Page 734 - Business Finance
Standard Life to sell 4.93 pc stake in HDFC Life via OFS
HDFC Life Insurance Monday said one of its promoters, Standard Life, will sell up to 4.93 per cent in the life insurance firm through offer for sale (OFS). The Standard Life (Mauritius Holdings) 2006 Ltd, one of the promoters of the insurer, will sell stake through OFS on March 12 and the floor price for the sale will be Rs 357.50 per share, HDFC Life said in a regulatory filing. At the floor price, the company will raise about Rs 3,500 crore. Standard Life proposes to sell up to 7 crore shares representing 3.47 per cent with an option to additionally sell up to 2.95 crore shares representing 1.46 per cent of the total issued and paid-up capital, it said. Currently, Standard Life holds 29.2 per cent stake in the life insurance company while mortgage firm HDFC has a 51.5 per cent stake. After the stake sale, Standard life's holding in insurance company will come down to 24.27 per cent. Standard Life has appointed DSP Merrill Lynch as the broker for the sale of equity stake. For the ...
Nifty March futures at premium
Turnover in F&O segment rises
NSE launches weekly options on NIFTY IT index
The National Stock Exchange (NSE) Monday launched weekly options on the NIFTY IT Index. The NIFTY IT index options are already available for three monthly expiration cycle. "Addition of weekly options expiration contract will add flexibility and access to support a variety of trading strategies. "Participants will be able to hedge more efficiently against market movements resulting from economic data releases, corporate announcements particularly the financial results announcements or market events taking place in specific time frames," the exchange said in a release.
Sudarshan Venu relinquishes post of joint MD, Sundaram-Clayton
: The board of auto-component manufacturing company Sundaram-Clayton Ltd Monday said its joint Managing Director Sudarshan Venu has decided to relinquish his post with immediate effect. "Due to other business commitments, Sudarshan Venu relinquished his position as Joint Managing Director of the company, effective 11th March 2019, as he will not be able to give sufficient time to manage the day-to-day affairs of the company", Sundaram-Clayton Ltd, a TVS Group company, said in a regulatory filing. Sudarshan Venu, son of noted industrialist Venu Srinivasan, would continue to serve as Non-Executive and Non-Independent D Director liable to retire by rotation, which would be valuable and supportive to the company, it said. In 2011, he joined the board of Sundaram-Clayton as an Additional Director. In 2013, he was appointed as whole-time director of the company for a five year period. In 2014, he was elevated as the Joint Managing Director of the company. In another ...
IHMCL inks pact with CSC e-Governance for issuance of FASTags
To ensure faster implementation of electronic toll collection, Indian Highways Management Company Ltd (IHMCL) has inked a pact with CSC e-Governance Services for issuance of FASTags through common service centres, according to an NHAI official. Promoted by the National Highways Authority of India (NHAI), IHMCL has been mandated to implement the National Electronic Toll Collection (NETC) programme under the brand name 'FASTag'. "In a major fillip to ensure easy availability of FASTags, IHMCL, a company promoted by NHAI, has signed a memorandum of understanding (MoU) with CSC e-Governance Services India Ltd, a special purpose vehicle, set up by the Ministry of Electronics & IT, for issuance of IHMCL FASTag through common service centres (CSC)," the NHAI official said. The collaboration aims at making FASTags available to citizens through an extensive network of over 1 lakh CSC outlets across the country. The FASTag programme is an initiative by the NHAI and the Ministry of Road ...
Boeing stock plunges after Ethiopia crash, sending Dow lower
Tumbling shares in US aviation giant Boeing on Monday tore a hole in the Dow Jones Industrial Average, sending the benchmark index into the red for a sixth day. About five minutes into the day's trading, Boeing shares were down 11.7 percent at USD 373.23 following the most recent crash of one of its aircraft in Ethiopia. The Dow fell 153.81 points to 25,319.42, but the broader S&P 500 rose 0.3 percent to 2,758.27 and the tech-heavy Nasdaq was up an even stronger 0.7 percent at 7,474.61. The fatal crash of the Ethiopian Airlines Flight ET302 -- the second involving a Boeing 737 Max 8 in five months -- caused airlines in three countries to ground all flights involving the popular jet and cast fresh safety concerns on the airline. Shares in Southwest Airlines sank 2.12 percent while American Airlines lost 0.2 percent, United Continental gave up 0.8 percent. Briefing.com analyst Patrick O'Hare said Boeing's impact on the Dow was not indicative of the performance of the wider ...
