At Capitalmind Premium, we have a very active Slack channel where we discuss a lot of interesting topics. In there, a number of interesting links come our way. Here’s a list:
- Remember when an IPO offer got over subscribed by 800 times or 1000 times? Well, for High Networth Individuals (HNI), there’s been a regulatory change. SEBI has capped the maximum bid size by HNIs to 50% of the issue size.
https://www.thehindu.com/business/sebi-halves-hni-bid-quantum-in-ipo-to-curb-leverage/article25457626.ece
However, it’s unlikely to make a change. For a 2000 cr. issue, it means one person cannot bid more than 1000 cr. But if you have 800 such people they will easily cause a 400x subscription by themselves. And then, most HNIs bid for only only a fraction of the total issue size. - Essar Steel’s resolution has done wonders for SBI. Not only do they get a full payout from Arcelor Mittal on the Essar Steel loans itself (6,000 cr. write-back, they say) but they also got paid 1,400 cr. for the Uttam Galva loans where Arcelor Mittal, a bidder for Essar Steel, was an earlier promoter.
https://www.livemint.com/Companies/cPlHcqUnkpf66hr57i2cWI/SBI-withdraws-bankruptcy-petition-against-Uttam-Galva-Steels.html - If there was a see-saw and China was sitting on one side, then you would find Australia, India, Japan and the US sitting on the other side, trying to establish balance. At least, that’s what their goal is. These countries, jointly known as QUAD, have been working together to provide an alternate model to China’s authoritarian rule. Here are what they do, their ideologies, their policies and their upcoming plans.
https://www.livemint.com/Politics/tK8rfMn10WAubTPSmuCuQJ/Quad-quietly-gains-steam-as-way-to-balance-China.html - U.S. oil prices fell 7 percent on Tuesday, and has made new lows. While there are many speculations and theories that are flying around, analysts at Goldman Sachs group are playing Sherlock Holmes. They think they have figured out the reason for this epic plunge.https://www.bloombergquint.com/markets/goldman-says-wall-street-banks-exposure-was-behind-oil-rout
- Can you scan millions of data points to filter the universe of outstanding bonds in seconds and identify potential trades? Abbie 2.0 can. It’s a virtual assistant designed by AllianceBernstein Holding LP, that can not only do this, but spot human errors, point out missed trades and also communicate to other similar virtual assistants. Talk about perfecting your money management game.
https://www.bloomberg.com/news/articles/2018-11-12/meet-the-robot-who-knows-how-to-trade-bonds-better-than-you-do?srnd=premium-africa - Carlos Ghosn, the CEO of Nissan, was arrested in Japan for financial shenanigans like underreporting his income in company filings. (This kind of thing would get nearly all Indian listed company CEOs arrested, but hey)
https://www.nytimes.com/2018/11/20/business/carlos-ghosn-arrested-nissan.html - Online streaming platforms such as Netflix and Amazon Prime are ruling the roost in the Indian metros. In order to compete with this, improve their technology and help secure large scale financial investments, Subhash Chandra has decided to sell 50% of his stake in Zee Entertainment Enterprises.
https://economictimes.indiatimes.com/industry/media/entertainment/essel-to-sell-upto-50-holding-in-zee/articleshow/66608115.cms - While Vijay Mallya has been running amok, CBI has begun investigating the role of top SBI officials in handing out loans to Vijay Mallya like Diwali sweets. Former SBI chairman OP Bhatt (2006-2011) along with many other officials have come under CBI’s scanner.
https://economictimes.indiatimes.com/industry/banking/finance/banking/op-bhatt-other-sbi-staff-under-cbi-lens-for-loans-to-vijay-mallya/articleshow/66172610.cms - Textile exports are apparently doing well, rising 38% in October as the USD rose to the 74 levels. While the rupee has come back a bit, it’ll be interesting to see if this trend sustains.
https://www.financialexpress.com/economy/textile-apparel-exports-soar-38-in-october-citi/1384337/ - Real estate companies need funding, and their Tata Sons stake isn’t going to be liquid anytime soon. So the iconic Shapoorji Pallonji is looking to sell out of their other assets to generate cash.
https://www.livemint.com/Companies/v9NYXYTcIfgp3MVUdDhUiM/Shapoorji-Pallonji-Group-plans-1-billion-IPO-of-solar-unit.html
