Sunday, April 29, 2018

RBI rationalizes and eases ECB Norms

RBI has rationalized and eased the ECB norms as follows: 

(i) Rationalization of all-in-cost for ECB under all tracks and Rupee denominated bonds (RDBs) :

With a view to harmonizing the extant provisions of Foreign Currency and Rupee ECBs and RDBs, it has been decided to stipulate a uniform all-in-cost ceiling of 450 basis points over the benchmark rate. The benchmark rate will be 6 month USD LIBOR (or applicable benchmark for respective currency) for Track I and Track II, while it will be prevailing yield of the Government of India securities of corresponding maturity for Track III (Rupee ECBs) and RDBs.

(ii) Revisiting ECB Liability to Equity Ratio provisions:

It has been decided to increase the ECB Liability to Equity Ratio for ECB raised from direct foreign equity holder under the automatic route to 7:1. This ratio will not be applicable if total of all ECBs raised by an entity is up to USD 5 million or equivalent.

(iii) Expansion of Eligible Borrowers’ list for the purpose of ECB:

It has been decided to permit:

Housing Finance Companies, regulated by the National Housing Bank, as eligible borrowers to avail of ECBs under all tracks. Such entities shall have a board approved risk management policy and shall keep their ECB exposure hedged 100 per cent at all times for ECBs raised under Track I.

Port Trusts constituted under the Major Port Trusts Act, 1963 or Indian Ports Act, 1908 to avail of ECBs under all tracks. Such entities shall have a board approved risk management policy and shall keep their ECB exposure hedged 100 per cent at all times for ECBs raised under Track I.

Companies engaged in the business of Maintenance, Repair and Overhaul and freight forwarding to raise ECBs denominated in INR only.

(iv) Rationalization of end-use provisions for ECBs:

Currently, a positive end-use list is prescribed for Track I and specified category of borrowers, while negative end-use list is prescribed for Track II and III. It has now been decided to have only a negative list for all tracks.

GST at Rs 7.41 lac Cr

India has collected Rs 7.41 lakh crore in taxes in the first year of the Goods and Services Tax with revenues for a good part of four months not being accounted for because of the mid-year roll-out.

Maruti Suzuki grows at 10 percent in March quarter

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Maruti Suzuki has reported a 10 per cent rise in net profit at Rs 1,882 crore for the March quarter even as tax expenses went up.

The company had posted a net profit of Rs 1,711 crore in January-March, 2016-17.

Net sales during the quarter rose to Rs 20,594 crore, up 14 per cent against the year-ago period. For the full year ended March 31, the company posted its highest ever annual net profit of Rs 7,722 crore, up 5 per cent from Rs 7,350 crore in the previous year.

Net sales in 2017-18 stood at Rs 78,104.8 crore, up 17 per cent from 2016-17. Its market share has gone up by 2.7 per cent to 50 per cent in the passenger vehicle segment.

Idea's loss widens in q4

Idea's net loss widened to Rs 931 crore from Rs 326 crore a year. The telecom operator however fared better than what the markets had predicted.

Revenue for the third-largest telco slumped 25% on year and 6 % sequentially to Rs 6,137 crore. Idea, as on 31st march has  194.5 million users, added six million users on a net basis in the quarter.

MCA to probe Nupower Renewables

Ministry of Corporate Affairs has started an inspection  into the filings made by Nupower Renewables, a company owned by Deepak Kochhar, since its inception in 2008, for violations of the Companies Act, if any.

The MCA’s Mumbai office has sought details of investments made into the company, including by Videocon, and sought valuation reports based on which it received investments from overseas.

RIL reports highest ever profits

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Reliance Industries has reported a  net profit to Rs 9,435 crore, for Dec quarter as against  as against Rs 8,046 crore in the same period of last year.
The company achieved a consolidated revenue of Rs 129,120 crore, an increase of 39 per cent as compared to Rs 92,889 crore in the corresponding period of the previous year.

