Venture Capital firm SAIF Partners has acquired a stake in FMCG company Bajaj Corp Ltd through an open market transaction. SAIF has invested Rs.57.6 cr. in Bajaj Corp ($8.8 million) for 1.4 million shares at Rs.400 each. Bajaj Corp Ltd is part of Shishir Bajaj Group that has interests in varied industries including sugar, consumer goods, power generation and infrastructure development.
For the last few years, the global economy has been oscillating between periods of acceleration (when growth is positive and strengthening) and periods of deceleration (when growth is positive but weakening). The current upswing in growth and equity markets has been going strong since the summer of 2016. Will the recent growth spurt continue over the next few years? Or is the world experiencing a temporary cyclical upswing that will soon be subdued by new tail risks, like those that have triggered other slowdowns in recent years? One can envision three possible scenarios for the global economy in the next three years or so. In the bullish scenario, the world’s four largest, systemically important economies—China, the eurozone, Japan, and the US—implement structural reforms that boost potential growth and address financial vulnerabilities. In the bearish scenario, the opposite happens: the world’s major economies fail to implement structural reforms that boost potential growth. The third—and most likely—scenario lies somewhere between the first two. The cyclical upswing, in both growth and equity markets, continues for a while, driven by remaining tailwinds. Either political leaders and policymakers demonstrate the leadership needed to secure a better medium-term outlook, or downside risks will materialize—and do serious damage to the global economy.
Ride-sharing app Ola has hit the jackpot with its largest fund raise to date, of $1.1 billion. Ola is also in advanced talks with other investors to close an additional $1 billion, concluding a total raise of $2.1 billion, as a part of the current financing round. This latest round was led by Chinese internet behemoth Tencent Holdings Ltd with participation from SoftBank and new US-based financial investors. The fresh funding will be used to make investments in supply, technology and cutting-edge innovations that will take the company closer to its vision of providing mobility to a billion people.
US subsidiary of Lupin Ltd has acquired Symbiomix Therapeutics LLC for a cash consideration of $150 million, in a bid to expand in the women’s health segment. The total cash consideration includes an upfront payment of $50 million and other time-based payments. Lupin will also make certain sales-based contingent payments to Symbiomix.
Engineering major Larsen and Toubro Ltd (L&T) has announced the sale of unlisted subsidiary EWAC Alloys Ltd as part of its strategy to exit non-core businesses. EWAC makes welding products and provides related services. The company, which began as a joint venture of Larsen & Toubro and Germany-based Messer Eutectic Castolin Group, became a wholly owned subsidiary of L&T in 2011.