Today's top business news includes a ₹2 billion fine imposed by India's competition regulator on India's biggest carmaker Maruti Suzuki for anti-competitive practices related to dealer discounts, and the halting of over 40 IPOs by China amid a regulatory probe. Separately, Bitcoin jumped above $50,000 for the first time since May, while equity index Sensex ended 226 points higher.
Branson's Virgin Orbit to list through SPAC merger at $3.2 billion valuation
Virgin Orbit, the satellite launch service part of billionaire Richard Branson’s conglomerate, said on Monday it is going public through a merger through an SPAC vehicle, in a deal that values it at $3.2 billion, Reuters reported.
The deal with NextGen Acquisition Corp II also includes a private investment in public equity of hundred million dollars from parties such as Boeing Co and AE Industrial Partners.
Maruti Suzuki fined ₹2 billion over dealer discount policy
The Competition Commission of India (CCI) has fined Maruti Suzuki, the country's biggest carmaker, ₹2 billion for anti-competitive practices related to how it forced dealers to discount cars, the watchdog said in an order on Monday.
In an order issued after an investigation, the CCI asked Maruti to "cease and desist" from indulging in such practices and asked the company to deposit the fine within 60 days, Reuters reported.
Bitcoin jumps above $50,000 for first time since May
Bitcoin rose back above $50,000 on Monday for the first time in three months after supportive news from payments giant PayPal and cryptocurrency platform Coinbase.
The world's most popular virtual unit jumped to $50,440 during Asian trade, before easing to $50,350 in early morning London deals, AFP reported.
About 52% IPO investors sold shares on listing day in April-July FY22
More than 50% of IPO investors sold shares on the listing day in the first four months of the ongoing fiscal year while another 20% sold the allotted shares within the first week of listing on stock exchanges, according to an analysis by Motilal Oswal Financial Services.
The data showed that around 5.7,00,00 of Motilal investor clients subscribe to initial share sales in just four months of 2021 2022 compared to 5.1 lakh in the entire preceding fiscal year, PTI reported.
Forex reserves to top $655 billion by March: report
Foreign exchange reserves are set to top $655 billion by March, as the central bank continues to increase reserves by running down the forward book which totalled $42 billion as of end of July, signalling its strong resolve to build a bigger reserve cushion to address expansionary, unorthodox monetary policy, according to a report.
The reserves declined by $2.10 billion to $619.365 billion for the week to August 13 due to a fall in the core currency assets and gold, according to latest RBI data, PTI reported.
China halts over 40 IPOs amid regulatory probes
China has halted more than 40 initial public offerings (IPO) in Shanghai and Shenzhen amid a regulatory probe into several intermediaries in the deal, Reuters reported citing official exchange disclosures.
The companies attribute the hall to an investigation by the China Russia Securities Regulatory Commission (CSRC) into intermediaries including Beijing-based Tian Yuan Law Firm, China Dragon Securities Co and CAREA Assets Appraisal Co.
Sensex rises 26 points led by TCS, RIL
Equity benchmark index Sensex ended 226 points higher on Monday led by gains in TCS, HCL Tech and Reliance Industries.
The index ended 0.41% higher at 55,555.79. NSE Nifty rose 45.95 points or 0.28% to 16,496.45, PTI reported.
Mahindra&Mahindra, Bajaj Auto, Ultratech Cement and PowerGrid were among the laggards in the Sensex pack.
Separately, the rupee gained 17 paise to close at 74.22 (provisional) against the U.S. dollar on Monday, supported by a firm trend in domestic equities and weak American currency overseas.
Yes Bank, WheelsEMI form co-lending partnership to offer two wheeler loans
Private sector lender Yes Bank and WheelsEMI on Monday announced it has formed a co-lending partnership, aimed at financing over 1 lakh two wheelers in the first leg of the tie-up.
The company said the partnership aims at synergising respective capabilities to provide an efficient and seamless lending experience to 2 wheeler buyers across the country.
The tie-up is in line with the Reserve Bank of India’s co-lending framework, allowing collaboration benefits from a bank's low-cost funds and sourcing and servicing expertise of an NBFC, PTI reported.
