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22nd September 2021
Good Morning! 

We have been so out of touch with movies that are going to release in theatres that we just found out the latest James Bond Movie is coming out this month!!
How many of you have been to a movie hall since COVID started?
 
  MARKETS
 

SENSEX

59,005.27

+ 0.88%

NIFTY

17,562.00

+ 0.95%

US$

73.61

- 0.17%

GOLD

46,545

+ 0.58%

10-YR

6.12%

- 1.5 bps

OIL

5,181

- 0.56%

*As of market close

  • Markets: After two days of sharp losses, headline stock indexes bounced back to close in the green as trading in Europe and the US indicated a recovery. Gains in IT, metal, pharma and some financial stocks lifted the market but auto stocks didn't do too well.

Corporate

The Heat Is On
Zee Bollywood

Last week we wrote about the interesting developments at Zee Entertainment Limited (ZEL) and Dish TV after large foreign investors called for the sacking of the CEO and 2 directors.

Moneycontrol now reports that something similar might go down for other companies controlled by Subhash Chandra and family as well, namely Zee Learn Limited (ZLL) and Zee Media Corporation (ZMC).

Apparently, foreign investors in these companies want the promoters to give up control of running the company. 

This was understandable in the case of ZEL, where promoter shareholding was less than 4%, but they were still running the business (The CEO Punit Goenka is founder Subhash Chandra's son).

But with these other 2 companies, ZLL and ZMC, it's different because the promoters + investors who are friendly with them own over 40% each in the 2 companies, whereas foreign investors combined own ~20%. 

Btw, if you're still wondering, Zee Learn is an education firm with a large chain of KG to class XII schools under Mount Litera Zee School and also runs Asia's largest pre-school chain called Kidzee.

Zee Media is the company that runs Zee News.  They have 14 channels in 6 languages and claim to reach 365 million viewers. They also run dnaindia.com.

Investor Moves
The move for new management at ZLL is being driven by a NY-based Hedge Fund called Moon Capital Management. They own a little over 6% of the company since 2015 and are not happy with the way the company is being run. 

Citing increasing debt, poor corporate governance and no clear growth strategy, Moon Capital wants professionals and not family members in charge of running the business. They even wanted a board seat back in 2020 but did not get it.  

Now with the extraordinary general body meeting of the group coming up soon, investors are once again ramping up the pressure. We'll let you know what happens✌

Energy

Heavyweight Wars
Sumo running

A couple of months ago there was news that Reliance Industries will be investing heavily in the renewable energy space.
Mukeshbhai had talked about putting $10 billion towards a greener future for the oil and chemical giant.

Now, fellow billionaire Gautam Adani has said his company will invest heavily*2 in renewable energy in India - $20 billion!

Adani Enterprises will invest Rs 1.48 lakh crores over 10 years in the renewable energy supply chain in India. This includes power generation, manufacturing, transmission, and distribution. The company is aiming to triple its renewable power generation capacity over the next four years, to make it 60% of its overall installed power generating capacity.

Already this year, Adani Green Energy acquired 4.9 GW of solar and wind energy assets from Softbank and Bharti for Rs 25k crores. This has made them the largest renewable energy firm in India. 

The Tata group is also in this race btw. Tata Power announced earlier this year that they'll only be investing in green energy projects from now on.

Tech

Razorforce
Hello American Investor

Razorforce is not some new company that's sprung up overnight. It's our way of combining Razorpay + Salesforce.

Razorpay has just got Salesforce as a strategic investor.

Neither the size of the investment nor the valuation is known, but hey, they got Salesforce as an investor and that's big enough to make the news.

Razorpay was last valued at $3 billion when they raised $160 million in April.

The company started off with their payment gateway -- so businesses can accept, process and disburse money online. But in the past few years, they've got into much more. They now have a Neobank that offers corporate credit cards and even working capital loans.

At the time of their last fundraising, they talked about the payment processing business being pretty set by all measures. In fact, they said it doesn't need much additional capital to grow. So most of the new money is going into expanding their neo-banking offerings.

This time Razorpay have said they are hoping to expand their business in South East Asian countries. We think they may just be the next 'Paanchacorn'.

PS: For new readers, we've been trying to get the word 'Paanchacorn' ($5 billion valuation) into the Indian startup dictionary. Clearly, we've been failing so far.

Tech

Private Profit
Money rain

Startups not making any profits is something that a lot of people like talking about. And we know there are many young entrepreneurs who get a lot of flak for running businesses that aren't making any money.

But Dream11's financial numbers are out and they want you to know they aren't 1 of those startups.

Dream11 made Rs 180 crores net profit in FY20. Considering they made a lost Rs 87 crores in FY19, that is pretty impressive.

In terms of consumer startups, Nykaa is the only other Indian one that has revealed numbers that show a profit. Honestly, it is great to see our Indian startups building for the world and making money as well.

On a Lighter Note

If you have more time ...

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