MC Insider: Upcoming D-Street debut, foodtech unicorn on acquisition spree, MNC divestment issues and more

When the board of this crisis-ridden financial services company was taken over by the regulator and an administrator was put in charge, the promise was that no employee will lose his/her job. But, that isn't exactly what is happening now. We hear the administrator has quietly asked those on contract or who work as consultants to leave the firm saying their services are no longer required. This, logically, has created uneasiness among the employees at all levels, some of whom have expressed their displeasure openly in internal meetings. But, there is a strict diktat from the administrator not to talk to the media. The diktat applies to even the corporate communications person of the firm as well. Already, there was an exodus at the mid and senior level from this firm. Insiders tell us more exits from the senior management are likely in the approaching days.

A prominent education group down south seems to have made up its mind as far as a d-street debut is concerned. The group has been around for the last 3 decades and informal discussions have begun with i-bankers. A bulge bracket global investor is already on board and that should definitely help

A top private equity player is keen to divest its stake in a financial services firm and exit at the peak. By the looks of it, a typical secondary sale seems to be on the cards but the deal street is waiting to see if potential incoming suitors may get a stab at a bigger share of the pie. Hmm, now that would be interesting keeping in mind the diverse interests of the target firm’s parent.

Everything doesn’t seem to be hunky-dory as far as the divestment exercise of this MNC is concerned. If the tongues wagging are to be believed, let’s just say that some skeletons tumbled out of the closet and there was a rather unexpected, unpleasant surprise for the suitors who had put their hats in the ring. The question is should the surprise have been there in the first place or are the bidders fishing for excuses to wriggle out? Hmm!

Some top venture funds, used to strutting around and getting their pick of deals, are discovering a new reality, where startups, flooded with investment offers, are saying no to even these top tier investors. "It is very humbling. We are seen as money bags and nothing more. So much for VCs adding value beyond the capital," one investor quips. Founders are often choosing the best offer and highest valuation, and not necessarily someone who can add real value to the company.

This foodtech unicorn is planning an acquisition spree. MC Insider hears that the company is hiring M&A lawyers from top firms right, left and centre, even as it finalises a massive fundraise which will take its valuation to over $10 billion. That valuation will also help it buy companies easily as stock is far easier to give out, with little dilution.

This company was once the talk of the town, even a unicorn, and then fell by the wayside. Now, its investors- VC and PE firms are off-loading their stake, and the promoter is consolidating his shareholding, at a valuation far less than its peak. Investors hope the entire saga ends quickly.

The alleged spying on Churches by the BJP government in Karnataka has become a big issue. According to a leaked report, the State Intelligence is collecting details of all churches in the State. Karnataka has a large Christian population and the Church (both Catholic and Protestant) owns institutions worth thousands of crores. The recent outcry by the ruling BJP and other affiliates over alleged mass-scale conversions is said to be a part of a larger plan or plot to put these institutions in place say community leaders and the opposition. But, according to an insider the survey of the churches has been done by the intelligence to identify the churches which may come under attack by the right-wingers and not to profile them. But for now, the church is not ready to believe that.