Moneycontrol PRO
UPCOMING EVENT:Watch India’s Best Managed Companies 2021, Deloitte’s global marquee programme for private companies on 17th Sept, 12 pm. Register Now!
you are here: HomeNewsBusiness

Hush-hush tales from the world of stock markets, banking, corporate world and corridors of power

MC Insider: Zomato effect, ARC buzz, in-camera Zoom call mandate, VC poaching and more

Hush-hush tales from the world of stock markets, banking, corporate world and corridors of power

Last Updated: July 26, 2021 / 08:39 AM IST

THANKS, ZOMATO!

THANKS, ZOMATO!

Zomato's record IPO, valuing it at $13 billion, may push startup funding beyond its already unexpected levels. Investment bankers and founders are already renegotiating deals in play, asking for a higher value only because of Zomato's stock performance. Investors generally say that public markets are much stricter than private markets, but in this case, the stock market's generosity may fuel private deals to a new level.

NEW GORILLA GIVES STRESS TO ARCs

NEW GORILLA GIVES STRESS TO ARCs

The setting up of the new bad bank has triggered a flurry of activity in other Asset Reconstruction Companies (ARCs). The reports of banks exiting other ARCs and the possibility of loss of business to the new bigger ARC are giving sleepless nights to the top managements of other smaller ARCs. Typically, they get business from all banks every year. But with the new bad bank in place, things may change. Recently there was a top level meeting at one of the well known ARCs based out of Mumbai, headed by a former senior banker, to discuss the possible scenarios and strategy. The meeting witnessed exchange of different assumptions about the likely threat from the new competition but ended with no clarity. So, how will the bad bank finally change the ARC business? The jury is out on that for now…

ZOOM CALLS NOW A TAD LESS PRIVATE

ZOOM CALLS NOW A TAD LESS PRIVATE

With more than one year of WFH across companies in India, management teams are now slowly pushing back on behaviour that was initially considered acceptable in the early days of the lockdown. One such instance is cameras being switched off during virtual meetings citing a crying toddler or distraction by pets. Companies seem to have had enough of faceless audio meetings online and now want only in-camera meetings. In fact, two financial services firms in Mumbai have sent internal memos to their staff to mandate cameras to remain switched on at all times during virtual meetings. Employees turning off the camera abruptly will be required to give a detailed email explanation citing reasons for doing so.

CHEENI ZYADA TOH NAHIN?

CHEENI ZYADA TOH NAHIN?

Word on the deal street is that this overseas agri-business group which had bought out one of the most storied players in the commodity segment a few years back is now poised for its first deal in India after sprucing up the target company and adding capacity. On the radar this time is the India business of an agri-business peer which wants to wrap up operations in the segment. Buzz is that the transaction could be sealed in the next 2-3 weeks.

TRACKING MOVEMENTS WITH MC

TRACKING MOVEMENTS WITH MC

They say key executive moves in the community of dealmakers is common during bull markets. The current phase of bullishness is no different and has seen poaching, promotions, internal rejigs and carve outs across not only i-banks, but also law firms and other advisory firms. We have been ahead of the curve in flagging most of them. The latest we hear is that a senior member of a top domestic i-bank may soon shift to Singapore in a much wider role for the organisation, including continuity on the investment banking front.

NEW MF OFFERS RAINING, BUT WHO'S INVESTING?

NEW MF OFFERS RAINING, BUT WHO'S INVESTING?

Earlier this month, the Rs 34 trillion-Indian mutual funds (MF) industry saw one of the highest ever new fund offer (NFO) collection. The scheme broke many records; it was launched by one of India’s largest fund houses. It only reaffirms that fact that NFOs are back in the Indian MF industry. So far in 2021, MFs have launched a little over 50 schemes that collected just under Rs 20,000 crore, as per AMFI records. This excludes the blockbuster July 2021 NFO that we’re talking about. The question is: where is this money coming from? Are investors really investing additional money or is this coming on the back of some large distributors merely advising their investors to shift money from one scheme to another, to be able to show a larger collection? Word on the street is that this fund house’s parent bank collected close to Rs 3,500 crore, another leading private sector bank collected around Rs 1,700 crore and yet another private sector bank got about Rs 500 crore. Moneycontrol couldn’t independently verify these numbers, because how much each distributor gets is not publicly available information. Typically, in the case of large NFOs, market estimates say that 20-30 percent of inflows come from existing schemes where investors were advised to churn. That makes sense, because typically if it’s a unique NFO, then it’s understandable that investors get excited. But if a plain-vanilla diversified equity fund like this large NFO comes along, then there hardly seems any merit in investors suddenly getting so excited. Unless, of course, they have been aggressively pushed and nudged.

HARVESTING WITH THE BIG 4

HARVESTING WITH THE BIG 4

Three leading private consultants, KPMG Advisory, PricewaterhouseCoopers and Ernst & Young LLP are now engaged with the Agriculture Ministry for various projects, in a unique mix of private expertise with a big ministry that deals with rural India. While KPMG Advisory and PricewaterhouseCoopers have been hired for monitoring key schemes such as PM Kisan Samman Nidhi and PM Kisan Maandhan Yojana and their data analysis, Ernst & Young LLP is helping the government in the project of Mission Organic Value Chain Development for North Eastern Region. The private expertise does come at a price though. Buzz is that the government paid nearly Rs 1.2 crore to KPMG Advisory and PricewaterhouseCoopers last year and Rs 96 lakh to KPMG this year. Ernst & Young LLP  has been paid Rs 4.71 crore. Good times for the Big 4, eh?

THE VC JOURNEY

THE VC JOURNEY

Venture capital firms are generally stable places where people grow over a long period, from associate to partner. Poaching is rare. However a number of foreign funds wanting to set up India offices are poaching mid-level to senior venture investors, to help set up an India practice. Investors who are not getting promoted in their firms are also striking out on their one. One VC who had moved to a Middle East-based investment firm, is planning to leave and start his own fund. Others have offers from consultancy firms, and are yet to decide. But a shakeup may happen down the road.

Note to the Readers : Chances are you love a juicy story as much as we hacks do and you might have one to share. Please share the story in an email to MCInsider@nw18.com.

Also, spare a moment to tell us what you think of this series. Send your hosannas and howls to the same email address.

Sections
ISO 27001 - BSI Assurance Mark