Transfin.
HomeNewsGuidesReadsPodcastsVideosTech
  1. News
  2. Explained

HUL Share Price Today Surges to Record High

Professor of Financial Economics and Part-time Value Investor, Transfin.
Apr 7, 2020 1:17 PM 5 min read
Editorial

Government says it will supply anti-malarial drug hydroxychloroquine (HCQ) after Trump reportedly threatens “retaliation”. Japan declares coronavirus emergency and unveils $1trn stimulus package. HUL share price today surges to record high. Zomato and Swiggy raise fresh funding.

 

 

HCQ HQ

Government says it will supply anti-malarial drug hydroxychloroquine (HCQ) after Trump reportedly threatens “retaliation”.

Banning the Ban

The Government will supply “appropriate” quantities of hydroxychloroquine (HCQ) and paracetamol to neighbouring countries and “other nations badly affected by the pandemic” after US President Donald Trump spoke with Prime Minister Narendra Modi and reportedly threatened “retaliation” if the ban on exports of the drug was not withdrawn. Earlier, the Indian Government had put a hold on exports of the anti-malarial drug saying stocks were depleting. [Reuters]

 

Extra Crunch

What is HCQ? And is it a cure as touted by Trump? Here’s an explainer. [Guardian]

 

Your Export is My Drug

Use of HCQ has soared of late in light of the coronavirus pandemic since some trials using the drug have found it helpful in quickening the pace of recovery in those infected by the virus. The Indian Council of Medical Research (ICMR) recommends the use of HCQ as a prophylactic for asymptomatic healthcare workers and contacts of people who have been infected by the virus. The ICMR’s decision on wider use of the drug will, reportedly, depend on further research. [Indian Express]

 

US turns to stockpiling drugs and hoarding masks as COVID-19 casualties soar.

Desperate Times

Demand has particularly soared in the past few weeks as the pandemic spreads in the US, which now has the most number of confirmed cases of COVID-19 and over 10,000 deaths.

 

HCQ stockpiling by the US is not an outlier in US actions in the past few weeks. It has also resorted to diverting shipments of masks headed for France and Germany to its own waters. At the same time, some states are facing shortages of medical equipment – New York has even accepted a donation of 1,000 ventilators from China. [The Independent]

 

IT'S AN EMERGENCY

Japan declares coronavirus emergency and unveils $1trn stimulus package.

Emergency Kit

Japan has declared a state of emergency to deal with the rising number of coronavirus cases in the country. The Government has also unveiled what has been described as the world’s biggest stimulius package to support the world’s third-largest economy.

 

“If each of us can reduce contact with other people by at least 70%, and ideally by 80%, we should be able to see a peak in the number of infections in two weeks,” Prime Minister Shinzo Abe said.

 

The Government’s stimulus package is worth 108trn Yen ($990bn). This is equal to 20% of Japan’s economic output. It exceeds the equivalent of 11% of US output for the stimulus package and 5% of output for Germany’s package. [Reuters]

 

Boris Johnson's condition worsens. 

Get Well Soon

UK Prime Minister Boris Johnson was transferred to an Intensive Care Unit (ICU) after his condition reportedly worsened. He had announced on March 27th that he was infected with COVID-19. A statement from Downing Street on Monday said: “The condition of the Prime Minister has worsened and, on the advice of his medical team, he has been moved to the Intensive Care Unit at the hospital.” [CNBC]

 

 

COMPANIES

HUL share price surges to record high.

Stop Only at the Summit

Shares of FMCG major Hindustan Unilever (HUL) today surged as much as 13.7% before closing at a new high of ₹2,449.

 

HUL had last week announced the completion of its merger with GlaxoSmithKline Consumer Healthcare Ltd (GSKCH) and the acquisition of the Horlicks brand from GSK. 

 

Analysts say that rising demand for personal hygiene products has brightened the prospects for HUL. [Livemint]

 

 TPG Capital and KKR emerge as front runners to acquire 20% stake in Piramal's Pharma business. 

Swiping Right

American private equity giants TPG Capital and KKR & Co. have emerged as the front runners to invest  ₹3,500-4,000cr (c. $525m) for acquiring a 20% stake in Piramal Group’s proposed pharmaceutical entity that would combine the Group’s pharma businesses.

 

The deal, once completed, may value the Piramal Group’s overall pharma business at $2.5bn. [Livemint]

 

STARTUPS

Zomato and Swiggy raise fresh funding.

No Help Goes Waste

Food delivery platforms Zomato and Swiggy have raised a fresh round of funds, even as they face massive operational challenges and slump in orders amidst the lockdown. 

 

Swiggy has raised $43m as part of its its ongoing Series I round, which now stands at $156m. The latest financing round was led by existing investor Tencent. New investors Ark Impact, Korea Investment Partners, Samsung Ventures and Mirae Asset Capital Markets participated in the round.

 

Zomato raised $5m from British investment manager Baillie Gifford’s Pacific Horizon Investment Trust as part of its Series J round of funding. [VCCircle

 

Indian Private Equity and Venture Capital Association requests SIDBI to ease sops criteria under recently announced assistance scheme. 

Helping Hand

Small Industries Development Bank of India (SIDBI) recently announced COVID-19 Startup Assistance Scheme (CSAS) to provide working capital financing to startups hurting due to the nationwide lockdown over the next 45-60 days.

 

In its response to the scheme, Indian Private Equity and Venture Capital Association (IVCA) has proposed that SIDBI raise the loan amount to ₹5cr ($0.6m), up from the currently proposed ₹2cr ($0.2m), reduce the interest rate on such loans, remove the criteria that only startups that are unit economics-positive are eligible to apply for CSAS, and have a longer payback duration. [ET Tech]

 

GLOBAL TECH

Samsung expects Q1 operating profit to be up 2.7% YoY. 

Upbeat!

South Korean tech giant Samsung expects to report $5.23bn in Q1 operating profit, up 2.7% Y-o-Y. 

 

It also expects Q1 consolidated sales to be up c. 5%. 

 

Temporary closure of some Samsung factories and retail stores around the world is likely to have an impact on sales. 

However, a relatively weak Korean Won, cost-saving efforts and strong demand for memory chips are set to drive the company’s earnings, as per analysts. [CNBC]

 

But don’t be fooled into thinking that Samsung is in the clear, warns this report. Read on to know why. [Bloomberg]

 

Airbnb raises $1bn from Silver Lake, Sixth Street Partners.

Ray of Hope

San Francisco-based home sharing startup, Airbnb has raised $1bn in funding (a combination of debt and equity) from major Silicon Valley investors Silver Lake and Sixth Street Partners. 

 

Airbnb has said that about $5m of the investment will go towards special relief grants to hosts who rent out their own home and need help paying their rent or mortgage. [The Telegraph]

FIN.

Congratulations! You've made it to the end. Looking for more takes on Business, Finance, Markets, and Investing? Subscribe to our Wrap Up Newsletter for informative and insightful daily news updates, smartly curated from the top sources, delivered straight to your inbox.