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12th October 2021
Good Morning! 

The Nifty crossed the 18k mark for the first time yesterday!! 
Sadly it didn't quite stay up there on days close, but hey, mount 18k has been scaled.
How long before 20k?
  MARKETS
 

SENSEX

60,135.78

+ 0.13%

NIFTY

17,945.95

+ 0.28%

US$

75.36

+ 0.49%

GOLD

47,046

- 0.13%

10-YR

6.35%

+ 2.7 bps

OIL

6,128

+ 3.15%

*As of market close

  • Markets: Markets were up for the second day running - Gains in auto, metal and financial and stocks pushed the market higher, but TCS' disappointing earnings meant the IT sector as a whole attracted selling, limiting the market's upside.

Startups

Startup Wars
Pillow fight

Hostel and homestay networks startup Zostel Hospitality has asked SEBI to throw out Oyo’s IPO filing, saying the Draft Red Herring Prospectus (DRHP) filed by Oyo is “illegal”.

Wait, what?

There’s been a dispute going on among these 2 startups for over 5 years now. And since Oyo is looking to go public, we’re hearing more about it in the news. 

Zostel also used to have its own chain of budget hotels called Zo Rooms. Back in 2015, Oyo’s parent company Oravel Stays Private Limited acquired Zo Rooms from Zostel. As part of the deal, the shareholders of Zostel were supposed to get a 7% ownership stake in Oravel. 

Zostel claims that the acquisition was complete by 2016, but Oravel kept delaying the execution of definitive agreements and closing of the transaction under some pretext or the other till September 2017. Left with no choice, Zostel then took the matter to court.

Oyo on the other hand claims that they were merely exploring merger options and that nothing binding or definitive was signed.

What do they want now? 

The Zostel people have written a 98-page letter to stock market regulator SEBI, saying their shareholders “have the right to get issued in their favour 7 per cent of the equity securities of Oravel”
They’ve also said the DRHP filed by Oravel is illegal, because the capital structure of the company is not yet final, and that the company and its bankers for the IPO haven't done a good job with the due diligence process. 

Well, this makes the Oyo IPO even more interesting to watch, we’ll keep you updated with the latest.
 

Government

Space Chalo
To Space

It's time for the private sector to go to space baby!

Yesterday, Prime Minister Modi launched the Indian Space Association (ISpA).

What's Happening Here?

Currently, almost all of the space-related initiatives undertaken in India have the govt (through ISRO) as a central player.
With interest in space tech booming globally (thanks SpaceX, BlueOrigin) some of our private sector players have also taken interest in India's space domain.

ISpA will now act as an independent and “single-window” agency that will help open up space for the private sector.
ISpA’s founding member companies include OneWeb, Bharti Airtel, Mapmyindia and several others.


What's Been Proposed?

Major reforms to the space sector will take place soon.
The exact reforms haven't been announced but the PM promised 4 things that ISpA will aim to help with:

  • The freedom to innovate in the private sector.
  • The govt will act as an enabler for the private sector vs driving innovation solely.
  • Help prepare the next generation for the future of the space industry.
  • Ensuring the space sector is used as a common resource for the progress of humanity. 

ISpA will be focussed on capacity building and creation of space hubs as well as incubators in the country for private space start-ups

Why this is important?

Innovation in space is seen as the next frontier that can help take India forward. Already space-based communication networks are thought of as a potential solution for truly global connectivity, and by opening things up for the private sector we can expect things to accelerate.

Space-based communication networks help in expanding internet access to most rural areas as well. Kind of like SpaceX is doing through Starlink.

The Takeaway

We have already seen the likes of SpaceX and Blue Origin innovating in the US, we definitely think our Indian startups/private sector can definitely do similar if not better.

Corporate

Corporate Catch Up
Man writing on board

India Stock Market

The Indian equity market is on the verge of overtaking the UK in value to become one of the worlds top five biggest markets. 
Per Bloomberg, India’s market capitalization has surged 37% this year to $3.46 trillion, representing the combined value of public listed companies here.  The UK meanwhile has seen a 9% increase this year to $3.59 trillion.

Can you name the 4 other countries in this top-five list? (No Google allowed).

Invesco v/s Zee

Invesco Developing Markets Fund, the large shareholder of Zee Entertainment that’s fighting with the management has written an open letter to all shareholders of Zee.

The letter says that Zee Entertainment has the potential to grow a lot but current management is not up to the task.
They said they were disappointed with the stunts played by the board and management to avoid being held accountable for governance lapses that have destroyed shareholder wealth. 
They also hit out against the promoter family which runs the show despite having just 4% ownership in the company, saying they’re benefiting at the cost of the remaining 96% shareholders.


RJ Akasa Airlines

Rakesh Jhunjhunwala-backed Akasa Airlines has received a no-objection certificate from the government and is on track to start operations by the summer of 2022.

India’s newest low-cost airline is aiming to acquire 70 aircraft over the next 4 years and is targeting aeroplanes that can seat around 180 passengers.
Jhunjhunwala will initially invest $35 million for a 40% stake.

On a Lighter Note

Campus Ambassador Program


If you are a college student do check out our campus ambassador program. 
Follow this link for the deets.

If you have more time ...

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