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Morning buzz: Byju's prepares for Aakash sale, UK's Prudential to lead Udaan down round, and more
Here are the top business headlines this morning, to get your day started
People walk past an advertising hoarding of Byju's, outside one of its branch in New Delhi, India. Image: Reuters /Adnan Abidi
Byju’s prepares for Aakash sale
Byju’s has held explanatory talks with Bain Capital and KKR to discuss the sale of Aakash Educational Services. The firms are open to backing Aakash Chaudhry, the former CEO, to take over as long as the stake of the PE firms and the new owners is more than 51 percent. Byju’s has denied that it plans to sell Aakash.(Economic Times)
UK’s Prudential to lead Udaan down round
Investment firm M&G Prudential is in talks with Udaan to lead a fresh round of funding in the business-to-business e-commerce startup. The startup is likely to see a significant drop to its $3.2 billion valuation and the new funding is likely to be at $2 billion. Prudential had earlier invested in convertible notes, which raised money in the form of debt that later converted to equity.(Economic Times)
US 10-year bond yield nears 5 percent
The US 10-year bond, which prices global interest rates, has neared 5 percent. This promises to raise borrowing costs for companies as well as the rates savers can access. The narrowing of the interest rate differential between the US and India poses the risk of capital heading back to the US as investors will remove the currency risk angle from their investments. Indian bond yields are also likely to come under pressure. They are currently at 7.35 for the India 10-year bond.(Business Standard, BusinessLine)
HUL posts muted results, profits up 4 percent
Hindustan Unilever, which is considered a proxy for the health of the Indian consumer, has reported muted results. Urban growth rates are higher than rural growth rates and the premium segment is doing better than the segment dedicated to the mass market. Inflation is also no longer a concern. Volume growth was at 2 percent for Q2 and net profit was up 4 percent.(Economic Times, Business Standard, Mint, Financial Express)
