CASH CRUNCH
Byju’s challenges NCLT order restricting fund use in Karnataka High Court
Byju’s faces protests from investors over $200 million rights issue conducted at 99% discount. Lenders within consortium loaned $1.2 billion to Byju’s file bankruptcy petition in US court.
Prosus stake in Byju’s worth zero: HSBC
This comes at the time of Byju's controversial $200 million right issue at 99% discount to its peak valuation of $22 billion, meaning any investor not investing in the rights issue will see its holding wiped off.
Liquidity deficit surges to four-month high
The shortfall of funds has pushed up the weighted average call rate (WACR), which represents banks' overnight cost of borrowing and functions as a determinant of other borrowing costs in the economy too. On Wednesday, the WACR closed at 6.75%, the same rate as the RBI's Marginal Standing Facility (MSF).
Can't pay mutual fund SIP? Missing SIP installment attract hefty penalty; how to decide when to pause or stop SIP
Mutual fund SIP: What happens when you miss your mutual fund SIP installment due to insufficient balance? Do you have to pay a penalty if you don't have money in your bank account to pay your SIP installment? If you can't afford to continue a SIP, should you pause it or exit — how can you make that decision? ET Wealth Online spoke to several experts to find out how to decide when to pause your SIP and when to stop it.
Pakistan to privatise all SOEs, except strategic enterprises: PM Sharif
Asserting that the government's job is not to do business but to ensure a business and investment-friendly environment, Sharif directed all ministries to take action and cooperate with the Privatisation Commission.
Byju’s fires 500 employees; India Inc and influencer marketing
Troubled edtech Byju’s has fired nearly 500 staffers amid a severe cash crunch. More details on this in today’s ETtech Top 5.
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Byju’s lays off about 500 staffers, nearly half from tuition centre business
Layoff at Byju's has hit 500 staffers, affecting Tuition Centre operations, amidst a funding crisis. Staff face delayed salaries amid NCLT hurdles and upcoming $200-million rights issue, with assurances of arrears settlement by April 8.
Byju's delays salary again amid rights issue battle with investors
Last week, ther National Company Law Tribunal (NCLT), Bengaluru, refused to stay Byju’s extraordinary general meeting (EGM) scheduled for Friday to increase its authorised share capital to account for a $200-million rights issue.
Vijay Shekhar Sharma: Can the whiz-kid from Aligarh rock again?
Vijay Shekhar Sharma, the founder and CEO of Paytm, has built the company from a startup to India's biggest mobile payments company. However, a recent regulatory move by RBI banning Paytm's payments bank for violations has put the company's future at risk. Sharma's focus on growth and big numbers may have led to regulatory compliance issues, but his determination and resilience may help Paytm survive this setback.
View: China’s glut, India’s drought. Two faces of liquidity
The liquidity drought may be deliberate. Unlike Beijing, New Delhi has every reason to be sanguine about growth. A 7%-plus rate of economic expansion gives it breathing room to slay inflation before embarking on a fresh investment spree after the polls. Unless the Modi government surprises analysts by announcing a populist spending program in its Feb. 1 budget, the reasonable assumption is that it’s angling for an upgrade to its sovereign rating, which is perched at the lowest rung of investment grade. Meanwhile, the monetary authority is seeking to buttress its credibility as an inflation fighter.
Liquidity deficit in banking system at highest-ever, tops Rs 3 lakh cr after eight years
A consequence of the tight liquidity was elevated funding costs for banks as the weighted average call rate - which represents banks' overnight cost of borrowing - rose to 6.85% on Wednesday, much above the RBI's repo rate of 6.50% and higher than the Marginal Standing Facility (MSF) rate of 6.75%.
Zee said to miss $200 million cricket fee deadline to Disney due to 'cash crunch'
Zee Entertainment Enterprises Ltd. missed a deadline to pay $200 million to Walt Disney's India unit for TV rights of cricket matches, citing a cash crunch. Disney has sought explanation from Zee on why the payment was skipped, adding the tranche was part of the over $1.4 billion agreed to pay for the license agreement signed in August 2022.
5 mutual fund houses hold over 10% cash in November
Fund managers keep cash as a part of their portfolio to meet events like redemption or make investments if they see a suitable investment opportunity.
At COP28, sticking points remain on fossil fuels and adapting to climate as talks near crunch time
Sticking points are along familiar lines for negotiators, with some countries wanting to see strong language on phasing out the use of fossil fuel while others are hesitant to have forceful language on the issue because they're continue to develop their oil, gas or coal industries.
