Rupee hits an all-time low, Amazon India receives fresh infusion, Fortis-IHH deal approved by shareholders- Weekly Digest #69

Monday- 13th August 2018

  • The Indian Rupee hits a 5 year low as it fell by 1.58% against USD to reach 68.93 amidst selloff in emerging market currencies led by the collapsing Turkish lira. In the derivative trading, the rupee crossed 70 to the USD.
  • Bain Capital Private Equity is competing with US private equity firm KKR to buy a 47% stake in Max Healthcare from South Africa’s Life Healthcare for between $450 million and $540 million. This comes after Life Healthcare held discussions with its Indian partner on leaving the venture.
  • Amazon India has received a fresh infusion of ₹2,700 crore from its parent company. This brings the total infusion into Amazon India to over $1 billion since January 2018. The Seattle company also pumped in ₹100 crore into its food retail business Amazon retail.
  • Tata Steel reported a Q1 profit of ₹1,934 crore, an increase of 53% on YoY basis. However, it missed the market expectations of ₹2,700 crore.  The consolidation of Bhushan Steel’s financials did not translate into commensurate profits.
  • Retail inflation in the country eased to a nine-month low in July at 4.17% due to a sharp decline in the price increase of food and beverages. It brings hopes that the Reserve Bank of India will stop raising interest rates.


Tuesday-  14th August 2018

  • The rupee hit an all-time record low as it crossed the psychological mark of 70 per dollar before bouncing back to end slightly higher at 69.89. The currency has lost about 8.6% so far this year.
  • JSW Steel raised its offer for Bhushan Power & Steel to ₹19,500 crore, making it the highest among the three bids for the bankrupt company as Tata Steel and Liberty House refrained from revising their proposals. They have their bids at ₹17,000 crore and ₹18,000 crore, respectively.
  • Spicejet reported a loss of ₹38 crore in Q1, sharp decline from a profit of ₹175.2 crore a year earlier. This has been its first loss reporting quarter in three years owing to provision for arbitration.
  • Shareholders of Fortis Healthcare approved its proposed $1 billion deal with Malaysian healthcare group IHH BHD. 99.7% of the shareholders who voted were in favour of the Fortis-IHH deal. IHH will have the rights to control two-thirds of the seats on the Fortis board.


Wednesday-  15th August 2018

  • Hotel chain OYO is in advanced talks to raise up to $1 billion in a deal that could usher the company into India’s crowding Unicorn club with a valuation of over $4 billion.
  • Online gaming company Nazara Technologies has made its first move towards offline gaming with a minority investment in InstaSportz Consultancy which builds VR gaming lounges across the country. Nazara, which has picked up 10% stake in InstaSportz, will raise it to 26% by November.
  • A day after the rupee plunged to its record low, Union Minister Arun Jaitley said India has comfortable foreign exchange reserves at $402.70 billion to deal with any undue volatility in the currency market.


Thursday- 16th August 2018

  • In a bid to expand its play in the content space, Girnar Software, which owns and operates auto portals,, and, has acquired PowerDrift Studios Private Limited which operates content platform PowerDrift.
  • Benchmark Sensex tumbled over 188 points to close at 37,663 on Thursday, tracking weak global cues on concerns over Turkey’s financial crisis amid sustained foreign fund outflows. Rupee further slumped from its all-time low to 70.40 per dollar.
  • The founder of Smaaash Entertainment is in talks with investors in the US to raise $25-30 million (about ₹175-200 crore) to fund the sports-based entertainment company’s expansion.


Friday- 17th August 2018

  • Safecrop Holdings, a consortium of WestBridge AIF, Rakesh Jhunjhunwala and Madison Capital, has signed definitive agreements with the shareholders of Star Health & Allied Insurance Co to purchase their stock in the country’s largest independent health insurer. The company has been valued at ₹6,500 crore.
  • Air India pilots have threatened to stay away from flying duties, thus disrupting flight schedules, as their flying allowances have not been paid. While Air India paid salaries on Tuesday, it didn’t pay the flying allowances that constitute about 70% of a pilot’s pay.
  • Malaysia’s Axiata Group Berhad will recognise a non-cash impairment of RM3.32 billion (about ₹5,692 crore) in the carrying value of its investment in Idea Cellular.
  • The Supreme Court has asked Bharti Airtel to reply to a notice in two weeks while admitting bankrupt telecom firm Aircel’s petition seeking ₹453 crore dues from the Sunil Mittal-owned mobile phone operator.
  • Hundreds of Google employees have signed a protest letter over the company’s reported work on a censor-friendly search engine to get back into China. The employees are demanding more transparency so they can understand the moral implications of their work.

Source: The Economic Times

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