Go Airlines (India) Admitted into Insolvency Resolution Process
Go Airlines (India) has been admitted into the insolvency resolution process by a bankruptcy court in New Delhi. This marks the first voluntary bankruptcy protection involving a local airline. The move was approved on Wednesday, and one of the biggest lessors may file an appeal against the order soon. The airline has been struggling financially due to the COVID-19 pandemic, which has severely impacted the aviation industry. The insolvency resolution process will allow the airline to restructure its debt and operations, and potentially emerge as a stronger player in the market.
Vanguard Marks Down Ola Valuation by 35%
US investment firm Vanguard has marked down the valuation of ride-hailing company Ola by 35% to $4.8 billion from $7.4 billion, according to regulatory filings with the US Securities and Exchange Commission. This marks a significant decrease in the value of the company, which has also been impacted by the COVID-19 pandemic. Ola has been expanding its operations in India and other countries, and has recently launched a new electric scooter in the Indian market. The company will need to focus on improving its financial performance in order to regain investor confidence and increase its valuation.
Regulator Proposes Raising Minimum Ticket Size for Private Equity and Venture Capital Funds
The capital market regulator has proposed raising the minimum ticket size of investment in private equity (PE) and venture capital (VC) funds. The move is aimed at creating a regime that eventually paves the way for only deep-pocketed investors to put money in these funds. The proposal has been met with mixed reactions, with some experts arguing that it could limit the pool of investors and reduce the flow of capital into these funds. However, others believe that it could lead to more stable and long-term investments, and reduce the risk of fraud and mismanagement in the industry.
In conclusion, the Indian business landscape continues to face challenges due to the COVID-19 pandemic, with companies in various sectors struggling to stay afloat. The aviation industry has been hit particularly hard, with Go Airlines (India) becoming the first local airline to seek bankruptcy protection. Meanwhile, Ola has seen a significant decrease in its valuation, highlighting the need for companies to focus on financial performance and investor confidence. The proposed changes to the private equity and venture capital industry could have far-reaching implications for investors and companies alike, and will need to be carefully considered before implementation.
Keywords: Go Airlines (India), insolvency resolution process, bankruptcy protection, COVID-19 pandemic, Vanguard, Ola, private equity, venture capital, minimum ticket size, capital market regulator.
