According to a term sheet accessed by a media outlet, Harindarpal Singh Banga and Indra Banga would sell a 2.1% share in the beauty and personal care firm Nykaa for $140.3 million (about INR 1,200 crore) in a block sale.
According to the term sheet, the Bangas, who were among the first investors in Nykaa, are selling roughly 60 million shares at an offer price of INR 200 per share, which is 5.5% less than the most recent closing price.
Nykaa’s operator, FSN E-Commerce Ventures Ltd., ended Wednesday’s trading session on the National Stock Exchange just over 2% higher at INR 211.59. Thus far this year, the stock has increased by 28.7%.
Goldman Sachs and JP Morgan Managing the Transaction
The deal is being handled by JP Morgan and Goldman Sachs. Before Nykaa went public in 2021, Banga, a billionaire in commodities and the chairman of the Caravel Group, based in Hong Kong, owned 8.7% of the company.
The business’ founders, the Nayar family, still hold 52% of the company and haven’t sold any shares since the IPO. Nearly a year has passed since Banga sold more than four crore shares, or 1.43% of the company, for INR 208.30 each in August 2024, bringing in INR 851.5 crore.
His holding dropped from 6.40% to 4.97% after that deal. Nykaa reported a nearly threefold increase in consolidated net profit for the quarter ending March 31 from INR 6.93 crore to INR 20.28 crore. Operational revenue increased from INR 1,667.98 crore in FY24 to INR 2,061.76 crore, a 23.61% increase.
Nykaa Eyeing for More Profitable Trajectory
With collaborations with Yves Saint Laurent, NARS, Kerastase, Eucerin, GHD, Armani Beauty, Supergoop, and Nexxus, among others, Nykaa has introduced a record amount of international beauty brands in the last 12 months.
With a goal of mid-20% yearly growth in its beauty and personal care (BPC) sector over the next five years, Nykaa is now moving towards a more lucrative growth trajectory.
Deeper market penetration, premiumisation, and improved convenience are all part of the plan. By FY30, the company wants to expand its physical presence in tier 2 and tier 3 cities, growing from 237 to over 500 stores.
Additionally, it is making significant investments in local influencer marketing, collaborating with more than 28,000 influencers to promote discovery. Nykaa is expanding its logistical infrastructure in an effort to increase delivery speeds.
Its “Nykaa Now” two-hour fulfilment strategy is operational in seven metro areas. A network of 44 warehouses and more than 40 quick hubs equip Nykaa Now service, allowing for same- or next-day delivery in major cities.
In response to bank criticism of young recruits accepting offers that were made in the future, Apollo Global Management informed potential investment-banking prospects that it would neither interview nor give offers to the class of 2027 this year.
Apollo outlined its reasoning in a letter to applicants on Wednesday, stating that the company thinks recent graduates should take the time to further their business knowledge early in their employment. Marc Rowan, the CEO of Apollo, stated that he concurred with recent complaints that the hiring process for young candidates had begun too soon.
The recruiting decisions at Apollo are among the most important to the company’s operations, according to the letter sent by Nicole Bonsignore, head of human resources, and David Sambur, co-head of private equity. In light of this, Apollo will not conduct official interviews or make offers to the class of 2027 this year.
Banking Sector is Cautious About Losing Talented Employees
For over ten years, tensions have been building over private equity firms hiring junior investment bankers. Banks have tried to find a middle ground between taking action to keep its young, brilliant staff from leaving and not upsetting them or the buyout companies, which are frequently some of their largest customers.
In a speech at Georgetown University last year, Jamie Dimon, the CEO of JPMorgan Chase & Co., expressed his disapproval of the practice of junior bankers accepting a second position with a private equity firm prior to beginning their first position at a bank. Dimon went on to say that this puts us in a difficult and conflicted situation. “I just don’t like that you are already employed by someone else and that you are handling extremely sensitive information from JPMorgan,” he continued.
According to a letter reviewed by a media house, JPMorgan warned recent grads that they would lose their jobs if they accepted offers from other companies before beginning work at the bank or within the first 18 months of their employment.
When someone says something that is simply true, Rowan stated in an emailed statement, “I feel compelled to agree with it.” “Bank CEOs and others have expressed what many of us have been thinking: It is not beneficial for students or our industry to ask them to make career decisions before fully understanding their options, as recruiting has been getting earlier and earlier each year.”
Race to Grab Fresh Talent from the Wall Street
In recent years, the competition to get new talent from Wall Street has intensified. After earlier attempts failed, private equity companies seeking to hire for their 2024 associate classes were obliged to conduct a second round of recruiting in 2023.
