Jet Airways News: SBI to Take the Carrier to NCLT, Share Price Falls to an All-Time Low et al

Jet Airways News: SBI to take the carrier to NCLT, Jet Airways share price Falls to an all-time low. Piramal Enterprises sells entire stake in Shriram Transport. Reliance Capital sells 10.75% stake in RNAM. Qatar’s sovereign wealth fund in talks to invest in ed-tech start-up Byju’s. Huawei faces almost 60% decline in international smartphone shipments. Amazon in talks to invest in grocery supply chain platform NinjaCart. PE investors seek details about Yes Bank. Airtel Africa to offer shares at 15% discount in upcoming IPO. DoT backs penalties on Airtel and Vodafone Idea.

 

Moving on to the top Business news today: 

 

 JET 

 

Lenders of Jet Airways led by SBI to take the carrier to NCLT, seek resolution under IBC. Jet Airways share price falls to an all-time low.

 

Weighing the Options: Lenders of the grounded Jet Airways are set to meet today in order review a possible resolution for the private carrier and also discuss whether bankruptcy may be the most viable option as no serious proposal has not been received so far. 

 

Lenders also have the option to pay INR200cr to the US Exim Bank and take charge of six Jet Airways planes, but as per experts, they are unlikely to opt for such a plan.

 

 The Burden of Debt: After running out of cash and failing to raise interim loans from banks, the airline suspended all flights on April 17. Jet has accumulated debt of nearly INR8,500cr on its books with total liabilities of around INR25,000cr.

 

Share PlungeJet Airways share price fell to an all-time low of INR69.75 before closing at INR66.95 (-18%).

 

 COMPANIES 

 

Piramal Enterprises sells entire stake in Shriram Transport. Reliance Capital sells 10.75% stake in RNAM.
 
 
The What: Mumbai-based Primal Enterprise has sold its entire 9.96% stake in Shriram Transport Finance Company to third-party investors.
 
 
The Why: Shriram Group failed to get a banking license and when it proposed to merge its business with IDFC Group and IDFC Bank, Piramal attempted to sell its stake. However, it was prevented from doing so due to disagreements over a deal structure and valuation.
 
 
Debt Management: With two successive offers for sale, Reliance Capital has said it has managed to sell its 10.75% shareholding in Reliance Nippon Life Asset Management (RNAM) aggregating over INR1,450cr. According to the company, the entire proceeds of the sale - about INR6,000cr - will be utilised to reduce its outstanding debt.
 
 
 TECH 
 
 
Qatar’s sovereign wealth fund in talks to invest in ed-tech start-up Byju’s. Huawei faces almost 60% decline in international smartphone shipments. 
 
 
Arabian Delights: Bengaluru-based educational start-up Byju’s is reportedly closing a $200-250m round of funding from Qatar’s sovereign wealth fund, the Qatar Investment Authority (QIA). 
 
 
The deal will reportedly lead to QIA acquiring a 5% stake in Byju’s. This is the first tech-based investment for the Middle-eastern nation in India. Earlier, it had invested in Airtel, RMZ Corp and Flipkart. 
 
 
Valued at over $5.4bn, Byju’s is already the most-valued ed-tech company in the world.
 
 
Trumpian Triumph: Four weeks after the US government blacklisted it, Huawei’s troubles show no sign of subsiding. The Chinese tech giant is now preparing for a 40-60% drop in international smartphone shipments.
 
 
 
Washington accuses Huawei of espionage at the behest of Beijing, and controversy surrounding it have worsened the ongoing US-China trade war. 
 
 
In 2018, Huawei overtook Apple to become the second-largest smartphone vendor in the world. Today, with increasing global suspicions and the Trump administration’s campaign against it, the company is trying to offset its overseas losses by expanding its footprint in China.
 
 
Wild Card: One bright star on the darkening horizon for Huawei is its patent empire. The company holds almost 57,000 active patents on telecommunications, networking and other high-tech inventions worldwide, according to Anaqua’s AcclaimIP. And it’s not averse to increasing royalties and licensing fees from these patents to stem the losses it would incur as its access to global markets is restricted.
 
 
 FUNDING 
 
 
Amazon in talks to invest in grocery supply chain platform NinjaCart. PE investors seek details about Yes Bank.
 
 
Fresh ProduceAmazon is reportedly in talks to invest in NinjaCart, the Bengaluru-based start-up that connect farmers directly with businesses. 
 
 
Ninjacart had recently raised $89.5m from US-based venture capital firm Tiger Global, and talks with Amazon have been reportedly going on since then.
 
 
Grocery services are of major interest for the US e-commerce giant, with 10% of its $5bn investment in India committed to food retail. Its own NinjaCart equivalent, Amazon Fresh, is unavailable in India.
 
 
Details Before Dollars: Top private equity investors Blackstone Group, Apax Partners and Warburg Pincus might commit to an equity infusion into Yes Bank. But before doing so, they are seeking more details about the bank’s exposure to stressed loan accounts. 
 

Yes Bank is reportedly courting a $500-750m equity infusion to boost investor confidence and improve its loss-absorbing capacity. However, the US-based investment firms seeking details could delay the bank’s fundraising plans.
 
 
 TELECOM 

 
Airtel Africa to offer shares at 15% discount in upcoming IPO. DoT backs penalties on Airtel and Vodafone Idea.
 
 
I Hear the Shares Down in Africa: Airtel Africa has set a price range of 80 to 100 pence per share for its upcoming initial public offering on the London Stock Exchange. At $1.26 per share, the upper end of the price reflects a 15% discount on the price at which the company previously raised funds from investors.  
 
 
The Bharti Airtel unit is expected to raise $749m from the issuance of 595-744m shares in its IPO. 
 
 
The final price of its IPO is expected to be revealed on 28 June, with conditional dealings expected to begin the same day. 
 
 
 
The case was brought by Reliance Jio Infocomm, which accused the other two telecos of denying it adequate points of interconnection (PoIs) after its launch in 2016. 

 
Now, the matter will be taken up by the department’s highest decision-making body, the Digital Communications Commissions, whose decision is expected to close the chapter on one of the most controversial disputes in the sector’s recent history.
 
 
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