capital restructuring norms for CPSEs updated to add value
India's finance ministry has revised guidelines for capital restructuring by central public sector enterprises (CPSEs), aiming to enhance their value creation and shareholder returns. Key changes include a revised minimum annual dividend requirement and increased flexibility for share buybacks, bonus share issuance, and share splits. Key Points
Economic TimesRupee falls 2 paise to hit all-time low of 83.71 against US dollar
Mumbai, Jul 24 (PTI) The rupee depreciated 2 paise to hit its all-time closing low of 83.71 against the US dollar on Wednesday, weighed down by a strong dollar against major crosses overseas amid investors’ weak appetite for riskier assets. Forex traders said the increase in capital gains tax and removal of indexation benefits announced […] Key Points
ThePrintWhere is Nifty50 headed in April? See what history has to tell about D-Street action
FY25 has started positively for equities, with strong capital flows and Nifty50's 27% gains in FY24. Bulls are likely to dominate Dalal Street in April amid key events like RBI's monetary policy and general elections. Key Points
Economic TimesHinduja company taps Japanese banks to fund Reliance capital buy
Japanese banks may derive comfort from Reliance Capital's association with Nippon Life, a joint venture partner of the former, according to the sources. The two together run a life insurance joint venture in India. Key Points
Economic TimesClimate tech startup Sprih raises $3 million in funding round led by Leo Capital
Sprih raised $3 million for global expansion and aims for 40-50 customers with a revenue target of $6-7 million. Customers include Indigo Paints and Hero MotoCorp. Varaha raised $8.7 million in funding led by RTP Global. Key Points
Economic Times
At times underperformance of capital employed on the Street is better than capital erosion: 6 FMCG stocks
It might appear odd to look at a sector that on the business side is facing headwinds and on the stock market front has been underperforming. But sometimes the rationale goes against owning a set of stocks when a bull run is just starting, the same rationale is applicable for buying the same set of stocks when there is a high risk of a correction in stock markets or when a correction has already started. The logic is that there are times when it is more important to focus on capital preservation even if it is coming at the cost of some under-performance of the capital employed in the short term. The way markets have corrected on Wednesday, it is very clear that bears are around the corner to clear the froth on the street. There is enough evidence to show that when bears are back on the street, they are not able to harm companies and sectors where even if valuations are not cheap the balance sheets and core business are strong. So, it is probably time to bring these old war horses back on the watch list. Key Points
Economic TimesRealty fund flows into small town India boom
Capital flows in India's tier-II and tier-III cities doubled in 2023 to a record $1.3 billion, driven by robust real estate demand. Developers flocked to these cities for land acquisitions, and private equity interest is growing across sectors like e-commerce and startups. Key Points
Economic TimesAditya Birla Capital, Aditya Birla Finance announce a Scheme of Amalgamation for creation of a large NBFC
Aditya Birla capital Limited (ABCL) and Aditya Birla Finance (ABFL) have approved the Scheme of Amalgamation (Scheme) to create a large unified operating NBFC. The merger will result in a reduction of legal entities and simplification of the group structure of Aditya Birla Capital. It will also comply with the Scale based Regulations of RBI, which require mandatory listing of Aditya Birla Finance by September 30, 2025. Key Points
Economic TimesYour Questions Answered: How does tax-loss harvesting work and can it minimise my tax outgo?
