4th January 2022
Good Morning! 

Covid cases are again increasing quite rapidly especially in Delhi/Mumbai now aren't they? 
We are back to taking more precautions for now and are hoping things get better soon. Thankfully hospitalizations haven't increased by a lot yet and we are hoping it stays that way.
Do you think we'll go into another lockdown soon?



+ 1.60%



+ 1.57%



- 0.10%



- 0.78%



+ 0.7 bps



+ 0.69%

*As of market close

  • Markets: Our markets began the New Year with a bang, with gains across most sectors driving the Nifty50 and Sensex more than 1.5% higher each.


Money From The Sky!
Money From Sky

Even as domestic courts have ordered the liquidation of Bengaluru based Devas Multimedia Private Limited, foreign shareholders of the company are continuing their fight against the government.

And it looks like they're winning so far.

The Background

Back in 2005, Devas Multimedia entered into an agreement with government-owned Antrix Corporation Limited to lease satellite spectrum. However, this was later annulled in 2011 following the policy decision of the Indian government to reserve the spectrum band for national and strategic purposes.

This resulted in losses to Devas and they took the matter to court. And they won the dispute across various international forums, including at the Permanent Court of Arbitration in The Hague, Netherlands.

Devas was supposed to get $650million from the Indian government, which has not been paid so far. And with all the interest adding up, the amount is up to $1.2 billion now.

What happened next?
While this was awarded by an international court, back home in India, the government ordered the winding up of Devas Multimedia, claiming that the whole company had been incorporated in a fraudulent manner to siphon funds to dubious foreign accounts.

Devas's Response
They took the matter to another court, through their foreign arms called Devas Mauritius Ltd., Devas Employees Mauritius Pvt. And Telcom Devas Mauritius Ltd.

The matter was heard by the Superior Court in Montreal, Canada, and they've ruled in favour of Devas. To get their money, the court has allowed Devas to seize property belonging to the Airport Authority of India (AAI) held by the International Air Transport Association (IATA).

How this works
The AAI collects air navigation charges, incurred during flights through India’s air space, and aerodrome charges, which include use of airport, ground or navigation facilities etc. These charges are payable by airlines and countries to AAI to be allowed to fly over India’s air space and to use its airport or navigation facilities.
But since IATA is an international trade organization, AAI uses them to collect this money on its behalf, and then remit it to India. And IATA is headquartered in Montreal.

The Montreal court has found AAI to be an 'organ of the State of India inseparable from India' or an alter ego of India. As a result, IATA will pay $111 million which they were to transfer to AAI to Devas' international arms instead.


Raining Unicorns!
Come on In

We missed one of the unicorn stories while we were on leave.
Turns out GlobalBees wasn't the only startup to join the club.

MamaEarth joined the unicorn club too. They raised $52 million and are now valued at $1.2 billion.

MamaEarth is one of the darlings of the D2C space here in India.
They had first started with selling baby care products, which is why the name MamaEarth. But since then they've moved on to become a complete personal care brand.

They now offer close to 80 products. In fact, they even launched a second brand in 2019 – Derma Co.
As the name suggests, these are aimed at helping with some skincare problems like Acne, Pigmentation etc
The names make it quite obvious what their companies do right? 

There is a reason why we called them the darling of the D2C space here in India.
They have an annual revenue run rate of over Rs 500 cr which makes them one of the few D2C companies to achieve that sort of scale.

PS: depending on the different sources out there, this is either one of the last unicorns of 2021 or the first unicorn of 2022.
Personally, we'd like a good start to the year so we are considering it the 1st unicorn of the year.

On a Lighter Note

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