Companies and Markets

Companies & Markets

Three PSBs get rating upgrade over recapitalisation plan

Following the government’s plans to infuse capital in public sector banks, global rating agency Moody's Investors Service on Monday changed the outlook for three state-owned banks to stable from negative.

The three banks are Bank of India (BoI), Union Bank of India (UBI) and Oriental Bank of Commerce (OBC). The government last month announced its plans to infuse Rs 2.11 lakh crore into the struggling state-run banks over two years. This, the rating agency said, is credit positive for the banks.

Sensex, Nifty flat in late morning deals

The benchmark Sensex was trading flat in late morning deals hovered by lower Asian cues and crude jumped as Saudi Arabia's shake-up on anti-corruption crackdown.

Remain light, sell on rallies

The market remained on a roll and made fresh highs. To add to the momentum, FPIs, who had been sellers for quite some time, turned buyers as well. The momentum in mid-cap and small-cap stocks saw them outperforming the benchmark indices. The Sensex gained 528.34 points, or 1.57 per cent, while he Nifty gained 129.45 points, or 1.24 per  cent. The BSE Midcap Index gained 2 per cent while the BSE Smallcap was up 3.09 per cent.

Moody’s cuts RIL credit outlook to stable

Citing a likely negative free cash flow situation from heavy debt repayments over the next 18 months, global ratings agency Moody's has lowered the credit outlook on Reliance Industries to 'stable' from 'positive' but retained the Baa2 ratings its long-term debt.

Moody's said the company will see large cash outflow over the next 18 months towards paying back its creditors for huge capex it had incurred on the telecom business as well in expansion of the refining and petrochemical business in the past few years.

Promoters, PEs corner lion's share of IPOs

Companies have raised a record Rs 57,000 crore through initial public offerings this year, but more than Rs 45,000 crore of that has gone to promoters and other existing shareholders, leaving only 20 per cent funds for the firms.

Out of the total IPO funds raised by 31 companies so far in 2017, nearly 80 per cent (Rs 45,755 crore) has gone to existing shareholders. This has left Rs 11,115 crore for the companies in the form of fresh capital, according to an analysis of the IPO data available with stock exchanges.

Reliance Nippon AMC could become group’s largest post-listing

Another sector will join the Indian stock market on Monday with the listing of Reliance Nippon Life Asset Management, the first among 42 Sebi-registered mutual funds. The insurance sector joined the stock market in 2016 with the listing of ICICI Prudential Life Insurance Company and it has been followed by five more insurance IPOs so far, including HDFC Standard Life Insurance issue opening on Tuesday.

Air India to sell 2 properties to SBI, may fetch Rs 50 crore

Scouting for funds, Air India is in advanced discussions with public sector lender SBI for sale of at least two residential properties that could net nearly Rs 50 crore, airline and banking sources said.

While the government moves ahead with the process for strategic stake sale, the loss-making airline continues to work on the strategy to divest non-core assets.

PSU Banks may get Rs 70,000 cr through recap bonds this fiscal

The finance ministry may infuse about Rs 70,000 crore through recapitalisation bonds in the NPA-hit public sector banks in the next four months, sources said.

Last month, Finance Minister Arun Jaitley had announced an unprecedented Rs 2.11 lakh crore two-year road map for strengthening public sector banks. The plan included re- capitalisation bonds of Rs 1.35 lakh crore.

Currently, the government is in the process of finalising the structure of bonds and decision in this regard could be made by the end of this month.

Bharti Telecom increases stake in Airtel to 50.10 pc

Bharti Telecom has increased its shareholding in Bharti Airtel to 50.10 per cent by acquiring over 184.7 million shares from Indian Continent Investment Ltd (ICIL).

Bharti Telecom is the promoter of Bharti Airtel, India's largest telecom services provider.

"...The company has received a communication dated November 3, 2017 from Bharti Telecom, the promoter of the company that it has acquired 184,710,183 equity shares of the company from Indian Continent Investment," Bharti Airtel said in a BSE filing.