Companies and Markets

Companies & Markets

Retail investors turn cautious with insurance IPOs

Retail investors have matured and have become extremely choosy in the primary market, especially in the insurance space. The HDFC Standard Life Insurance IPO, which seemed a cake walk for the company and its merchant bankers, got a lukewarm response from the retail investors.

The HDFC Life pricing was seen as expensive by many analysts and brokers. They now say the chances of lower listing gains led to the portion of retail individual investors not getting fully subscribed, as per the latest data post-the IPO closure on Thursday.

Bharat Forge net rises 61%; to issue 1:1 bonus shares

Bharat Forge, the world’s biggest forging company, on Wednesday reported that its net profit for the three months to September rose by 60.5 per cent to Rs 203.72 crore, thanks to higher income and operational performance. This was marginally higher than the Rs 200 crore estimated by analysts tracked by Bloomberg.

The Pune-headquartered auto components major had posted a net profit at Rs 126.89 crore during the same quarter last year, Bharat Forge said in a regulatory filing.

JPMorgan calls India bonds ‘attractive’

India’s surging bond yields are starting to draw interest. JPMorgan Chase & Co says 10-year yields are becoming “reasonably attractive” now their premium over the central bank’s policy rate has increased to around 1 percentage point.

The nation’s 10-year yield jumped to a six-month high of 6.94 per cent Wednesday, from as low as 6.40 per cent in July, as rising oil prices add to inflationary pressures. The Reserve Bank of India held its repurchase rate at 6 per cent when it met last month.

Five railway subsidiary IPOs on anvil; govt eyes Rs 8K cr

The government proposes to push through initial public offers (IPOs) of the five railway subsidiaries, including Rail Vikas Nigam Limited (RVNL) and RITES, in the last quarter of the current financial year.

The IPOs are aimed at mobilising in excess of Rs 8,000 crore while allowing the companies to get listed and comply with mandatory 25 per cent public holding norm.

MFs biggest beneficiary of DeMo

Demonetisation has been a boon as far as mutual funds are concerned. The industry saw massive fund inflows since the note ban was announced on November 8 last year and assets under management of MFs swelled to a record high due to financialisation of savings as options like fixed deposits — due to reducing interest rates — gold and realty were gradually extinguished.

India is right among half the countries we have studied

The Indian mutual fund industry has seen substantial improvement in disclosure norms over the past few years and is among the best globally. This could boost investor confidence, leading to a bigger shift to financial assets, says Anthony Serhan, MD-Research Strategy, Asia-Pacific, Mor-ningstar in an exclusive interview to Ashwin J Punnen of Financial Chronicle.

You have recently come out with your biennial report grading the experiences of mutual fund investors in 25 countries. How has India faired?

VRS, renting out property mulled for MTNL revival

A government panel currently looking at revival of the loss-making and debt ridden MTNL is veering towards a decision of introducing a voluntary retirement scheme (VRS) in the PSU to trim its 30,000 workforce and rent out its lucrative real estates  in Delhi and Mumbai to fund the VRS and infusing capital to sustain operations as per a plan worked out by a consultant Deloittee.

NMDC plans to bid for $9b diamond mine in MP

PSU miner NMDC plans to bid for a $9 billion diamond project in Madhya Pradesh, three sources directly involved with the plan told Reuters, competing against resources conglomerates Adani and Vedanta.

NMDC plans to shortly send a team to Bhopal for talks with state authorities, one of the sources said.

“We initially wanted the central government to directly give us the mine through nomination but it was turned down,” another of the sources said, adding that the government wanted the mine to be sold via auction due to the large amount of interest.

Merger of MMTC, STC on the cards

The cabinet will soon consider a plan to merge central PSUs MMTC and STC into one big trading company that may also do business independently.

This will be the second most important decision on public sector undertakings (PSUs) by the NDA government after the in-principle approval accorded to the merger of petroleum behemoths HPCL and ONGC.

PSUs nudged to set up SPVs for greenfield units

As the private sector investment is in slow lane due to sluggish market conditions, profitable central pubic sector enterprises such as SAIL, NMDC, Nalco, RINL, MOIL and KIOCL have been roped in to play a larger role in boosting manufacturing activities. They have been asked to scale up investments in greenfield projects and prop up demand through aggressive marketing strategies.

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