Tax-loss harvesting is a strategy to minimize tax liability by selling underperforming investments to offset gains. It helps rebalance portfolios and reduce overall tax burden by offsetting short-term losses against gains and long-term losses against gains. Key Points
mintPre-IPO party: Tiger Pacific capital latest to pour into Bira 91 Keg
Tiger Pacific capital acquires 4% of B9 Beverages for $25 million, strengthening its capital base. The acquisition includes strategic partners and blue chip financial sponsors across geographies. Ankur Jain plans to raise $50 million for pre-IPO companies and listed securities. Key Points
Economic Times
Liquidity and tax implications should be key factors for investing in any instrument: Shweta Rajani
Shweta Rajani says that when making investment decisions, it is important to consider taxation and avail tax-saving provisions like Section 80C. The approaching deadline for LTCG tax highlights the implications of selling various capital assets. ELSS is the preferred investment option over PPF and NPS due to higher returns and shorter lock-in. Key Points
Economic TimesEV startup Vidyut raises $10 million
India Business News: Vidyut, a full-stack EV ecosystem startup, has raised $10 million in a Series A round. The startup aims at facilitating easier EV ownership for small and large businesses by offering solutions such as EV insurance, lifecycle management and EV resale. Key Points
Times Of India‘Govt has set sight on marathon to 2047, emphasis on fiscal prudence’
Budget News: Finance secretary T V Somanathan discusses the government's focus on fiscal prudence and its goal of making India a developed country by 2047. Find out more about the Interim Budget and its roadmap for the future. Key Points
Times Of IndiaStoking ‘public sentiments’ before polls? YSRCP leader wants Hyderabad to remain common capital
From 2 June, Andhra will have no entitlement over Hyderabad. Opposition has dismissed YSRCP leader Subba Reddy's call to extend deadline till Vizag's set up as capital as 'ridiculous'. Key Points
ThePrintcapital SFB IPO to debut on the bourses tomorrow; here's what GMP indicates ahead of listing
Capital Small Finance Bank IPO listing date is set for Wednesday, February 14. IPO share allotment was finalised on Tuesday, February 13. capital Small Finance Bank IPO GMP today indicates no premium or discount in the grey market. The IPO price band is set at ₹445–468 per equity share. Key Points
mint
Tailwinds of restructured operation and capex cycle: 5 stocks from engineering sector, 2 with upside poten
One sector which bore the brunt of the winter of capital spending was the capital goods and engineering sector. However, thanks to capital expenditure by the government, segment by segment they are making a comeback. First road and infrastructure, then defence and railways. The million dollar question is what next ? There is a high probability that not one but a host of sectors and their sub segments might be getting added to the list as private sector capex shows signs of revival. This would mean that more engineering and capital good companies would see a better order book. The only difference is that unlike railways and defence where one large order comes to be implemented over years. When orders from a pharma, chemical cement or a private sector power company comes, they tend to be smaller in size but to be implemented in a shorter time frame. Key Points
Economic Timescapital Small Finance Bank IPO subscribed 33% so far on Day 1; check GMP and other details
Capital Small Finance Bank IPO Subscription Status: capital Small Finance Bank IPO has been subscribed 33 percent till 3:35 pm on the first day of bidding. It received bids for 23.45 lakh equity shares as compared to 78.23 lakh shares on the offer. Key Points
mint2 small finance banks to raise over Rs 1,000 cr in IPOs. Check GMP before subscription
Ahead of the offer, shares of Jana SFB are trading with a premium of Rs 80, and capital Small Finance Bank is fetching a GMP of Rs 47. Jana SFB has priced the Rs 570-crore IPO at Rs 414 at the upper end, capital SFB has fixed a price band of Rs 468. Key Points
Economic Times‘Govt has set sight on marathon to 2047, emphasis on fiscal prudence’
Budget News: Finance secretary T V Somanathan discusses the government's focus on fiscal prudence and its goal of making India a developed country by 2047. Find out more about the Interim Budget and its roadmap for the future. Key Points
Times Of IndiaAquaconnect raises $4 million in pre-Series B
India Business News: Aquaconnect, a full-stack aquaculture platform with embedded fintech capabilities, has raised $4 million in pre-Series B funding round led by S2G Ventures. The company plans to use the capital to scale its operations and expand its coverage in major aquaculture production states in India. Aquaconnect leverages satellite remote sensing and artificial intelligence to improve efficiency in the fish and shrimp farming industry. The funding will also help Aquaconnect double its 'Aqua Partners' network and enhance its product portfolio with farmer-focused innovations and formal credit services. Key Points
Times Of India
Budget 2024: What are capital gains taxes and are they expected to see any changes tomorrow?
