MC Insider: Look who’s the frontrunner for CEO at this mutual fund, IPO badmouthing, FII looking for fintech exit, airline deal, founder’s big birthday bash, and more

Let’s roll with mutual funds again. MC Insider had told you about a savvy, business/mc-insider-bse-nse-ipo-mutual-funds-stocks-banking-gossip-5834491.html" target="_blank">‘Shah’ of Twitter who was looking to move as the big cheese at the MF arm of a financial services behemoth. We also told you the talks went sour and the gentleman concerned changed his mind at an advanced stage for “personal reasons” and chose to stay put at his firm. The folks at the financial services conglomerate who were keen to find a replacement for their veteran MD & CEO, who is due to hang up his boots in a few months, were mot amused. They continued the search for a worthy successor and we now hear that a senior executive at a PSU-backed fund house is seen as a strong contender for the key role. But these are early days and the “once bitten, twice shy” headhunters will tread carefully this time around!

The all–important CEO interview for this private sector bank is set to be held soon. In fact, it may happen as early as mid-week. Our little birdie tells us that there is a sudden, delicious twist to the plot. One of the former senior executives of this bank who is a favourite of a powerful section of shareholders has unexpectedly thrown his hat in the ring. This executive, aged around 61, had a bitter exit from the bank for all the wrong reasons. The advertisement by the bank stipulates 63 as the upper age limit for the candidates. But last time when the bank called CEO candidates, the age limit was 58. So was the age limit tweaked to accommodate this former executive? Some believe so. Anyway, it may not be a rosy path ahead for this executive. The regulator isn’t too fond of him, but the promoters are part of his fan club. But what if you have powerful friends in New Delhi? Hmm... maybe then, the rules can change. Let’s see what happens.

There has been a key reshuffle of positions in matters concerning the Goods & Services Tax (GST). We hear the CEO of GSTN, the backbone of the tax framework and the body which processes GST returns, has completed his tenure and joined the world of 'Big 4' firms. More specifically, Deloitte, as a senior advisor. And a finance ministry official has recently replaced him at the GSTN. Interestingly, there are whispers in the corridors of power about whether this switch will put to an end to the age old blame game between the finance ministry and the GSTN over tech glitches in the system, which went on behind the scenes. Remember, the GSTN is an autonomous body. So in case there are any fresh issues, will the ministry now blame its own man? That’s food for thought.

There are winds of change at a prominent south-based conglomerate which is steeped in tradition and boasts several top brands spanning across multiple segments. We hear that the man at the top may hang up his boots this month. The diversified conglomerate which traces its origins to Burma has several listed companies under its umbrella and one of them recently sealed an IBC acquisition. But the big question on everyone’s lips is – who is the successor? The transition plan is a big mystery. Will it be an outsider or will someone from the extended family be the chosen one? Watch this space for more.

A mega IPO (the largest in its segment) with links to the Red Dragon would have taken off by the time you read this. Interestingly, over the weekend, a popular messaging app was flooded with ‘forwards’ questioning the nod given to the listing and highlighting the political and regulatory risks attached with the offer. No doubt, the price band of the issue is higher than expectations according to analysts, but they also believe that the niche company has strong fundamentals and a healthy product pipeline. So, now the question is who was behind the unusual, mass forwards days before the launch? Was it a disgruntled firm, which missed out on a mandate? Was is it mischief by rivals? Or was it just the work of some overzealous folks? Hmm, we don’t know for sure but as they say, in the end, the markets always have the last word.

Let’s shift focus now to a segment, which, like many others, was hit hard on the payments and recoveries front due to COVID-19. We are talking about the housing finance segment. But bankers are betting on a quicker than expected revival in demand and not surprisingly, work has begun on some IPOs as well. A few days ago, MC Insider told you about a private equity giant doing the same for one of its portfolio companies. But looks like a peer, which recently saw, fund infusion from another private equity giant may end up becoming the first player in the sector to hit the domestic bourses in the last two years. In fact, we hear a launch by the firm which has a desi private equity firm as its largest shareholder, can be expected in January or early February.

In terms of deal enquiries during the pandemic, the consumer sector has been close on the heels of the bustling pharma and healthcare sector. Call it a coincidence, but we hear three players in the niche basmati rice segment are in the middle of M&A and restructuring activity. Don’t forget, safety and hygiene trends have boosted the demand for branded, packaged food items in recent times. One of the players is keen to rejig its domestic operations and may explore divestment of a few verticals. And we hear the other two players are being wooed by PE funds that are busy sifting the deal from the grain!

Recently, two Indian pharma companies said they were facing the brunt of cyber attacks. One company said it was a ransomware, the other didn't give any detail. In a ransomware attack, the hackers demand a ransom for release of the data that they breached and encrypted. But repeated questions by media about whether they got any demands for payments from hackers didn't elicit a response. One executive said the company doesn't do anything illegal. But there are many unanswered questions. Who was behind these attacks, is paying hackers to get back access to data illegal and has the company paid the hacker? We’ll keep you posted.

The recent appointment of a global advisory board in a multinational manufacturing company sent tongues wagging. Among all the appointees was an Indian name, who is well known in legal circles. This senior gentleman had headed benches at tribunals hearing insolvency cases. In one of the cases, he had given the order on the winning bid. No prizes for guessing who the winner was — the same multinational manufacturing company. As they say, there are few coincidences in business.

Digital lending has been one of the worst hit areas during the pandemic. Not just that, app-based lending is inherently risky, and few startups have been able to scale without high default rates. Now, we hear that one digital lending startup, struggling to raise money for the past year, is frantically looking for a buyer. It earlier had term sheets from a major bank and a PE fund. One of India's most famous entrepreneurs has even given debt to this company. But it looks like none of that is good enough. It's a tough situation for all involved but we'll leave it there.