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Wealth Managers, Insurance Brokers, Merchant Bankers and Mutual Funds Could Be Brought under IBC, Adani, Piramal Group to Bid for DHFL

Professor of Financial Economics and Part-time Value Investor, Transfin.
Nov 22, 2019 12:21 PM 4 min read

Wealth managers, insurance brokers, merchant bankers and mutual funds could be brought under IBC. DHFL share price rises as Adani Group, Piramal emerge as major contenders for the crisis-hit HFC. WeWork to lay off 2,400 employees. Tesla unveils Cybertruck, its first pickup truck. 



Kumar Mangalam Birla has lost $3bn in about two years on account of the ongoing telecom wars.

Mounting Losses and Rising Debts: Kumar Mangalam Birla, whose group is the second-largest investor in Vodafone Idea has lost about a third of his fortune since the end of 2017 on the back of Vodafone Idea's mounting losses and rising debts. 


Formed by the merger of Vodafone’s local unit and Birla’s cellular operator, Vodafone Idea last week reported the worst loss in India’s corporate history. Moreover, following the SC's AGR verdict, Vodafone Idea's CEO had recently said that unless the government eased off on some of the demands on mobile spectrum fees, the company risks liquidation. 


Kumar Birla's net worth has shrunk to c. $6bn at present from $9.1bn two years ago. Financial Express


A Losing Star: Four years ago, Vodafone Idea (Idea Cellular earlier) was the most valuable member of the Aditya Birla group and the fastest growing mobile operator in the country with the industry's best financial ratios. In the first half of the current FY, it reported operating loss of INR1,037cr, down sharply from INR1,773cr operating profit a year ago and INR6,336cr profit during the first half ending September 2018. Read this article to know how "once a rising now in the dumps."



DHFL share price rises as Adani Group, Piramal emerge as major contenders for the crisis-hit HFC.

Shares of DHFL rose 4.9% today as Adani and Piramal Group emerged as the top contenders for the crisis-hit housing finance company. Apollo is also said to be in the fray to bid for the troubled company, IANS reported. Business Insider


DHFL is set to become the first non-banking financial company (NBFC) to be referred to the National Company Law Tribunal (NCLT), following the RBI's decision on Wednesday. Read all about it here.



Wealth managers, insurance brokers, merchant bankers and mutual funds could be brought under Insolvency and Bankruptcy Code.

More the Merrier: So far, the Insolvency and Bankruptcy Code (IBC) covers non-bank finance firms with assets over INR500cr. Now, the government is reportedly planning to bring 30-40 categories of financial intermediaries under the ambit of the law. Wealth managers, insurance brokers, merchant bankers and share transfer agents may soon be brought under the IBC's ambit. So too, as per SEBI Chairman Ajay Tyagi, will mutual funds. ToI


Change is the Only Constant: "Faster resolutions and value maximisation" are the two stated objectives of the IBC. But three years, three amendments and endless debates later, it remains flawed. Fixing its loopholes and strengthening it to tackle bad credit is crucial. How should IBC Ver 2.0 look like? Here's a deep-dive on the matter. 


WeWork to lay-off 2,400 employees.



To lay off 2,400 employees.

In an attempt to reduce mounting losses and find a viable path forward following a failed IPO, office-space startup WeWork has reported that it would be laying off over 2,400 employees, about 17% of its workforce. WSJ


These employees will be receiving continued benefits, and other forms of assistance to aid in their career transition


The lay-off have so far impacted departments across the company, including WeWork's human resources, growth, and corporate technology departments. CNN Business



Tesla unveils Cybertruck, its first pickup truck.

Tesla La Land: Elon Musk has unveiled Tesla's first pickup truck - an idea he's been flirting with since at least 2012. "Cybertruck" will come in three versions with 250 miles, 300 miles and 500 miles of range and will start at $39,900. While the truck won't roll off the assembly line until late 2021, it can be pre-ordered. More details here.


Map Me Like You Do: In case you missed it, the Survey of India is currently on a mega-mapping mission to digitally map India in stark detail. The project, undertaken with the support of the Department of Science and Technology, aims to map 75% of India’s landmass in the next two years (in addition to mapping the Ganga’s floodplains). The project is already underway in three states - Karnataka, Maharashtra and Haryana, and it is employing hundreds of drones to do the digital mapping. ET Tech


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