Roots of economic recovery deepen in July as COVID-19 restrictions ease: ICRA
The easing of COVID-19 restrictions by several states in the country have helped economic recovery in July 2021, according to a report by ICRA Ratings.
The unlocking in the country has manifested itself in improving performance across various high frequency industrial and service sector indicators, mobility and toll collections in July 2021, PTI reported.
Voda-Idea loses 42.8 lakh mobile users in June
Vodafone Idea continued to lose mobile subscribers in June, while rivals Reliance Jio and Bharti Airtel added customers in a fiercely competitive Indian telecom market, PTI reported citing data by TRAI.
Vod-Idea lost about 42.8 lakh subscribers during June, as its user base shrunk to 27.3 lakh, adding to the woes of the debt laden telco which is struggling to stay afloat.
U.K. regulator probes S&P Global's $44 billion deal with IHS Markit
Britain’s competition watchdog on Monday announced it has started an investigation into whether business information provider S&P Global $44 billion purchase of London-based IHS Markit Ltd would hurt competition.
S&P Global agreed to buy IHS Markit last year, creating a new data powerhouse serving Wall Street in the corporate world, Reuters reported.
OLX Group’s cars trading platform crosses $1 billion in sales
OLX group on Monday said its trading platform OLX Autos for second hand cars has crossed $1 billion in sales in 10 countries across Asia and America.
Every month, around half a million cars are listed for sale by consumers and dealers on OLX Autos classified platforms in India, Indonesia, and Latin America, PTI reported citing a company statement.
News Broadcasters Federation's self-regulatory body now recognised by MIB
The Ministry of Information and Broadcasting (MIB) has now officially recognised the News Broadcasters Federation's (NBF) self-regulatory body.
The NBF said in a press release that the granting of official status by the MIB to the NBF makes the body the only institution of its kind in the entire country to get accreditation from the government of India, PTI reported.
Co-lending with non-banking firms, agri financing to be part of Ease 4.0 reform
The Ease 4.0 index, a reform agenda for 2021–22 for public sector banks, is expected to include co-lending with non-banking firms, digital, agriculture financing, and technological resilience for 24x7 banking.
Launched in January 2018, Enhanced Access and Service Excellence (EASE) is the common reform agenda for all public sector banks aimed at institutionalising clean and smart banking.
The new reforms are likely to be unveiled by Finance Minister Nirmala Sitharaman later this week, PTI reported citing unnamed sources.
Over 57,00,00,000 COVID-19 vaccine doses provided to states UTs so far: Centre
The Union Health Ministry said on Monday that over 57.05 crore COVID-19 vaccine doses have been provided to states and union territories so far.
It added that over 3.44 crore balance and unutilised COVID-19 vaccine doses still available with states and union territories to be administered and another 13,34,620 doses are in the pipeline, according to a PTI report.
Over 16 merchant bankers in race for managing LIC IPO
As many as 16 merchant bankers are currently in the race to manage the initial public offering (IPO) of LIC, which is expected to be the biggest share sale in the country's history.
This list comprises of seven international bankers including BNP Paribas, Citigroup global markets India and DSP Merrill Lynch Ltd.
According to PTI, the bankers will be making a presentation before the Department of Investment and Public Asset Management (DIPAM) in the next two days.
Over 15,000 jewellers in Gujarat join strike against gold hallmarking system
Over 15,000 jewellers across the state of Gujarat joined a nationwide strike against the implementation of Hallmarking Unique ID (HUID), PTI reported citing industry stakeholders.
The token strike against HUID was called by the all India Gems and Jewellery Domestic Council (GJC) and supported by various associations across the country, including Gujarat.
Gold ETFs witnessed ₹61-crore outflow in July
Gold exchange traded funds (ETF) logged a pullout of over ₹61,000 crores in July as investors diverted their money from gold to equity and debt funds.
The development came after seven straight months of net inflows, PTI reported.
The number of folios went up to 19.13 lakh in July from 18.32 lakh in the previous month, according to data by the Association of mutual funds in India (AMFI).
Govt plans to raise ₹600,000 crore through infrastructure asset sales
The government is said to be in talks to raise ₹6 trillion ($81 billion) from selling state-owned infrastructure assets over the next four years to help boost the government’s finance and reduce its budget deficit, Bloomberg reported citing unnamed sources.
