Companies and Markets

Companies & Markets

Fund raising through preferential allotment rises 39-fold in April

Companies garnered over Rs 72,000 crore through preferential share issues in April this year, recording a whopping 39-fold rise over the same month a year ago.

The firms had mopped up Rs 1,835 crore in April 2017.

The April 2018 mobilisation was even greater than what the comapnies had garnered during the entire 2017-18, when they could manage to get only Rs 59,472 crore.

The funds were mobilised for business expansion, refinancing of debt, working capital requirements and other general corporate purposes.

Jio soft-launches net services of 5G speed

Even as top US telcos are bracing up to launch commercial 5G services, Reliance Jio has upgraded its 4G IP network and started a pre-5G internet service to be a step ahead of its domestic rivals and possibly unleash a 4G-like disruption in the 5G market.

FinMin looks at options to check soaring bond yields

The finance ministry is looking at various options, including floating rate notes and buybacks, to rein in surging bond yields. Rising yields can disturb fiscal maths, wane investor interest in G-secs and raise the borrowing costs of the government.

Bears get the upper hand

The market snapped the three-day winning streak as selling emerged in IT, bank and consumer durables stocks on weak global cues. The sentiments were hit after the US Federal Reserve raised interest rates for the second time this year and hinted at two more hikes in 2018.  The Sensex fell 139.34 points, or 0.39 per cent, to settle at 35,599.82 while the Nifty 50 fell 48.65 points, or 0.45 per cent, to settle at 10,808.05. The BSE Mid-Cap index fell 0.08 per cent Small-Cap rose 0.07 per cent. Both these indices outperformed the Sensex.

HFCs bullish on future

Housing finance companies (HFCs) have been on the investors radar ever since the Narendra Modi government took office in 2014. The government’s massive housing construction plan under the Housing for All scheme was seen as a major positive for the sector. This, along with a host of enabling legislations and policies like RERA and liberal interest subsidy in a falling interest rate regime has helped many housing finance stocks to move up significantly.

Just 1% growth in premium for pvt insurers in Apr-May

For private life insurers, financial year 2018-19 started on a flat note as they recorded a mere one per cent growth in individual new business premium in the first couple of months.

Private life insurers underwrote an individual adjusted first year premium of Rs 3,458 crore in April and May this year compared to Rs 3,408 crore in corresponding period of last year, according to monthly data released by Life Insurance Council. The new business premium in the previous year had witnessed strong growth on account of demonetisation-related inflows.

NTPC’s SJVNL acquisition likely this year

After kickstarting consolidation in the oil sector, the government plans to undertake a similar exercise in the power sector this year, allowing state-owned NTPC to buy out the entire central government’s equity in hydropower generator SJVNL.

Focus on individual stocks

The market closed marginally higher after a highly volatile trade with the Sensex ending 46.64 points or 0.13 per cent higher at 35,739.16, the Nifty 50 index rose 13.85 points or 0.13 per cent to settle at 10,856. The S&P BSE Mid-Cap index fell 0.46 per cent whereas the Small-Cap index fell 0.21 per cent. Both these indices underperformed the Sensex. The market breadth was negative as 1,297 shares rose and 1,380 shares fell. The markets opened higher but gradually lost steam as profit taking set  after five consecutive days of positive advance decline ratio of 0.94.

Bayer begins open offer process for Monsanto India

German chemicals and pharma major Bayer Group has launched the process for over Rs 1,300-crore open offer to acquire up to 26 per cent additional stake in Monsanto India, following global acquisition of the US biotech firm for $63 billion.

Bayer AG, along with its Indian arm Bayer CropScience, has proposed to buy up to 44,88,315 shares, representing 26 per cent of the fully diluted voting equity share capital of Monsanto India, according to a regulatory filing.

The open offer is set at Rs 2,926.87 a share and the maximum size of the offer will be Rs 1,313.67 crore.

Bharat 22 ETF to raise Rs 8,400 cr from new issue

After announcing a Rs 466-rore Rites IPO this week, the government is looking to raise Rs 8,400 crore through Bharat 22 ETF Further Fund Offer (FFO), which is being managed by ICICI Prudential Asset Management Company.

Bharat 22 ETF FFO to raise Rs 6,000 crore, with a green-shoe option to retain Rs 2,400 crore more, opens on June 19 and closes on June 22.

The ETF received good response last year when it was launched.

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