Kategori: Business

Business News & Politics

What Is The Response To IRFC IPO?

HT News

KFin Technologies Private Limited could finalise the allotment of shares in IRFC IPO today. The said company is managing the allotment and refund of IRFC shares. Investors can check the website of the said company to get more information on allotment of shares. The information will also be available on BSE website. Listing of shares could go on January 29.

IRFC IPO

Indian Railway Finance Corporation (IRFC) opened its IPO on January 18 and closed on January 20 after receiving bids for 4,35,22,57,225 shares against 1,24,75,05,993 shares on offer. The subscription ratio of the retail individual investors segment, Qualified Institutional Buyers category and non-institutional investors was 3.66 times, 3.78 times and 2.67 times respectively. The IPO was offered at ₹25-26 per share and the IRFC raised about ₹1,400 crore from anchor investors ahead of the IPO.

The government wants to bring its shareholding in IRFC to 86.4% from 100% with the IPO that was subscribed nearly 3.5 times. The total IPO is of 178.20 crore shares and it comprises a fresh issue of 118.80 crore shares and sale of 59.40 crore shares. The government expects raising a capital of ₹1,544 crore from the IPO.

What is IRFC?

Indian Railway Finance Corporation raises funds for Indian Railways from domestic as well as overseas market. Dedicated for fund mobilisation, IRFC the first non-banking financial company (NBFC) offering an IPO. Leading brokerage companies recommended subscribe for IRFC IPO leading to a huge response from the public. The experts have done attractive valuation. Also, they expect healthy return ratios for the investors.

Source:- https://bit.ly/3iIcxWR

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Business News & Politics

Get Rs. 2 Lakh Accidental Cover At Rs. 12 Under PMSBY

HT News

Pradhan Mantri Suraksha Bima Yojna (PMSBY) is offering accidental insurance at Rs. 12 to the poor and low-income group people. The security cover is for one year but it can be renewed every year. Run by government of India, the scheme covers accidental death and disability.

Low cost PMSBY

People aged between 18-70 years of age with savings accounts can take advantage of this insurance scheme. The scheme covers accidental death including murder and disability. But temporary and partial disabilities aren’t covered under the insurance.

Highlights of PMSBY

• Rs. 2 lakh insurance for death due to accident and permanent total disability. Rs. 1 lakh for permanent partial disability.

• Permanent disability could be loss of a limb or vision in both eyes or even in one eye.

• The insured persons are allowed to quit the scheme at any time they want.

• Like other insurance policies, PMSBY also allows the nominee or the next of the kin of the deceased to collect the insurance amount.

• The insurance cover is provided at a much lower cost in comparison to other insurance policies.

• The insured persons can allow auto debit of the insurance amount from the bank accounts. The auto debit service will remove the need of paperwork.

Source: https://bit.ly/3e108K0

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Business

Fresh Funds For Ambani Led Jio

HT News

Jio Platforms Ltd. received another financial stimulus of $873 million from General Atlantic that invested in Airbnb Inc. and Uber Technologies Inc. It has taken a 1.3% stake in the digital services business of billionaire Mukesh Ambani, Reliance Industries Ltd.

More dollars for billionaire Ambani

The latest stimulus from the US based private equity fund General Atlantic increased the enterprise value of Reliance Industries Ltd. The company now values Rs. 5.16 trillion ($68 billion). And the total transaction raised by Jio is increased to almost $9 billion. It includes stakes bought by Facebook Inc., Silver Lake and Vista Equity Partners.

Jio plans to broaden its e-commerce drive using its 400 million mobile phone subscribers that is a vast customer market from retail to education and payments. Akash Ambani, director of Reliance Jio, and Chairman Mukesh Ambani’s son said that he was delighted that a renowned global investor like General Atlantic was partnering with Jio in their journey to digitally empower India and Indians.

Ambani will make payments

Mukesh Ambani will pay more than $20 billion of net debt at Reliance with this fund. He has to pay the debt by March 2021 deadline but he has vowed to repay the debt before the deadline.

Ambani is also looking for options to raise about $7 billion by selling shares to existing holders. This move is aimed at building confidence of investors in his oil and telecommunication business. He also wants to put his Jio brand in the direct competition of Amazon and Walmart.

Source: https://bit.ly/3bGJX2X

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Business News & Politics

Booze To Cost 70% More In Delhi From Today

HT News

Delhi government decided to add a 70% corona tax on liquor sale. The tax will be applied to the MRP (maximum retail price) of each bottle. The decision was taken on Monday and it will be implemented from Tuesday. The government wants to increase its revenue with liquor sale.

