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Air India May Be Bailed Out, Paytm Money Launched, Theranos to Shut Down Business et al.

Professor of Financial Economics and Part-time Value Investor, Transfin.
Sep 9, 2018 1:39 PM 3 min read
Editorial

Good Evening readers, what an eventful week this has been! The nation rejoices after the Supreme Court rules against Section 377 of the Indian Penal Code, in effect decriminalizing Homosexuality.

 

This week's highlight was Transfin.'s launch of its first edition of Podcast. Nikhil and Sharath  talk about some key issues which have caught our attention on the global and economic front.

 

This week's top articles analysed the Good, the Bad and the Ugly Facts of Demonetisation, discussed an up and coming mechanism for financing innovation, and debated if the emerging markets stand a chance to recover against the bull market in US?

 

The weekend special on How 'Theatrical Windows' Change the Way We Watch Movies gave us an insight into the changing dynamics of ‘Theatrical Windows’ – an integral component of the film value chain.

 

Now to discuss the top 6 stories of this week:

 

IL&FS seeks a loan of INR3,000cr from shareholders LIC and SBI.

Loan required to ensure IL&FS does not default on any further repayment obligation. Consolidated debt amounts to INR1L cr. Lone Star, I Squared Capital and National Infrastructure Fund may buy its road projects.

 

NCLAT finds Numetal's 2nd bid for Essar Steel valid. ArcelorMittal on backfoot as it needs to clear dues by Tuesday to become eligible bidder.

ArcelorMittal presently an unqualified bidder being a promoter of defaulting firms. NCLAT maintains they need to clear due against Uttam Galva and KSS Petron to become eligible to participate in the Essar Steel process. Present rules do not permit promoters of an NPA for more than a year to submit a resolution plan.

 

Edtech start-up Byju's set to raise $200m-$300m, valuing it at $2.2bn-$2.4bn. Robotics start-up GreyOrange raises $140m in series C funding from Peter Thiel-led Mithril Capital. Didi Chuxing may invest in OYO Rooms.

Byju's in conversation with General Atlantic and Temasek Holdings. Valuation from deal may be more than twice the value pegged during last round. Robotics start-up GreyOrange raises $140m in series C funding from Peter Thiel-led Mithril Capital. This marks the largest fundraise for an Indian hardware start-up. New investors include Binny Bansal. GreyOrange, based in Singapore and Gurgaon is a warehouse automation company and has manufacturing units in India, China, and US, with R&D in India and Singapore. Didi Chuxing may invest in OYO Rooms to expand the company's business in China. 

 

 

Air India to be bailed-out by government through an INR2,100cr package.

Bail-out, in the form of guaranteed borrowing, will be subject to cost cuts. The state-owned carrier currently holding INR50,000cr of debt and reported INR5,760cr of losses in March last year.

 

Paytm Money, an online distributor of Mutual Funds and subsidiary of payments co Paytm launched today.

Distribution platform has entered partnerships with 25 asset management companies. Also tied-up with MorningStar, Crisil, and Value Research to provide research access to users free of cost. Restricted release.

 

Silicon Valley blood testing firm, Theranos is winding up its business.

Theranos, the Silicon Valley bio tech firm, will close down its business soon as per a recent email by CEO David Taylor to shareholders. Founder and former CEO, Elizabeth Holmes was indicted of wire fraud in June this year. She also schemed with COO, Ramesh “Sunny” Balwani to dupe investors, doctors, patients in a multimillion dollar fraud.

 

Top Execs from Facebook and Twitter testify in front of Senators on election interference. No representation from Google.

Facebook COO Sheryl Sandberg and Twitter CEO Jack Dorsey wrapped up testimony on Wednesday morning answering questions and explaining efforts to minimize election interference, deter foreign trolls and bots. Testimonies organised in run-up to US Mid-terms. US Tech stocks tumbled across the board, including social media platforms, chip makers, software development firms, online streaming services, and videogame makers.

 

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