Only a few weeks after they started work in 2022, numerous buyout businesses began contacting banks’ first-year trainees in an attempt to outperform rivals. However, tensions had existed for a long time before that.
Following employee complaints, Morgan Stanley dropped its 2013 attempt to prevent first-year bankers from speaking with recruiters for outside companies.
According to a number of media stories, JP Morgan has warned new hires that they may lose their jobs if they accept positions at other organisations in the future.
The CEO of the bank claimed that it was “unethical” to accept a position at JP Morgan with the intention of leaving for private equity within a few years. Co-heads of global banking at JP Morgan sent a harsh warning in an email addressing new hires right out of graduate school.
According to the email, if an employee accepts a job offer from another company before joining JP Morgan or within the first 18 months of working there, they will receive notice, and their employment with the company would terminate.
Financial Giant Wants Full Focus and Stronger Commitment from Employees
With this action, the company has made it abundantly evident that joining the financial behemoth demands all of an employee’s attention and dedication. The memo stressed that meetings, training sessions, and other commitments are required in a stern tone aimed at younger staff.
Termination may occur if any of these are missed. Only US-based candidates received the email, which warned them that they would lose their jobs if they accepted another offer, according to a media source.
The fact that candidates frequently land future positions before beginning a current one seems to be a characteristically American problem.
In September 2024, Dimon addressed a group of undergraduate business school students, saying, “I know a lot of you work at JPMorgan; you take a job at a private equity shop before you even start with us.” Since I didn’t discuss character, I’m going to say something a little different, all right. That, in my opinion, is unethical and the most significant aspect of people’s character. I dislike it.
Naturally, the comment and the action that followed run the danger of upsetting the Private Equity Group, which makes up a sizable portion of JPMorgan’s business. The two men also write that avoiding any conflicts of interest is essential to preserving the faith and confidence that JP Morgan’s clients place in the firm and that failing to complete any portion of the training programme could result in termination.
Poaching the New of the Financial Sector
JPMorgan is not the sole Wall Street titan that is currently facing recruitment attempts from private equity firms. Recently, Goldman Sachs had to thwart a well-publicised attempt to hire one of its senior executives.
Earlier this year, the David Solomon-led company gave Chief Operating Officer John Waldron an $80 million “golden handcuffs” package and a board seat in order to keep him on board. Marc Rowan’s Apollo Global Management had been pursuing Waldron for a significant position.
Many believe that the retention bonus, which will completely vest over five years, is an attempt to retain the 55-year-old at Goldman, where he is thought to be Solomon’s most likely successor as CEO.
Despite significant employee opposition, Jamie Dimon, the CEO of JPMorgan Chase, has strengthened the bank’s return-to-office (RTO) policy. His annoyance with workplace attendance, including his use of profanity when rejecting a petition against in-office obligations, was exposed in a February town hall audio that was leaked. Dimon made it plain that the bank’s stance on the issue has not changed, even though he later acknowledged that he regretted the terms he used.
Why Chase Wants Orthodox Work Culture?
Concerns about the RTO (Return To Office) mandate, which compels staff to be in the office five days a week starting on March 3, prompted Dimon to respond forcefully during the town hall. He allegedly responded, “Don’t waste time on it,” in reference to a petition against the policy that was signed by more than 1,700 employees. “The number of people who sign that ******* petition doesn’t matter to me,” he added further.
He was adamant about the policy, nevertheless. I have the utmost regard for those who choose not to work five days a week. You have that right. However, he continued, people should respect that the business, not the person, will determine what is best for the client, the business, etc. “They can get a job—I’m not being mean—they can get a job elsewhere,” he added. “I completely get that doing so might make perfect sense for them.”
Employees Voicing Against the Decision
A number of JPMorgan staff members expressed their disapproval of the policy both during and after the town hall. Tech operations analyst Nicholas Welch said he was given a warning regarding his job security after he proposed letting team managers decide on RTO policies. Later, Dimon emphasised, “I have never, ever fired anyone because they asked a question like that.” Dimon rejected the notion. Welch is still employed and in good standing with JPMorgan Chase, a representative told a news outlet. Dimon’s comments regarding diversity, equality, and inclusion (DEI) initiatives have also come under fire, in addition to workplace standards. He was heard blasting the bank’s expenditures on DEI-related initiatives in a different leaked audio clip that Bloomberg was able to get.
According to reports, Dimon added, “I was really irritated by the way we were spending money on some of this dumb s***.” “I’m simply going to cancel them. I dislike bureaucratic waste of money. Dimon later defended his comments in a CNBC interview, stating that certain DEI programs were either too many, ineffectual, or unduly dependent on outside consultants.
