MC Insider: Silence on shenanigans, board plays party pooper, marathon divestment, big-daddy IPO and more

This entrepreneur's shenanigans over the last few weeks have come in for a lot of discussion and debate -- within and outside the startup ecosystem. From his brashness on a reality show to his profanities on a phone call to his audacity to go up against one of India's most respected bankers- it has all the makings of a Netflix saga. While most founders aren't surprised with the turn of events, they were disappointed with the continued silence of this startup's investors- some of whom include marquee global funds. "This paints other entrepreneurs in a bad light and the entire episode has been embarrassing," one told MC Insider. "Investors don't care as long as the valuation keeps going up. They will step in when that stops happening," said another. Well, mum's the word for now.

This much-hyped scooter maker has been in the news for a whole host of issues- delayed deliveries, poor quality of vehicles, and customer complaints. But what has also befuddled many is the huge variance in the number of units it claimed it has made with the actual number of registrations from official data. While deviance of 200-400 on a claim of 4000-5000 seems par for the course, in this case, variance is huge, where the data shows just one-fifth of what the company has been claiming. What has also added to the confusion is the way it has changed the term 'delivery' to 'shipped' and now 'despatched.' The company refused to disclose the actual number of units delivered but insists on using terms such as 'despatched' or 'shipped.' One hopes it all eventually adds up.

Until a while ago, this particular bank was actively considering the acquisition of an NBFC. The bet? A strong network of the target firm in the micro-lending business. The speculated valuation as well sounded attractive to the bank. Yet, we now hear that the bank's board has shown the thumbs down to the management on all aspects of the deal. This, we hear, was communicated at a recent top level meeting held in Mumbai. Why did the board play a party spoiler? Buzz is that it found certain weak points in the NBFC's corporate governance framework and disclosure policies. There was speculation in the market that the deal could still go through even though the concerned lender had denied talks. But, at this point, guess it is safe to assume that the deal is a non-starter.

This founder was in the news recently calling it quits following major differences with a key investor in the firm. The founder has since then been highly critical about the way the majority investor runs the company and later revealed a plan to build a new business from start. A little birdie tells us this founder has now identified an existing business to acquire and has already moved to secure regulatory approvals. Game on, we say! Watch this space!

Last month, the Centre received bids for the disinvestment process of this PSU firm. Now in this case, we understand the government has heard the requests of the suitors loud and clear and has relaxed certain terms and conditions for the sale. There are whispers in the government corridors that a winner may have been picked and an official announcement is expected in the next 7 to 10 days. Well let’s just say this won’t be the first time this diversified business group is widely seen as a front-runner in a disinvestment situation.

A few days back, there was buzz about a potential reduction (sizeable one at that) in the issue size of this IPO from a fast-expanding conglomerate. Now that the harvest festival celebrations are over, grapevine suggests that the much-awaited deal is expected to be launched this month and, in the slog overs, has managed to tap a few big FIIs and HNIs, including a noteworthy Asian biggie. So will there be any more twists in the plot? Let’s wait and watch!

Omicron has played spoilsport in more ways than one. And not surprisingly, Deal Street hasn’t been spared. Interestingly, according to the sarkari grapevine, a world tour to meet investors before the filing of the big daddy’s IPO prospectus was in the works. But with the fast spreading new variant, it’s unclear if the tour is still on the cards or not! But work is on in full swing, there is buzz of filing of papers with Sebi before the end of January and a launch possibly around 20th February. Why? Well, markets are known to fall in the first week post the budget.

This NBFC, which was sold to an uber wealthy business family, has seen a lot of ups and downs. A little birdie on the street tells us not to be surprised if there is an announcement, very soon, on the promoter group hiking its stake. Word is that no institutional investors will participate as the promoter is deep-pocketed enough to raise their stake to a healthy majority. The market is closely observing if the firm will actually deliver and will keep a hawks’ eye for 2-3 quarters. The group has the potential for sure!

Virat Kohli’s resignation as the Test captain of the Indian men’s cricket team sent shockwaves through sports circles with several emotional messages and conspiracy theories flooding social media. And the decision prompted a response from India Inc too. The eloquent head of a conglomerate, which re-launched an iconic motorcycle brand, used an iconic line from the Star Wars movie series – “He’s been at the centre of controversies and this decision may evoke varied responses. But to me Virat embodies the fierce, unapologetic and unrelenting competitiveness & desire to win that we have always wanted to see in our sportspersons. May the Force be with him.”
Sticking to sports, another corporate head honcho tweeted, “Djokovic is the only player I know who has been knocked out of a tournament for having missed just two shots!!!”

A top North American fund with nearly $200 billion of assets under management is close to sealing its first major investment in India and this one is likely to be in the buzzing InvIT segment. Experts believe it’s a low risk bet for the fund which earlier also had a Middle Eastern fund for company, which later dropped out of the said deal.

The DK Shivakumar faction in Karnataka Congress claims that the recent Padyatra demanding river Cauvery water for Bengaluru is a huge success. The Bommai government had to ban the Padyatra after Karnataka HC came down heavily on them. But DKS claims victory. Not many in the Congress are agreeing with him. More than 50% of the party leaders who took part have been tested positive for Covid19 and their number is rising by the day. In private they are cursing DKS who made them walk and contract the virus. The latest joke is C in Congress stands for Covid!

With the ban on poll rallies extended by another week, BJP leaders have decided to deploy the top brass in districts of Uttar Pradesh for addressing small gatherings. The EC guidelines issued last week allowed political parties to hold indoor meetings of up to 300 people or 50 percent of the venue’s capacity. Keeping this in mind, Home Minister Amit Shah is scheduled to start addressing small gatherings in UP districts going to polls in the first phase on February 10. These meetings are expected to begin later this week. The party is said to have decided to make full use of poll panels indoor meeting relaxation, until, at least, physical rallies are allowed with improvement in Covid-19 situation.