D-Mart operator Avenue Supermarts said promoter Radhakishan Shivkishan Damani would gradually cut stake by 0.998% starting August 8, 2019. The stake sale by the promoter is to comply with the minimum public shareholding norms. Promoter and promoter group held 81.20% stake in the company as of June 2019, including Radhakishan Shivkishan Damani who himself directly has 38.41% shareholding.
The initial public offer (IPO) of Sterling & Wilson Solar Ltd was subscribed 9% on the first day of bidding on Tuesday. The company plans to raise about Rs 3,125 crore through the IPO. Its price range has been fixed at Rs 775-780 per share. The issue will close on August 8, 2019. Sterling and Wilson Solar on Monday raised Rs 1,406 crore from 27 anchor investors.The issue comprises an offer for sale by promoters Shapoorji Pallonji and the company.
The massive selloff in the stock market has eroded Rs 15,00,000 crore worth of investor wealth in last 30 days. While broader market has been in pain for the entire first half of Calendar 2019, a selling spree by foreign investors post the July 5 Budget and earnings disappointment have ensured that large caps no longer remain safe bets. BSE’s total market capitalisation has fallen 10 per cent to Rs 138 lakh crore from Rs 153.58 lakh crore on July 5.
Eight of the 10 most valued Indian companies suffered a combined erosion of Rs 89,535 crore in market valuation last week, with SBI emerging as the biggest loser. In the top-10 list, only TCS and HUL saw gains in their market capitalisation for the week ended Friday. The valuation of SBI tumbled Rs 30,388.3 crore to Rs 2,75,279.64 crore. Reliance Industries Ltd (RIL), HDFC Bank, HDFC, Infosys, ITC, Kotak Mahindra Bank, SBI and ICICI Bank closed the week with losses.
India’s stock market capitalisation fell below the $2 trillion mark for the first time in six months, triggered by the selloff in July that led to 8.8% erosion in investor wealth during the month. The country’s total value of all listed stocks dropped to $1.97 trillion on Friday. India first entered the $2 trillion market cap club of eight countries in May 2017. The country’s stock market, which overtook Germany’s to become the seventh largest in the world in December last year, slipped to ninth amid FPIs selling equities worth Rs 15,000 crore since the July 5 budget.
Continuing their selling spree, foreign investors have withdrawn a net amount of Rs 2,881 crore from the Indian capital markets in the first two sessions of August on account of weak domestic as well as global sentiments. Prior to this, FPIs withdrew a net Rs 2,985.88 crore from the Indian capital markets (both equity and debt) during July 1-31.
Citigroup Global Markets has cut its March 2020 Sensex target to 39,500 from 41,000 to factor in downgrades in corporate earnings growth forecasts. This is the first cut in Sensex target by any brokerage since the recent market decline began. Indices have fallen 7% since the July 5 budget as the government increased tax on the super-rich and there was lack of stimulus for the economy. The revised target on Sensex would imply 6.7% upside from the current level of 37,018. Citi is cautious on the Indian market as valuations are not cheap.
Foreign portfolio investors (FPIs) looking for concessions to convert themselves into companies from a trust structure in order to avoid paying a higher surcharge may have to wait until the next budget. The government will have to amend a host of provisions in the income tax to make such conversions tax-neutral. The government had raised the surcharge to 25% from 15% for people with taxable incomes between Rs 2-5 crore, and to 37% for those earning over Rs 5 crore. This covers FPIs that are structured as trusts and associations of persons (AoPs). Those structured as corporates are exempt.
Axis Bank on Tuesday said its net profit climbed 95% YoY to Rs 1,370 crore for the June quarter against Rs 701 crore in the same quarter last year. Net Interest Income (NII) for the quarter rose 13 per cent YOY to Rs 5,844 crore from Rs 5,167 crore in the corresponding quarter last year. Asset quality remained stable with the bank’s gross NPA and net NPA coming at 5.25% and 2.04% respectively, against 5.26% and 2.06%, respectively as on March 31.
Yes Bank said it has has acquired 18.55% stake in Cox & Kings by invocation of pledged shares. The bank has invoked pledge on 3.27 crore equity shares having nominal value of Rs 5 per share, constituting 18.55% of the post-issue paid-up share capital. Cox & Kings Ltd has consolidated turnover revenue of Rs 5,693.5 crore as on March 31.
Vodafone Idea’s net loss narrowed to Rs 4,873.9 crore for the April-June quarter, helped by a change in accounting standard and lower operating costs, but revenue dropped 4.3%, as some subscribers left and others moved to lower tariff plans. The adoption the Ind AS 116 accounting standard resulted in a positive impact of Rs. 1.2 billion at PAT (profit after tax) for the quarter. Ind-AS 116 enables companies to recognise leases (towers in this case) as assets in the balance sheet from April 1, 2019, and as such, the relevant lease rentals do not get reflected in the network opex.
Punjab National Bank on Friday reported a surprise profit of Rs 1,018.63 crore for the quarter ended June 30 on the back of significant decline in provisions. The public sector lender had reported a loss of Rs 940 crore in the corresponding quarter last year. Provisions and contingencies declined sharply by 64.86% on a yearly basis to Rs 2,023.31 crore over Rs 5,758.16 crore. However, gross NPA rose to 16.49% against 15.50% on a quarterly basis. Net NPA increased to 7.17% from 6.56% during the same period.
Tata Motors Ltd (TML) has nearly doubled its consolidated net loss in the June quarter, dragged down by woes at its Jaguar Land Rover (JLR) unit and a slowdown in the automobile industry in India. Tata Motors posted a net loss of Rs 3,680 crore in the quarter ended June, compared with a year-earlier loss of Rs 1,863 crore. The firm’s British luxury arm Jaguar Land Rover posted a pre-tax loss of 395 million pounds.
TPG Capital’s Indian private equity arm and buyout firm Advent International Corp. are among institutional investors that will infuse fresh capital into Yes Bank, according to sources. The amounts to be invested are currently being negotiated. They will most likely invest around $350 million each. Yes Bank has met atleast 76 firms, including PE funds, high net-worth individuals and investment managers over the past two months to seek more funds.