A second whistle for SunPharma, RIL sets another benchmark, Jet Airways- Etihad Tussle- Weekly Digest #74

Monday- 14th January 2019

  • Talks among Jet Airways and partner Etihad Airways over a possible rescue are stuck over several stipulations by the former for making any further investment. Etihad has refused to pledge its shares as collateral against loans to the Indian carrier.
  • VBL is in talks to acquire PepsiCo’s bottling, sales and distribution in the south and west for its carbonated drinks business, giving it nationwide control of these functions. Varun already runs PepsiCo’s bottling operations in the north and east.
  • Retired HDFC Bank executive and former Federal Bank board member Deepak Maheshwari has taken charge as chief credit officer (CCO) at Axis Bank as part of an ongoing reshuffle undertaken by new CEO Amitabh Chaudhry.
  • Jammu & Kashmir Bank has reported a 43% increase in its net profit at ₹103.7 crore for Q3, up from ₹72.4 crore on YoY basis. Total income increased to ₹2,184.2 crore as against ₹1,790.7 crore.


Tuesday-  15th January 2019

  • Amazon’s food-only retail business will stop selling on Amazon.in if the government’s latest FDI guidelines remain unchanged by next month. In addition, Amazon’s planned acquisition of a stake in Future Retail may be delayed. This comes amidst notification on e-commerce FDI, which prohibits marketplaces from selling affiliates’ products
  • Flipkart co-founder Sachin Bansal has invested ₹150 crore (about $21 million) in homegrown ride-hailing app Ola. In return, Ola has allotted the former Flipkart CEO 70,588 shares at ₹21,250 per share. The latest investment continues to value Ola at $5.7 billion.
  • The Directorate General of Civil Aviation (DGCA) said in the audit of Jet Airways that Delayed salary payments at Jet Airways have the potential to pose a safety risk. The struggling airline has not been paying salaries to its senior management, pilots, engineers and crew for more than two months.
  • Myntra-Jabong chief executive Ananth Narayanan has stepped down to pursue other opportunities. Amar Nagaram, who recently moved to Myntra as part of a reshuffle between the technology teams at the two companies, has been named the head of Myntra and Jabong.
  • Jet Airways’ stock soared over 16% after a media report said a resolution plan for the airline’s bailout will be finalised this week and that founder chairman Naresh Goyal will cede controlling stake and step down from the board. The stock closed at ₹294.40.


Wednesday-  16th January 2019

  • Etihad Airways CEO Tony Douglas has communicated to the lead lender of Jet Airways that it will not pay a rupee more than ₹150 a share for infusing funds and sought a complete exit by Naresh Goyal and his family from any management or even advisory role in Jet Airways.
  • SBI has put its entire loan of ₹15,431 crore to Essar Steel on sale, setting a floor price that amounts to a third on the sum due and demonstrating the intent to get its money back at the earliest. The lender set the minimum reserve price for the loan at ₹9,588 crore.
  • Education technology firm Byju’s said it has acquired US-based learning platform Osmo for $120 million as part of an aggressive international expansion plan. Osmo, founded by India-origin Pramod Sharma, produces augmented reality games for iPads and iPhones targeted at children.
  • Flipkart India has received ₹1,431 crore in fresh capital from its Singapore-based parent entity Flipkart Private Limited in exchange of 4.86 lakh shares at a price of ₹29,400 per share  The fund infusion comes after the Indian government made clarifications to the FDI policy for the e-commerce industry.
  • The Delhi High Court has stayed a demand of ₹462 crore made on Hindustan Unilever by the National Anti-profiteering Authority for allegedly not passing on gains from lower GST to consumers. The company needs to deposit ₹50 crore by March 15 and another ₹40 crore by May 15.


Thursday- 17th January 2019

  • Reliance Industries become the first Indian company to report a quarterly net profit higher than ₹10,000 crore as it reported an 8.8% rise in Q3 profit of ₹10,251 crore. This has been attributed to strong growth in petrochemicals, telecom and retail businesses.
  • Jet Airways promoter Naresh Goyal has countered partner Etihad Airways’ proposal to increase stake in the airline with an offer to invest ₹700 crore. He also proposed to pledge his entire shareholding with lenders while seeking to maintain at least a 25% stake, resisting pressure to reduce his holding and step aside.
  • SoftBank to invest $400 million for an over 40% stake in BrainBees Solutions, which owns and operates omnichannel baby and mother care product retailer FirstCry. SoftBank is likely to pick up an estimated 42% stake in the eight-year-old Pune-based venture, valuing it at $600-700 million.
  • The CCI has approved the Samara Capital-Amazon joint bid to acquire Aditya Birla Group’s supermarket chain More. However,  it’s for the Samara-Amazon JV Witzig to ensure that the deal is in compliance with the revised e-commerce FDI norms.
  • Niko Resources has served a notice of arbitration to Reliance Industries and BP Plc after they asked the Canadian oil and natural gas company to exit the KG-D6 block because it had defaulted on cash calls. Niko owns 10% participating interest in the KG-D6 block off the eastern coast.


Friday- 18th January 2019

  • Shares of Sun Pharma crashed over 13% intra-day after it emerged there was a second whistleblower letter containing serious allegations of corporate governance lapses against the company. The shares closed at the lowest level in nearly six years at ₹390.25, down 8.51%.
  • Reliance Jio Infocomm has told analysts that it sees no reason to raise tariffs now as it is generating strong revenue growth and robust customer additions at the prevailing levels, indicating that a revenue recovery for rivals Vodafone Idea and Bharti Airtel remains distant.
  • Wipro reported a Q3 profit of ₹2,510 crore, up 29.6% from ₹1,930.1 crore on YoY basis. It also announced one bonus share for every three held by shareholders and an interim dividend of ₹1 per share. The share price closed 2.91% up at ₹346.20 on BSE.
  • The SC  issued notices to the GoI on a petition filed by Vodafone Idea challenging an HC order that dismissed its demand for income tax refunds totalling about ₹5,000 crore. Vodafone Idea claimed the refunds after revising returns for three years following amalgamation plans and after reaching an APA.


Source: The Economic Times