NHPC to bid for Rangit hydro project in Sikkim under insolvency proceedings
Buoyed by the winning bid for Lanco's Teesta VI, state-owned NHPC will bid for Jal Power Corporation's Rangit hydro project in Sikkim, which is undergoing insolvency proceedings, NHPC Chairman and MD Balraj Joshi said. The Rangit Stage IV 120 MW project is a stressed asset and is undergoing insolvency proceedings in the National Company Law Tribunal (NCLT). Earlier this month, the CCEA approved NHPC's proposed acquisition of Lanco Teesta Hydro Power in Sikkim at a bid out price of Rs 907 crore. The total investment approval for the project is Rs 5,748.04 crore which includes Rs 907 crore bid amount. "We are also looking at another project which is also in Sikkim again. We are just waiting for the (commercial bid to open). This is a Jal Power project. This is also at the same status as Teesta VI. They are yet to call for EoI (expression of interest). NCLT will hear the case on March 15," Joshi told reporters in a press conference. NHPC Director Finance M K Mittal said this is the first
Govt to raise upto Rs 226 cr from MSTC divestment
State owned MSTC Limited's initial public offering (IPO) that hits market on March 13 will raise around Rs 226 crore for the government, based on the highest price band. The price band for the issue has been fixed at Rs 121 -128 for each share of Rs 10. In this "offer for sale", the government is divesting 1.76 crore of its shares which is equivalent to 25 per cent of the paid-up equity share capital. The divestment would bring down government holding in MSTC to 64.85 per cent from the existing 89.85 per cent, the company said. A discount of Rs 5.50 per equity share would be offered to the retail and eligible employee bidders. The offer includes a reservation of up to 70,400 equity shares for eligible employees for allotment on a proportionate basis. Equirus Capital Pvt Ltd is the sole book running lead manager and Alankit Assignments Ltd is the registrar for the issue. The mini-Ratna company, under the Ministry of Steel, has three main business verticals -- e-commerce, .
Prashant Ruia approaches NCLAT against ArcelorMittal takeover
Essar Steel's former promoter Prashant Ruia along with two other directors of the erstwhile board of the steel maker Monday approached the National Company Law Appellate Tribunal (NCLAT) to thwart a last moment takeover of the debt-ridden firm by the global steel giant ArcelorMittal. Ruia has challenged the orders of the Ahmedabad bench of the National Company Law Tribunal (NCLT), which on Friday approved the Rs 42,000-crore takeover plan of Essar Steel by ArcelorMittal. The matter was mentioned before a two-member bench headed by Chairman Justice S J Mukhopadhaya on Monday evening, which asked it to be taken only after the NCLT passes its full written order. Standard Chartered Bank, a dissenting bank among the Committee of Creditors (CoC) of Essar Steel, Monday also challenged the March 8 order of the Ahmadabad bench of NCLT. Standard Chartered Bank is opposing the resolution plan approved by the CoC of Essar Steel contending that it was favoured towards the secured creditors. On ...
Jet Airways delays repayment of external commercial borrowings
Crisis-hit Jet Airways Monday defaulted on part repayment of its external commercial borrowings due to liquidity crunch. Specific details about the borrowings were not disclosed. "... the part repayment of the external commercial borrowing availed by the company, for working capital purposes, falling due on March 11, 2019, has been delayed owing to temporary liquidity constraints," the airline said in a filing to the stock exchanges. The company has engaged with the lender in relation to the same, it added. On March 8, Jet Airways Chairman Naresh Goyal wrote to the airline's strategic partner Etihad's CEO Tony Douglas seeking an urgent funding of Rs 750 crore.
