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Sunday, Sep 25, 2022

The Expresso Business Update

Your Business Expresso is served! The Indian Express brings to you the latest updates from the world of Indian and international business. Your one stop shop for all finance and business stories.

Episode 603 September 23, 2022

Today’s Latest Business News, Finance and Share Market News at 9:30 am on 23rd September 2022

Listen to the latest news related to business, finance and economy where we talk about the possibility of Sebi widening disclosures on IPO pricing and also SoftBank slashing valuation of OYO. Also listen to the latest updates on the legal drama surrounding share sale in Fortis way back in 2018. Stay connected to hear what to expect of the share market today.

Today’s Latest Business News, Finance and Share Market News at 9:30 am on 23rd September 2022Listen to the latest news related to business, finance and economy where we talk about the possibility of Sebi widening disclosures on IPO pricing and also SoftBank slashing valuation of OYO. Also listen to the latest updates on the legal drama surrounding share sale in Fortis way back in 2018. Stay connected to hear what to expect of the share market today.
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Today's Latest Business News at 9:30 am on 23rd September 2022

"You are listening to the Expresso Business Update. Here is the latest news from the world of Indian and International business brought to you by The Indian Express and The Financial Express.
"
Let's begin. The Securities and Exchange Board of India may mandate more disclosures with regard to pricing of public share sales in its upcoming board meeting on September 30. The regulator may ask companies to divulge the rationale for the difference in pricing of shares sold to private equity investors and that for the initial public offering. Saurabh Tiwari, partner at DSK Legal said that if the issue price in an IPO is high, and a stock slips on listing, investors do get prejudiced. Hence, Sebi is thinking of seeking disclosures on how the issue price has been arrived at, including looking at past transactions in the shares of such companies. The basis of issue price has been the subject of debate after new-age companies such as Paytm and Zomato slid sharply over their issue price post listing.

In some legal drama, the Supreme Court on Thursday refused to allow Malaysia’s IHH Healthcare Berhad to proceed with its open offer for Fortis Healthcare. It also asked the Delhi High Court to consider the appointment of forensic auditors to examine share sale in Fortis way back in 2018. The apex court also sentenced Malvinder and Shivinder Singh, the former promoters of Fortis to six months in jail and imposed a fine of Rs 5,000 each on them to be paid within four weeks. In case of any default in payment, they will have to undergo a further jail term of two months. Both the brothers are currently in Tihar jail in a case related to causing wrongful loss worth Rs 2,397 crore in Religare Finvest, an arm of Religare Enterprises. The development saw the biggest slide in shares of Fortis Healthcare, which closed down 14.65% at Rs 265.30 on the BSE.

"Meanwhile, Japan’s SoftBank has cut the valuation of OYO Hotels on its books by more than 20%, Bloomberg reported on Thursday, citing sources. The downgrade comes at a time when the hotel aggregator is once again preparing for an initial public offering early next year. The Japanese investor, the largest shareholder in OYO, cut its estimated value for the firm to $2.7 billion in the June quarter from an earlier $3.4 billion after benchmarking it against peers with similar operations, the report said. OYO’s valuation had reached $10 billion in a 2019 funding round. While SoftBank couldn’t be reached for a comment, OYO rejected the markdown, terming it “patently incorrect”.
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Moving on. The Reserve Bank of India on Thursday directed Mahindra Finance to immediately halt recovery of loans and repossession activity through third-party agents. The regulatory action comes in the wake of an incident in Hazaribagh, Jharkhand, where a recovery agent working on behalf of the non-banking financial company allegedly ran over a pregnant woman during the confiscation of her family’s tractor. The NBFC has been allowed to continue recovery or repossession activities through its own employees. The central bank said the action is based on certain material supervisory concerns observed in the company with regard to the management of its outsourcing activities. The incidence of harassment and abuse for recovery of loans, many of them given by digital lenders, rose significantly in the wake of the Covid outbreak. Following increased complaints, RBI in 2020 issued a circular telling all lenders regulated by it to list the names of their digital app partners on their website.

In another development, the Centre is likely to achieve the asset monetisation target of Rs 1.62 trillion for the current financial year, as the mining sector, which is witnessing a flurry of new private-sector projects, is expected to do the heavy lifting, an official source said. The monetisation value from the mining sector consisting of coal and other minerals is expected to be more than Rs 60,000 crore in FY23, as against a target of just Rs 6,060 crore, the source said. However, only a little over a third of the railways monetisation target of Rs 57,222 crore is likely to be met, he added. The recent Cabinet decisions to extend the lease tenure for railway land development projects and slash cut the licensing fee may spur asset monetisation in the medium, but the impact will be minimal in the current year.

Lastly, the stock market. The market is expected to open in the red as trends in SGX Nifty indicate a lower opening for the broader index in India with a loss of 65 points. On September 22, the BSE Sensex fell 337 points to close at 59,120 after recouping half of the losses from the day's low, while the Nifty50 declined 89 points to 17,630 and formed a small-bodied bullish candle which resembles the Doji or High Wave kind of pattern on the daily charts.

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