Fitch affirms VR Ratings for Canara Bank

Fitch Ratings has affirmed Canara Bank's Viability Rating  at 'bb-' following the announcement that India's government plans to merge the state bank with another southern mid-sized state bank, Syndicate Bank. 

Fitch has concurrently affirmed Canara's Issuer Default Rating (IDR) at 'BBB-' with a Stable Outlook, Support Rating at '2' and Support Rating Floor at 'BBB-'. A full list of rating actions is at the end of this rating action commentary.

Banks seek RBI nod for deferred tax route

Commercial banks are looking to move to the new tax regime will have to write off or reinstate deferred tax assets. Banks with huge DTAs on their books have reached out to the Reserve Bank of India to synchronize its provisioning norms with the recently-announced tax rates. Banks are hoping RBI prescribes a methodology so they can write these off over next three to five years. Banks fear that reinstating DTAs at one go could impact their net worth.

IPO ANALYSIS : IRCTC - AVOID

Issue Details :

Issue opens / closes on	30-09 /03-10-2019
Issue size	Rs 625 Cr
Face value	Rs 10
Price Band	Rs 315-320
Business	Online ticketing, tourism and the catering arm of railways
Promoters	Govt of India
Listing	Bse, Nse
BRLM	IDBI Capital Markets, SBI Caps  and Yes Securities
Registrar	Alankit Assignments Limited

AWAIT DETAILED ANALYSIS.

IPO ANALYSIS : SHIV AUM STEELS LIMITED - AVOID

Issue Details :

Issue opens / closes on	19-09 /23-09-2019
Issue size	36,00,000 equity shares
Face value	Rs 10
Price Band	Rs 44
Business	Trading in mild steel products
Promoters	Sanjay Bansal, Ajay Bansal, Jatin Mehta, Jatin Mehta HUF
Listing	Nse, emerge
BRLM	Aryaman Financial Services
Registrar	Skyline Financial Services

Moody's : Rate cut credit negative for sovereign

Rating agency Moody's says that the government's decision to reduce the base corporate tax rate to 22 per cent from 30 per cent as part of stimulus measures to revive slowing economic growth is credit positive for companies because it will enable them to generate higher post-tax incomes.

However, it is credit negative for the sovereign as it aggravates mounting risks for the government in meeting its fiscal deficit target.

Among Moody's rated non-financial companies in India, commodity and information technology  services companies will benefit most from the tax rate cut. But the degree of strengthening in corporate credit profiles will depend on whether companies reinvest surplus earnings into their businesses, or use them to reduce debt or to boost shareholder returns.

Govt removes DRR

Government has removed Debenture Redemption Reserve requirement for issuance of debentures by non-banking financial companies, housing finance companies and listed firms. 

The corporate affairs ministry has said that the requirement for a DRR of 25 per cent of the value of outstanding debentures issued by listed companies, Non-Banking Financial Companies  and Housing Finance Companies has been removed.

NBFC and HFC stocks are likely to see traction in today's trade.

IPO NEWS : Manipal Health Enterprises plans listings

Manipal Health Enterprises is looking at listing on the bourses in the next two years in order to give its investors TPG Capital and Temasek  an exit.

M H E is one of India’s leading hospital networks, providing multi-speciality care to both Indian and international patients. With more than 6,000 operational beds across its network of hospitals and with its experienced team of medical professionals, it is committed to provide quality and affordable health care.

ICICI Bank reports good numbers in Q1

ICICI Bank, India's biggest private sector bank, has posted a profit of Rs 1,908 crore in June quarter. 

The bank had posted a loss of Rs 120 crore in the year-ago period and a profit of Rs 969 crore in the previous quarter. 

Net interest income grew  by 27 percent year-on-year to Rs 7,737 crore for quarter that ended on June 2019 with healthy loan growth of 15 percent YoY.

The stock closed at Rs 416, up Rs 7 in Friday's closing.

GLOBAL RANKING : RIL top ranked Indian company

Reliance Industries  has become the top-ranked Indian company to feature in the latest Fortune Global 500 list.

The oil-to-retail major has toppled state-run Indian Oil Corporation  as the top-ranked Indian company.

RIL has attained a rank of 106 in the latest list, recording an improvement of 42 positions from its previous ranking.

On the other hand, IOC improved its position to 117th rank, registering a jump of 20 spots.

Other Indian companies in the Fortune Global 500 list include ONGC (160), State Bank of India (236), Tata Motors (265), Bharat Petroleum (275) and Bangalore based Rajesh Exports is at 495.

