The World Opinion

Tag: HSBC

  • Byju’s, Once Valued At $22 Billion, Is Now Worth “Zero” | Companies News

    New Delhi: In what could be a shocker to many, edtech firm Byju’s, which was once valued at $22 billion, is now worth zero, according to a research note by financial firm HSBC. “We assign zero value to Byju’s stake amid multiple legal cases and funding crunch,” HSBC said in a note on May 21. “Previously, we valued around 10% stake in Byju’s by applying (an) 80% discount to the latest publicly disclosed valuation.”

    The embattled edtech firm is struggling to pay employee salaries amid mounting legal battles. “Byju’s is facing multiple headwinds. We and other shareholders are working everyday to improve the situation. We are in close discussions with the company every day,” a senior Prosus executive was quoted as saying in reports late last year. (Also Read: BSE Denies Technical Glitch On June 4 Causing Mutual Fund To Lose Money On Election Day)

    In fact, Byju’s was preparing to go public in early 2022 through an SPAC deal that would have valued the company at up to $40 billion. In January this year, US-based investment firm BlackRock (NYSE:BLK) cut the value of its holding in Byju’s to a mere $1 billion from $22 billion in early 2022. BlackRock owns less than 1 per cent of Byju’s. (Also Read: RBI Sticks To 6.5% Key Lending Rate For 8th Consecutive Time, Fighting Inflation Remains Focus)

    Earlier this week, a group of lenders petitioned against the new entities tied to Byju’s US subsidiary into bankruptcy in a US court, alleging that these entities are not paying their debts.

  • RBI Imposes Rs 36.38 Lakh Fine On HSBC Ltd For Violating Norms | Companies News

    New Delhi: The Reserve Bank of India (RBI) has imposed a penalty of Rs 36.38 lakh on HSBC Limited for violation of directions on reporting requirements under the Liberalised Remittance Scheme of FEMA. The RBI had issued a show-cause notice to the bank, in response to which the bank submitted a written reply and also made oral submissions.

    After considering the facts of the case and the bank’s reply in the matter, the RBI came to the conclusion that the violations were substantiated and warranted the imposition of penalty, according to a statement by the central bank. (Also Read: From HDFC To IDFC: 4 Important Credit Card Changes You Need To Know)

    The RBI also said that the action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. (Also Read: HDFC Bank To Stop SMS Alerts For Small UPI Transactions Starting From THIS Date: Find Out Why)