MC Insider: Vaccine 'God', bank CEO’s 'supari' flashback, pharma buzz, Class 12 board exam confusion and more

In the startup world, the market leader always gets a valuation far more than the rest of the industry combined. However, some startups are today getting these valuations and big money only because they are perceived to be leaders while other companies have silently built a bigger business. Now these silent companies, perceived to be smaller, are flabbergasted as they are not getting investor interest because people think the startup which has raised more money would by default be the market leader. Perception counts for a lot in the startup world, it seems.

In a recent conference call arranged to discuss the quarterly financial performance of a bank, this bank CEO went down the memory lane and narrated an incident when he faced a murder threat a few years ago from the powerful local trade unions who were angry for his anti-union measures. Unions gave a 'quotation' (slang for contract to goons) to eliminate the banker but he was tipped off about the conspiracy at the last moment, the CEO said, thus managing to escape to the nearest airport at the nick of time on that given day. In fact, the banker had to later use private security due to the persisting threats. Once the CEO realised he perhaps spoke too much and disclosed details too sensitive on the call, he immediately insisted to take that part of the conversation 'off record', saying making the information public could cause troubles to him even at this point. Like they say, a banker's life is never easy!

After assuaging concern of the youth in the second wave with a political decision to open vaccination for almost 58 crore people this month in the 18-45 age group despite a shortage of vaccines, the government is now wary of the growing impatience among youth. Just about one crore youngsters have got the jabs so far out of the over six crore who have registered over the last 25 days. Moreover, over 15 lakh young are registering daily, additionally, but only 6-7 lakh total jabs are possible daily for the 18-45 age group. Much hope rests on imported stocks of Sputnik V but less than 400 jabs in all of the Russian vaccine have been given so far across the country. The impatience and anger are showing up on social media platforms as the young are unable to get slots on CoWIN.

While the Class XII board exams are still being debated over rising COVID-19 cases, at least six state governments are not in favour of online exams. It is because millions of students in government schools would need to be given laptops with web cameras for writing exams. An added expense of hiring online proctoring agencies to monitor cheating would also fall on the individual states for their sponsored schools. While the Centre is not yet in favour of dropping the exams completely, states have expressed complete inability to pay.

The COVID-19 second wave is raging and the scion of a regional satrap, who wields enormous power by holding multiple portfolios decided to take the SOS calls from public for oxygen, medicines and beds on twitter. A person sending the SOS must tag the scion's twitter handle with his request and contact number. The scion created a dedicated team in the backend, who will process the request and respond to the SOS. What followed was a straight out of the Hollywood film Bruce Almighty. A barrage of requests, and not enough resources to respond. This created more confusion. The question people were asking, why does this scion not step back, and let the systems function. A centralised functional toll-free number could have addressed public SOS requests, but that doesn't get publicity.

A north-based player that has raised a sizeable amount via the QIP route wants to diversify into the pharma segment, which has seen a sharp spike in M&A activity since the outbreak of COVID-19. We hear that this firm is closing in on the acquisition of a debt-ridden pharma target and since both buyer and seller are keen, the deal may be done rather swiftly.

A family office of a north-based firm is on the prowl for strategic investments across sectors. After getting an entry into an eastern company in the industrials segment, buzz on the street is that this family office is now closely evaluating a financial services firm. The investment thesis is that the target is gearing up for value unlocking, has a sizeable insurance business among other verticals and its days of controversy have been left behind.

A recent circular by the market regulator for IPOs opening post May 1, 2021 has led to some disgruntlement among lead managers and sponsor banks. In cases, where unblocking of funds is pending post no allotment of shares, the circular has put the onus of retail investor grievances on sponsor banks and lead managers saying the amount has to be made good immediately on receipt of investors complaints and any further delay would result in an additional daily compensation cut. This is in cases where UPI is used as a payment mechanism. The amounts may not be humongous, but we hear this added compliance has irked these market participants who have made representations to the regulator and are hoping for a review of the regime. All eyes are now on the market regulator.