Shares of Reliance Capital are locked at the five percent lower circuit on November 21 after Delhi High Court restricted sale of the company's assets.The court passed an order placing restrictions on any sale, disposal or creation of any encumbrance on any assets of the company, which include the company's 4.28 percent shareholding in Reliance Nippon Life Asset Management till December 16, the company said in a release."The company shall take all appropriate steps in the matter as legally advised including to file an appeal against the said order in the in to protect the interests of its lenders and other stakeholders," it added.Close There were pending sell orders of 112,619 shares, with no buyers available. related news Cadila Healthcare gets USFDA approval for Isosorbide Dinitrate, Desonide; shares volatile Jubilant Life Sciences share price rises 7% after China terminates anti-dumping duty D-Street Buzz: Oil & gas stocks fall led by BPCL; … [Read more...] about Reliance Capital share price locked at lower circuit after assets sale restriction
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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 Essel Group stake sale in Zee: Will it release logjam for MFs?
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
Debt-laden Essel Group, promoter of Zee Entertainment, is looking to sell up to 16.5 percent stake in the media company.After the transaction, Essel's holding will come down to five percent in Zee, out of which encumbered holding will be 1.1 percent."Essel Group will be left with token stake and they will have financial interest in Zee," said Utkarsh Sinha, Managing Director, Bexley Advisors.Close While Sinha said that the 16.5 percent stake sale was an unexpected outcome, it is one among the few good options available."This way, the sale would proceed in an orderly fashion which is critical for maximising value," he said.He added that stake sale to financial investors is the best possible outcome they (Essel Group) could have hoped for given the fact that Zee shares have tumbled.On October 19, Brickwork Ratings downgraded Zee's six per cent Cumulative Redeemable Non-Convertible Preference Shares and the Issuer rating.The rationale behind the downgrade was deteriorating … [Read more...] about Essel Group to lose controlling stake in Zee Entertainment
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