In this week's wrapup, we talk about Inflation, PayTM IPO, crypto advertising, IPO financing, and PE money in the IPL.
But if you want to check out the Markets edition this week before you go about reading the wrapup, don't forget to click the link here. It's about Asian Paints.
Understanding Secret Inflation
Inflation is on the rise. Whether you consider fuel prices, costs of transportation or plain and simple commodity inflation, everything is creeping up slow and steady. For consumer-facing companies, this rise in input costs implies they would at some point have to hike the prices of their products correspondingly. But that is easier said than done. Companies can’t always get away with hiking prices of daily use products. But at the same time, If they don't hike prices, they risk hurting their margins.
So how do the likes of FMCG companies that manufacture everyday products like soaps, biscuits and chips beat the scary monster known as inflation?
Well, we have some answers that will amaze you. So be sure to read the Monday Newsletter to know more.
Visiting PayTM pre IPO
PayTM has come a long way. It started off as a place to top up your phone balance. Then it evolved into a digital wallet, and after a while, it even started dabbling in e-commerce. As time passed PayTM grew bigger and bigger encapsulating even more services and offerings. Today it’s almost become a “super-app.” And no wonder its upcoming IPO is turning lots of heads.
So we decided to preview PayTM’s IPO as well as its business on the eve of its listing. Check out the Tuesday Newsletter to know more.
The wild wild west of crypto advertising
If you have been watching the T20 world cup you probably must have come across some of those Crypto advertisements. They are hard to miss, loud, in your face and if one can argue - sneaky. But are these ads illegal? Is crypto illegal? What’s going on?
We cover the crazy world of crypto advertising in our next story.
RBI’s crusade against IPO financing
Everybody wants to get in on the red hot IPO market right not now. Getting your hands on some IPO shares is akin to winning a lottery. At least that is what your experience would be if you were a retail investor. However, for some rich and well-connected investors, the story is quite different. These High Net Worth Individuals (HNI) have mastered the use of leverage to make tons of money off of IPOs.
So in our next story, we tell you how they manage to do this and how the RBI is all set to spoil the party.
Private equity wants to play the IPL
This week the BCCI auctioned two new teams, Lucknow and Ahmedabad. Both teams were auctioned for mind-boggling amounts of money - PE firm CVC Capital snapped up Ahmedabad for ₹5k crores while RP-Sanjiv Goenka took home the Lucknow franchise for ₹7k crore. However, there was some special attention reserved for the addition of PE firm CVC Capital, as an owner of an IPL team, who for a change isn’t either an Indian celebrity/businessperson or an industrial house. CVC Capital brings some serious private equity money on the IPL table.
So, in the Friday Newsletter, we tell you why private equity investor like CVC - a veteran sports investor - is interested in the IPL.