Sunday, September 30, 2018

LIC, SBI and Orix Corp putting the money where it should not be

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In one of the biggest bail out of crippled infra lender IL&FS, the state owned LIC and  SBI have announced they would subscribe to the proposed Rs 4,500 crore rights issue of the company. Similarly another big share holder Orix Corp will also participate in the rights offer.  LIC, the single largest shareholder with over 25 per cent, and Japan’s Orix Corp, which owns a little over 23 per cent stake and SBI owns around 7% , would raise their ownership in the company by subscribing to the rights issue.

According to our analysis, these additional investments will not bear fruits either in the medium or long term. Instead they would have allowed IL&FS to die naturally.

SEC agreement : Elan Musk to step down as Co's chairman

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Elon Musk of Tesla has agreed to pay $20 million each to financial regulators and  he will step down as the company’s chairman but remain as chief executive.

The securities fraud agreement, announced by the Securities and Exchange Commission  will come as a relief to investors, who had worried that a lengthy legal fight would only further hurt the loss-making electric car company.

The stock lost 14% and closed at $ 264 in Friday's trade.

KKR and Blackstone Group may buy stake in Shriram Group

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KKR and Blackstone Group  are among suitors that have expressed interest in acquiring a stake in Shriram Group.

The two private equity firms have each held preliminary talks in recent months about buying stakes in Chennai-based Shriram Group owned by Piramal Enterprises Ltd., TPG and an employee trust.

An investment could  be around $3 billion.

A deal would require group holding company Shriram Capital Ltd to first finalize plans for a three-way merger with its publicly traded arms, Shriram Transport Finance Co. and Shriram City Union Finance.

Saturday, September 29, 2018

BSE to commence commodity derivatives from 1 Oct

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Bombay Stock Exchange is set to commence trading in commodity derivatives from October 1 and has decided to waive off the transaction charges for the first year of commodities market operations.

To trim CAD, govt to borrow less

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Government will cut gross market borrowings by Rs 700 billion for 2018-19 to finance its fiscal deficit, which is expected to remain within the targeted 3.3 per cent of gross domestic product .

KVB fined by RBI

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RBI has fined Karur Vysya bank to the extent of Rs 5 Cr. The penalty is imposed for non-compliance with its directions on Income Recognition and Asset Classification norms, reporting of frauds, and on the need for discipline at the time of opening of current accounts. 

Garden Ship finally reaches port

The IPO of Garden Reach Shipbuilders & Engineers has been fully subscribed Friday. However the IPO has failed retail test. This segment has been subscribed by just 23% and employees portion 13%.

The Rs 3.45 billion IPO received bids for 2,95,85,400 shares against the total issue size of 2,92,10,760 shares, reflecting 1.01 times subscription, according to NSE website. The company had extended the issue period due to poor response.

FirstChoiceIPO had advised to stay away from the offer.

Forthcoming IPO : Neccon Power and Infra Limited

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Issue Details:

Issue size
1.27 Cr equity shares
Face value
Rs 10

M D Khetan
EPC for power distribution and transmission
Bse, Nse
P L Capital Markets

Zebpay closes shop, investors left in lurch

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India’s largest cryptocurrency exchange - Zebpay, has shut down its business on Friday. In a blog post, the firm said all pending transactions would be cancelled and remaining cryptocurrency units would be credited back to users’ wallets. 

Millions of investors had parked their money with Zebpay to trade in Cryptocurrencies. Bitcoin, the popular cryptocurrency touched high of Rs 20 lacs, last year and now it is trading around Rs 4.80 lacs per unit. Govt of India and RBI have banned trading in cryptocurrency in India.