Binny Bansal sold part Flipkart holding in July
Binny Bansal, the co-founder of Flipkart, sold a part of his holding amounting to around $ 200-250 million when the e-commerce major raised its previous funding round, The Economic Times reported.
Why it’s important: He sold part of his holding to existing investor Tencent.
· Flipkart was valued at $ 37.6 billion after it mopped up $ 3.6 billion in funding in July.
· He held a 2.7 percent stake in Flipkart before the previous funding round.
· Walmart owns 72 percent of Flipkart while China’s Tencent holds a 5.3 percent stake.
· Bansal has been an active angel investor and was planning to raise his investment fund to back startups, after his exit from Flipkart.
Crypto law set to red-flag chit fund, multilevel marketing business models
The government is set to red flag several investment schemes launched by individuals and cryptocurrency exchanges that are similar to chit funds, multilevel marketing and systematic investment plans, The Economic Times reported.
Why it’s important: The government is planning to build a robust regulatory framework to protect vulnerable rural populations buying risky crypto assets.
· RBI and Sebi have raised concerns before a parliamentary panel about how some individual investors are collecting money in small towns, particularly in Uttar Pradesh and Bihar, for investing in crypto assets.
· Some have even started accepting cryptocurrency payments for export services, thus posing a broader systemic risk.
SEBI cracks down on Telegram tips operators
SEBI has cracked down on market operators in Gujarat for allegedly manipulating stocks through social media, The Economic Times reported.
Why it’s important: These operators have been accused of manipulating stocks through mobile messaging service Telegram channels with a large subscriber base.
· Officials carried out ‘search and seizure’ operations on the premises of three entities in Ahmedabad and Mehsana on Wednesday.
· The suspected entities would first buy shares and then post messages recommending subscribers to buy the same shares.
· Later on, these entities would square off their positions.
Bharti Airtel looks to buy a majority stake in Dish TV
Bharti Airtel Ltd is in early talks to acquire a majority stake in Dish TV India Ltd, Mint reported citing sources.
Why it’s important: A deal that would give India’s second-largest telecom operator control of half of the country’s satellite television business.
· Bharti Airtel executives have had discussions with Essel Group founder Subhash Chandra for the transaction.
· EY submitted the due diligence report to the telecom company on 25 October.
· Bharti Airtel has offered Rs 20 a share, a 16 percent premium to Wednesday’s closing price, to buy the 5.93 percent stake of Dish TV’s promoter group.
· Chandra has not accepted Bharti’s offer yet and this has prompted Bharti Airtel to wait before reaching out to Yes Bank, the largest shareholder of Dish TV.
BEE app to help find EV charging stations
The government is developing a centralised mobile app to help electric vehicle (EV) users locate charging stations and book slots in advance, Mint reported.
Why it’s important: The move by the Bureau of Energy Efficiency (BEE) is aimed at encouraging EV adoption across Mumbai, Delhi, Bengaluru, Chennai, Ahmedabad, Hyderabad, Kolkata, Pune, and Surat, which have a population of at least 4 million.
· BEE is designated as the central nodal agency for the deployment of public charging infrastructure.
· The move is part of India’s plans to cut net carbon emissions to zero by 2070.
‘Tata Steel Europe will see one of its best EBITDA in years’
Tata Steel Executive Director and Chief Financial Officer Koushik Chatterjee in an interview with Business Standard said that infrastructure build is driving demand in the US and Europe and that has taken finished steel to raw material spreads in some products like plates to record levels like $ 1,000 tonne.
What he says: In India, automotive demand during the festive season was much lower than expected.
· Over the last 18 months, we have cut over Rs 38,000 crore of debt till September.
· Segments like infrastructure and construction are showing promise of sustained demand.
· Structurally, this is a strong phase and Europe will be decarbonising faster than the rest of the world. So the demand for metals should continue to be robust.
· Tata Steel Europe will see one of the best years in terms of EBITDA.
· Working on a decarbonisation strategy both in Europe and in India.
· Working on virtual integration for some time. Savings of Rs 1,000-1,500 crore per annum on various fronts from synergies in supply chain and raw material to distribution and organisation simplification.
· Gandhalpada mine will become the mining hub for Tata Steel.
Domestic MFs step up buying as stock markets wobble
Domestic mutual fund managers stepped up purchases in November as the markets witnessed their steepest fall since March 2020, Business Standard reported.
Why it’s important: MF participants say corrections in the Indian markets gave some opportunities to enter at a lower level.
· Equity MFs bought shares worth Rs 19,258 crore, the most since July.
· MF buying acted as a counterbalance to the sharp outflows by foreign investors.
· In the previous 6-7 trading sessions, foreign investors took out over Rs 25,000 crore.
· Though valuations are looking a bit stretched, the Indian long-term growth story is intact and investors are investing with a long-term view, an expert said.