Companies and Markets

Companies & Markets

Electrosteel allots shares worth Rs 7,400 cr to lenders

Electrosteel Steels, undergoing the insolvency resolution process, has allotted equity shares worth Rs 7,400 crore to lenders as loan conversion, with SBI getting the largest chunk— about 37 per cent.

The company had on Tuesday spelt out steps to be taken for completion of its takeover by Vedanta Star, an arm of mining giant Vedanta which won the bid to acquire the stressed firm.

It has allotted nearly 740 crore equity shares to 26 lenders, out of which the country's largest lender, State Bank of India, got the largest 36.70 per cent chunk—271.61 crore equity shares.

Dealscape gets larger

After hitting a five-year low in 2017, mergers and acquisitions (M&A) saw a quantum leap this year, with May creating a new record in M&A and private equity (PE) transactions, thanks largely to the $16-billion Walmart-Flipkart deal.

The year so far has recorded 542 deals—including M&A and PE—worth a staggering $71 billion, a significant 86 per cent increase by value. This also marks the highest year-to-date values recorded.

Fund outflow of Rs 32,078 cr in Jan-May is highest since 2008

Foreign funds have turned aggressive sellers in the domestic market with over Rs 32,078 crore being pulled out in the first five months of 2018, making it the highest outflow seen in any calendar year since 2008 when FPIs pulled out Rs 41,216 crore from Indian markets.

NCLT admits Videocon case; Dhoot says banks to recover 80% debt

The NCLT on Wednesday admitted Videocon Industries under the Insolvency and Bankruptcy Code, and the debt-ridden firm is hopeful that its lenders will be able to recover up to 80 per cent of the Rs 20,000-crore debt. The company in April had approached the principal bench of the National Company Law Tribunal (NCLT) requesting it to direct all insolvency cases filed by its lenders to be heard together.

Rupee soars 23p to 1-mth high

The rupee appreciated after a two-day fall and ended at a fresh one-month high of 66.92, up by 23 paise against the US dollar, even as the RBI hiked repo rate by 25 basis points on Wednesday. Forex market sentiment was buoyed by the Reserve Bank retaining growth forecast for the current fiscal at 7.4 per cent on hopes of further boost to investment and higher consumption. A relief rally in local equities also supported the recovery momentum. However, bond markets reacted negatively, with the 10-year benchmark bond yield shooting to 7.92 per cent from 7.83 per cent.

Consolidation seen as continuing

The market ended lower in a volatile trading session. The S&P BSE Sensex fell 108 points or 0.31 per cent to settle at 34,903.21. The Nifty 50 index fell 35.35 points or 0.33 per cent to settle at 10,593.15. Selling continued as the BSE Mid-Cap index fell 1.20 per cent and Small-Cap index fell 2.43 per cent.

The market breadth was weak as 2,216 shares fell, while 483 shares rose on BSE.

Technical view

Gross NPAs cross Rs 10L crore in FY18

Bad loans of banks have increased to Rs 10.3 lakh crore or 11.2 per cent of advances, as on March 31, 2018. They are expecting it to rise further to 11.5 per cent this year but would reduce after that.

Wipro hints at handsome hikes for top learners

Going digital is extremely critical for techies—both for basic survival and for annual salary increments.

This was the kind of caution sent out by Wipro CEO Abidali Neemuchwala in his latest internal message to over 1,60,000 people the company employees around the globe. And it clearly indicates a new HR trend among IT services providers that employees with understanding of deep technologies like machine learning, artificial intelligence and data analytics will receive better and bigger rewards while laggards may be left with no option but to buck up or quit.

Sebi outlines norms for preferential issue by InvITs

Markets regulator Sebi on Tuesday put in place a detailed framework for listed  Infrastructure Investment Trusts (InvITs) to make preferential issue of units to institutional investors.

Sebi said preferential issues need to be completed within 12 months from the date of passing of the resolution by InvIT's unit-holders.

The units in a preferential issue would be offered and allotted to minimum two investors and maximum 1,000 investors in a financial year.

The gap between preferential issues should be six months, and allotment needs to be made in 12 days.

Bharti AXA Life Insurance posts maiden profit in FY18

Private insurer Bharti AXA Life Insurance on Tuesday said it has turned the corner by posting a maiden profit of Rs 5 crore for 2017-18.

This is Bharti AXA Life’s first profit since it started operations in 2006. The company attributed the achievement to better productivity and cost efficiency.

In a statement, the company, a joint venture between Bharti Enterprises and global insurance major AXA, said it registered a profit in FY18 against a loss of Rs 120 crore during 2016-17.

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