Weekly Capsule (Mar 22 – Mar 26)

weekly 5 Weekly Capsule (Mar 22   Mar 26)

News AnnouncementImpact Analysis
·        Suez Canal blocked leading to a sharp spike in oil prices on Friday·        This spike in oil prices comes after Brent Crude prices had corrected by 12% from the recent peaks of $70/bbl

·        Suez Canal will remain blocked for another 10-15 days due to a large oil tanker running aground, blocking a key oil route

·        BPCL completes entire stake sale in Numaligarh Refinery ahead of the sale·        BPCL sold 54.16% in Numaligarh Refinery to Oil India and 4.4% to Engineers India, exiting its stake in NRL completely

·        One pre-condition of the divestment of the government stake sale in BPCL was that NRL would be hived off separately

·        Maharashtra moves into night curfew from the last week of March·        With more than 36,000 cases per day and a rising number of casualties, the government is taking no chances

·        However, that has dampened sentiments in the market as it is likely to delay the expected economic recovery in India

·        IIFL Securities offers seamless trading for Karnataka Bank customers·        This seamless experience will be done through the KBL Smart Trade arrangement to tap the customer base of KBL

·        This will permit IIFL Securities to directly add nearly 1 crore potential trading customers to its platform

·        Barbeque Nation gets 5.98X response but IPO listings disappoint·        The last one week was a return to reality for most of the IPOs that listed during the week in the midst of weak markets

·        Most of the listings like Suryoday SFB, Laxmi Organics, Kalyan Jewellers, and Craftsman Automation all had tepid listings

·        JSW Steel implements resolution plan for Bhushan Power Ltd·        This deal had been hanging in the balance for a long time and will now help JSW to get a vertical capacity expansion

·        However, the bigger relief will be for the banks that will now get close to Rs.19,500 crore of recoveries as part of the deal

·        Supreme Court sets aside NCLAT order restoring Mistry as chief of Tata Sons·        The Supreme Court judgment has been long in the making, but that may hardly be the real bone of contention

·        With the Mistry family willing to part ways, the key issue is how soon an appropriate consensus package can be worked out

·        RIL and Aramco likely to strike a deal for O2C if crude stays above $65/bbl·        Unless that happens, it may not make sense for either RIL or Aramco to commit to a long term partnership

·        In the recent press release on hiving off O2C, Reliance was almost silent about any likely alliance with Saudi Aramco

·        Go Air plans to launch Rs.2500 crore IPO in the next financial year·        Go Air plans to file the DRHP with SEBI in the second week of April and complete the IPO before the end of June quarter

·        Go Air, part of the Nusli Wadia group, will use the IPO to fund its expansion plans to take on the competition in 2022

·        Byjus plans to raise another $700 million in the next fiscal year·        The funds will be used to acquire Aakash Education and also other inorganic deals that Byjus is looking for expansion

·        The placement deal is expected to value Byjus at $15 billion, just $1 billion shy of the valuation that Paytm commands

·        SEBI eases the rule book for start-ups to list on the exchanges·        SEBI has eased the eligibility and listing criterial for the IGP and also reduced per-issue holding from 2 years to 1 year

·        In addition, the regulator has also simplified the process and costs of migration from IGP to the main board of NSE/BSE

·        SEBI tightens rules on delisting, risk management and results·        Now companies will have to announce results in 30 minutes of completion of the meeting, even if it extends for 2 days

·        Constitution of risk management committee or RMC will be mandatory for top-1000 companies and not just top-500.

·        SEBI orders attachments of personal assets of Rana Kapoor for default·        The decision to attach bank accounts and portfolios of Rana Kapoor were taken after he missed paying dues of Rs.1 crore

·        Apart from bank and demat accounts, his mutual funds and lockers will also be attached under the order

·        FM says she is open to discuss GST on petrol and diesel in GST Council meet·        BJP Bihar leader, Sushil Modi has ruled out GST on oil for next 8-10 years due to the potential revenue loss to states

·        The shift to GST would mean that centre would have to give states compensation of Rs.2 trillion, not really practical

·        Adani Group has become the biggest wealth creator in the last one year·        Most of the stocks of Adani Group including ADSEZ, Adani Green, Adani Enterprises have all been multi-baggers

·        Gautam Adani himself has seen his personal wealth soar from $5 billion to a whopping $56 billion in just one year

·        India has challenged the Cairn tax order by the arbitral tribunal·        This is despite the fact that the courts in UK, US, France and the UAE have ratified the arbitral award favouring Cairn

·        Indian government has stuck to its stand that levying taxes on Indian incomes remains the sovereign right of the government

·        Major oil companies to look at INVIT structure to monetize pipelines·        GAIL will be the first off the block as it seeks to monetize its massive network of gas pipelines across India

·        GAIL alone plans to monetize to the tune of Rs.20,000 crore and others like HPCL and IOCL will also chip in

·        Supreme Court rules that interest on interest cannot be charged for anyone·        This will put an additional burden of Rs.7,000 crore on the banks but it is not clear if banks will have to take the hit

·        Earlier, the Supreme Court had also ruled against extension of moratorium or any relief on interest charges

·        Bharti plans to aggressively monetize its tower assets in Africa·        Airtel Africa plans to monetize nearly 2200 towers across Malawi, Madagascar, Chad and Gabon

·        The funds thus monetized will be used to defray some of the loans taken by Airtel Africa over the last 10 years

·        Government changes provident fund tax-free contribution to Rs.5 lakhs·        However, this will not give any relief to employees where the employer also contributes to the provident fund

·        Effectively, the impact will be limited and the intent was to curb HNIs using PFs as a tax-free haven to earn income

·        Delhi High Court stays the single-bench order to attach assets of Future group·        One thing is clear that the assets of FRL, Future Coupons and the Biyani brothers will not be under pressure now

·        However, Reliance Retail and FRL cannot proceed with the deal till the final judgment on 30 April

Related Post

Add a Comment

Your email address will not be published.