Weekly India Business News from (11th June – 15th June)

Corporates:

 

On firm’s request, NCLT has extended Ruchi Soya for the resolution process by 90 days.

NCLT has restrained Jignesh Shah and nine others from holding directorship in 63 Moons Technologies or in any other company. Shah is among those alleged to have been involved in the Rs5,600-crore payment crisis at the National Spot Exchange.

 
Weekly India Business News from
 

West Bengal government has secured registration of the Biswa Bangla Trademark. It will now adapt it for use by various departments.

 

Airtel has approached the Advertising Standards Council of India against Reliance Jio for claiming in its ads that it is the ‘world’s largest mobile data network’ and ‘best network’. It has also claimed to offer ‘best postpaid offers’ and ‘best entertainment’.

 

SEBI has the power to impose a penalty of maximum 25 crore on Chanda Kochhar in case she is found guilty on the Videocon Loan case, but, it cannot demand her resignation from the post of CEO of ICICI bank.

 

The government in order to privatize IDBI bank, is weighing its options, including qualified institutional placement, to bring down its stake in IDBI Bank.

 

Aye Finance, offering loans to small businesses, has raised ₹145.2 crore in Series C round of funding led by CapitalG. The funding will be used for business operations and technology. Till date, the firm has raised more than ₹200 crore from VC firms, and an additional ₹500 crore from debt and equity funds.

 

Consumer packaged goods firms are going heavy on digital to improve their market shared. Godrej, Patanjali, HUL, and Marico are among the firms that are adopting analytics and machine learning to manage the business.

 

At the Shareholders meeting on 5th July, Reliance Industries will seek approval to issue redeemable non-convertible debentures.

 

The board of Usha Martin has approved a proposal to explore the sale of its steel business, marking a shift in strategy to revive the firm. The firm had earlier hired an investment banker to find a buyer for its wire rope business to pay down debts of around ₹4,700 crore.

 

Panasonic India has decided to diversify its portfolio of services, from selling consumer appliances to providing complete solutions for a house or community.

 

Sun Pharmaceutical has received clearance for all the issues raised by US FDA over its Halol facility in Gujarat, which had been under FDA scanner since September 2014.

 

The Government has started working again on the sale of Air India and how to make it more attractive to buyers. Preliminary discussions are being held with bankers and potential bidders, for drawing up a draft framework. It may be willing to offer 100% stake in the airlines.

 

Ruchi soya update – Adani group has offered around ₹6,000 crore to emerge as the highest bidder for acquisition Ruchi Soya. Patanjali Ayurved has bid around ₹5,700 crore for the firm.

 

Axilor Ventures, the early-stage venture capital fund, has launched a ₹200 crore technology-focused fund, which will primarily look to infuse seed money of around Rs.3 Crore in each portfolio company.

 

Nitesh Banga, head of manufacturing of Infosys has left the firm to take over as COO of GlobalLogic, a privately-held company valued at over $2 billion. Banga was appointed to oversee a business that is estimated to have accounted for more than $1 billion in revenue in July last year.

 

Paytm Mall has raised around ₹1,500 crore from SoftBank and Alibaba Group. The funding is part of ₹3,000 crore commitment announced in April this year, out of which SoftBank shall invest ₹2,600 crore with the rest coming from Alibaba.

 

Uber has introduced a data-light version of its app in seven Indian languages. The aim is to expand its user base and increase popularity in tier-III cities. A pilot project has been launched in Hyderabad, Delhi and Jaipur.

 

Visa, the largest card payment network, has slashed its charges on debit card transactions by upto 95%, the largest quantum being applied to transactions under Rs.2,000.

 

NDMC is likely to announce a new date for the auction of Hotel Taj Mansingh in a month, however, the existing tender terms are unlikely to be changed.

 

Food processing minister has asked DIPP to ease curbs on Amazon’s food retailing venture. DIPP wants Amazon to have separate facilities for the food venture’s warehousing, logistics and inventories. Amazon plans to invest around $500 million in food retailing venture.

 

Ikea, which is set to launch its first store in Hyderabad, is expecting its restaurant business to drive higher footfall to its stores. Globally, the food accounts for 5-10% of its sales, but Ikea expects this to be significantly higher in India. Ikea will have 1000 seater restaurant in its Hyderabad store.

 

Amazon India has launched a platform for lenders and sellers wherein they can choose from loan offers to get term loans or overdraft. It currently has 6 lenders on its platform including Capital First, Bank of Baroda, Aditya Birla Finance among others.

 

To have an upper hand in the competition, Zomato and Swiggy are looking to build a captive supply of kitchens to cater to their customers. Zomato is set to invest around Rs.30 Crore in Loyal Hospitality which is looking to set up 8000-10000 kitchens over the next three years.

 

Fosun International, the Chinese diversified conglomerate, will now focus more on investing in early-stage startups in India. Fosun has investments in companies like MakeMyTrip, Delhivery and Ixigo.

 

The Government is considering various disinvestment process for Air India but it says it will not allow complete foreign ownership as reported earlier.

 

ICICI Bank will sell up to 2% of its stake in ICICI Prudential Life Insurance.

 

HDFC Bank has got approval from the Cabinet to raise up to Rs.15.5 Crores via QIP.