As the Interim Union Budget looms on the horizon, investors are keenly anticipating updates regarding capital gains taxes—a critical area of interest. They are eager to discern if FM Sitharaman will make further modifications to these taxes. Let's see what experts expect. Key Points
mintBullish on capital goods stocks? 3 reasons to be cautious
For the year ended December 31, 2023, the S&P BSE capital Goods Index experienced a remarkable surge of 66.89%, outpacing the Nifty50 and Sensex by considerable margins. Key Points
Economic TimesLoud explosions in Kyiv as Russia launches missiles
The city's military administration said fragments of downed rockets had fallen in several districts including on residential buildings. Mayor Vitali Klitschko said power had gone out in several areas of the capital. Key Points
Economic TimesCCI clears IndusInd Bank-Reliance capital deal
The Competition Commission of India has approved the proposed acquisition of a controlling stake in Reliance capital by IndusInd International Holdings Ltd, IIHL BFSI (India) Ltd, and Aasia Enterprises. The transaction will give IndusInd Bank a controlling stake in Reliance Capital. The acquisition follows a $1.5-2bn capital-raising plan by Hinduja group-owned IndusInd International Holdings and an increase in IIHL's holding in Reliance Capital. Key Points
Economic TimesMuthoot Microfin share price drops further after discount listing. Good opportunity to buy?
Analysts said a series of NBFCs getting listed in the last few months and a wave of other IPOs led to a divergence of focus from Muthoot. Furthermore, the company is more focused on the Southern region and valuation is on par with other listed NBFCs, which might be a reason for the tepid debut on the bourses. Key Points
Economic Times
Cold wave tightens grip on north India, Delhi shivers in dense fog with 'Very Poor' air quality
Northern India faced a stronger cold wave, making Monday morning in the capital city even colder with thick fog. The India Meteorological Department recorded Delhi's temperature at 9.4 degrees Celsius. Visibility reduced to 125 meters in various parts of Delhi and most areas in the National capital Region also had poor visibility due to the fog. Key Points
Economic TimesMuthoot Microfin shares to list on Tuesday. What GMP signals ahead of listing?
Muthoot Microfin shares will likely get listed on the exchanges on December 26. Ahead of the listing, the company's shares are commanding a premium of Rs 26 in the unlisted market. Considering the upper price band of Rs 291, the company's shares are expected to list with a mild premium of 9% on the exchanges. Key Points
Economic TimesIndia's share-sale frenzy is seen continuing in 2024: Bankers
India offers “a much more constructive story for capital markets than the rest of Asia. It is as wide open as we have seen it for a while,” said Udhay Furtado, co-head of ECM, Asia Pacific at Citigroup Inc. “Bigger names could be potential candidates for 2024 listings.” Key Points
Economic TimesSocial capital can help close a wide MSME gap
Capital allocation in India has long been suboptimal but caste-agnostic mechanisms hold promise. We need a truly national market for business credit. Key Points
mintBeneficiary for capex recovery in different sectors: 6 small, midcap engineering and capital good stocks
Recently in review of the PLI schemes, the government indicated that things are on track and some of the results would be visible soon. Especially in the chemical and pharmaceutical space are doing well, this is not to say that electronics and others are not doing well. Whenever capacity expands in any industry, one segment which is bound to get its order book better is capital goods and engineering companies. Over the years some companies have changed their business model in a way that they are a mix of capital goods and engineering companies as they provided turnkey solutions. We look at companies with an overlapping nature of business which give supply capital good and engineering service to different sectors. Key Points
Economic Times
Muthoot Microfin sets price band at Rs 277-291/share for its Rs 960-crore IPO
Muthoot Microfin IPO comprises a fresh issue of Rs 760 crore and an offer-for-sale (OFS) of Rs 200 crore. Under the OFS, promoters Thomas John Muthoot, George Muthoot, Preethi John Muthoot, Remmy Thomas and investor Greater Pacific capital will offload shares. Investors can make a bid for one lot of 51 shares and in multiples thereafter. Key Points
Economic TimesTailwinds to continue: 6 capital goods and engineering stocks with upside potential of up to 40%
Capital goods and engineering companies had faced tough times for many years. Given the fact that hardly any capacity buildup was taking place in any industry, a number had to change their product portfolio and had to live with very low margins. But all the efforts have now started to show some results. Three things impact the demand for capital goods . First, spending by the government, spending by the private sector. Last but not the least the focus of the government policies. After the state election results, there is a higher probability that two out of three factors are likely to continue to play. Will this lead to another round of strong re-rating? Key Points