The plan will include sale of roads and railway assets, airports, power transmission lines and gas pipelines, the report noted.
Delhi HC gives police three weeks to conclude Paytm investigation
The Delhi High Court on Monday said it has given the police three weeks to conclude the ongoing probe into claims from a former Paytm director who said he co-founded the digital payment platform but did not receive the shares owed, Reuters reported.
Paytm has said the claim amounts to harassment and cited it under "criminal proceedings" in the prospectus for its proposed $2.2 billion initial public offering (IPO). Saxena, a director from 2000 to 2004, has written to the market regulator urging it to stop Paytm from proceeding with the IPO.
Sebi puts Gemini Edibles’ ₹2,500-crore IPO on hold
Capital markets watchdog Sebi has put Gemini Edibles’ proposed ₹2,500-crore initial public offering (IPO) on hold or “abeyance”, according to an update on the website.
However, Sebi did not provide further information, according to PTI.
On August 9, the company had filed preliminary papers with Sebi to raise funds through an initial public offering (IPO).
Manufacturing startup Zetwerk raises $150 million from D1 Capital
Manufacturing startup Zetwerk on Monday said it has raised $150 million in a series E round led by D1 Capital, valuing the company at $1.33 billion.
Other investors include Green Oaks and Lightspeed Venture who invested $32 million and $22.5 million respectively.
The company also plans to expand its manufacturing business overseas in various domains including oil, gas, aviation and consumer products according to CEO Amrit Acharya, a PTI report noted.
HDFC Bank aims to recapture lost credit card market share in next one year
A senior official from India’s largest private lender by assets HDFC Bank said on Monday that the bank is looking at winning back its lost market share by number of cards in the next one year, according to a PTI report.
The lender was allowed to issue new credit cards by the RBI last week, over eight months after being banned from doing so due to concerns of repeated technical glitches.
Railways suffered loss of ₹36,000 crore during pandemic: Union Minister
Indian Railways incurred a loss of ₹36,000 crore during the pandemic, Union Minister Raosaheb Danve said on Sunday, according to a PTI report.
He termed the goods train as the real revenue generator for the national transporter and said a bullet train project would be executed along the Mumbai-Nagpur Expressway, which is under construction.
PLI scheme will help deliver topline growth: Surya Roshini
India’s production-linked incentive (PLI) scheme will be a game-changer for manufacturing firms and help augment its facilities through backward integration, according to consumer durables company Surya Roshini, according to PTI.
The production-linked incentive (PLI) scheme and various other government initiatives like Make in India, Aatmanirbhar Bharat and Vocal for Local will enable it to deliver top-line as well as profit growth for the consumer lighting segment, Surya Roshni said in its latest annual report.
France’s Le Maire: French economy “doing well”, hoping for pre-COVID growth levels by end 2021
The French economy is “doing well” thanks to a rise in consumer spending and even in spite of restrictions still in place to tackle the coronavirus, French Finance Minister Bruno Le Maire said on Monday, according to a Reuters report.
Le Maire told France 2 television the aim now was for France to return to pre-COVID economic growth levels by end 2021. France has a 6% growth target for the whole of 2021, which Le Maire reiterated.
Copper prices advance as traders hunt for bargains
Copper prices rose on Monday as the risk-on sentiment spilled over from the equities market, reinforced by optimism over economic recovery after top consumer China reported no new locally acquired COVID-19 cases for the first time since July, a Reuters report noted.
Three-month copper on the London Metal Exchange was up 0.8% at $9,106.50 a tonne, while the most-traded October copper contract on the Shanghai Futures Exchange advanced 1.8% to 67,760 yuan ($10,436.01) a tonne.
Singapore July inflation surpasses pre-pandemic levels
Singapore’s key price gauge in July rose by its fastest pace in over two years, surpassing pre-pandemic levels, due to higher electricity and gas costs driven by a hike in global oil prices, official data showed on Monday.
The core inflation rate, the central bank’s favoured price measure, rose 1% in July from a year earlier, in line with the forecast from a Reuters poll of economists. The core price increment is the highest since June 2019, when it rose 1.2%, the news agency reported.