IPO ANALYSIS: AFFLE INDIA LIMITED - AVOID

Issue Details :

Issue opens /closes on	29-07/31-07-2019
Issue size	Rs 459 Cr
Face value	Rs 10
Price Band	Rs 740-745
Business	Technology - consumer intelligence  platform that delivers consumer acquisitions, engagements  and transactions through  relevant mobile advertising / E commerce.
Promoters	ANUJ KHANNA SOHUM AND AFFLE HOLDINGS PTE. LTD
Listing	Bse, Nse
BRLM	ICICI Securities, Nomura
Registrar	Karvy

Await detailed analysis.

Axis Bank to raise Rs 9000 Cr, appoints merchant bankers

 Axis Bank has appointed investment banks Citigroup, JP Morgan and Axis Capital to help it raise up to Rs 9000 Cr through a share sale, said a person aware of the development.

The bank plans to raise the funds through a qualified institutional placement  offering by selling shares to institutional investors. It will help the bank shore up its capital adequacy ratio and push for lending growth.

Axis Bank closed at Rs 768, down Rs 18 in yesterday's trade.

Govt mulls merger of OBC, Andhra and Allahabad Bank with PNB

Center is mulling merger of two or three small state-run banks - Oriental Bank of Commerce, Andhra Bank and Allahabad Bank with PNB.

Exceptional one time credit help Bharti Airtel to post Rs 576 Cr net

 Bharti Airtel on Monday reported a consolidated profit of Rs 576 crore, a jump of 37 per cent during the fourth quarter ended March 31, as compared with Rs 419 crore in the corresponding period last year.

The net profit  was bolstered by a one-time exceptional credit of Rs 2,168 crore arising from re-assessment of levies, based on a recent pronouncement.

The consolidated revenue of the company also rose by six per cent YoY to Rs 20,602 crore during the quarter as against Rs 19,394 crore in January-March 2018.

ICICI Bank's net dips in Q4

 ICICI Bank has registered a five per cent drop in its net profit in the fourth quarter of 2018-19.

The bank’s net profit fell 4.99 per cent to Rs 969 crore in the January to March 2019 quarter from Rs 1,020 crore a year ago.


The bank’s bad-loan provision rose to Rs 5,451 crore in the fourth quarter of 2018-19 from Rs 4,244 crore in the third quarter.

IPO ANALYSIS : ARTEMIS ELECTRICALS LTD - Avoid

Issue Details :

Issue opens / closes on	24-04 /30-04-2019
Issue size	70,00,000 equity shares
Face value	Rs 10
Price Band	Rs 55-60
Business	Mfrs of LED lighting systems /accessories
Promoters	PRAVIN KUMAR AGARWAL & M/S YASHVIKRAM INFRASTRUCTURE PRIVATE LIMITED
Listing	Bse, sme
BRLM	Fedex Securities
Registrar	Cameo Corp services

IPO ANALYSIS : WHITE ORGANIC RETAIL LIMITED - Avoid

Issue Details :

Issue opens / closes on	26-04 /02-05-2019
Issue size	24,54,000 equity shares
Face value	Rs 10
Price Band	Rs 63
Business	Trading in agri products
Promoters	R. DARSHAK MAHESH RUPANI, MR. PRASHANTT MAHESH RUPANI AND WHITE ORGANIC AGRO LIMITED
Listing	Bse, sme
BRLM	Finshore Management Services
Registrar	Link Intime

Remarks:

1. Clash of business interest.
2. EPS is misleading. (company’s other equity is huge).

IPO ANALYSIS : G.K.P. Printing & Packaging Limited - Avoid

Issue Details :

Issue opens / closes on	23-04 /26-04-2019
Issue size	20,56,000 equity shares
Face value	Rs 10
Price Band	Rs 32
Business	Mfrs and traders of corrugated boxes
Promoters	KEVAL HARSHAD GORADIA AND PAYAL KEVAL GORADIA
Listing	Bse, sme
BRLM	Holani Consultants
Registrar	Link Intime

Remarks:

Limited operational history - less than a year.

Maruti Suzuki India's net declines, stock down 2 percent

 Maruti Suzuki India has reported a 4.6 per cent decline in net profit to Rs 1,795.6 crore for the fourth quarter of the 2018-19 fiscal.

The company had posted a net profit of Rs 1,882 crore in the January-March period of 2017-18.

For the entire 2018-19 fiscal, the company has posted a net profit of Rs 7,500 crore, down 2.9 per cent from the previous fiscal.

The shares of Maruti reacted negatively and ended the day at Rs 6880, down almost 2 percent.