Economic TimesWall Street bank bosses warn lawmakers of economic toll from tough new rules
Wall Street bank bosses warned lawmakers on the Senate Banking Committee on Wednesday that capital hikes and other new regulations being contemplated by U.S. bank regulators will hurt lending, capital markets and the broader economy. Key Points
ReutersWall Street gets creative as regulators demand more capital
Earlier this fall, Morgan Stanley (MS.N) bought $300 million worth of protection against losses on some of its loans from Blackstone Group (BX.N) and other investors, two sources familiar with the matter said. Key Points
ReutersState Bank of India sees minimal impact of cenbank's tighter rules for personal loans
State Bank of India (SBI.NS), the country's top lender, expects minimal impact on its capital ratios from the central bank's tighter rules for personal loans, its chairman told Reuters in a phone interview. Key Points
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capital One beats profit estimates on interest income boost
Capital One Financial (COF.N) on Thursday sailed past estimates for third-quarter profit as the consumer lender charged higher interest rates on loans, sending its shares up more than 4% in extended trading. Key Points
ReutersTo benefit from up-turn in the private sector capex cycle: 5 stocks with upside potential up to 36 %.
While the capex cycle has been moving well in sectors like railways, road and other infrastructure sectors for some years. In sectors like cement, chemicals, pharma which are driven by the private sector, indications of capital spending on adding capacities, what is commonly called private sector capex coming back are visible. One industry which benefits from this capex would be the capital goods sector, but one has to be very careful in choosing the stock as the word “capital goods stocks” is prone to getting misinterpreted. Key Points
Economic TimesHinduja in talks with private debt funds for about $800 million
India has become a hotbead for private credit activity, in part because regulation forbids local banks from extending loans for mergers and acquisitions. Over the last five years, the country notched up the highest investment volume in Asia, according to research from the Global Private capital Association, a body representing investors. Key Points
Economic TimesAnalysis: Fed shines light on path to US bank capital relief trades
A clarification of capital rules by the Federal Reserve may encourage U.S. banks to transfer more of the risk in their loan portfolios to investors, potentially letting them free up capital. Key Points
ReutersBanks in EU largely comply with 'Basel Endgame', says watchdog
European Union banks already largely meet tougher global capital rules to bolster defences against economic crises and now only need to find another 600 million euros ($635.8 million) ahead of a 2028 deadline, the bloc's banking watchdog said on Tuesday. Key Points
Reuters
India's Tata capital plans to raise 280 bln rupees via debt in FY24 - official
India's Tata capital plans to raise 280 billion rupees ($3.38 billion) mainly through debt instruments and bank lines in the current financial year to fund its double-digit credit growth, a top executive at the non-banking finance company (NBFC) said. Key Points
ReutersSBFC Finance IPO opens for subscription. Should you bid?
Considering the subdued ROE profile of the company as well as high post-issue adequacy of 50%, return ratios are expected to remain under pressure in coming years. We have a cautious view on the issue, said Incred Equities. Key Points
Economic TimesTemasek doubles investments, ups diligence as valuations reset
Over the past 15 months, the Singapore state investor committed nearly $4 billion in capital, including its stake in Manipal Healthcare Enterprises. It expects to deploy $9-10 billion within the next three years, the executives said. Key Points
mintReliance capital administrator submits Hinduja Group’s IndusInd bid to NCLT for approval
IIHL reportedly received an overwhelming majority of votes from the lenders, with 99.6 per cent in favor of its resolution plan for Reliance capital (RCap). Key Points
Business TodayHindujas look to raise up to $1b to finance Reliance capital acquisition
The Hinduja family is reportedly exploring raising up to $1bn to fund its acquisition of Reliance Capital, for which it is the preferred bidder. The financing timeline could take between three and six months, depending on legal issues and court approvals for the acquisition, and the final list of financiers could change, sources said. Key Points
Economic Times