Companies and Markets

Companies & Markets

Decade-low margins on dollar loans for Indian firms spurs deals

India’s biggest companies can borrow dollars from global banks at the lowest margins since 2007 and borrowers are taking notice as they do more loan deals.
India’s second-largest company, Reliance Industries, is marketing a $1.75-billion loan deal that may result in the lowest offshore borrowing cost for an Indian company so far this year. India’s largest oil producer Oil & Natural Gas sent requests for proposals last month to banks for a $677 million-equivalent loan.

Tech Mahindra buys US healthcare service provider for $110 million

Tech Mahindra, a leading software and services company, on Monday announ-ced that it has signed a definitive agreement to acquire CJS Solutions Group, a Florida-based healthcare information technology consulting company, which does business as The HCI Group.
The HCI Group works with some of the world’s most prestigious Tier-1 healthcare service provid-ers, primarily in the US and the UK, focussing on providing end-to-end implementation of electric health record (EHR) and electronic medical record (EMR) software, training and support services.

Sensex scales 29K; MFs new market driver

Flushed with huge liquidity, domestic mutual funds (MFs) continue to be big buyers in the stock market as the BSE Sensex on Monday scaled 29,000-mark to end the day at 29,048.19, its highest closing since 5 March 2015.
Indian markets have done well despite heavy selling by foreign institutional investors since October. Market analysts said the bullishness is mainly on account of domestic retail money coming into equity through MFs.

Election results to decide market mood

Last week, the market was virtually flat and went nowhere. The BSE Sensex lost 60.52 points and closed at 28,832.45 points, while the Nifty lost 41.95 points and closed at 8,897.55 points.
The market is now waiting for the next big trigger: exit polls for five states, which are to be declared on Wednesday, March 8, followed by the actual results on Saturday, March 11.

Tata Steel may scrap merger plan with Thyssenkrupp

Tata Steel may be considering breaking off talks with Thys­senkrupp for a planned merger of its European business with the German conglomerate, a UK media report claimed on Sunday.
The merger talks had been revealed by the Indian steel giant last year as part of a major restructuring of its UK steel business.
Such a deal with the German steel major could potentially lead to the formation of a European steel behemoth with blast furnaces in Wales, the Netherlands and Germany. However, The Sunday Times claims that the deal may be under threat due to German pension liabilities.

MSMEs await SC ruling on arbitration timing

The Supreme Court is set to rule shortly on how much time a corporate buyer can be given for depositing 75 per cent of the amount awarded by arbitration to an MSME supplier, if it wants to contest the award in a court of law. The top court is also expected to rule on whether writ petitions seeking to prevent implementation of award decided in favour of an MSME vendor, would be maintainable.

Divestment cells to push stake sale

Having missed out on the strategic sale of its equity in identified public sector undertakings (PSUs) last year, the government has decided to put the process on fast track in FY18 by setting up disinvestment cells in the administrative ministries and central public sector enterprises (CPSEs). This will help in co-ordination with nodal ministries, PSUs, merchant bankers, transaction advisors and other agencies involved in the strategic disinvestment of government entities, which will ultimately help in accelerating the whole process.

Sensex tumbles 88 pts on profit-booking, global cues

Market benchmark BSE Sensex stretched its losses to the second day today, shedding over 88 points in early trade on sustained profit-booking by investors after recent gains.

Besides, a weak trend in other Asian bourses after a broad global rally, weighed on the trading sentiments here.

The 30-share Sensex slumped further by 88.05 points, or 0.30 per cent, to 28,751.74 with FMCG, IT, technology, power, bank, auto and capital goods stocks declining by up to 0.83 per cent.

PSBs asked to sell off non-core assets

The finance ministry has asked state-owned banks to prepare a list of their non-core assets and sell them off at an opportune time. The move would help lenders raise capital and allow them to focus on their core businesses.
All PSU banks, including SBI, PNB, BoB and BoI, have stakes in various businesses, which fall outside their core areas.
By selling off these stakes, banks can raise much-needed money to bolster their capital bases to comply with Basel-III guidelines, which would come into effect in 2019, said analysts.

Minority investor alleges fund misuse by Singhania

Shares of textile maker Raymond, promoted by Gautam Hari Singhania, fell 5.49 per cent on Thursday as an open letter from minority shareholders of the company alleged misuse of money by promoters in developing a property in Mumbai and in owning luxury yachts, speed boats, business jets and helicopters. Raymond shares fell to close at Rs 603 apiece on NSE. The scrip had fallen 7.5 per cent in the previous two trading sessions from a weekly high of Rs 656.75.

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