SpiceJet looks to raise fesh capital as lessor impounds aircraft
SpiceJet has been facing a cash crunch for the past several quarters. It is also dealing with multiple court cases regarding money owed to Maran, financial services firm Credit Suisse, and lessors. The airline has incurred losses since 2018-19, with a net loss of Rs 1,513 crore in 2022-23 and Rs 1,744 crore in 2021-22. In the first quarter of the current fiscal year, the airline made a net profit of Rs 197.6 crore.
Byju’s may have to dip into Epic sale funds to keep lights on
Troubled edtech reduces notice period to 15-30 days across staff level to cut costs
Rush for gold cash amid need for cold cash
Data from the Reserve Bank of India (RBI) show outstanding gold loans at Rs 95,476 crore as on July 28, up 23.1% from a year earlier, a sharp acceleration from the single-digit growth in the preceding 12 months. Earlier this month, RBI doubled the limit on gold loans under the bullet repayment scheme — from Rs 2 lakh to Rs 4 lakh — for urban cooperative banks, subject to conditions. Central bank data show India owns more than 27,000 tonnes or 14% of the world’s gold, of which around 5,300 tonnes is pledged.
Online bargains recede as festive sales outperform; Dunzo board vets expenses amid cash crunch
Ecommerce discounts and promotional offers came down on the third day of the biggest annual online festive sales, as brands and online sellers over achieved their targets in sales by value compared to the year-ago period. This and more in today’s ETtech Morning Dispatch.
New 20% TCS from October 1, 2023: Be ready for a cash crunch if you invest in international stocks, cryptocurrency; how to reduce TCS impact
TCS on foreign remittances from October 1, 2023: The Budget 2023 hiked TCS on foreign remittances of more than Rs 7 lakh through the LRS to 20% for investments in overseas assets, real estate, bonds, foreign company stocks, etc. The higher rate comes into effect on October 1, 2023. If you directly invest in international stocks, you should know how the new TCS rule is going to impact your investment from tomorrow.
How the Indo-Pacific can beat the SDG cash crunch
The Indo-Pacific region has both challenges and promising examples of success in sustainable development. While global events hinder international cooperation, initiatives in the region demonstrate the potential of partnerships. The impacts of climate change and the COVID-19 pandemic have created a "polycrisis" in the region, leading to increased debt levels and inequalities. The region is also facing a significant SDG financing gap.
Pakistan struggles to pay salaries to overseas diplomatic staff due to dollar shortage
The Pakistani government is facing a cash shortage, resulting in delayed salaries for staff at certain diplomatic missions. Press attaches and press counsellors stationed in the US, Hong Kong, and Singapore have not received salaries since June due to the country's depleted foreign exchange reserves. This poses a significant challenge for officials in expensive cities like Washington, DC, and Hong Kong.
Dunzo to pay August salaries via payroll financing app OneTap amid cash crunch
Employees were asked to download and register on the app, as well as fill a know your customer (KYC) form on the app to receive their payments.
Dunzo delays paying salaries further as company faces severe cash crunch
Dunzo has been struggling to finalise crucial funding amid a cash crunch, as a valuation mismatch among stakeholders has become a point of contention between investors, ET reported on August 22.
Dunzo delays June-July salaries further, says making ‘positive progress’ on funding
Employees have been promised that the salaries for August will be paid on time on September 4. “The balance salaries for June and July, along with an interest of 12% p.a. (per annum), will be cleared at the earliest," the firm told employees.
Banking system liquidity in deficit as incremental cash reserve ratio kicks in
Daily central bank data showed that the RBI injected funds worth ₹23,644.4 crore into the banking system on August 21, marking the first infusion of cash since March 27. An injection of funds by the RBI reflects deficit liquidity conditions in the banking system.
Dunzo’s business in free fall amid severe cash flow issues
The descent in its scale of operations accelerated earlier this year as the firm’s funding was delayed in the backdrop of a larger stress in the technology industry.
Reliance-backed Dunzo may cut more jobs; defers 50% of June salary amid cash crunch
Dunzo has already cut jobs twice this year. In April it fired 30% of its workforce, or more than 300 people, and simultaneously planned a shift in the business model to reduce operating cost.
Charting the Global Economy: Cash crunch in India, China losing momentum
China’s industrial output, retail sales and fixed investment grew at a much slower pace than expected in April. A major worry was the jump in the unemployment rate for young people to a record high of 20.4%.
Investors, fintech companies help out cash-crunched startups
Look to ease working capital freeze with emergency services for small, mid-stage firms
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