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

MC Insider: IPO Atmanirbharta, Mandaviya in the spotlight, fintech exits, angry founder, NBFC deal and more

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

Last Updated: July 12, 2021 / 08:23 AM IST

IPO ATMANIRBHARTA

IPO ATMANIRBHARTA

This week’s edition of MC Insider is startup heavy. And why not, with internet IPO’s the flavour of the season. Recently, a top bureaucrat of the Modi regime who got an extension took to social media to laud the domestic listing plans of Delhivery, Nykaa, Paytm and Zomato. “This demonstrates the vibrancy & dynamism of our startup movement and the maturity of our capital markets,” the visibly proud bureaucrat said. Pat came the response from one of the startup founders who echoed the same feelings and said: “Indian exchanges are the best places for Indian startups to list. Strong winds of positive change from our government, regulators and policy makers.” While the IPO atmanirbharta is indeed welcome, one wonders what happened to the big-bang plans of overseas directing listing by Indian firms which had got a nod from the Cabinet last year. Is it on the backburner due to tax hurdles? Watch this space for more.

UPSET FOUNDER

UPSET FOUNDER

Not all is well between this founder and the present management of the company he floated and grew over years. The founder, who is no longer part of the executive team, had openly expressed his reservations a while ago with the way the management is moving away from its investors and not taking them into confidence on the operational affairs which has started reflecting in the share value. Further, the setback he received from shareholders subsequently on account of the management inefficiencies further irked him. In a conference call with the company management subsequently, the founder lost his cool and asked the management to review and repair the cracks in the relations with the long-term Investors. Will the management pay heed to the founder's warning? Let's wait and see.

WHAT’S PLAN B?

WHAT’S PLAN B?

This hot fintech start-up working in the kirana space has seen a slew of its senior developers and product managers quit, spooking its investors and disappointing its founder and CEO. People in the know now wonder about the firm’s future, given that it still makes no money, and has a competitor funded by a top VC who sends indirect threats to this company's investors of wiping it out. The fintech in question still has $40 million in the bank. But its lack of monetisation and loss of senior talent has thrown a spanner in the works. Watch this space for more!

FUNDING SIDE EFFECTS

FUNDING SIDE EFFECTS

This American hedge fund's investing frenzy has given startups record valuations and VCs record markups. But not everyone is a beneficiary. MC Insider learns that at one startup, backed by two top VCs, this hedge fund found diligence issues and has stalled its investment despite a signed term sheet. Why? The target company had allegedly over inflated its May numbers, and the new hedge fund has now taken a step back. Two of the company's co-founders have quit in the last few months as well, adding to questions of what exactly is going on. Everyone is nervous. And heads may roll soon.

UNICORN UNICORN BHAI BHAI

UNICORN UNICORN BHAI BHAI

The long, warm congratulatory hug from Neymar to Lionel Messi at the end of the Copa America final was a fine example of sportsmanship. Back home, the domestic startup space has also seen some warm vibes and camaraderie between top internet firms gearing up to make their D-Street debut. Zomato’s IPO is all set to open on July 14 and IPO-bound Paytm’s founder Vijay Shekhar Sharma not only wished the food delivery firm a happy birthday last week but also took to Twitter to wish the firm a “super-duper” stock market debut on behalf of every Paytm user. Between, we must also add here that the Paytm Money app allows investors to apply for the Zomato IPO on a 24/7 basis.

PRIVATE EQUITY CONNECTION

PRIVATE EQUITY CONNECTION

From the world of deal street, here’s an interesting titbit we have picked up from the BFSI space. We hear that a PE fund may shed some stake it holds in an NBFC in the coming weeks. So what’s the trigger? The regulatory trigger we are told is that the combined promoter shareholding needs to be reduced to 75 percent to be compliant with the MPS (minimum public shareholding norms). Mind you folks, this PE fund is not the only investor on board! And a second deal may also be in the works at a later stage.

‘HEALTHY’ TREND?

‘HEALTHY’ TREND?

Mansukh Mandaviya has slowly emerged as the key lieutenant of Prime Minister Narendra Modi with his low-profile and non-controversial demeanour. Before being elevated as the Health Minister, Modi had deputed Mandaviya as MoS, Chemicals to sort out issues over shortage of key COVID-19 medicines and injections. Not only did Mandaviya completely overshadow his senior in the Ministry, Sadananda Gowda, but he also become the interface with media on this key issue. A week before being elevated as Health Minister, Mandaviya visited the vaccine facilities in the country for a review as well. Gowda had to ultimately resign as Cabinet Minister of Chemicals and Fertilisers, a portfolio which has also gone to Mandaviya. PM Modi apparently has been impressed with his fellow Gujarati for long. After taking over the twin portfolios in the big promotion, Mandaviya did not go on a media interview spree like some others and has focused to get on with his challenging job in midst of the threat of a third COVID-19 wave and modest vaccination levels so far.

FESTIVE SOPS ARE BACK

FESTIVE SOPS ARE BACK

With the onset of the festive season that commences with Onam just a few weeks away, the trend of getting prominent product display spaces at electronics showrooms is back in vogue. To drive sales in Tier II, III locations, smaller showroom owners are now being lured with sales bonuses, hill-station trips and lucky draws with cash prizes. Those with fully vaccinated staff may even get retail shopping coupons. These sops are purely because such smaller electronics retailers drive sales in such locations.

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