He did, however, restate the bank’s dedication to diversification initiatives. Our outreach to the Black, Hispanic, LGBT, veteran, and disability populations will continue. “We’re not going to change that,” he stated. There has long been discussion over Dimon’s straightforward and even brazen leadership style. Although his strong beliefs have made him a divisive figure, his admirers contend that his firm approach is consistent with his goals for JPMorgan’s prosperity. The argument over remote work is still going strong as the bank implements its in-office policy. One thing is certain, though: Dimon has no intention of changing direction.
The fintech giant has reportedly chosen five investment banks to serve as advisors for its $1 billion (about INR 8,424.7 crore) initial public offering (IPO), months after it was revealed that Pine Labs has been considering going public. According to a media report, which cited people familiar with the situation, Pine Labs has selected Axis Capital, Morgan Stanley, Citigroup, JP Morgan, and Jefferies to manage its initial public offering (IPO) mandate, which is scheduled to launch in the first half of FY26.
According to the report, as part of the pre-IPO investment, a secondary offer worth $100 million (about INR 842.5 crore) will be made possible, allowing share transfers between new venture capital companies and current investors. The company is expected to seek a valuation of over $6 billion for the initial public offering (IPO), according to reports that first surfaced in June about its plans to go public.
Business Dynamics of Pine Labs
Founded in 1998 by Lokvir Kapoor, Rajul Garg, and Tarun Upadhyay, Pine Labs offers a variety of payment solutions to businesses, such as point-of-sale devices and payment systems. Additionally, it provides businesses with cashback, rewards, and pay-later options. Investors including Peak XV Partners, Actis Capital, Temasek, PayPal, Mastercard, Alpha Wave Global, Chimaera Capital, and State Bank of India have contributed a total of around $1.6 billion to the fintech company’s investment to date.
In August, Pine Labs obtained the first set of licences from the National Company Law Tribunal (NCLT) to combine its Singapore business with its Indian subsidiary, one of several steps the fintech startup took to move its headquarters to India.
IPO Scenario in India
Aforementioned development occurs at a time when at least ten companies are making their debut this year, and entrepreneurs from a variety of industries are eager to get on the exchanges. In the meantime, a long line of startups is expected to go public next year.
Axis Capital, Morgan Stanley, JP Morgan, Citigroup, and Bank of America are among the five banks that have joined SoftBank-backed B2B marketplace OfBusiness for its $1 billion initial public offering (IPO), which is anticipated to take place next year. About two weeks ago, the manufacturer of smartwatches and audio goods, boAt, hired ICICI Securities, Goldman Sachs, and Nomura as bankers for its $300–500 million initial public offering (IPO) that will take place next year.
With initial public offerings (IPOs) emerging as a crucial means of obtaining funding, the Indian startup scene is undergoing a significant transformation. For the second time in history, mainboard initial public offerings (IPOs) have raised more than INR 1 lakh crore in 2024. Over INR 1.03 lakh billion has been raised through 70 initial public offerings (IPOs) this year, the most since 2007. In contrast, 63 firms raised more than INR 1.19 lakh crore through IPOs in 2021, compared to 100 IPOs that were launched in 2007 and raised INR 34,179 crore.
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JPMorgan(John Pierpont Morgan) Chase & Co. is an American multinational investment bank and financial services holding company headquartered in New York City. JPMorgan Chase is ranked by S&P Global as the largest bank in the United States and the seventh largest bank in the world by total assets, with total assets of US$3.213 trillion.
It is also the world’s most valuable bank by market capitalization. As a “Bulge Bracket” bank, it is a major provider of various investment banking and financial services. It is one of America’s Big Four banks, along with Bank of America, Citigroup, and Wells Fargo.
JPMorgan Chase & Co. is a financial holding company. It provides financial and investment banking services. The firm offers a range of investment banking products and services in all capital markets, including advising on corporate strategy and structure, capital raising in equity and debt markets, risk management, market making in cash securities and derivative instruments, and brokerage and research.
It operates through the following segments: Consumer and Community Banking, Corporate and Investment Bank, Commercial Banking and Asset and Wealth Management.
The Consumer and Community Banking segment serves consumers and businesses through personal service at bank branches and through automated teller machine, online, mobile, and telephone banking. The Corporate and Investment Bank segment offers a suite of investment banking, market-making, prime brokerage, and treasury and securities products and services to a global client base of corporations, investors, financial institutions, government and municipal entities.