IFCI exits 2 power projects, realises Rs 1,174 cr
The country's oldest financial institution IFCI said Monday it has sold stake in two thermal power projects for Rs 1,174 crore. The exit from thermal power projects is part of the exercise to monetise unquoted equity investments and reduce non-performing asset (NPA) levels, IFCI said in a regulatory filing. The company, however, did not disclose the names of power projects. "Monetisation of an investment in 1600 MW coal based thermal power project (the largest project equity investment) - generating upside of more than Rs 300 crore on the investment of Rs 432.72 crore. In this fiscal year, IFCI realised Rs 745.29 crore," it said. The second case relates to resolution of NPA in a gas-based thermal power project. "The auction was conducted with reserve price of Rs 427.50 crore and IFCI realised Rs 428.61 crore," the company said. Government of India hold 56.42 per cent stake in the company. IFCI has posted a loss of Rs 48.85 crore for the quarter ending December 2018. Its shares closed .
Govt cuts BT cotton seed price by Rs 10 per packet; royalty to Monsanto cut by half
The Centre has reduced the maximum sale price of genetically modified (GM) Bt cotton seeds by Rs 10 to Rs 730 per packet for the next fiscal to benefit farmers and also cut royalty to US-based technology provider Monsanto by almost half to Rs 20 per packet. German pharma and agrochemical major Bayer, which has now acquired Monsanto globally, expressed disappointment on reduction in royalty value. This is the third year in a row when the Union agriculture ministry has reduced the maximum sale price of cotton seeds and royalty. According to a notification, the maximum sale price of a Bt cotton seeds packet (of 450 gm) has been fixed at Rs 730 for bollgard (BG)-II version, including Rs 20 for the trait value, for the 2019-20 fiscal. The rate is Rs 740 per packet, including Rs 39 for the trait value, in the current fiscal year. The move will benefit eight million cotton growers and also increase the margin of domestic seed companies as royalty fee to Mahyco Monsanto Biotech Ltd (MMBL), a .
US sanctions Russia-based bank over Venezuela dealings
The US Treasury slapped sanctions Monday on a Russia-based bank partly owned by Venezuela for its support for the government of embattled President Nicolas Maduro and the state oil company PDVSA. The sanctions were aimed at Moscow-based Evrofinance Mosnarbank, which when founded in 2011 was 50 per cent-owned by leading Russian banks and 49-per cent owned by Venezuela's National Development Fund. "This action demonstrates that the United States will take action against foreign financial institutions that sustain the illegitimate Maduro regime and contribute to the economic collapse and humanitarian crisis plaguing the people of Venezuela," said Treasury Secretary Steven Mnuchin in a statement.
Banks' reliance on bulk deposits like to increase: Ind-Ra
Scheduled commercial banks' reliance on bulk deposits is likely to increase if credit growth is higher than that of deposit, India Ratings and Research (Ind-Ra) said Monday. As per the rating agency, the system level credit growth of 12.9 per cent year-on-year continues to outpace deposit growth at 9.3 per cent, thereby intensifying competition for deposits among banks. This is based on RBI's quarterly statistics on deposits and credit of scheduled commercial banks for December 2018 In third quarter of this fiscal, state-owned banks have seen credit growth of 8.4 per cent and deposit growth at 4.9 per as compared to the year-ago period, implying that they could also compete to recoup some of the deposit market share loss that they have conceded to private banks over the years. "With private banks seeing continuing strong credit growth at 22 per cent year-on-year in third quarter of 2018-19, they are likely to solicit deposits even by offering higher rates," Ind-Ra said. It believes ...
Sebi imposes Rs 25 lakh fine on Indus Portfolio for fraudulent trade
Markets watchdog Sebi has levied a penalty of Rs 25 lakh on Indus Portfolio for carrying out reversal of trades in the illiquid stock options segment on the BSE. Sebi conducted a probe between April 2014 and September 2015 after observing large-scale reversal of trades in the stock options segment on the bourse which led to the creation of artificial volume. The firm had indulged in execution of reversal trades with the same counter parties during the same day at substantial price difference, Sebi noted in an order dated March 8. Such trades are non-genuine as they are not executed in normal course of trading, lack basic trading rationale, and lead to creation of artificial volume. "Trades of the noticee were non-genuine and have created false or misleading appearance of trading in terms of artificial volume in stock options and, therefore, manipulative and deceptive in nature," Sebi said. Further, the regulator said that "the scheme, plan, device and artifice employed by the noticee .