 

The Bombay High Court has disposed of a petition filed by Videocon objecting to initiating bankruptcy proceedings by SBI and others against the firm.

 

A panel of ministers shall meet next week to explore options on the future of Air India, which could range from getting Air India listed to full privatization or even calling off the sale.

 

ICICI bank moves to NCLT against Punj Llyod seeking insolvency proceedings to recover Rs.582 crore of outstanding loans. The Bank has initiated a forensic audit of the firm and has appointed TR Chadha of Chadha & Co as the forensic auditor.

 

The founder of Continuum Wind Energy, Arvind Bansal, is in talks with investors to raise money to buy back Morgan Stanley’s majority stake in the firm. Morgan Stanley had invested $212 million in Continuum Wind in 2012.

 

Indiamart will soon file draft papers to raise money of up to Rs 600 crore through an initial share sale. A foreign investment bank, ICICI securities, and Edelweiss Financial Services are said to be advising the company for the same.

 

India and US have decided to negotiate a “trade package” soon with the offers of “hard, clear step” to avoid trade war between the two countries. Donald Trump threatened to “stop trading” in India citing high tariff rates.

 

DoT shall seek a bank guarantee of about Rs 2100 crore from Idea before the merger of Idea and Vodafone takes place. The amount is towards one-time spectrum fee of Idea Cellular.

 

As per an estimate by Dentsu Aegis Network, advertising expenditure in India is expected to rise 10.5% to touch ₹62,400 crore in 2018. Last year Ad spending grew at 8.9% and is expected to grow at 11.1% in 2019.

 

Policies & Practices:

 

The government has launched a fresh drive against the companies defaulting to file the statutory returns. Under such drive, 225,000 companies and 7,000 LLPs are under the threat of being struck off.

 

SEBI and stock exchanges will put additional surveillance in place for the companies going through Insolvency Resolution Process.

 

Former Supreme Court judge B.N. Srikrishna is trying to lead the effort of drafting new privacy laws in India to regulate Amazon, Facebook, and Google.

 

NCLT admitted the insolvency plea by Andhra Bank against Sterling Biotech Ltd.

 

The date of submission of binding offers has been extended by the Board of Fortis Healthcare to June 28.

 

Sebi has set up a panel to look for ways to ease listings with an aim to make stock market listing attractive for start-ups. The panel will review existing institutional trading platform framework as also identify areas which need changes.

 

SEBI is now considering to allow Indian Companies to directly list overseas. Earlier the same was prohibited on the fear that it will lead to Capital Flight from the country.

 

SEBI is planning for revised norms to help recover investors money through the sale of assets in cases of illegal collective investment schemes. Sebi shall appoint a registered insolvency professional as administrator for asset sales.

 

Airlines are likely to increase ticket prices across the board by a few hundred rupees to offset a possible revenue hit from refunding customers for ticket cancellations. The Government has proposed full refund if a customer cancels a ticket within 24 hours of booking.

 

M&As:

The merged entity of Vodafone and Idea is proposed to operate as Vodafone Idea Ltd. The new entity has announced the appointment of nine executives, each from their team as circle heads.

 

HDFC will acquire a minority stake in the ATS group firm “Homekraft” and will invest $300 million for development of mid-size and affordable houses across India. The investment will be a mix of accrual, debt, and private equity funds.

 

Bayer AG is in the process of acquiring 44,88,315 shares, representing 26% of the voting rights, in an open offer of Monsanto India.

 

Ruchi Soya updates –

 

– The Australia and New Zealand Banking Group has approached NCLT seeking to be categorized as a financial creditor to Ruchi Soya.

 

– Patanjali and Adani group submitted their revised bids to acquire Ruchi Soya.

 

­–Adani group has offered around ₹6,000 crore to emerge as the highest bidder for acquisition Ruchi Soya. Patanjali Ayurved has bid around ₹5,700 crore for the firm.

 

Adani Wilmer emerged as the highest bidder for Ruchi Soya, surpassing Patanjali.

 

To expand into digital payment services in India, Truecaller has acquired Chillr. Truecaller is looking to roll out Truecaller 2.0 in the next few months, wherein it will offer credit and other financial services to Indian users. Sequoia is the common investor in both the firms.

 

Fortis Healthcare withdrew its scheme of amalgamation and arrangement with Fortis Malar and SRL as it could not complete the procedure even after 19 months.

 

Start-ups:

NirogStreet, a healthcare startup, creating a community of Ayurveda doctors has raised a seed funding of $300,000 from Spiral Ventures, the early stage Japanese venture fund and others. Funds will be used to further building the community platform and launching online consultation portal.

 

Ongoing cases:

PNB case update- ‘Financial Times’ report says that Nirav Modi is in London trying to claim political asylum.

 

People:

CBI asked Interpol to issue Red corner notice against Nirav Modi and Mehul Choksi.

Aegon Life Insurance has announced the appointment of Saba Adil as the CEO of the company.

Rana Kapoor has been reappointed as MD and CEO of Yes Bank for 3 more years. The re-appointment is subject to final approval by RBI.

 

The CEO of Cognizant, Mr. Francisco D’Souza, has also been appointed as the vice president of the company.

 

ICICI bank has started working on the succession plan for Chanda Kochhar, which will be put in front of the Board after shortlisting gets completed.

 

 
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