Lenders including private banks and mutual funds have asked Anil Ambani-controlled Reliance Group’s promoter entities to provide more collateral cover to secure their Rs 6,000-crore exposure. The Anil Ambani group alleged last week that two of the 11 lenders — L&T Finance Holdings and Edelweiss — invoked the pledge and sold the company’s shares “illegally”. Apart from L&T Finance and Edelweiss, STCI Finance also offloaded Reliance Group shares to recover part of their loans to the group. Top officials of the ADAG Reliance group who met lenders on February 6 have assured to provide additional security cover.
State-owned coal mining company Coal India on Tuesday reported a 50.1 percent growth in its consolidated net profit at Rs 4,566.71 crore for the third quarter ended December 31, 2018, helped by higher coal production. The world's biggest coal miner had posted consolidated net profit of Rs 3,042.57 crore in the same quarter last year. Total revenue of the company rose by 15.38 per cent to Rs 25,045.83 crore as compared to Rs 21,707.04 crore in the same quarter a year ago.
SEBI is looking to probe into loan to promoters of listed companies against pledged shares after a recent spate of share sale by lenders in the open market leading to steep fall in stock prices. Data from the BSE show that shares worth around Rs 2 lakh crore have been pledged by promoters of listed companies. Lenders are allowed to finance around 50% against the value of equity shares. Lenders have informed SEBI that they have no option but to offload promoter shares at the first sign of adverse news as many promoters have defaulted on their margin obligation.
Whistleblower activist Arvind Gupta who blew the lid off the ICICI Bank’s alleged quid pro quo loans to the Videocon Group under former CEO Chanda Kochhar, has now raised questions over SBI’s efforts to bail out cash-strapped Jet Airways. According to him, the "questionable" MoU signed between SBI and the Naresh Goyal-owned airline to effect a debt to equity swap is a "self-defeating exercise" that will rob SBI stakeholders of their hard-earned savings. According to reports, SBI may end up with a 15% stake if the deb-equity swap is approved at the debt-laden airline’s shareholder meet.
JSW Steel Ltd. has been declared as the winning bidder for Bhushan Power & Steel Ltd (BPSL) after the committee of creditors sent a letter of intent to the Sajjan Jindal-owned company, sources said. JSW Steel has accepted the bid and the resolution professional will now approach the NCLT for the final approval this week. JSW Steel offered an upfront payment of Rs 19,300 crore to financial creditors who will take a 58% haircut. BPSL owes over Rs 46,000 crores to its financial lenders. Operational creditors will be paid Rs 350 crore, against their claims worth Rs 621 crore.
An IOSCO report titled "Standards Implementation Monitoring on Secondary and Other Market Principles", has credited market regulator SEBI for implementing robust measures to ensure an orderly functioning of securities markets. These secondary and other market principles seek to promote fair, efficient and transparent markets. According to the report, the Indian capital markets regulator has mostly implemented secondary market principles. These secondary market principles cover areas such as authorization, oversight, and ongoing supervision requirements; transparency requirements; detection and deterring market misconduct; and also deal with managing risks, such as monitoring large exposures, default procedures and short selling.
In a boost to firms like ONGC and Reliance Industries, the government is likely to raise the price of domestically produced natural gas by over 10% to over $ 3.72 per million British thermal units with effect from April 1, sources said. This will be the fourth straight increase in gas prices which are set every six months - on April 1 and October 1 every year. Every dollar increase in gas price yields additional revenues of Rs 4,000 crore to ONGC on an annual basis. India imports half of its gas which costs more than double the domestic rate.
Last month, Reliance Communications (RCom) offered Swedish firm Ericsson to clear all dues by January-end, provided the equipment supplier withdrew its contempt of court petition against RCom chairman Anil Ambani. The Swedish company, however, refused the offer saying that the dues must be paid first and the matter settled through court. Sources said RCom made the offer to Ericsson before the telco moved the NCLT seeking bankruptcy protection. RCom owes Ericsson Rs over Rs 570 crore including interest as on January this year. Ambani on Tuesday made his first visit to a court since May 2013 2G case.
Pharma major, Sun Pharma, on Tuesday said that market regulator SEBI has sought replies on the company's 2004 fund raising, and its dealings with group entity Aditya Medisales (AML). A whistle-blower complaint alleged that the company reportedly dealt with banned traders such as Dharmesh Doshi and Ketan Parekh, and also lent money to AML, which is a promoter holding company. The company had raised funds through issue of foreign currency convertible bonds (FCCBs) in 2004 and had appointed Jeremy Capital as its second lead manager who allegedly had links with banned traders Ketan Parekh and Dharmesh Doshi.
India’s largest drug maker, Sun Pharmaceutical Industries, on Tuesday reported a 286.1% year-on-year (YoY) jump in consolidated net profit at Rs 1,241.8 crore for the December 2018 quarter. The ET analysts’ poll had estimated net profit of Rs 981 crore. The company had reported a net profit of Rs 321.57 crore in the same quarter last year. Sale for the quarter rose 1.16% YoY to Rs 7,656.71 crore from Rs 6,598.21 crore in the same quarter last year.
The government's Offer For Sale (OFS) of shares in Axis Bank held through SUUTI received a bumper response on the first day with institutional investors putting in bids worth over Rs 8,000 crore. Institutional investors bid for over 11.69 crore shares as against the 4.56 crore shares reserved for them, according to data from the NSE. At the floor price of Rs 689.52 per share fixed for the share sale, the bids by these investors were valued at Rs 8,062 crore. The issue will open for retail investors on Wednesday.
Tata Motors on Tuesday reported 12% fall in global sales, including that of Jaguar Land Rover, at 1,00,572 units in January this year. The company had sold a total of 1,14,797 units in the same month last year. The company's global sales of all passenger vehicles in January this year declined 15% to 59,686 units, as against 69,969 units in the same month last year. Sale of commercial vehicles stood at 40,886 units in January 2019, down 9% year-on-year from 44,828 units in the same month last year. Global sales for Jaguar Land Rover were 41,676 vehicles.
Vodafone Idea chairman Kumar Mangalam Birla said that the planned rights issue by the company worth Rs 25,000 crore will give it enough financial flexibility and will not require it to raise any further capital for the next 3-4 years. He denied the teleco was underinvested, and asserted that both the promoters — AB Group and Vodafone Plc — were committed to investing funds. Birla intents to focus on consolidating the gains of the past few years in cement and non-ferrous metals, especially after the acquisition of the cement businesses of Jaypee Group and Century.
State-owned Andhra Bank on Monday posted net losses at Rs 578.59 crore in the third quarter ended December. The bank had posted a net loss of Rs 532.02 crore in the corresponding quarter previous fiscal. Total income rose to Rs 5,322.33 crore for the third quarter as against Rs 5,093.43 crore in the same period last year. While, gross non-performing assets (NPAs) jumped to 16.68% of gross advances by December-end 2018, as compared to 14.26% in the corresponding period last year, net NPAs declined to 6.99% by end of the third quarter as against 7.72% a year ago.
National Stock Exchange (NSE) on Monday launched weekly options on the Nifty 50 Index, which will provide market participants an additional hedging tool to manage portfolio risk more effectively. The Nifty 50 index options are already available for three monthly, three quarterly and eight semi-annual option contracts, NSE said. The Nifty 50 Index derivatives are traded by domestic as well as international participants, NSE MD and CEO Vikram Limaye said. NSE has also received permission from SEBI to launch weekly options on Nifty IT Index, the exchange said. The contract details and launch date will be announced shortly.