Companies and Markets

Companies & Markets

Bandhan Bank to acquire Gruh Finance in all-share deal

The board of directors of Bandhan Bank and GRUH Finance on Monday approved the merger of Gruh into Bandhan Bank in a share swap deal. Shareholders of Gruh Finance will receive 568 shares of Bandhan Bank for every 1,000 shares.

Gruh Finance is the affordable home loan subsidiary of Housing Development Finance where it owns 57.86 per cent stake in it.

IL&FS arm defaults on Rs 7.12 cr dividend payment

IL&FS Transportation Networks Limited (ITNL) — an arm of debt-laden Infrastructure Leasing & Financial Services (IL&FS) — defaulted on dividend payment of Rs 7.12 crore on Monday due on redemption of cumulative non-convertible redeemable preference shares.

In a filing to the exchanges, ITNL said that the dividend of Rs 7.12 crore was due for the period between April 1, 2017 to December 23, 2018, and was not paid due to insufficient funds in the company. Last month, the company began the sale of its domestic road assets to garner the funds and repay the debts.

Rcom makes payment of Rs 131 crore to Ericsson

Reliance Communications (RCom) on Monday said it has been given 4 weeks’ time to file response to the contempt petition filed by Ericsson against its chairman Anil Ambani and has deposited Rs 131 crore towards part payment to the Swedish firm.

Last week, Ericsson filed a second contempt petition in the Supreme Court against Ambani asking that he be detained in civil prison and be barred from travel overseas unless he ensures payment of Rs 550 crore owed to the Swedish company.

On this RCom blamed Ericsson of engaging in a media trial.

OVL acquisitions fail to augment energy security

ONGC Videsh (OVL), the overseas arm of Oil and Natural Gas Corporation (ONGC), seems to be following the trajectory taken by its parent, which failed to achieve any significant increase in domestic production of oil and gas.

As per the company data, though the overseas hydrocarbon output from OVL rose by over 10 per cent to 14.16 million tonnes of oil equivalent (mtoe) in FY18 against 12.80 mtoe in FY17, several of its acquisitions remained mired in delays causing significant production and revenues losses.

Be greedy when others are fearful

After a successful end to financial year 2017-18 (FY18), which saw policy reforms such as Goods and Service Tax (GST) and Insolvency & Bankruptcy Code (IBC) along with sustained capital market performance, we see FY19 to be an earth-shaking year for India.

MFs add Rs 1.24 lakh cr to asset base in 2018

Mutual funds have added a staggering Rs 1.24 lakh crore to their asset base in 2018, assisted by a consistent increase in SIP flows and the robust participation of retail investors despite volatile markets.

The asset under management (AUM) of the industry grew by 5.54 per cent, or Rs 1.24 lakh crore, to Rs 23.61 lakh crore at the end of December 2018, up from Rs 22.37 lakh crore at the end of December 2017, latest data available with the Association of Mutual Funds in India (Amfi) showed.

Market in bearish mood

The week began on a flat note and brought an end to 2018, which was not a great year for equities. The beginning of 2019 was on a weak note and intra-day, there was a sharp turnaround with the market gaining after being down quite sharply. The next two days were down days and Friday saw some recovery but not enough to pull the weekly performance into the black.

FPIs pull out Rs 83,000 cr in 2018

Overseas investors pulled out over Rs 83,000 crore from the capital markets in 2018, after pouring in a record Rs 2 lakh crore in the preceding year, on the back of rate hikes in the US, rise in global crude prices and rupee depreciation.

Moreover, the flows are expected to be range-bound in 2019, as FPIs may continue with a cautious stance until there are concrete signs of economic recovery and certainty over the formation of a stable government after the general elections, said Himanshu Srivastava, a senior analyst at Morningstar Investment Adviser.

Most banks unlikely to escape PCA net

Despite recapitalisation, many public sector banks under the prompt corrective action (PCA) framework of RBI are yet to meet the qualification to come out of it as they have not improved upon several other triggers, including two-year RoA and reduction of net NPAs.

Also, it’s not clear if RBI will accept their bid to jump out of the framework as it was not the intended objective of putting them in that zone.

The PCA list will be reduced as Dena Bank will cease to exist after April 1 following merger with Bank of Baroda.

110 firms under SFIO lens for alleged fraud

The serious frauds investigation office (SFIO), which comes under the ministry of corporate affairs, has launched probe into over 110 companies for fraudulent activities in the last three years.

So far, four directors of these companies have been arrested for involvement in the fraudulent activities and some others may soon be behind the bars.

According to information with Financial Chronicle, most companies under investigation are mid-cap and small cap firms, including some public sector undertakings.