The implications of Honda pulling out of the company are still being worked out and a possible re-rating is expected.
While the merger will see the share of the promoter group increase by two percentage points, the move has also seen a few analysts raise concerns.
The ADA Group's recent decision to sell a stake in Reliance Communications and merge its telecom tower business with GTL Infra will help it reduce a mounting debt burden.
A rate change seems round the corner, no matter where the new base level is fixed.
Promoters of companies which have pledged their shares will be in a bind following the government's mandate that all listed companies must have a minimum 25 per cent public float. Although the government yesterday indicated it was open to a review of this rule, many companies will have to re-work their funding strategy if the norms are not amended.
Just as investors abroad can participate in Indian companies' issues through the American Depository Receipt and Global Depository Receipt route, Indian investors can now invest in foreign companies through the IDR. Standard Chartered Bank will be the first IDR issue, opening May 25.
Lower margins, caused by substantial cash outflows and increasing competition, are seen as negatives for the sector.
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