Companies and Markets

Companies & Markets

SLCM to widen ops in SE Asia; eyes Africa

SLCM, the post-harvest agri-logistics and agri-financing company, is expanding its presence to southeast Asian countries like Cambodia and Vietnam and is exploring some of the African nations.

Japan’s JFE, JSW to jointly bid for insolvent Bhushan Steel

Japan’s JFE Holdings Inc and India’s JSW Steel are lining up a joint bid with a private equity firm for the assets of insolvent Bhushan Steel, two industry sources familiar with the matter said. Under the plans, JFE would set up a special purpose vehicle with the two partners to manage the assets. JFE would hold a majority stake in the vehicle, while JSW Steel would operate Bhushan Steel’s plants, said the sources who did not want to be named as the details are not public.

JFE already owns a 15 per cent stake in JSW.

Mid-cap, small-cap stocks real heroes for marquee investors

The going has been great for benchmark indices this year so far. The BSE Sensex and Nfty-50 have given a return of over 26 per cent year-to-date. Mid-cap and small-cap indices have provided even bigger return of 40-45 per cent. But it has been a mixed bag for marquee Rakesh Jhunjhunwala’s (in pic) equity portfolio.

Some large cap stocks in his portfolio were in fact under performers, with Lupin giving a negative return of 44.96 per cent and Crisil returning -16.50 per cent.

Rise in bad loans moderate in Q2

The rise in bad loans of banks was a marginal Rs 11,000 crore in the second quarter of this financial year. In terms of incremental NPAs, the highest was witnessed in March 2016 at Rs 1.39 lakh crore over December 2015 and the second highest was in June 2017 over March 2017 at Rs 1.17 lakh crore.

“There was moderation in the quarter ending September 2017 when the increase was just about Rs 11,000 crore.
"If such a tendency persists in the next two quarters, it may be concluded that the recognition issue has been adequately addressed by banks,” said Care Ratings.

Banks, NBFCs seek multiple changes in IBC

The Union cabinet on Wednesday approved bringing out an ordinance to introduce certain changes in the Insolvency and Bankruptcy Code (IBC). “Some changes are proposed….

FMCG firms slash prices after govt fiat

Major FMCG companies like HUL, ITC, Dabur and Marico on Tuesday said they have cut prices of various products to pass on the benefits of GST rate reduction to end-consumers.

The companies said they will extend the price reduction to other categories, which have also seen tax rate cuts. The development comes a day after the government asked the firms to pass on lower GST rates to consumers.

The GST rate was reduced on 178 items, including detergents, shampoos and beauty products, from 28 per cent to 18 per cent from November 15.

Miles to go before bulls sleep

Some of the biggest proponents of the bull market in equities are starting to ask the question: when should you get out? While the answer from some of the world’s largest money managers is that it’s not quite time yet, they’re identifying some triggers to watch for. On the list:

A jump in inflation that causes central banks to tighten monetary policy faster than the gradual pace currently anticipated.

A miscommunication of policy from the Federal Reserve, which is set to get a new chair in February and a near-complete overhaul of its board membership.

M&A deal value drops 54% July-September: EY

Merger and Acquisition activity fell more than 50 per cent in Q3 of calendar year 2017 after companies adopted wait and watch policy before embarking on big ticket acquisitions. The cumulative disclosed deal value of M&A in the quarter fell 54 per cent to $6.2 billion from $13.7 billion in the same period last year. However, the volumes increased marginally by 8 per cent to 252 deals against 234 deals in the year ago quarter, according to EY’s recently released Tran­sactions Quarterly Report.

Kotak spots a once-in-a lifetime opportunity

For India, it’s a $207 billion mess, a pile-up of bad loans years in the making that’s dragging on growth. For the nation’s wealthiest banker, it’s the kind of opportunity that very rarely presents itself.

What has billionaire Uday Kotak salivating is the government’s attempt to finally draw a line under delinquent loans, with recent steps to overhaul India’s bankruptcy laws and recapitalise state-owned banks. The moves are intended to lift a burden from the country’s banks and encourage them to accelerate lending, supporting economic growth.

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