EUR 120.00 For Business Accounts Only

MOSL: Morning India (23/September/21): 1. Zee Entertainment (ZEE–Sony deal – a positive push?); 2. Mphasis (Blink acquisition to expand Mphasis’ UX capabilities); 3. Healthcare (Will USFDA follow Canada and the

Morning India (23/September/21):Morning India (23/September/21):
Today’s top research ideaZee Entertainment: ZEE–Sony deal – a positive push?- As a part of the deal, the post money merger ratio of 47.07%/53.93% for ZEE and Sony Pictures Network Ltd (SPNI) would work out to be an EV of INR697b for the merged entity. Adjusted for the USD1.575b equity infusion by SPNI, the pre money enterprise value of SPNI works out to be INR236b, i.e. EV/EBITDA and P/E of 17x and 27x on FY20 basis.- The deal process would require 3 major approval from shareholders and creditor, MIB and CCI.- On Zee's front, while deal may prove to be a White knight situation for the promoter group as they will be able to maintain management control, it will also create a dominant merged entity with combined market share of  ~27% v/s Star's 24%.- The non-promoter group could see positives in the deal coming from strong board, solving corporate governance overhang and a leadership team with strong track record. Plus the merged entity could gain from higher competitive position and synergy gains. But continuation of existing MD may not get a consensus decision and will there require some deliberation.- Improving corporate governance and operational performance could aid in the long run significantly. But there will be a long haul for deal fruition, structural changes to business, board and leadership. Maintain Neutral.
Piping hot newsFDI equity inflows up 112% to $20.42 billion in April-July: GovtForeign direct investments (FDI) into the country more than doubled to $20.42 billion during the April-July period of the current fiscal, the commerce and industry ministry said on Wednesday. This is a whopping 112% increase from $9.61 billion of FDI equity inflows in the same period last year. Total FDI- that includes equity inflows, reinvested earnings and other capital-rose 62% on-year to $27.37 billion during the first four months of FY22 as against $16.92 billion in the corresponding period a year ago.