70% on liquor sale in Delhi

The Delhi CM Arvind Kejriwal chaired a cabinet meeting on Monday morning to discuss ways to harvest liquor sale to boost revenue of the state that is down by more than 100% in comparison to last year. Delhi’s revenue in April 2019 was Rs. 3,500 crore but it plunged to Rs. 300 crore in April 2020.

The CM discussed the corona tax model with his cabinet colleagues and ordered charging 70% for per bottle from the buyers. After the renewed price, a bottle that costs Rs. 1,000 on MRP will now cost Rs. 1,700 due to the tax. The additional tax will help boost the revenue in the coming days.

Liquor sale in Delhi

Delhi government has authorized agencies to sell liquor in the capital. These agencies are DTTDC, DSIDC, DSCSC and DCCWS. And they are allowed to issue licenses to private firms to sell liquor from the government authorized premises.

On Monday, the standalone liquor shops located outside the marketplaces opened their shutters to sell booze. And people came out in thousands to buy liquor. But the worst thing is that they didn’t follow social distancing guidelines while buying liquor.

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Business

E-retailers Want To Take Part In Joint Fight Against COVID-19

HT News

E-commerce giants Amazon and Flipkart again put the case for sale of non-essential goods and asked for permission to sell the items that have become essentials over a prolonged period. Also, the ecommerce companies promised to make deliveries while following the lockdown conditions of social distancing.

Amazon delivery

It said that ecommerce offered the safest way for sellers/retailers to serve the needs of citizens while ensuring social distancing. Amazon was committed to keep citizens safe and that e-commerce can play a crucial role in the joint fight against the pandemic said the company. It further maintained it can help in fight against coronavirus by starting supply of goods.

Flipkart delivery

The ecommerce company said that it can help in easing the burden of piled up inventory of MSMEs with quick delivery of products to consumers in a safe and secure manner. Also, it promised maintaining social distancing norms while making online deliveries to consumers.

Government on ecommerce deliveries

The government has allowed sale of essential goods that include pharmaceuticals and medical equipment through ecommerce platforms but it has put a ban on sale of non-essential goods by e-retailers. The delivery agents handling delivery of non-essential goods are advised to follow the instructions provide by the governments of states and UTs they are working from.

Lockdown in India

The country is currently in the middle of the extended lockdown enforced to break the chain of spread of novel coronavirus. The lockdown was extended on April 14 and it will remain operative till May 3.

Source: https://bit.ly/3eYxkTY

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Business

What Are Local Shops On Amazon?

HT News

Local Shop on Amazon is new initiative by Amazon. The programme is launched to scale the business by starting selling goods directly from local shops. But the real objective is to get an edge over Reliance’s JioMart and Walmart-owned Flipkart.

Amazon’s new programme

The US e-commerce giant has promised to invest Rs. 10 crores in its “Local Shop on Amazon” programme. The company has already started the project with over 5,000 traditional retailers. The programme will provide the convenience of ordering goods online and scalability to offline retailers.

The pilot project has been kicked off in over 100 cities including big metros and Tier-1 and Tier-2 cities like Ahmedabad, Coimbatore, Faridabad, Hyderabad, Indore, Jaipur, Lucknow, Pune, Saharanpur and Surat. The sellers participating in the project include automotive, books, furniture, home décor, jewellery, kitchen appliances, sports and toys.

Traditional retailers are included in the programme with a condition that is to have a robust delivery mechanism of same day or the next day. Amazon wants the retailers to use pin-code delivery system to ease the burden from its delivery fleet. The shopkeepers are provided “Amazon Delivery App” that will help the customers and Amazon in keeping track of shipments.

Timing of the launch

Like other e-retailers, Amazon is also struggling to fulfil its orders due to national lockdown in the event of spread of novel coronavirus. And the arrival of local shops into the business will help solve the delivery issue to a large extent.

Source: https://bit.ly/2x5qwmh

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Business

Facebook Invests $5.7 Billion In Reliance Jio

HT News

Reliance Industries share took a high jump when the social media giant Facebook announced buying a minority stake in Reliance Jio. It would invest $5.7 billion (Rs. 43,574 crore) in the Mukesh Ambani owned telco firm. With the investment, Facebook will become the largest minority shareholder in Jio Platforms Limited.

