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RIL Arm Enters into a Deal with Canada's Brookfield to Get Over INR25,000cr in Investments and Other Top News Today

Professor of Financial Economics and Part-time Value Investor, Transfin.
Dec 16, 2019 2:45 PM 4 min read

WPI rises to 0.58% in November. Uber reportedly all set to sell UberEats’ India business to Zomato. Swiggy’s parent company sees 5X hike in losses. RIL arm enters into a deal with Canada's Brookfield to get over INR25,000cr in investments.




WPI rises to 0.58% in November. Foresaw slowdown and acted ahead of time, RBI Governor says. 

When Up is Down: Wholesale prices based inflation (WPI) rose to 0.58% in November as against 0.16% in October. This surge was contributed by an increase in prices of food items.


The rate of price rise for food articles rose to 11% in the same period while for non-food articles it was 1.93%. The same numbers for October were 9.80% and 2.35% respectively. The Hindu


Looking Ahead: Speaking at the India Economic Conclave, RBI Governor Shaktikanta Das called for an "informed and objective discussion" on the country's economy and said that the Central Bank would do "whatever is necessary" to address growth slowdown, spikes in inflation as well as to ensure good health of banks and non-bank lenders.


Das also said the RBI foresaw the ongoing economic slowdown and acted ahead of time by slashing interest rates from February (repo rates have been cut five consecutive times this year). Firstpost



Uber reportedly all set to sell UberEats’ India business to Zomato. Swiggy’s parent company sees 5X hike in losses.

Pleased to Make Your Acquisition: Uber is reportedly all set to sell UberEats’ India business to Zomato, valuing the same at $400mn. As part of the deal, the ride-hailing firm may invest $150-$200mn in Zomato and get a sizable stake in the firm.


While the deal is still being negotiated by both parties, it could be finalised by the end of the year. TechCrunch


Red and Green: Bundl Technologies, Swiggy’s parent company, noted a 5X hike in losses in FY2019. Losses rose to INR2,363cr from INR397cr in the previous financial year.


Even as the food delivery platform increased order volume (to 1.4mn per day), it also lost over INR113cr due to order cancellations. Overall, it spent INR4,491cr this FY. Inc42



RIL arm enters into a deal with Canada's Brookfield to get over INR25,000cr in investments.

We've Got A Deal: Reliance Industrial Investments and Holdings Limited (RIIHL), a wholly-owned subsidiary of Reliance Industries Limited (RIL), has entered into binding agreements with Brookfield Infrastructure Partners, and its institutional partners, for an investment of INR25,215cr in the units to be issued by the Tower Infrastructure Trust, it said in a filing with the exchanges.


At the closing of the transaction, the trust will own 100% of the issued and paid up equity share capital of Reliance Jio lnfratel Private Limited (RJIPL), which currently has a portfolio of approximately 130,000 communication towers that form the infrastructure backbone of Reliance Jio's telecommunication network. It has plans to build additional towers with the total number of towers expected to reach approximately 1,75,000. Business Today

GSK looking to sell its 6% stake in HUL.

Selling Off: GlaxoSmithKline (GSK) is reportedly planning to sell its stake in Hindustan Unilever (HUL) in ‘tranches’ by early 2020 for $3.7bn. The move follows GSK Consumer Healthcare’s decision on December 3, 2018 to merge with the Indian unit of Unilever.


GSK is expected to sell its c. 6% stake in HUL once the merger is completed in early 2020. Moneycontrol



Resolution plan for Ruchi Soya expected to be completed today.

In yet another boost for lenders under the Insolvency and Bankruptcy Code (IBC), the INR4,350cr resolution plan for debt-ridden edible oil firm Ruchi Soya is likely to be completed today after Baba Ramdev-led Patanjali Ayurved secured funding from five banks. 


The news comes as the world's largest steel-maker ArcelorMittal closes INR42,000cr deal with Essar Steel's lenders today.


Refresh Your Memories: Patanjali had received NCLT's approval to acquire Ruchi Soya in September this year. NCLT had admitted the insolvency plea filed by two lead financial creditors Standard Chartered Bank and DBS Bank. However, later the Singapore-based DBS Bank became a dissenting creditor and approached NCLAT challenging the distribution of proceeds from the bid submitted by Patanjali Ayurveda. Financial Express


Extra Crunch: Shares of diagnostic firms such as Thyrocare, Dr Lal PathLabs and Metropolis Healthcare have slipped about 6.2%, 11.6% and 4.7%, respectively, in the past one week on the back of investor concerns that increased competition due to the entry of Reliance Life Sciences, a deep-pocketed player, into the diagnostics space could disrupt the market, squeeze margins and reduce return on equity.


Should the investors be really worried about Reliance pulling off a Jio in the diagnostics space as well? Read this article for the entire scoop. 



Hyderabad-based Turbo Aviation plans to launch new low-cost airline 'TrueStar' by mid 2020.

Flying Places: As per this Business Standard report, Hyderabad-based Turbo Aviation has announced its plans to launch a new low-cost airline 'TrueStar' by mid 2020 and to this effect, has signed a partnership deal with a UK business group for a 100mn pound funding support to speed up the launch process.


Turbo Aviation has already been operating the commercial airliner 'True Jet' since 2015. TruStar will be the first commercial airliner to introduce Made-in-India Dronier Aircraft manufactured by Hindustan Aeronautics Limited, Kanpur.


"We have great, influential partners now on board who will help us drive the high demand air-taxi market in India, by connecting new UDAN routes. We are looking to transform the connectivity in the North and Southern sector to begin with, keeping in mind for more flying routes soon in future," noted V Umesh,  Managing Director, Turbo Aviation.


Meanwhile...: US aircraft manufacturer Boeing is reportedly considering either suspending or cutting back production of the 737 MAX following growing uncertainty over the troubled plane’s return to service. More on this here.


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