1. News
  2. Explained

US-Based Capital International Commits to Invest At Least $120mn in Yes Bank and Other Top Business News of the Day

Professor of Financial Economics and Part-time Value Investor, Transfin.
Dec 3, 2019 12:41 PM 5 min read

US-based Capital International commits to invest at least $120mn in Yes Bank. Maruti Suzuki to increase car prices next month onwards. Reliance Jio begins billing new customers and asks existing ones to select home broadband plans. Chandrayaan-2’s Vikram lander spotted on lunar surface by Chennai-based techie.



Maruti Suzuki to increase car prices next month onwards.

Going the High-Way: India's biggest car manufacturer Maruti Suzuki has announced that it will increase prices across various models from next month onwards on the back of rising input costs. 


The car manufacturer however did not disclose the quantum of price hike. Business Today


Maruti Suzuki to increase car prices next month onwards.


In Other News...: Telecom operators in India have hiked mobile tariffs by up to 42% in an attempt to boost revenue, particularly following the recent SC AGR verdict that has increased their outstanding dues. Analysts expect Reliance Jio to emerge as the biggest beneficiary of this move. They estimate Jio to clock an incremental quarterly revenue of INR3,900cr vs INR2,400cr for Airtel and INR2,100cr for Vodafone Idea. On the other end of the spectrum is Vodafone Idea, whose free cash flows are in the negative and market share is falling despite the hike in ARPU (average revenue per user). The Hindu



HDFC Bank says signs of rural economic revival visible...

Every Coin...: India’s largest lender by market cap - HDFC Bank – sees tentative signs of revival in rural areas at a time when the wider economy is fast-losing steam.


Its Executive Director Kaizad Bharucha recently said, “The recent loan outreach programs underway in rural areas have given us the sense that the consumption in rural and semi-urban areas is turning more positive.” BBG


...But NSO data suggests that rural poverty increased by 4pp in recent years while national poverty rate rose for first time in decades.

...Has Two Sides: Meanwhile, a Mint analysis of the hushed-up report on consumption expenditure by the National Statistical Office (NSO) suggests that the poverty rate in India – which has continuously been declining since the 1980s – has worryingly risen for the first time in decades.


In rural India, where the bulk of the national population lives, between 2011-12 and 2017-18, the poverty rate rose 4pp to 30% even as it fell 5pp to 9% in urban areas. Overall, the national poverty rate rose 1pp to 23% in this period. This means 30mn Indians fell below the official poverty line in the last few years. Livemint



Reliance Jio begins billing new customers and asks existing ones to select home broadband plans.

The Golden Days: In a move that is expected to open up revenue streams and boost profitability for the telco giant, Reliance Jio has begun billing its new customers and asked existing ones to select home broadband plans.


Jio has begun onboarding some 500,000-odd users who had signed up for JioFiber trials well before the September commercial launch to specific tariff plans. Alongside this, existing customers who had opted for the trials are being told that free home broadband services will be discontinued shortly and they need to migrate to specific JioFiber plans to stay connected.


JioFiber’s tariff plans range from Rs. 699 to Rs. 8,499 a month, with speeds from 100 Mbps to 1Gbps. The plans are bundled with services such as gaming, home network sharing, TV video calling and conferencing, device security and access to a content platform. ET Telecom News


FYI: Have you been delaying that credit card payment? Think could now face criminal charges for not paying your credit card bill. More on this here.



US-based Capital International commits to invest at least $120mn in Yes Bank.

Money Incoming: Capital International, a part of the $1.87tr US-based Capital Group has committed to invest at least $120mn in Yes Bank. The amount could possibly be raised in the future.


The fund is one of the eight investors that expressed interest in investing in Yes Bank and is waiting for regulatory approvals in the US. ET Markets


Hit Refresh: Yes Bank in a regulatory filing last week had announced that it has increased the size of its preferential share allotment to $2bn from the earlier guidance of $1.2bn on the back of “strong interest” shown by NRI investors, including a $1.2bn offer by Erwin Singh Braich and SPGP Holdings, and $500mn by Citax Holdings and Citax Investment Group.


Other prominent suitors include the Aditya Birla Family Office ($25mn), GMR Group and Associates ($50mn), and Rekha Jhunjhunwala ($25mn).


However, despite the announcement, shares of Yes Bank were down c. 7% on Monday on the back of some disappointment about the lack of a heavyweight international investor among the firms and individuals announced. Coupled with this were certain reservations regarding the quality of investors, who were relatively unknown to the public. BS



Chandrayaan-2’s Vikram lander spotted on lunar surface by Chennai-based techie.

To the Moon and Back: Early on December 3, NASA tweeted that ISRO’s Vikram lander had finally been spotted on the lunar surface.  


On September 17, a mosaic image of Vikram’s landing site was released by the space agency, which tasked the general public with comparing it with earlier images of the region and spotting the crash-landing site of the lander of India’s Chandrayaan-2 mission.


Chennai-based techie Shanmuga Subramanian compared the latest image with previous iterations of the south polar region of the moon to identify the location of the Vikram lander.


NASA acknowledged his work and said that Shanmuga located the debris around 750 metres northwest of the main crash site. “It was a single bright pixel identification in that first mosaic,” NASA added. Using Shanmuga’s tip, NASA’s LROC team confirmed the identification of Vikram’s exact crash-site by comparing the before and after images. Financial Express


(We are now on your favourite messaging app – WhatsApp. We strongly recommend you Subscribe Now to start receiving your Fresh, Homegrown and Handpicked News Feed.)