Oil bonds and its impact on fuel prices
Union Finance Minister Nirmala Sitharaman recently repeated a refrain that the Centre had been unduly burdened by the cost of having to service ‘oil bonds’ issued by the UPA government, and it was this financial commitment which had mainly constrained the government’s ability to reduce excise duty and other Central levies on petroleum products so as to lessen the burden on consumers.
Oil prices snap 7-day losing streak as investors hunt for bargains
Oil prices rose on Monday, recovering from a seven-day losing streak as investors hunted for bargains and a softer dollar lent support, though persistent anxiety over surging cases of the Delta coronavirus variant kept sentiment cautious, a Reuters report noted.
Brent crude futures climbed 1.8%, to $66.34, while U.S. West Texas Intermediate crude futures for October rose 1.7%, to $63.21 a barrel.
Both benchmarks marked their biggest week of losses in more than nine months last week – Brent slid about 8% and WTI fell about 9%.
Rupee gains 13 paise against U.S. dollar in early trade
The rupee appreciated 13 paise to 74.26 against the US dollar in opening trade on Monday, tracking a strong rally in the domestic equities and weak American currency overseas.
However, rising crude prices in the international market and foreign fund outflows capped the rupee gains, forex traders said.
At the interbank foreign exchange, the rupee opened strong at 74.27 against the dollar, then lost some ground to quote 74.26, registering a rise of 13 paise over its previous close, a PTI report noted.
SEBI keeps Adani Wilmar’s ₹4,500-crore IPO in abeyance
India’s market regulator has kept the proposed ₹4,500-crore initial share-sale of edible oil major Adani Wilmar Ltd. in “abeyance”.
However, the Securities and Exchange Board of India (SEBI) did not elaborate further.
The company had filed preliminary papers with SEBI on August 3, to raise funds through an initial public offering (IPO).
China says foreign trade may face more complicated situation next year
China’s foreign trade may face a more complicated situation next year given base effects and receding positive factors associated with the global COVID-19 pandemic, Wang Wentao, the country’s Commerce Minister said on Monday.
Foreign trade already faces a complex situation in the second half this year, Wang told a news conference in Beijing, and added, China’s cross-cyclical macroeconomic policy will help economic fluctuations stay within a reasonable range, a Reuters report noted.
Indian startups raised $6.5 billion funding in Q2 2021, 11 new unicorns created: report
Indian startups received about $6.5 billion in funding in the April-June 2021 quarter, while 11 of them entered the coveted unicorn club, a report by Nasscom-PGA Labs said.
During the second quarter, 160 funding deals were closed, up 2% from the January-March period, PTI reported.
The biggest deal during the quarter was the $ 800 million fund raised by food delivery platform Swiggy, followed by ShareChat ($502 million), Byju's ($340 million), PharmEasy ($323 million) and Meesho ($300 million), the report said.
Indian benchmark indices open higher
Bombay Stock Exchange (BSE), in Mumbai. File
| Photo Credit: PTI
Bombay Stock Exchange (BSE), in Mumbai. File | Photo Credit: PTI
Indian indices opened higher on Monday. BSE Sensex opened at 55,695.84, up 366.52 points, while Nifty opened at 16,592.25, up 141.75 points.
On Friday, the 30-share BSE index fell 300.17 points or 0.54% to close at 55,329.32, while the broader NSE Nifty declined 118.35 points or 0.71% to 16,450.50.
IBA moves RBI, seeks licence to set up ₹6,000 crore NARCL
The Indian Banks’ Association (IBA) has moved an application to the Reserve Bank of India (RBI) seeking licence to set up a ₹6,000 crore National Asset Reconstruction Company Ltd (NARCL) or bad bank, PTI reported citing sources.
According to sources, the company, after mobilising an initial capital of ₹100 crore and fulfilling other legal formalities, has approached the RBI seeking licence to undertake asset reconstruction business.
Asia stocks fragile amid growth worries, dollar in demand
Asian share markets were trying to pick up the pieces on Monday following last week’s thrashing as coronavirus concerns showed little sign of abating, while safe-haven flows benefited the dollar ahead of a key update on U.S. monetary policy, a Reuters report noted
A raft of “flash” manufacturing surveys for August out on Monday will offer an early indication of how global growth is faring in the face of the Delta variant, with analysts expecting some slippage and especially in Asia.
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