GST deadline postponed, ATM withdrawal enhanced, Flipkart devalued- Weekly Digest #31

Monday- 16th January 2017

  • The government is expected to roll out GST by 1st July 2017 as it finally reached an agreement between Centre and State over administration issues. 90% of assessees with turnover up to ₹1.5 crore will be scrutinised by state and balance 10% by Centre. Remaining assessments will be in 50:50 ratio.
  • ATM withdrawal limit per card has been raised to ₹10,000 per day from the earlier ₹4,500 per day.
  • Daiichi Sankyo has moved in Delhi HC to block former Ranbaxy Lab promoters Malvinder and Shivinder Singh from selling their stake in Fortis Healthcare. Singapore Tribunal had ordered Singh Brothers to pay ₹2,562 crores for concealing information at Ranbaxy and Daiichi fears that sale will dilute the assets earmarked for recovery of the penalty.
  • Reliance Industries’ Q3 profits rose to 3.6% to ₹7,506 crores. This has been attributable to its booming petrochemicals business. Consolidated turnover grew 16% to ₹84,189 crores.


Tuesday- 17th January 2017

  • Former Tata Sons chairman Cyrus Mistry has opposed the appointment of Natarajan Chandrasekaran as his successor. He has called the appointment as illegal and might get involve in another legal tussle against the Tata Sons.
  • Mutual fund investor T Rowe Price has slashed the valuation of Flipkart by 4% to $9.9 billion. The latest move pegs Flipkart’s valuation per share at $93.15 at the end of December quarter, from $96.29 during the September quarter.
  • Videocon Telecom, one of the smallest telcos in India, will shut down operations in the Punjab circle from February 15, bringing to an end its mobile services in the country.
  • Reliance Industries (RIL) has written down ₹39,570 crores of investments in its Krishna Godavari Basin D6 block and US shale gas assets attributing it to change in accounting policy. Earlier it was valuation was done at full cost method. However, new Ind-As allows valuation at only successful efforts method which led to the devaluation.
  • SBI has raised an amount of $500 million by selling 5-year bonds to investors in Asia and Europe. The bond will yield @ 3.30%.


Wednesday- 18th January 2017

  • A consortium of lenders led by State Bank of India has made an application to SC  to leave Aircel out of the corruption case against the telecom operator’s promoter as nearly ₹30,000 crore debt will become irrecoverable if the licence is cancelled.
  • RBI Governer Urjit Patel told the parliamentary standing committee on finance that new currency worth ₹9.2 lakh crore had been pumped into the economy and cash crunch was no longer an issue. However, it was not specified when the restrictions on withdrawals will be lifted.
  • Bharti Airtel appointed Raj Pudipeddi as director of consumer business and chief marketing officer for its India operations. The position was lying vacant after Srini Gopalan had resigned from the position.
  • Idea cellular has filed a plea against TRAI for allowing Reliance Jio Infocomm’s Happy New Year offer as it hampers the competitiveness in the market. Airtel had filed a similar complaint last year.


Thursday- 19th January 2017

  • KKR & Co, which ended its partnership with TVS Logistics three months ago, has offered a long-term structured credit partnership with the promoters of TVS Logistics. The loan amount of ₹400 crore will be utilised to buy shares from PE investors.
  • Saama Capital, a venture capital firm that has invested in startups such as Paytm and Snapdeal, has made a final close for its third fund at $58 million. With this, the corpus of the Bengaluru and Silicon Valley-based VC firm will reach nearly $140 million.
  • Myntra’s largest seller Vector E-Commerce posted a 40% jump in revenue at ₹1,747 crore for the fiscal year ended March 2016. However, the seller also posted a loss of ₹8.7 crores due to deep discounts and expansion.


Friday- 20th January 2017

  • Motherson Sumi Systems Ltd has agreed to acquire Finnish wiring harness maker PKC Group for an amount of ₹4150 crores. This is expected to be one of the biggest buyouts by an Indian auto parts maker.
  • The Competition Commission of India has approved the proposed merger of online travel firm MakeMyTrip’s Indian travel business with rival Ibibo Group, owned by South African media conglomerate Naspers.
  • Mahindra & Mahindra (M&M) announced an acquisition of Hisarlar Makina Sanayi ve Ticaret Anonim irketi (Hisarlar), a farm equipment company based in Turkey for $19 million.

Source: The Economic Times

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