Wednesday, November 27
Chinese miner MMG Ltd's share price jumped on Tuesday to a near eight-week peak after it agreed to buy Canada-based Cuprous Capital, the parent company of the Khoemacau copper mine in Botswana, with an enterprise value of $1.88 billion. MMG has been hunting for copper assets for more than a year, amid a surge in demand for the metal needed in green energy transition. Shares of MMG rose as much as 7.5% to HK$2.45 in morning trading, the highest since September 29 and marking their biggest one-day percent gain since April 14.
Corporate insiders in India have sold $12 billion worth of stock in the first ten months of the year, indicating an overvalued market. However, this is also creating opportunities for institutional investors to build sizeable positions in Indian companies. Nearly half of all publicly traded shares in India are controlled by insiders, but the reduction in their stakes is allowing local and foreign institutional investors to enter the market. Purchases by local funds and insurers have exceeded $18 billion.
Foreign direct investment (FDI) equity inflows in India dropped by 24% to $20.48 billion in April-September 2023, primarily due to lower investments in computer hardware and software, telecom, auto, and pharma sectors. The decline in FDI inflows was observed in the first six months of the fiscal year and continued to decrease in April, May, June, July, and August. However, in September, it rose to $4.08 billion compared to $2.97 billion in the same month last year.
Recoveries from personal guarantees in India are expected to increase significantly following a recent Supreme Court ruling affirming the validity of provisions regarding personal guarantees in the Insolvency and Bankruptcy Code (IBC). Currently, recoveries from personal guarantees are at a low 5.22%. The ruling enables the use of personal assets of guarantors to recover outstanding debt. Delays in the resolution process and low recovery rates have been ongoing challenges in insolvency cases.
Reliance Industries Chairman and MD, Mukesh Ambani, announced an additional investment of Rs 20,000 crore for West Bengal over the next three years. The investment will focus on digital life solutions, retail, and bio-energy. Reliance Industries has already invested Rs 45,000 crore in the state and plans to further enhance digital solutions, expand its retail footprint, and establish compressed bio-gas plants. Ambani also mentioned that Reliance Foundation will renovate and restore the iconic Kalighat Temple in Kolkata.
The Enforcement Directorate has accused Amway India of running a multi-level marketing operation and siphoning off over Rs 2,859 crore. The agency claims that Amway India cheated the public. The ED's money laundering probe is based on multiple FIRs filed by the Telangana police, which allege that Amway engaged in promoting an illegal money circulation scheme. In the investigation, police found that the money collected from members was siphoned off and deposited in overseas accounts.
The Enforcement Directorate (ED) on Tuesday issued show-cause notice to Byju's for allegedly violating foreign exchange rules amounting to Rs 9000 crore. The company is charged under the Foreign Exchange Management Act (Fema). Denying the allegations, the company said, "Byju's unequivocally denies media reports that insinuate it has received a notice from the Enforcement Directorate. The company has not received any such communication from the Enforcement Directorate".
Fintech company Kiwi has raised $13 million (about Rs 108 crore) in a funding round led by Omidyar Network India. Existing investors Nexus Venture Partners and Stellaris Venture Partners also participated in this round, according to a release. The latest fundraise will enable Kiwi to further expand its 'credit cards on UPI' offerings in India. "Kiwi raises $13 million in a series-A round led by Omidyar Network India to expand the 'credit on UPI' landscape in India," the release said.
Emmett Shear, previously the CEO of Amazon.com Inc's game-streaming site Twitch, has been appointed as the new chief executive officer of OpenAI. Shear had resigned from his role at Twitch earlier this year. This decision by the OpenAI board goes against the wishes of investors who had been advocating for the reinstatement of the former CEO, Sam Altman, as reported by sources familiar with the situation. So, Altman will not return to the company as CEO despite efforts from the company's executives to bring him back.
