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24th September 2021
Good Morning! 

Happy Friyayy!!! 
We made it through another week. With the IPL going on, we're probably going to be glued to the TV this weekend. What plans do you all have?
  MARKETS
 

SENSEX

59,885.36

+ 1.63%

NIFTY

17,822.95

+ 1.57%

US$

73.64

- 0.31%

GOLD

46,075

- 1.28%

10-YR

6.14%

+ 0.1 bps

OIL

5,420

+ 1.80%

*As of market close

  • Markets: Another record high for the stock market yesterday! Both the Sensex and Nifty surged as markets digested the US Fed's commentary and the fact that Evergrande's stock price jumped in Hong Kong despite missing a bond payment. Next stop - Sensex 60k!

Corporate

How The Turn Tables!
How the turn tables

Interesting developments for Google in India - they are suing the Competition Commission of India!
No, it's not the other way around - Google is taking CCI to court.

The reason is that a confidential report about an investigation into Google by CCI has been leaked.
The CCI had been looking into the way Google works in India and had noted that the tech giant had indulged in 'unfair trade practices' in relation to the Android operating system. 

However, before Google themselves could be officially informed of any findings, the report was leaked, and along with it confidential info on Google's operations here. 

So the CCI will now have to defend itself before the Delhi HC, where Google has submitted its petition. It will be interesting to see what they have to say about data protection and its importance. LOL. 

Corporate

Hey! It's M̶e̶ Zee Again


It's me again!

Another day of Zee group related news. This time it's Dish TV.

The satellite TV company has been served a notice by Yes Bank calling for an extraordinary general meeting (EGM).
The case is similar to what happened (before the Sony merger) at Zee Entertainment - Large shareholders are calling for current management to be sacked and new directors to be appointed to the board.

They want MD and CEO Jawahar Goel to be removed and have a list of names of directors they want to appoint. Jawahar Goel is Subhash Chandra's brother.

In the case of Zee Entertainment, a large shareholder wanted Punit Goenka to be sacked. He is Subhash Chandra's son.

If you're wondering why Yes Bank is doing all this, it's because they own over 25% of Dish TV.

The promoter group of Dish TV had borrowed Rs 3,000 crores from Yes Bank, by pledging their shares as collateral. They were unable to repay the loan, so the bank kept the shares and is now the single largest shareholder of Dish TV.

PS: Thanks to its shoddy underwriting in the past, Yes Bank actually owns a significant stake in quite a few badly-run companies. Can you name some more?

IPO

ABSL AMC IPO
IPO

The title is not just random letters we threw together - they stand for Aditya Birla Sun Life Asset Management Company - Initial Public Offering.

Yes, we have another big IPO on our hands - let's see what its all about

The Company
Investing and SIP enthusiasts might already be familiar with the company - it is the asset management arm of the Aditya Birla Group, through which they run mutual funds etc.
Currently Aditya Birla Capital (ABC) owns a 51% stake and Canadian financial services provider Sun Life owns the balance 49%. 

Aditya Birla MF is the country’s largest fund house that's not linked to a bank. It has assets under management (AUM) of more than Rs 3 lakh crores. In FY20 they recorded Rs 1,200+ crores of revenue and made a net profit of Rs 494 crores. In just the first quarter of this financial year (Apr-Jun'21) they made a Rs 155 crore net profit.

The IPO
The company had filed its papers with SEBI back in April, and the application was cleared last month.
Now they're looking to raise Rs 2,770 crores at a valuation of Rs 20,000 crores.

The IPO is completely an 'offer for sale' which means the company itself will not be getting any money. Instead, it's the existing shareholders, mostly Sun Life Financial, that wants to cash in on their stake.

~13.5% of the company's shares are being sold, and 12.5% of these will come from Sun Life, while ABC will only sell 1%. The offer is likely to open for subscription on September 29th.

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

IPO

Oyo's Time Now
Making Moves
 

And more IPO news - It seems Oyo has joined the list of Indian startups that want to go public.

In fact, it might leapfrog everyone who just 'wants' to go public by actually filing IPO application papers next week.

OYO plans to raise $1.2 billion in its public offering. The terms could change a bit but it definitely looks like they will be raising over a billion dollars.

The best part is they plan on listing in India! Looks like Zomato and Paytm's decision to have their IPO in India has really encouraged other startups to stay local too.

Las month Oyo had raised $5 million from Microsoft at a $9.6 billion valuation

As you'd expect for a startup that's dependent on travel, Oyo didn't have a great 2020. But being able to raise new equity capital (and even debt) has helped them.

Also, thanks to the pandemic they had to streamline their operations, and Ritesh Agarwal says they are already running with the discipline of a public company.

We guess we can wait for investors to take a call on that, once detailed financials are released.

On a Lighter Note

If you have more time ...

The Gyst Quiz


Here's some exercise for your brain over the weekend:

All of the questions are related to the business stories you've read in our newsletter over the past few weeks. We hope you enjoy it! 

Please click here for the quiz

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