Salaried class ready to spend Rs 16K per month on house rent, students' avg budget at Rs 11K
The average budget of salaried class looking for a house on rent is around Rs 16,000 per month, while students are ready to spend around Rs 11,000 a month, according to realty portal Makaan.com. "Of all those who are looking for a rented house across Indian cities, over 69 per cent are salaried employees, while 16 per cent are self-employed and 15 per cent are students. Most tenants would like to move in within a week after selecting a house," Makaan.com said in a statement. The study is based on an analysis on home renting trends by mProfile, a personalised service for landlords and tenants on Makaan.com, which is a part of Elara Technologies that owns Housing.com as well as PropTiger.com. The data is from all major housing rental markets in the country. "With 40 per cent salaried class looking for the rental of Rs 10,000 or less and about same percentage between Rs 10,000 and Rs 25,000, the average rental budget stands at around Rs 16,000 across cities," it said. In students ...
International food & hospitality fair 'Aahar' to open on Tuesday
Union Minister Suresh Prabhu will inaugurate Aahar 2019, an international food and hospitality fair that will feature new trends in food and beverage (F&B), hospitality, culinary technology, retail and new innovations, here on Tuesday. The latest edition of the fair, to be held between March 12 and 16, will feature a wide range of food products, machinery, F&B equipment, hospitality and dcor solutions, confectionary items from over 560 participants from India and abroad. Countries such as China, Canada, Chile, Germany, Hong Kong, Italy, Japan, Malaysia, Netherland, Norway, Oman, Russia, Singapore, Spain, Turkey, Taiwan, USA, the UK, the UAE and Vietnam will participate in Aahar 2019, an official statement said. The fair will also offer an insight into the operational and food safety concerns and innovations to become energy-efficient, finding budget-friendly raw materials for boosting productivity while still aiming for greater profitability. The 'Culinary Art India' and ...
Tesla walks back its plan to close most showrooms
Tesla is walking back its plan to close most of its showrooms worldwide. The company said Monday that it's still shifting to online sales, but it won't close as many stores as originally thought. Tesla announced last month that it would shutter most of its stores to cut costs so it could make money on the $35,000 Model 3 electric car. The $35,000 base Model 3 will still be available but the company will raise prices 3 percent on all other models. Tesla now says it closed 10 percent of its stores, but a few of those will be reopened. Another 20 percent are being evaluated and some could stay open. The company gave no numbers. It had 378 stores and service centers worldwide and about 100 U.S. stores.
FSS picks up 46 per cent stake in South Africa based Ecentric
: Payments technology and transaction processing provider Financial Software and Systems Monday said it has made a 'strategic investment' in South Africa based Ecentric Payment Systems by acquiring 46 per cent stake. "FCC has acquired a 46 per cent stake in Ecentric through a combination of primary and secondary investments, with a potential to further its stake holding", city-based FSS said in a statement. Ecentric, headquartered in South Africa, a Standard Bank subsidiary, is a leading payment stitching and retail value-added services provider. Ecentric has a strong presence in domestic and other African markets for its payment acceptance solutions. "We are pleased to join Ecentric as an institutional investor in the company. We see the investment as an extraordinary opportunity to achieve a leadership position in the African payments space", FSS Managing Director Nagaraj Mylandla said. "The partnership will help us leverage mutual synergies to strengthen our presence .
Rupee gains 25 paise against dollar on positive cues
The Indian rupee Monday advanced by 25 paise to close at 69.89 against the US dollar in line with a strong rally in domestic equities, reflecting positive investor sentiments amid hopes that the incumbent NDA government will get the second term. Besides, sustained foreign fund inflows also helped the rupee trade higher. At the interbank foreign exchange, the Indian unit opened on a positive note at 69.99 against the dollar and hit a high of 69.8250 and low of 70.03. It finally settled the day at 69.89, showing 25 paise gains. The Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee against the dollar at 69.9308 and against euro at 78.5710. The reference rate for the rupee against the British pound was fixed at 90.7916 and against 100 Japanese yen at 62.93. In the previous session on Friday, the rupee was down 14 paise to close at 70.14. On a weekly basis, however, the domestic currency clocked 78 paise gains. Meanwhile, the US dollar index -- a measure of .