Companies and Markets

Companies & Markets

Decisive up-move unlikely now

The market ended lower in a highly volatile trading session with the Sensex down 150.20 points, or 0.44 per cent, at 33,685.54 and the Nifty down 50.75 points, or 0.49 per cent, at 10,360.15. There were buying interest in mid- and small-cap segments. The BSE Mid-Cap Index rose 0.49 per cent and the Small-Cap Index gained 0.8 per cent, outperforming the Sensex. 

Currency derivative trade limit raised to $100m from $15m

Sebi on Thursday substantially raised the exposure limit under exchange-traded currency derivatives trading for residents and foreign portfolio investors (FPIs) to $100 million across all currency pairs involving the rupee.

The move will help entities engaged in forex transactions to manage currency risks better.

The decision comes after the Reserve Bank of India (RBI) in February raised these limits, beyond which market participants would be required to establish proof of underlying exposure in the currency derivatives segment.

GST complex, rates second highest, says World Bank

The goods and services tax (GST), introduced by the Narendra Modi government from July 1, 2017, is one of the most complex and has the second highest rate in the world, according to the World Bank’s bi-annual India Development Update.

Power producers want sector specific plan for NPA resolution

Power producers have approached the Reserve Bank of India (RBI) seeking a special dispensation for the sector in dealing with cases of loan defaults and implementation of a resolution plan for stressed assets. In a letter to RBI governor Urjit Patel, producers said a one-day default in servicing of loan by a stressed power company should not push it into finalising a resolution plan. They have sought extension of period to finalise the resolution plan from present 180 days to one year. The companies have cited unique circumstances for a special dispensation from RBI.

Suitors find golden opportunity in stressed steel assets

Nobody would have guessed it, but it is true that the first set of 12 biggest defaulters identified by the Reserve Bank of India for resolution by the National Company Law Tribunal (NCLT) under Insolvency and Bankruptcy Code (IBC) is getting unexpected interest from a host of healthier entities who see a steal in the offers.

Banks to establish robust risk management system soon

After burning their fingers in the country’s largest bank fraud of over Rs 12,000 crore in PNB allegedly by Nirav Modi, bankers on Thursday decided to put in place a more robust and secure risk management mechanism in areas of trade, finance, SWIFT, credit risk and operational risk besides cyber and IT risks within six months.

Suryoday Bank to go for IPO next year

Suryoday Small Finance Bank will go for initial public offering before the end of 2019. The bank plans to raise Rs 400-500 crore through IPO. Before that, it may look at issuing preferential shares to raise around Rs 250 crore.

“Through listing the bank on the bourses, we would raise some growth capital and provide an opportunity for some of the existing shareholders to divest their stake. Before that we might go for a preferential issue to raise Rs 200 to 250 crore,” said Baskar Babu, MD and CEO of Suryoday Small Finance Bank.

Midhani IPO seeks to raise Rs 438 cr

State-owned Mishra Dhatu Nigam (Midhani), which manufactures strategic materials like special steels, super alloys and titanium alloys for defence services, space research and nuclear power plants, will hit the capital market on March 21 to raise about Rs 438 crore.

The initial public offering in the price band of Rs 87 to Rs 90 per share of Rs 10 face value will close on March 23. The public offer will see divestment of 25 per cent government stake in the PSU through sale of 48,708,400 equity shares.

Bandhan Bank aims to keep gross NPA below 1%

Amidst so much of furore over bank NPAs, Bandhan Bank, which is in the process of raising Rs 4,473 crore through its mega initial public offering (IPO), is gearing up to bring down its gross non-performing asset (NPA) ratio to below one per cent in the next financial year.

In 2014 Bandhan got transformed into a bank from a micro-finance institution, following a new banking licence it got from the

apex bank. IDFC was the other entity that got a banking licence from the RBI then.

Wipro to divest hosted data centre services biz to Ensono for $405m

Wipro, the country’s third largest software services firm, on Wednesday said it has signed a definitive agreement to divest its hosted data centre services business to US-based IT services firmEnsono for $405 million.

The deal will see transition of eight data centres and over 900 employees of the hosted data centre services business to Ensono, Wipro said in a statement.