Yes Bank Share Price Today Dipped c. 14%, Jet Airways Share Price Slumped Over 23%, DHFL Promoters Look to Sell 50% of Their Stake to a Strategic Investor and Other Top Business News Today

Yes Bank share price today dipped c. 14%, hitting 40-month low. Retail inflation touches seven-month high of 3.05% in May. IIP rises 3.4% in April. Jet Airways share price slumps over 23% after NSE said shares to be pulled out of F&O trading from June 28. AdiGro Aviation founder still interested in Jet Airways, says can’t do it without Etihad. CFM International to announce 600 engine jet order from IndiGo.

 

Moving on to the top Business news today: 

 

 ECONOMY 

Retail inflation touches seven-month high of 3.05% in May. IIP rises 3.4% in April. 
 

Retail Inflation: As per the data released by Central Statistics Office (CSO), retail inflation touched a seven-month high of 3.05% in May 2019 vs 2.99% in April. The previous high was in October 2018, when the retail inflation was recorded at 3.38%.
 

This sudden rise in retail inflation which is calculated on the basis of Consumer Price Index (CPI) has been linked to the hike in price of vegetable and food items. 
 

Industrial Growth: Index of Industrial Production (IIP) grew by 3.4% in April 2019 vs 0.3% a month ago, primarily on back of better performance by mining and power generation segments.
 

14 out of the 23 industry groups in the manufacturing sector showed positive growth in comparison to the corresponding month of the previous year. The industry group 'Manufacture of Wearing Apparel' showed the highest positive growth of 33.6%.

 

 AVIATION 
 

Jet Airways share price slumps over 23% after NSE said shares to be pulled out of F&O trading from June 28. AdiGro Aviation founder still interested in Jet Airways, says can’t do it without Etihad. CFM International to announce 600 engine jet order from IndiGo.
 
 
Slump: Jet Airways share price slumped over 23% today before closing at INR90.75 (-17.72%) after the National Stock Exchange of India (NSE) said that the grounded private carrier's shares would be pulled out from Futures and Options trading and moved to the trade for trade sector after June 28. 
 
 
Why?: NSE cited the company’s failure to respond to queries about rumours in the market, its failure to submit its financial results for the year ended March 31 as well as observations made by the airline's auditor as the reasons behind this move.
 
 
Still Interested: AdiGro Aviation, a part of the London-based AdiGroup, which earlier offered to invest INR2,500cr for a 24.9% stake in Jet Airways (as a part of the talks that involved Etihad Airways and Hinduja Group to revive the Indian airline) continues to be interested in investing in Jet Airways.
 
 
AdiGroup founder Sanjay Viswanathan also said that Etihad was the linchpin in the investment, stating that "We are interested but can't do it alone. We need an operator to operationally turn around the company."

 
Engine Order: In one of the world’s largest engine orders, engine manufacturer CFM International is set to announce a 600 engine deal with air carrier IndiGo at next week’s Paris Airshow.
 
 
The French-US engine maker has been competing with the airline’s existing engine supplier Pratt & Whitney to provide the power for 280 twin-engine A320-family jetliners already on order from Airbus by IndiGo.
 
 
 YESBANK 
 
Yes Bank share price today dipped c. 14%, hitting 40-month low.
 
 
The Deep Dive: Yes Bank share price dipped by c. 14% today  before closing at INR116.60 (-13.47%) after the global brokerage firm UBS cut the target price of private sector lender to INR90 from INR170. 
 
 
The stock was trading at its lowest level since January 20, 2016, when it touched INR126.44 in the intra-day trade.
 
 
 
He also reiterates his support for the new Managing Director and Chief Executive Officer Ranveet Gill.
 
 
Double Trouble: In addition to its dipping stocks, over the last few days Yes Bank has also witnessed the exit of two of its Board members, Ajai Kumar and Mukesh Sabharwal, both of whom cited personal grounds for their reasons to step down.
 
 
 
 FACEBOOK 

Facebook collected data on 1,87,000 users through a banned research app; worries emails could show Zuckerburg knew about questionable privacy practices.
 
 
Banned Snooping App: Facebook obtained the personal device data on 1,87,000 of its users through a research app that Apple banned earlier this year for violating its rules. 
 
 
According to a letter sent by Facebook to Senator Richard Blumenthal’s office, the app collected data on 31,000 users in the US, including 4,300 teenagers, with the rest coming from users in India.
 
 
Violations: Earlier this year, it was found that both Facebook and Google were misusing their Apple-issued enterprise developer certificates by building and providing apps for users outside Apple’s App Store which paid users in return for collecting data on how participants used their devices and to understand app habits.
 
 
Implicating Emails: In the process of responding to the ongoing Federal Trade Confederation (FTC) investigation into the company, Facebook unearthed emails that appear to link its Chief Executive, Mark Zuckerburg, to potentially problematic privacy practices – something that could be harmful to the company from a public-relations standpoint.
 
 
Priorities: Facebook is operating under a 2012 consent decree with the FTC related to privacy, and the emails sent around that time suggest that Zuckerberg and other senior executives didn’t prioritise a compliance with the FTC order.
 
 COMPANIES 

DHFL promoters look to sell 50% of their stake to a strategic investor. PwC resigns as statutory auditor of RCap, Reliance Home Finance. Alibaba files confidentially for a Hong Kong listing. 
  
 
 
Kapil Wadhawan, who represents the promoters in the Board, is also open to stepping down as Managing Director (MD), retaining only the Chairman’s position so that the company can be run jointly with the new partner. The Wadhawan family currently holds 39.21% stake in DHFL.
 
 
The Prospects: Private Equity firms Lone Star, KKR and AION Capital are the potential buyers and the trio will reportedly take a decision after completing their due diligence.
 
 
We Give Up!: Price Waterhouse and Co (PwC) has resigned as statutory auditor of Reliance Capital, and its subsidiary Reliance Home Finance (RHF), suspecting fraud in the companies. 
 
 
The move comes on back of "unsatisfactory response" from the companies to certain observations it had made while auditing for FY2019. 
 
 
It added that the issues raised by it "might be significant or material to the financial statements. 
 
 
Bogus!: RCap however, condemned the allegations as being “completely baseless and unjustified“.
 
 
Baby Steps: Chinese e-commerce giant Alibaba has filed confidentially for a Hong Kong listing that will take place as soon as the third quarter of this year.
 
The listing will take place as soon as the third quarter of this year, and Alibaba is expected to raise as much as $20bn, smaller than its record $25bn float in New York five years ago.
 
Did You Know: At that time, founder Jack Ma expressed a desire to list in the Hong Kong but the tech firm's management structure clashed with bourse rules. The stock exchange has since changed its listing rules, primarily to attract China's tech startups.
 
 
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