SoftBank-backed Oyo to weigh 50% smaller IPO amid market turmoil: Report

 

Oyo, the high-profile affordable lodging startup that filed for an initial public offering last year, is considering slashing its fundraising target by half or even shelving the debut, according to people familiar with the matter. Faced with headwinds including slumping stock markets, Oyo-operator Oravel Stays Ltd. could clip its Indian IPO from the nearly $1 billion initially sought to half that, the people said, declining to be identified discussing internal matters. It’s considering also halving its expected valuation from the $12 billion originally targeted, they said. Oyo could even decide to suspend its IPO plans, the people said. The deliberations underscore investors’ reluctance to buy into IPOs during a time of extraordinary market turmoil.

The Airbnb Inc.-backed startup had already considered lowering its target valuation to $9 billion earlier this year after Paytm’s disastrous debut -- but that was before the Ukraine conflict and inflationary concerns ignited a global tech selloff. Oyo, backed by investors including SoftBank Group Corp and Sequoia, made preliminary filings in September aiming for an IPO in early 2022. Nearly six months later, the initial documents, known as a draft red herring prospectus, have yet to get a green light from India’s stock market regulator.

SoftBank CEO defends track record, tells US investors he'll be more careful

Current Affairs
SoftBank Group Corp Chief Executive Masayoshi Son, under tension from support stock investments Elliott Management to get control over his inconsistent venture style, turned on the enchant in a gathering with US financial specialists on Monday, however offered not many solid concessions.
"I guarantee you I'll begin to be increasingly cautious and tune in. My view doesn't change, however my conduct turns into somewhat more cautious," sources cited Son as telling speculators who went to his introduction at the Lotte New York Palace lodging in Manhattan. Child, who incorporated SoftBank with an innovation venture powerhouse, is currently guarding his reputation after a few of its costly wagers on new businesses, including office space-sharing firm WeWork, soured.
Elliott, which directs $40 billion in resources, has had conversations with SoftBank's administration and is approaching the organization to repurchase some $20 billion of its stock, improve its administration by expanding the autonomy and decent variety of its board and improving straightforwardness, sources said a month ago. Child said on Monday he had not offered enough weight to the thoughts of speculators and the organization's free board individuals, as per three sources who went to the gathering which was shut to media and gave subtleties on state of namelessness.

Child highlighted SoftBank's stock exchanging at a major markdown to the estimation of its benefits as an open door for financial specialists to purchase in. His way to deal with putting vigorously in organizations with troublesome innovation potential and giving full power to the originators of new businesses he backs has helped make him one of the world's wealthiest financial specialists. However it has additionally prompted bungles that have flawed SoftBank's exhibition...READ MORE

Tax thorns haunt Walmart-Flipkart deal, foreign shareholders want clarity

Current Affairs
Duty related issues are springing up in the Walmart-Flipkart bargain even just about two years after the exchange was finished.
A grip of remote firms who were investors in Sachin Bansal and Binny Bansal-established Flipkart have moved the Authority of Advance Rulings (AAR) to look for clearness on the taxability of the capital additions emerging out of the $16-billion arrangement struck in May 2018.
American retail major Walmart supposedly deducted charges from Flipkart's remote investors including SoftBank, Naspers and Accel Partners to pay retaining expense to the legislature for capital additions made by these elements. A retention charge, or a maintenance charge, is a personal assessment to be paid to the administration by the payer of the salary instead of by the beneficiary. The expense is in this way retained or deducted from the pay because of the beneficiary.
AAR is a legitimately comprised body whose administering is official on the candidate just as government specialists. Under the Income-charge Act, an outside organization or the Indian citizen can move toward AAR and get a decision on the taxability of the proposed exchange in India. "The authority has taken up a portion of the cases this month itself and may take four to five months to get a last request on the issue," said an expense official mindful of the advancement.
A SoftBank representative declined to remark, while email polls sent to Accel and Walmart on Tuesday didn't evoke any reaction.

Albeit a portion of the remote speculators of Flipkart had looked for a lower reasoning endorsement under Section 197 of the I-T Act from the assessment division, a couple of cases got dismissed and others are getting looked at...READ MORE

Softbank's Yahoo Japan, chat app Line announce October 2020 merger plan

International News
Japanese telco SoftBank Corp announced on Monday plans to merge its internet unit Yahoo Japan with messaging app operator Line Corp, as it scoops up struggling internet companies to bulk up against rivals such as Rakuten.
SoftBank said in a statement that Yahoo Japan, which last month changed its name to Z Holdings, will merge with Line, owned by South Korea's Naver Corp, in a deal to be completed by October 2020.
The companies aim for a definitive agreement by next month in a transaction that will see SoftBank Corp and Naver form a 50:50 venture that will control Z Holdings, which will in turn operate Line and Yahoo.
SoftBank Corp is a unit of investment behemoth SoftBank Group Corp.
SoftBank Corp and Naver, which owns 73 per cent of money-losing Line, plan to launch a tender offer for Line's remaining shares at 5,200 yen per share, a 13.4 per cent premium to the share price before news of the merger broke. Line's shares were up 2.6 per cent at 5,180 yen in early trading on Monday.

