In this week’s wrapup, we tell you why Hyundai India is going public, talk about SEBI's new framework for holding company stocks, Brazil's new proposal to tax the rich, Outcome Health's billion-dollar scam and how Kotak got sandwiched between Adani and Hindenburg.
Here’s a recap.
Why is Hyundai India looking to go public?
Indians bought 4 million cars in 2023. We're the third-biggest car market globally, trailing only China and the US. And we could also become the third-largest EV market soon.
Now, automakers are obviously watching these developments. And they're eager to jump on this trend. And that's probably why Hyundai India wants to go public soon.
But wait... Hyundai is a foreign brand. Then why does it want to pursue an IPO in the Indian market?
Dive into Monday's newsletter to find out.
SEBI's new move cheers up holding company stock prices
Holding companies typically don’t do much. They own entire companies or just parts (partial ownership). But they don’t engage in other business activities. Their main task is to manage these investments.
Some of these are listed too. And for the longest time, investors didn’t care much for these companies. They were outcasts. Until something changed last week. Suddenly everybody was interested in these stocks. But why?
Find out in Tuesday's newsletter here.
Will Gabriel Zucman's billionaire tax work?
Taxing rich people is a conundrum for countries globally. That’s because it’s hard to figure out how much money they make.
Much of what they earn comes from capital gains on investments which are often taxed at rates that are much lower than regular income tax. Even the rest of their income may simply never get taxed because they manage to park their money in tax havens, route it through shell companies that often escape taxes or trusts that are exempt from it.
But French Economist, Gabriel Zucman now has an idea ― a global minimum tax on billionaires. And he thinks that it could be a practical way out of this problem. Could he be right?
Head over to Wednesday's newsletter to find out.
How Rishi Shah pulled off a billion-dollar pharma advertising scheme
In 2017, Rishi Shah made it to the Forbes 400 list of the richest Americans, and he had all the right reasons to be there. He boasted a net worth of $3.6 billion and was the co-founder of Outcome Health, a $5 billion advertising technology startup — a shining beacon in Chicago’s startup scene.
But later that same year, things took a dark turn. Big-name investors filed a lawsuit against Outcome, alleging that Shah and his unicorn startup had secured funding from them under false pretences and fraud.
And it turns out their allegations were true. Last week a US court handed down Rishi Shah and his business partners a lengthy prison sentence for a billion-dollar fraud.
So, what did they do and how? Find out in Thursday's newsletter here.
The Adani Hindenburg saga just got a Kotak twist
Last year, Hindenburg Research, the US-based research firm and short seller, dropped a bombshell report accusing the Adani Group of stock price manipulation and accounting fraud.
So SEBI felt that these allegations obviously had to be looked into. A few days ago, it issued a show cause notice to Hindenburg and a few others accusing them of spreading misleading information that led to panic selling of Adani stocks in 2023.
And Hindenburg’s response to this notice has revived the chatter around the Adani-Hindenburg saga, albeit with a new twist — the alleged involvement of Kotak Mahindra Bank!
But what was Kotak's role in the entire episode? We broke it down in Friday's newsletter here.
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That's it from us this week. Have a great weekend!
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