Moneycontrol Pro Panorama | Air India to Zee, the corporate pot boils

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Dear Reader,

This is one legal battle that seems destined for the Supreme Court. After Invesco filed a suit against Zee in the National Company Law Tribunal asking for an extraordinary general meeting to be conducted, the media company has not only rejected the ask, but has filed a countersuit in the Bombay High Court to get legal sanctity for its refusal.

The NCLT will hear the case today; but a scenario analysis here shows a number of paths ahead before the matter is settled. Ultimately, it boils down to one thing, argues our piece today: The Goenkas have what Invesco needs – management control. Conversely, Invesco has what the Goenkas need – a sizeable equity stake. Now, Zee’s promoters have struck a big blow with the Sony deal, but Invesco is not giving up. What’s the weak link in their armour? What explains Invesco’s insistence on holding the EGM? You will find answers to all these questions here.

Elsewhere, we turn our lens to the Tata Sons’ acquisition of Air India. An official announcement is expected any day now. While the details of the deal are not out yet, one thing is clear – it is going to take some time to pull back the national carrier from the brink. And where will the money for this come from? Of course, a storied business house such as the Tatas will have no shortage of funds, but remember that the parent company Tata Sons derives 90 percent of its income from TCS. Ergo, the proposed acquisition could make TCS shareholders happy, argues Shishir Asthana here.

That apart, we pored through the draft red herring prospectus of SoftBank-backed Oyo. It is daring of the company to hit public markets now when the hospitality sector is down in the dumps. But expectations of revenge travel and the anything-goes sentiment of public markets now could explain the timing. The company has also shed flab, pared losses and reinvented itself, but this new avatar comes at a cost. Read our analysis here.

Investing insights from our research team include:

Discovery Series: Sirca Paints India trading at a discount to peers

September auto sales: Scarcity of semiconductor chips plays spoilsport

Is the worst over for Equitas SFB?

What else are we reading today?

The Eastern Window: Will Japan’s new PM take risks to counter China?

Raising consumption expenditure is the magic bullet

Monsoon Watch 2021 | Rainfall does a hat-trick, courtesy the September deluge

The optimists still at the bull market party (republished from the FT)

Electric vehicles: The revolution is finally here (republished from the FT)

Technical Picks: 

Muthoot Finance, Aditya Birla Fashion, SAIL and Triveni (These are published every trading day before markets open and can be read on the app)

Ravi Krishnan

Moneycontrol Pro