The Commercial Banking segment delivers services to the U.S. and its multinational clients, including corporations, municipalities, financial institutions, and non-profit entities. It also provides financing to real estate investors and owners as well as financial solutions, including lending, treasury services, investment banking, and asset management. The Asset and Wealth Management segment provides asset and wealth management services.
JPMorgan – Logo and its Meaning
Logo of JPMorgan Chase & Co.
The geometry of the emblem and its colours stood for confidence, loyalty, professionalism, and unity, and showed the bank as a strong financial organization with its customers as the main value.
JPMorgan – Founder and History
JPMorgan Chase, in its current form, has its roots in more than 1,200 predecessor banks, including major heritage firms JP Morgan, Chase Manhattan, Chemical Bank, Manufacturers Hanover, Bank One, First Chicago, and National Bank of Detroit. These entities all played a significant role in the growth of the US and global economies. The earliest of the Company’s predecessor companies was The Bank of the Manhattan Company, which was established in 1799 by Aaron Burr as only the second commercial bank in the US.
JPMorgan Chase is built upon numerous mergers and acquisitions. Arguably, the most significant of these was the 2000 merger between JP Morgan and Company and The Chase Manhattan Corporation, which effectively combined four of the largest and oldest banking institutions in New York City – JP Morgan, Chase Bank, Chemical Bank, and Manufacturers Hanover – to form JP Morgan Chase and Company.
JPMorgan is now one of the largest banking institutions in the world. It is ranked 23rd in the Fortune 500 list and 5th in the Forbes 2000 list. The Company trades its shares on the New York Stock Exchange and has a current market capitalization of $243.59 billion.
JPMorgan – Mission
JP Morgan’s mission statement says, “JPMorgan provides a range of banking and financial services to consumer, corporations and public institutions, with the aim of enhancing their financial wellbeing and helping to effectively manage their finances.”
JPMorgan – Business Model
JPMorgan Chase organizes its activities into core major reportable business segments
Consumer and Community Banking, which provides consumers and businesses with consumer and community banking services – such as deposit, lending and investment products – through personal service at bank branches and through automated teller machines, online, mobile and telephone banking;
Corporate and Investment Bank, which provides of banking and markets and investor services, including a suite of investment banking, market-making, prime brokerage, and treasury and securities products and services, to corporations and institutions worldwide;
Commercial Banking, which provides delivers industry knowledge, expertise, and advisory services to commercial clients, as well as financing to real estate investors and owners; and
Asset Management, which provides investment advisory and wealth management services.
JPMorgan Chase also operates a Corporate segment, which comprises the activities of corporate staff units.
JPMorgan Chase generates revenue through the provision of various banking and financial services and products. Revenue is derived principally through fees and commissions imposed upon customers in relation to the Company’s services, including advisory, investment banking, management, and underwriting fees.
The Company’s largest portion of revenue was derived from asset management, administration, and commissions, which amounted to $15.51 billion for the year.
JPMorgan Chase revenue for the quarter ending September 30, 2020 was $30.834B, a 14.79% decline year-over-year.
Year
Amount
Percentage Change from Last Year
2019
$142.422B
+9.5%
2018
$130.07B
+13.52%
2017
$114.579B
7.7%
JPMorgan – Investments
JP Morgan Chase has made 144 investments. Their most recent investment was on Nov 9, 2020, when NovoCure raised $150M.
Date
Organization Name
Round
Amount
Nov 9, 2020
NovoCure
Post IPO Debt
$150M
Jul 28, 2020
Pharmapacks
Private Equity Round
$150M
Jul 18, 2020
Contemporary Amperex Technology
Post IPO Equity
CN¥19.7B
Jun 25, 2020
Capital Markets Gateway
Series B
$25M
Jun 22, 2020
Cedar
Debt Financing
$25M
Jun 4, 2020
Cloud9 Technologies
Series B
$17.5M
Mar 23, 2020
iCapital Network
Venture Round
$146M
Mar 3, 2020
The Joint
Post IPO Debt
$7.5M
Feb 3, 2020
Launch NY
Grant
$300K
Jan 17, 2020
Arcesium
Corporate Boy
–
JPMorgan – Acquisitions
JP Morgan Chase has acquired 10 organizations. Their most recent acquisition was InstaMed on May 17, 2019.
