Hush-hush tales from the world of stock markets, banking, corporate world and corridors of power
Last Updated: September 21, 2022 / 08:47 AM IST
A large business house which has pressed the expansion button is looking to add more targets to its kitty and now there are whispers of it targeting a company that has interests in heavy engineering, power generation, and agro foods. We picked up that the deal value is pegged at around Rs 3,000 crore.
Bricks And Mortar M&A
Buzz around the cement business of a south-based player being up for grabs has come and gone in the past. Well guess what — the chatter is back! Is that the reason why the stock has been on a tear in the recent past? Well, we don’t know for sure but there's no doubt that the sector is gearing up for some interesting M&A battles.
Giving Up For Giving
There are several generous captains of India Inc, most notable among them being Wipro founder Azim Premji who is the country's biggest philanthropist. Premji's feats have inspired many in the industry. We hear the promoter group of this firm in the auto and auto parts segment is mulling a stake sale to raise funds for philanthropy. May their tribe increase!
Block Deals Galore
It has been raining block deals in the market of late and the deal action has been seen across multiple sectors ranging from consumer and healthcare to airlines and auto. A little birdie tells us the latest one in the works will see a private equity firm exit a software solutions firm. Any guesses?
This private equity major has bagged the hottest and biggest deals in the IT services space in the last few years. But it will soon lose a young key member of its M&A team who was involved in most of the billion dollar plus buyouts in the segment. We hear that the gentleman is headed to a rival PE firm with British origins that saw an AI firm in its portfolio attaining unicorn status at the beginning of the year.
The startup ecosystem went abuzz recently after a leading edtech reported its finances. Investors, entrepreneurs and experts picked it apart for trying to book subscription revenues of subsequent years at one go, among other things. But a certain unicorn founder refused to express any measure of surprise or shock at what had transpired. "It is an age-old trick in accounting," he said. And then slipped in an interesting anecdote about a fellow celebrity entrepreneur (yes, we have those now!) who sold his company in a big-bang exit despite similar revenue recognition practices. "He used to book future revenues in a year and amortise the associated costs over the years." So what? Well, he runs another venture now that has already attracted many millions of dollars in funding. But we are not casting any aspersions. People change with time.
They Feel The need, The Need For Speed!
Grocery delivery in 10 minutes is passé. This quick commerce company wants to deliver anything and everything at lightening pace. Days after the latest version of the most-hyped gadget in the world was unveiled, the online grocer said it would deliver it in minutes. The reception was in three phases. Unadulterated excitement at first. Then came the realisation that the promise of delivery in minutes really meant delivery before an hour had passed. The third phase was more grounded: how often would you need to get a gadget worth around Rs 1 lakh delivered pronto? That's not all. When the phones rang at a helpline number of the gadget's seller on the grocery app, the customer service representatives took pains to explain to prospective buyers that there was no way their fare was being sold on this app. Was it just a weakly co-ordinated launch to grab the eyeballs on social media? "It's more like a dipstick to see whether people want gadgets to be delivered so quickly," remarked a little bird.
The New Creative HQ
An indie digital marketing agency is building new outposts in foreign lands. The ambition of its founder team is to expand far and wide but make its India HQ a creative hub. How? The company has started selling growth-hack modules to brands abroad using local talent. But the founder it seems wants to dispel the notion that “Indians are cheap labour”. Now we hear another network agency is building new teams and is aiming for similar goals. Looks like Indian creative folks have the big ambition of planting flags of homegrown Indian agencies on foreign shores. Could this be the birth of a global Indian ad network, we wonder?
A Biz Model Never Heard Of
A creative hotshop is running its operations without a business development team. It's left many people scratching their heads. Ad moles tell us that they aren’t even active in the pitching game. At a time when the advertising business is getting tougher, this agency is working only on select accounts. Clients either call them directly to collaborate or they call up the client with an idea deck. It’s a bold move. But is it a sustainable model? We hear the founders are confident about it.
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