Z Holdings will continue to be a consolidated subsidiary of SoftBank...READ MORE

SoftBank's Yahoo Japan confirms merger talks with messaging app Line

International News
SoftBank's Yahoo Japan, one of Japan's top internet firms, confirmed it is in talks to merge with Line Corp, a $27 billion union that would bring the messaging app operator under the SoftBank umbrella in a major tech shake-up.
Yahoo Japan, which last month changed its name to Z Holdings , said on Thursday discussions were underway with Line but nothing had been decided. SoftBank Corp, which owns almost half of Z Holdings, also acknowledged the talks.
Shares in Z Holdings, which had a stock market value of about $17 billion at Wednesday's close, jumped 14.8 per cent.
Shares in Line, which is valued at about $10 billion, were untraded with a glut of buy orders.
Sources told Reuters the previous day a deal was likely by month-end and could see SoftBank Corp and Line's parent Naver Corp form a 50/50 venture that would control Z Holdings, which would in turn operate Line and Yahoo.
Line said in a statement it was true it is considering ways to improve its corporate value but nothing had been decided.
A deal would bring together the operators of two of Japan's biggest QR code payment apps as the country belatedly shifts to cashless payments. SoftBank's PayPay recently hit 19 million users through aggressive marketing, while Line Pay can tap the 82 million Japanese users of the Line app.
Line, which last year sold a majority stake in its mobile unit to SoftBank, has reported three consecutive quarters of operating losses as the company tries to jump-start growth.

Z Holdings made a move in September to take control of fashion e-tailer Zozo Inc in a $3.7 billion deal, as it bulks up against rivals such as Amazon.com. ...READ MORE

Ola bets big on food biz, to launch portfolio of in-house food brands

Technology
Ride-hailing firm Ola is betting big on the food business and is planning to launch a portfolio of in-house food brands and take them across the country. These brands would not only be available on external platforms like food delivery apps Swiggy and Zomato, but also offline stores including restaurants, cloud kitchens, food trucks and pop-up kiosks that Ola is also planning to set up.
Ola’s food business will focus on becoming a food-first company with a massive kitchen infrastructure and a slew of brands. These include brands related to desserts, rice bowls and biryanis which would be unveiled within this year. These initiatives will also help the company reach new customers by penetrating deeper into the existing markets and expanding to tier-2 and tier-3 cities and towns.
“It is a very big opportunity and there are very few food brands with a national footprint. Eating out was an indulgence four years back and now it is part of the daily routine. And the food and supply has to modify with that behaviour,” said Pranay Jivrajka, chief executive of Ola’s food business. “We aim to have a national presence for our (food) portfolio and our goal is to have 80 per cent penetration in the top markets,” he added.

 To begin with, the SoftBank-backed company has launched its flagship brand ‘Khichdi Experiment’ which has gone live in Bengaluru, Hyderabad, Mumbai, Pune and Chennai. It is offering more than 16 varieties of ‘khichdi’ and the flavours will keep expanding depending upon the feedback from the customers. ‘Khichdi’ is a comfort food which is liked by people across ages and demographics. Ola said the idea was to answer to the hunger pangs, reconnect with the nostalgia and comfort that one attaches with an item like ‘khichdi’ and at the same time surprise customers with different flavours of the dish...READ MORE

Solar installation stood at 8.3 GW in 2018, Adani top project developer

Company News

India’s solar installations stood at 8.3 GW in 2018. The installations include large-scale and rooftop solar capacity. The country’s cumulative solar capacity is around 28 GW as of 2018.

Much has changed in the Indian solar industry over the last year. There was some re-shuffling when it came to suppliers after the imposition of the safeguard duty while others have consolidated their positions, says Industry representative, said Raj Prabhu, CEO of Mercom Capital Group.

Mercom Communications India's report finds that the top 10 large-scale developers accounted for 60 per cent of the market share in 2018.

In terms of cumulative installations, Adani maintained its position as the top project developer, while ACME Solar was the developer with the most large-scale solar installations in 2018. Adani was the second largest developer in 2018.

Around 80 large-scale project developers with a pipeline of 5 MW or more in India. ACME Solar had the largest project pipeline at the end of 2018 closely followed by SB Energy (SoftBank) and Azure Power.

In 2018, the top 10 rooftop solar installers accounted for just 30 per cent of the installed capacity in India, reflecting the fragmented nature of the sector, said Mercom.

Rooftop installations grew 66 per cent year-over-year (YoY) with cumulative installations totaling nearly 3.3 GW at the end of 2018. Rooftop solar installations for 2018 amounted to 1.7 GW.


 Among rooftop installers, Tata Power led cumulative installations while CleanMax Solar was the top rooftop installer in 2018.ABB continues to lead solar inverter supply in the Indian market cumulatively and in 2018.