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Facebook Stock Drops, Vodafone-Idea Merger Approved et al.

Professor of Financial Economics and Part-time Value Investor, Transfin.
Jul 26, 2018 2:02 PM 2 min read

End of Day Wrap-up (Thursday / July 26, 2018) #NCLAT #TataSteel #Vodafone #Idea #HeroMotors #Hindalco #Snapdeal #Facebook #Transfin

Editor's Comment: NCLAT to re-examine Tata Steel's eligibility as bidder for Bhushan Steel. Post resolution approval by NCLT, erstwhile Promoters of the latter (Neeraj Singal and family) moved to the appellate tribunal. Tata Steel has already repaid c.INR35,000cr of the outstanding debt sitting on Bhushan Steel's balance sheet.


Vodafone-Idea gets final Government approval to create India’s largest telecom operator. The final approval was given after Vodafone and Idea paid INR7,249cr to DoT.


Hero Motors invests INR130cr more in EV scooter startup Ather Energy. Hero's stake to increase from current 32.31% share. Total funding to date in Ather at $62m, including from Tiger Global and Flipkart Founders. Ather is part of group of 5 other start-ups active in the EV space - Tork Motorcycles, Emflux Motors, Ultraviolette, and Ampere Vehicles.


Hindalco’s US Subsidary Novelis to buy US-based aluminum manufacturer Aleris for $2.6bn. The amount broken down is $775mn of equity and $1.8bn debt that Aleris already has on its balance sheet. Novelis will get a strong in high-end aerospace and automotive segments through this deal.


Snapdeal claims to have met its target of becoming cash flow positive by June. New strategy named as Snapdeal 2.0 aims to move towards high frequency, low margin products vs. gross merchandise value as earlier.


Facebook stock dropped by more than 23% in after-hours trading on account of Q2 revenue miss and sluggish growth outlook. Revenues still up 42% y-o-y to $13.23bn (vs $13.36bn estimates). Tougher privacy laws, a shift towards less lucrative ad products, and currency headwinds cited. Margins expected to shrink to mid-30% over the next several years due to higher infrastructure and product spends.