Acquiree Name
Date
Amount
About Acquiree
InstaMed
May 17, 2019
–
InstaMed simplifies healthcare payments for providers, payers, and consumers
WePay
Oct 17, 2017
$400M
WePay is the payments partner to the platform economy
J.P. Morgan Cazenove
Nov 19, 2009
–
J.P. Morgan Cazenove is a leading investment bank focused on mergers & acquisitions, debt and equity placements and equity research
Washington Mutual
Sep 26, 2008
–
Washington Mutual is a savings bank holding company providing consumer banking and financial services
Bear Stearns
Mar 17, 2008
–
Bear Stearns is an investment banking, securities trading and brokerage firm
Xspand
Mar 1, 2008
–
Xspand is a provider of revenue solutions that focuses on purchasing, servicing and securitizing municipal tax liens
Collegiate Funding Services
Dec 15, 2005
–
Collegiate Funding is a vertically integrated education finance company that markets, originates, finances and services education loans
Neovest Holdings
Jun 23, 2005
–
Neovest Holdings an independently operated technology company providing a comprehensive suite of global broker-neutral financial services
Bank One
Jan 15, 2004
$58B
Bank One is a Chicago-based multibank holding company providing many banking and financial services
Hambrecht & Quist
Sep 28, 1999
$1.4B
Hambrecht & Quist is an investment bank that focuses on the technology and internet sectors
JPMorgan – Competitors
The top 10 competitors in JPMorgan Chase’s competitive set are Citi, Goldman Sachs, Bank of America, Morgan Stanley, Capital One, Credit Suisse, Fidelity, Wells Fargo, American Express and HSBC.
“We do not worry about the stock price in the short run,” Dimon (CEO) said. “If you continue to build a great company, the stock price will take care of itself.”
Economic risks on the horizon – The excessive disruption in the financial markets at the end of 2018 was “a harbinger of things to come,” as investor sentiment remained precarious.
Because of divisive politics, America was unable to keep pace in a new world – The federal government was becoming less relevant to what is going on in people’s lives, Dimon said. As a result, people lost faith in their politicians’ ability to deliver on their promises and meet societal needs.
American leadership and engagement on the world stage is “indispensable” – Dimon said one of the biggest uncertainties in the world is what role America is currently playing. He said that while there are many problems with international organizations, such as the North Atlantic Treaty Organization (NATO), the World Trade Organization (WTO) and the United Nations (UN), the world is better off with these institutions, and the U.S. should engage and exercise its power and influence “cautiously and judiciously.
Regulation isn’t all bad, but too much of it isn’t good – Dimon said current “excessive” regulation has reduced growth and business formation for the company, without making the economy safer or better.
“The ease of starting a business in the United States has worsened, and both small business formation and employment growth have dropped to the lowest rates in 30 years,” Dimon wrote.
JPMorgan Chase is “all in” on the cloud and AI, but not on stock buybacks – Dimon acknowledged that he was “partially responsible” for the bank being slow to adopt the cloud, because his early thinking was that it was just another term for outsourcing. He also said the power of artificial intelligence and machine learning is “real,” and are “rapidly being deployed” across virtually every aspect of the bank’s business. Since that makes some employees redundant, the bank is looking to retrain and deploy those employees for other roles inside and outside the company.
17,000 Job Cuts- Even the country’s largest bank needs to cut back on employees. Executives said JPMorgan would eliminate about 17,000 positions over the next two years, including about 4,000 through attrition this year in its consumer bank.
13,000 to 15,000 Mortgage Cuts- Most of JPMorgan Chase’s job cuts will come through lay-offs and attrition in its mortgage operations over the next two years, as the industry moves past the worst of the foreclosure crisis and has less need for servicing employees.
100 New Branches- Even as it cuts some branches, JPMorgan Chase is expanding. The bank plans to add about 100 branches to its total over each of the next two years.
500,000 ‘Digital’ Customers- A growing number of JPMorgan Chase customers are opting for mobile and online technology over branch visits. About 500,000 bank customers per month are going digital, executives said.
New Partnership- JPMorgan used the day to announce a new partnership with Visa. Executives said the deal will allow the bank to negotiate directly with merchants over how they process Chase credit and debit cards.
JPMorgan – FAQs
What does JP Morgan do?
JPMorgan Chase & Co. is a global financial service that provides services including consumer banking, investment banking, commercial banking, and asset management for individuals, corporations, institutions, and governments globally.
Is JP Morgan and JP Morgan Chase the same?
JPMorgan Chase & Co. is the parent holding company of Chase(Commerical Bank) and JPMorgan(Investment Bank).
Is JP Morgan the largest bank?
JPMorgan Chase & co. is America’s one of the largest bank.
What is JP Morgan’s full name?
John Pierpont Morgan is JPMorgan’s full name.
How does JPMorgan make money?
The company operates through the following segments: Consumer and Community Banking, Corporate and Investment Bank, Commercial Banking and Asset and Wealth Management.