For the full year RIL's profit stood at Rs 33612 Cr, highest ever.

Friday, April 27, 2018


Issue Details :

Issue opens  / closes on
25-04 /27-04-2018
Issue size
30,00,000 equity shares
Face value
Rs 10

Manufacturers  of
ACSR/AAAC/AAC  Conductors

Nse, emerge
Mark Corporate services


Issue Details :

Issue opens  / closes on
25-04 /27-04-2018
Issue size
14,00,000 equity shares
Face value
Rs 10
Rs 30
Provider of diagnostic and related healthcare tests and services in Delhi/NCR
Bse, sme
Navigant Corp Advisors
Cameo Corp Services

Remarks :

1. Limited operational history.
2. Mired with litigations.
3. Experienced negative cash flows in the recent past.

Avoid the IPO.

Forthcoming IPO : Lodha Decvelopers

Mumbai based real estate enterprise Lodha Developers will soon file papers with Sebi for its Rs 5500 Cr IPO.

The company had filed its DRHP in September 2009 to raise about Rs 2,800 crore. But later shelved its plan to launch the IPO due to bad market conditions post the global financial crisis.

Yes Bank gains 10% on good q4 numbers

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 Yes Bank has reported a 29% jump in its March quarter net profit due to higher net interest income and other income.

Net profit for the quarter stood at Rs1,179 crore against Rs 914 crore a year ago. 

Net interest income  has  increased by 31% to Rs 2,154 crore as against Rs1,640 crore last year. Other income was at Rs1,421 crore, up 0.13% from Rs1,257 crore a year ago.
The stock closed at Rs 358, up 10 percent or Rs 33, in yesterday's trading with huge volumes on both the exchanges.

Axis Bank reports first ever loss

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Axis Bank has reported its first-ever loss since listing at Rs 2,189 crore for the quarter ended March 2018. The bank had posted a profit of Rs 1,225 crore in the corresponding quarter last year.

The Shikha Sharma-led bank saw its provisions and contingencies spiking nearly threefold to Rs 7,180 crore in the fourth quarter against Rs 2,581 crore last year.

This is the first time that the bank has reported loss in its listing history.

The stock closed at Rs 491, down one odd percent. The delivery percent  and OI indicates, the stock may move up in today's trade

Biocon reports muted earnings

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Biocon has posted a net profit of Rs 130 crore for the quarter ended March 31, 2018. The company had recorded a net profit of Rs 127 crore for the same quarter in the last fiscal year. 

Its total revenue for this quarter grew 27% to 1,237 crore as compared to Rs 974 crore for the same quarter in the 2016-2017 financial year. 

Biocon gained around 2% and closed at Rs 664 in Thursday's trading.
Reliance Capital has reported a 35.87% rise in consolidated net profit at Rs 428 crore in the fourth quarter ended March of 2017-18.

Its net profit stood at Rs 315 crore in the year-ago period.  Reliance Capital’s consolidated net profit for the financial year 2017-18 rose by 20.53% to Rs1,309 crore against Rs1,086 crore in the previous year.

The stock closed flat at Rs 428 in yesterday's trading.

Data breach : Yahoo agrees to pay $ 35 million as penalty

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Yahoo which was charged with failing to disclose a massive data breach, has agreed to pay $35 million in penalty to the US Securities and Exchange Commission. Yahoo Inc. has agreed to settle charges that it misled investors by failing to disclose one of the world’s largest data breaches in which hackers stole personal data relating to its three billion users.

Wipro reports 5% decline in revenues

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Wipro reported a net profit of Rs 1,800 crore for Dec quarter. The consolidated revenues stood Rs 14,304 crore, showing an annual decline of about 5%. 

For the full year ended March 31, 2018 the total revenue of the company declined by 1.7% to Rs 57,035 crore, while the net income dipped 6.4% Rs 8,003 crore. 

The stock closed at Rs 280, down 2% in yesterday's trading.