Industry body FICCI on Thursday hailed the centre's go-ahead to the sale of its stake BPCL, SCI and Concor stating that the move would strengthen the performance of these companies and bring in fresh investments for both modernisation and expansion."It is encouraging to see the government take further steps to push the reforms agenda as well as address some of the critical pain points of industry.The decision to undertake strategic disinvestment and transfer management control in entities like Shipping Corporation of India (SCI), Bharat Petroleum Corporation Limited (BPCL) and Container Corporation of India (Concor) are welcome," Ficci President Sandip Somany said in a statement.Close Further, the decision to give greater operational authority to the board of National Highways Authority of India (NHAI) and enabling it to securitise user fee receipts for raising long-term funds from banks is another major positive, Somany said. related news IOC, other PSUs not to bid for … [Read more...] about Stake sale in BPCL, SCI, Concor to strengthen firms, bring in fresh investments: FICCI
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The economic slowdown is likely to weigh on the credit offtake of the banking system, but brokerage firm BNP Paribas says in India the sector will recover, thanks to lower cost of funds, cost efficiencies and lower tax.The brokerage said higher operational efficiency driven by digital initiatives and lower workforce requirements will ensure that the cost to income ratio maintains its downward trajectory."We believe a lower cost of funds, cost efficiencies, and the benefit from lower tax rates should lead to return on equity (RoE) accretion of 370bps for private banks. Higher RoEs should warrant much higher price-to-book ratios (P/Bs). We see a 10-15 percent upside from current valuations for private banks over the next five years," said BNP Paribas.Close Given that the asset quality cycle has peaked, the credit cost should be lower than those in the previous cycle, the brokerage said. related news Sensex at record high but midcaps likely to generate wealth; 20 stocks … [Read more...] about Banking set to see a recovery, life insurance the next big sector: BNP Paribas
The recent sharp rally in paper stocks following the government's pledge to eliminate single-use plastic has made investors sit up and take note.Many are of the opinion that the government’s shun-plastic push has brightened the prospects of paper companies. But, analysts and industry watchers are less convinced with this rally.The government has pledged to eliminate single-use plastic by 2022. As per reports, a nationwide ban on single-use plastic, including bags, cups and straws, could come as early as on October 2, the 150th birth anniversary of Mahatma Gandhi.Close Since August 15, when Prime Minister Narendra Modi urged citizens to give up single-use plastic by October 2, 20 paper stocks have surged over 10 percent as of September 11 on BSE. related news Sensex at record high but midcaps likely to generate wealth; 20 stocks to bet on Technical View: Nifty forms Doji pattern, record high likely if index closes above 12K Sensex hits a new high, 4 factors that could … [Read more...] about 20 paper stocks up 10% since Aug 15. Will it hold?
To clear its loan obligations, debt laden Essel Group on November 20 announced plans to sell 16.5 percent stake in its flagship company Zee Entertainment Enterprises to financial investors.Promoter Subhash Chandra along with his family owes over Rs 7,000 crore to domestic lenders, including mutual funds, and Russian lender VTB.The promoter and promoter group holds 22.37 percent equity in ZEE, of which 96 percent was pledged with lenders, as per shareholding data available on the exchanges.Also read: Is Subhash Chandra’s stake reduction good news for Zee shareholders?With this stake sale, mutual fund experts believe that fund houses will get back their capital stuck with the Essel Group. “All lenders debt will be cleared through this stake sale, and in some cases fund houses will be able to recover their lost valuations,” said Dhirendra Kumar, CEO, Value Research, a mutual fund research firm.In September, Essel group had made a part payment to the … [Read more...] about Subhash Chandra stake stake in ZEE | Will it release logjam for MFs?
Markets regulator SEBI will be looking to tackle a host of issues at its board meeting on November 20.Here are some of the major talking points:Rights issue processClose Based on a long-pending demand of making the rights issue process more efficient, the market regulator may discuss a significant reduction in time taken to process a rights issue to 31 days or less, from the current 55-58 day framework. related news Stake sale in BPCL, SCI, Concor to strengthen firms, bring in fresh investments: FICCI NCP leaders meet ahead of joint meeting with Congress Zydus Cadila gets USFDA nod for Isosorbide Dinitrate tablets, Desonide Cream As it stands now, a rights issue process, through the fast track route, typically takes 55-58 days and excludes the period taken for completing the letter of offer and any statutory and regulatory approvals.This has been under discussion as issuers perceive a higher exposure to price risk due to current rights issue process.To this effect, the … [Read more...] about SEBI board meet: Here’s all you need to know