1. Uber Deal Tests Didi’s Pact with Ola
According to official documents, the sale of Uber’s China unit to local rival Didi Chuxing will be in violation of the shareholder agreement the Chinese company signed with Ola, India’s biggest cab-hailing service.
It was only last week that the world’s most valuable start up, Uber Technologies Inc, announced the merger, a deal valued at at $35 billion, according to media reports.
Source: Livemint
2. Yes Bank to Tank Up on $1b Via Rights Issue for Growth Drive
In what would be the biggest exercise of this kind in 2016, Yes Bank is all set to launch a $1 billion share sale to institutional investors in order to boost its expansion and take advantage of the sudden economic revival in the country. The Rana Kapoor-controlled bank has roped in Morgan Stanley and Goldman Sachs “as lead bankers to the issue, which is expected to be launched within 30 days,” sources said.
Source: The Economic Times
3. Cabinet Liberalises Foreign Investment Norms For NBFC Sector
In a move to amend and liberalise foreign investment norms in the sector, the cabinet on Wednesday expanded the list of non-banking financial companies which can attract foreign direct investment. The Narendra Modi-led government also gave a green light to foreign investment through the “automatic route in other financial services”, if they are under regulators like the Reserve Bank of India and market regulator Securities and Exchange Board of India.
Under the current regulations, FDI would be allowed on automatic route for only 18 specified NBFC activities after “fulfilling prescribed minimum capitalisation norms mentioned therein.”
Source: BloombergQuint
4. Grasim, Nuvo Merger Talk Fails to Cheer Dalal St
The news of a Grasim and Aditya Birla Nuvo merger did not cheer the stock market as shares of the Aditya Birla Group companies spiralled down on Wednesday.
Investors clearly protested against reported news of the merger exercise.
Central to the stakeholder concern and anger is the perception that Grasim “would be given short shrift in the restructuring exercise and saddled with the money-guzzling Idea Cellular.” In the case of AB Nuvo, analysts are not too happy with the idea of the financial services business getting spun off.
Source: The Economic Times
5. Passenger Vehicle Sales Rise 13th Month in a Row
Owing to several factors, passenger vehicle sales are set for double-digit growth in the current financial year, analysts believe.
A strong buying sentiment in the country, better-than-expected monsoon, and the implementation of the Seventh Pay Commission’s recommendations, have been asserted as the major causes for the growth numbers.
Sales of passenger vehicles climbed up to 16.78 percent in July, increasing for the 13th month in a row and the fastest since October.
Source: Livemint
6. Industries May Shift Out of Delhi if Government Hikes Minimum Wages: FICCI
The Federation of Indian Chambers of Commerce and Industry (FICCI) wrote to Delhi Labour Minister Gopal Rai on Wednesday warning that industries might shift out of the national capital if the Delhi government proceeds to increase the minimum wage by 30-40 percent.
It also asked the AAP government to rethink its proposal as the hike could “hurt micro and small enterprises” in Delhi.
Source: The Financial Express
7. Complaint Filed Against E-Commerce Majors for FDI Norms Violation
In what could spell trouble for these e-commerce retailers, The Confederation of All India Traders (CAIT) has filed a complaint with The Department of Industry Policy and Promotion (DIPP) alleging that Amazon, Flipkart and Snapdeal are “blatantly violating FDI norms.”
The traders’ body asserted that these companies have given “big advertisements in media announcing sale on their platform” in the past three days, a move that violates FDI guidelines on e-commerce.
Source: The Financial Express
8. Tata Chemicals Offloads an Underperforming Asset
After the company said it would sell its urea business for Rs 2,670 crore, the stock of Tata Chemicals stock gained 8.77% on BSE on Wednesday.
Although the price of the deal is less than the $1 billion crore it was reportedly seeking for the whole fertiliser business a year ago, investors seem happy that the company is exiting its fertilisers business, something that had become a drag on its finances.
Source: Livemint
9. RBL Bank Looks to Script New Future With Rs 1,200 Crore IPO
In an initial public offer (IPO) that will open on 19 August and close on 23 August, RBL Bank Ltd will aim to raise Rs 1,210 crore, the bank said in a press release. The private sector bank aims to raise Rs 832 crore out of the Rs 1,210 crore “through the issue of fresh equity shares.” The release added that the current shareholders of the bank will look to sell their stake for a total of Rs 380 crore.
Source: BloombergQuint
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