Highlights of the share market news

• Reliance Industries witnessed a jump of 103 points (8.33%) from Rs. 1,236 to Rs. 1,339

• Sensex traded 131 points higher at 30,758

• Reliance Industries share was also a top gainer on Nifty

• On NSE, its share gained over 8% to Rs. 1,339

• Total 4.11 lack shares were traded on BSE

• The trading value of shares was Rs. 55.72 crore

• After trading, the market cap of the firm increased to Rs. 8.23 lack crore on NSE

Stock of Reliance Industries Limited

The 5, 20 and 50 day moving average of RIL stock was higher after the trading but lower than the 100 and 200-day mowwving averages. Also, RIL reported a gain of 13.57% in one week and 28.03% in one month. On BSE, the share opened with a gain of 6.79% at Rs. 1,320.

Facebook’s investment in RIL

Jio said in a statement that Facebook’s investment will translate to a 9.99% equity stakes in Jio Platforms on a fully diluted basis. Facebook said that it wanted to collaborating WhatsApp with e-commerce venture of Reliance. Facebook wants to enable people to connect with small businesses on JioMart.

Source: https://bit.ly/3bv1QT1

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Business

Biggest Ever Meltdown In Crude Oil Prices Explained

HT News

A measure of oil volatility skyrocketed to more than 400% on Monday when crude oil went below to $10 a barrel and then to zero and then slipped into the land of negative. And it is the first time that crude crashed into negative territory.

Monday’s wild market action

Brimming storage tanks signal extreme disconnect between supply and demand due to coronavirus-led economic slowdown. The present demand for crude oil is at a standstill. Here’re three actions that describe the market condition.

Selling Frenzy

The May contract of West Texas Intermediate crude’s front-month contract closed at a more than $50-a-barrel discount to the June contract. And it is the biggest discount on record. It could be due to the traders rushing to sell the May contract ahead of its expiration on Tuesday.

Wild Swings

Tariq Zahir, a commodity fund manager at Tyche Capital Advisors LLC commented on the falling crude oil prices to negative zone. He said that oil prices in their opinion had nowhere to go but lower from there on the June contract. He further maintained that the demand wasn’t coming back anytime soon. They would have a massive glut to work off for months to come.

Mega Moves

The United States Oil Fund, that is the biggest exchange-traded fund tracking crude, witnessed enhanced activity after the Monday market crash. Last week, investors poured more than $1.6 billion into the fund and exchanged over $3 billion on Monday. It was the highest traded value since the inception of the fund.

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Business Media & Entertainment

Traders Ask To Extend Lockdown To April 30 But With Relief Package

HT News

Confederation of All India Traders (CAT) stands with the government in the time of COVID-19 spread. National General Secretary of CAT, Pravin Khandelwal, wrote to the PM to extend the lockdown period to April 30.

CAT supports extension of lockdown

A survey conducted among traders and business leaders of various states, the business community said that they want the lockdown to be extended beyond the 21-day period. They said that the current situation of novel coronavirus spread demands stricter measures to contain the spread of the deadly disease. And the business community was unanimous in the decision to extend the lockdown period.

The CAT assured that the traders would leave no stone unturned to deal with the virus. Also, the confederation assured the PM that India would be victorious in its fight against the spread of novel coronavirus.

Challenges ahead

In a letter to the PM the confederation mentioned the hardships that the small and medium scale traders would have to face in the fight against the pandemic. The lockdown period would result in slowdown of business resulting in big losses. But the increasing number of coronavirus cases demand strict measures to control the spread. Despite the hardships, the merchant class stood with the country in containing the virus spread, said the letter.

Pravin Khandelwal sent memorandum

Pravin Khandelwal wrote in the letter that he had already sent a memorandum to Union Finance Minister Nirmala Sitharaman seeking financial relief for the merchants of India.

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Business

Oil Industry Faces Demand Crash In April

HT News

The oil is an all time low this month and this unparalleled demand destruction could transform the industry for years to come. The energy analysts anticipate that daily consumption of oil will plummet by 15 million to 22 million barrels in April in comparison to the demand last year.

Demand destruction in oil sector

In a March note, Goldman Sachs Group Inc. said that shutting down the demand would have large scale and persistent ramifications to supply. Goldman anticipates a surge of 20 billion barrels a day in storage tanks in April. And HIS Markit predicts that the world will run out of storage space for oil in middle of the year.

April is predicted to be the worst ever month for global demand for jet fuel. According to industry consultant FGE forecasts American, the gasoline consumption could plunge by 50% in comparison to the last year. And Energy Aspects Ltd. predicts the global benchmark Brent crude to drop by $10 a barrel, a level not seen in more than two decades.

Aftereffects of April crash in oil

The April crash will be start of a second bleak quarter for the industry and the experts fear that it could send some producers to go to the extent of destabilizing governments in many OPEC countries. But there is a positive side of the crash in oil demand. It will help achieve the energy restructuring so badly needed according to Goldman.

Source: https://bit.ly/2w9chfM

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