Copy
27th September 2021
Good Morning! 

Monday again!! 
You have probably seen all those stories about people mostly in North America or Europe getting extravagant amounts of money suing companies for what seems quite unbelievable.
We now have our very own Indian version. 
A lady from Delhi was awarded Rs 2 crore after she got a "wrong haircut" and hair treatment at a salon which left her “with little or almost no hair”. 
We never knew you could file such cases in India as well, we have had way too many bad haircuts in our past.
Talk about making the best of a bad hair day.
  MARKETS
 

SENSEX

60,048.47

+ 0.27%

NIFTY

17,853.20

+ 0.17%

US$

73.69

+ 0.07%

GOLD

45,995

- 0.13%

10-YR

6.18%

+ 4.1 bps

OIL

5,466

+ 0.76%

*As of market close

  • Markets: And we have magic 60k mark on the Sensex! Stocks were up on Friday as well, but didn't close in the strongest fashion. The Sensex actually touched a high of 60,333 before sellers came in and wiped out much of the early morning gains. 

Corporate

What's Under All That Froth?
Man carrying beer

This is probably more like a Friday story because it's all about beer companies in India.

The Competition Commission of India (CCI) has imposed heavy fines on United Breweries and Carlsberg India, and also faulted SAB Miller India (formerly AB InBev) for cartelization in the supply of beer.

But first, what is a cartel?

A cartel is a group of market participants who collude with each other in order to improve their profits and dominate the market. This kills competition and is almost never good for the buyer of the product since they are left with no price choices.

The Beer Case

An investigation by the CCI found that key managerial personnel of these companies used to email each other about price hikes they were planning in various states and used to coordinate these hikes, leaving consumers with no choice.

It isn't that they were just coordinating regarding prices.
These companies also coordinated cuts in the supply of beer in some states to duty hikes by governments. Imagine that. So all the times we've been denied beer because it wasn't available is maybe cause of this. 

The CCI also found that UBL and AB InBev had agreements on the price at which they would procure used bottles from bottle collectors for reuse at their breweries.

You guys probably recognise all 3 of the companies named. They are all pretty big and are controlled by well known global alcoholic beverage companies.
Of the three, United Breweries has been fined Rs 750 crores, Carlsberg India Rs 120 crores, while SAB Miller India has not been financially penalized. 
The All India Brewers Association (AIBA) has also been fined.

You are probably wondering why SAB Miller has not been fined? It is because they were the first ones to cooperate with investigation authorities and provided key evidence.

What next?

Well, the companies are expected to appeal these penalties. UB has already said "draconian laws" prevent them from functioning like normal companies, and have highlighted the fact that beer prices are only finalized after state government approval. 

We can expect some more to-ing and fro-ing, but our real hope is that prices end up being cut🍻

IPO

Make It Rain!
Money gun

The next 2 months look like they're going to be really interesting for people looking to invest in IPOs.

CNBCTV18 reports that around 30 new public offerings are planned in October-November, and these companies will be looking to raise a combined Rs 45,000 crores!

There are quite a few tech startups in this list too - Policybazaar (Rs 6,017 crore), Emcure Pharmaceuticals (Rs 4,500 crore), Nykaa (Rs 4,000 crore), CMS Info Systems (Rs 2,000 crore) and MobiKwik Systems (Rs 1,900 crore) are some of them.

In addition, Northern Arc Capital (Rs 1,800 crore), Ixigo (Rs 1,600 crore), Sapphire Foods (Rs 1,500 crore), Fincare Small Finance Bank (Rs 1,330 crore), Sterlite Power (Rs 1,250 crore) RateGain Travel Technologies (Rs 1,200 crore) and Supriya Lifescience (Rs 1,200 crore) may also float their IPOs during these 2 months

Well with the way markets are booming and we're seeing new highs almost every day, it's not surprising that companies want to take advantage of the conditions and raise some money themselves.

It's like winning the toss and choosing to bat first in a Chennai test match - not many will question the decision.

Disclaimer: This is not a recommendation to buy/sell/subscribe to any security offering. Please consult a certified investment advisor before making any decision.

Tech

Keep An Eye On
Money gun

DotPe just made its first acquisition.

Some of you may recognise the name DotPe.
They have become quite popular in the restaurant space as an alternative to Zomato/Swiggy where you can just order directly from the restaurant if they have set up on DotPe.

But actually, DotPe doesn't only cater to restaurants. They try to help all types of merchants digitise their business.
They do this by helping merchants list their catalogue, accept orders and payments, aggregate deliveries and even engage their customers.

Now they are acquiring the online POS startup Rista.
The price of the deal isn't known but it is supposed to be an all-cash deal.


Rista already has over 1,200 merchants and offers them billing and inventory management solutions.

Now because of this acquisition, DotPe will be able to offer a complete business and sales solution to merchants.

Rista also has a product that is tailormade to restaurants.

It does feel like DotPe is gaining some steam to offer a good integrated alternative product to Zomato/Swiggy to restaurants.
DotPe definitely feels like a startup to keep an eye on.

On a Lighter Note

Campus Ambassador Program

\If you are a college student do check out our campus ambassador program. 
For more deets check this out.

If you have more time ...

Share The Gyst

Thanks for being a subscriber. If you like what you read please let your friends know too. You can do that either through Whatsapp or Twitter. Otherwise, you can always share this link with your friends. Have a great day! 
 

You are receiving this email because you have subscribed via our website

Our mailing address is:

The Gyst
Defence Colony
New Delhi 110024
India

If you have any feedback or problems please write to us:
team@the-gyst.com

Want to change how you receive these emails?
You can update your preferences or unsubscribe from this list.