Share sales in listed firms at record high of $4.4 billion this month

Companies and shareholders across Asia have been taking advantage of a market rebound since late March to sell shares.

Two jumbo block trades in India this month have pushed follow-on offerings in the country to a record high.

A $3.3-billion sell-down of GlaxoSmithKline’s stake in Unilever’s Indian unit, Hindustan Unilever, and a $1.1-billion placement of Bharti Airtel shares by its parent take May’s total follow-on offerings in the country to $4.4 billion, the most for a month on record, data compiled by Bloomberg shows.

In addition to that, Reliance Industries, the largest company by market capitalisation, kicked off a $7-billion rights offer this month.

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Companies and shareholders across Asia have been taking advantage of a market rebound since late March to sell shares.

Almost $23 billion was raised in April across the region, the most since March 2018. India was quiet in March and April, when companies and shareholders sold just $299 million and $99 million worth of stock respectively, as the country went into lockdown due to the Covid-19 pandemic.

The Unilever deal is the largest additional share sale in India this year, while the Bharti Airtel block came at an opportune time given the stock is trading close to an all-time high.

Soap vs handwash: In time of crisis, firms set aside age-old differences

Dettol and Lifebuoy promote hand washing with soap, setting aside their differences over hand hygiene standards.

Given the magnitude and scale of the current Covid-19 crisis and the need to reinforce simple hygiene habits among people, soap brands Dettol and Lifebuoy are finding common ground. Using different tools to put forth the point of cleanliness above all and the need to wash one’s hands well, the two are setting aside their age-old differences.

The two brands have been fighting a bitter battle over their ads in court for years, while one emphasises the efficacy of soap, the other pitches the potency of its handwash. In fact as recently as a month ago Hindustan Unilever (HUL) hauled RB Health (formerly Reckitt Benckiser) to the Bombay High Court over an ad spot.

The ad for Dettol Handwash, made an oblique reference to Lifebuoy soap from HUL by showing a bar similar to the latter in terms of colour and proportion.

HUL’s contention in court was that not only had RB Health disparaged its brand, but was also sending a “wrong” message that suggested soap and water for hand hygiene was not as effective as handwash. RB clarified that it was emphasising on personal hygiene and restating the proven fact that liquid handwash should be preferred over bar soaps.

“Unilever has filed an ill-advised suit claiming that Lifebuoy and red colour soaps are disparaged. Reckitt unilaterally decided to hold back the advertisement till April 21, 2020 and the Bombay High Court was informed about the same,” the company stated. While fighting over a bar of soap may have seemed ill-timed, experts at the time had seen nothing unusual as both Lifebuoy and Dettol are known to be combative.