meeting held with Zomato, Swiggy, Uber Eats and Foodpanda.
M&As and tie-ups:
– IRCTC has tied up with Bharti AXA to offer free Rs.50 lakh travel insurance with every domestic and international flight ticket booked through its platform.
– Grover Zampa Vineyards, India’s No. 2 winemaker, is set to buy USL and HCC for Rs.67 Crores. The deal will help Grover Zampa to consolidate its position in the Sula dominated market.
– AION Capital has acquired Inter Globe Technologies, the IT and back-office arm of InterGlobe Enterprises for Rs.1600 Crores. AION Capital is a JV between Apollo and ICICI Venture.
– Bandhan Bank is set to acquire Gruh Finance, a mortgage lender, through a share swap. The acquisition is aimed at cutting the bank’s promoter holding and expanding its housing finance portfolio.
Start-up world, funds and fundings
– Ola has secured $74 million in fresh funding from its existing investor Steadview Capital at a valuation of $5.7 billion. With this funding round, Ola regained its No.2 ranking as India’s most valuable startup.
– Eruditus Group has raised $40-million in a Series C round of funding led by Sequoia Capital. Eruditus plans to use the funds to expand its operations to China and Latin America, as also introduce more courses in AI and ML.
– Shreyas Shibulal, son of Infosys co-founder SD Shibulal, has set up a Rs.140 Crore fund dedicated to clean-energy startups. The fund will undertake seed investments.
– Matrix Partners India has raised a new fund of $300 million. It plans to expand its current investment team and invest in early-stage startups across emerging sectors.
– ChrysCapital has closed its eighth fund at $850 million, taking its total assets under management to over $4 billion.
– InnerChef has raised $6.5 million in pre-Series B round of funding. It will use the funding to strengthen Healthie. It claims to have raised $10 million so far.
– ZoloStays has raised $30 million in series B round of funding led by Nexus Ventures, its existing investor.
– As per a report from Preqin, VC exits in 2018 worldwide nearly doubled to $165 billion. There were 1,094 exit deals in 2018 while 2017 saw 1,307 exits worth $87 billion.
– As per Tracxn, a venture capital data firm, there were investments of $3.09 billion in B2B startups across 415 rounds in 2018. This is 28% more than $2.41 billion across 534 rounds in 2017.
– As per the data compiled by Thomson Reuters, the value of announced M&A deals in 2018 involving Indian companies was $129.4 billion.
– As per the data from Gems and Jewellery Export Promotion Council, Gems and Jewellery exports declined by 6.77% during April-November 2018. The export value stood at USD 22.24 billion.
Ongoing cases :
– NSE algo trading case – As per three forensic audit reports by EY India, Deloitte and ISB, 62 broking firms may have enjoyed preferential access to NSE servers and not just the three which have been served show cause notices.
– Vijay Mallya has been declared a ‘Fugitive Economic Offender’ by PMLA Court in the alleged Rs.9,000 crore loan default case. He is the first businessman to be charged under the new anti fugitive law. The government can now initiate confiscating his properties.
– Gautam Singhania, the promoter of Raymond, will step down as Chairman from all group companies. He will also dissociate himself from day-to-day operations of the companies so that the companies can run competitively and independently.
– Nandan Nilekani has been appointed by RBI to head a panel on e-payments.
– Sudip Singh, global head of the energy, utilities, resources and services unit of Infosys, has resigned. Under his vertical, Sudip was managing a portfolio of around USD 1.5 billion.
– NCLT has asked Abhijit Rajan, promoter and non-executive chairman of Gammon India and four other directors of the firm not to leave India without obtaining permission from the authorities concerned.