Morning Buzz: Alipay to sell stake in Zomato, Adani market cap surges by Rs1 lakh crore, and more
Here are the top business headlines this morning, to get your day started
The Department of Investment and Public Asset Management (DIPAM) has informed the government that it has no plans to offload stake in Vodafone Idea.
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Government has no plans to dilute stake in Vodafone Idea
The Department of Investment and Public Asset Management (DIPAM) has informed the government that it has no plans to offload stake in Vodafone Idea. The government had converted a portion of its spectrum dues into equity in Vodafone Idea. The conversion is believed to have been done at Rs10. At current prices, it would amount to a 33 percent gain for the government. The government has said it is a long term investor in the company and the promoters need to do more in terms of equity infusion.(Financial Express)
Alipay to sell 3.44 percent stake in Zomato
Alipay plans to sell its entire 3.44 percent stake in Zomato. The company has set a floor price of Rs111 for the stock. Zomato shares are up 90 percent so far this year. Other sellers this year include SoftBank, Tiger Global and Antfin. All these shares sales have come about as the lock in period has ended.(Economic Times, Business Standard)
Adani Group market cap surges by Rs1 lakh crore
A day after the Supreme Court gave a clean chit in the probe on allegations by Hindenburg Research, Adani group stocks added a total of Rs1 lakh crore to their market cap. Leading gains was Adani Total Gas, which saw an increase of 20 percent while flagship Adani Enterprises was up 8.9 percent. Even after the surge Adani stocks are still below their highs seen before the report was published.(Economic Times, BusinessLine)
Company’s pay more to raise debt
Spreads of five and ten year corporate bonds have risen on account of tightening liquidity. Spreads of AAA bonds are 38 and 33 basis points more than the comparable Sec yields. This situation is likely to persist and banking system liquidity is now in deficit and NBFCs are increasingly expected to tap into the bond market as the RBI has increased the risk weights on unsecured lending and asked banks to be careful while lending to NBFCs.(Economic Times)
