Episode 459

Business News at 05:30 pm on 27th March 2023

In today’s evening bulletin, we talk about the Mamaearth IPO drama, lifeline for crisis-hit SVB and more, China’s TikTok reaction and more

Today’s Latest Business News at 05:30 pm on 27th March 2023.

[Disclaimer: This transcript is auto-generated]

Mamaearth on Monday sought to deny reports of withdrawal of its proposed Rs 2,500-crore IPO, saying that the parent company Honasa Consumer is engaging with regulator SEBI on the public issue. Earlier today, Reuters reported citing sources that Mamaearth has put its proposed IPO on hold due to weak market conditions. Mamaearth co-founder and CEO Varun Alagh told CNBC TV18 in an interview that the company is replying to SEBI queries, and expects to get approval on IPO prospectus by next month. “The reports are largely baseless. We are still in the process and are engaging with the banks and more importantly, the regulator and are awaiting approval on the draft prospectus that we have filed,” Varun Alagh told CNBC TV18. He further added that after the approval from SEBI, the company will have 12 months to file for RHP and go ahead. Asked if the IPO size will change in any way, Varun Alagh said that there will be no changes in the IPO size.

Moving on. Hospitality and travel-tech firm OYO estimates its revenue in FY23 to be more than Rs 5,700 crore, up 19 per cent from Rs 4,780 crore it had recorded in FY22, according to its Founder & Group CEO Ritesh Agarwal. At a town hall on Monday, Agarwal told employees of the firm that OYO is aspiring to reach adjusted EBITDA of nearly Rs 800 crore in the next financial year. Sustained growth in India, Indonesia, the US and the UK and relevant optimisation as well as synergies in its European vacation homes business have led to better financials of the company, he said in a presentation at the gathering with employees. In the presentation, Agarwal said OYO’s revenue for FY2023 is expected to be over Rs 5,700 crore, up around 19 per cent from the Rs 4,780 crore achieved in FY2022.

Some overseas news. The Federal Deposit Insurance Corp. has agreed on the sale of troubled Silicon Valley Bank to North Carolina-based First-Citizens Bank & Trust Co. The sale involves the sale of all deposits and loans of SVB to First-Citizens, the FDIC said in a statement. The collapse of Silicon Valley Bank rattled the banking industry and led the FDIC and other regulators to act to protect depositors to prevent wider financial turmoil. The bank, based in Santa Clara, California, failed on March 10 after depositors rushed to withdraw money amid fears about the bank’s health. It was the second-largest bank collapse in US history.

In other development, Saudi National Bank , the largest shareholder in Credit Suisse before the bank’s rescue earlier this month, on Monday named a new chairman after the lender suffered significant losses on its investment. CEO Saeed Mohammed Al Ghamdi will take over as the new chairman from Ammar Al Khudairy, who resigned for personal reasons, the bank said. Deputy CEO Talal Ahmed Al Khereiji takes over as acting chief executive, a bourse statement said.

Meanwhile, the retirement fund body EPFO is likely to announce the rate of interest on employees’ provident fund deposits for 2022-23 at its two-day meeting beginning Monday. EPFO had lowered the interest on EPF for 2021-22 to an over four-decade low of 8.1 per cent for its about five crore subscribers, from 8.5 per cent in 2020-21 in March 2022. This was the lowest since 1977-78, when the EPF interest rate stood at 8 per cent. The trustees will also deliberate on the action taken by the EPFO on the Supreme Court order for giving a four-month window to Employees’ Pension Scheme 1995 subscribers to opt for higher pension. The EPFO has provided the facility to opt for higher pension to its subscribers till May 3, 2023. The 8.5 per cent interest rate on EPF deposits for 2020-21 was decided by the CBT in March 2021. After the CBT decision, the interest rate on EPF deposits for 2022-23 will be sent to the Ministry of Finance for concurrence.

Now some tech news. The U.S. has made a presumption of guilt against TikTok without presenting any evidence that threatens its national security, the Chinese foreign ministry said on Monday regarding the TikTok bill. “U.S. should respect fair competition, and stop suppressing foreign companies,” Mao said, while answering a question about U.S. lawmakers pushing forward with the bill, which is designed to address national security worries relating to the popular video app.

And finally, here’s what happened on Dalal Street today. The Indian indices – Sensex, Nifty ended marginally higher with gains witnessed in pharma, power. But realty proved to be a drag. Meanwhile, Indian rupee closed 11 paise higher at 82.37 per dollar against Friday’s close of 82.48.

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Business News at 05:30 pm on 27th March 2023