Corporate bond issuances fell by around 22 per cent in August, despite easing yields as issuers delayed raising funds awaiting the US Federal Reserve to start cutting interest rates from this month. Corporates and financial institutions expect yields to fall further and borrowing costs to become cheaper, said market participants. The US Fed is widely expected to cut interest rates by 25 bps in the 17-18 September meeting, marking the start of a downward interest rate cycle.
A number of non-banking financial companies (NBFCs) have tapped into the debt capital market ahead of the festival season to meet increasing credit demand as bank funding slows. On Tuesday, Aptus Value Housing Finance secured Rs 300 crore at an interest rate of 8.75 per cent through bonds maturing in five years. ICICI Home Finance Company turned to the market to raise Rs 275 crore at 7.94 per cent, alongside another Rs 300 crore at 7.95 per cent, through bonds maturing in five and three years, respectively.
The Coal Ministry has issued show-cause to eight firms including Hindalco Industries and Mahanadi Coalfields, and sought explanation from five firms for delays in commencing production from mines allocated to them.
With the new owner shelling out Rs 18,000 crore for the buyout of 'Maharaja' this would be the highest ever amount garnered through privatisation or even the cumulative sum garnered through strategic sale in 1999-00 to 2003-04. The government had garnered roughly over Rs 5,000 crore during that five-year period by privatising 10 CPSEs.
After a hiatus of nearly two decades, the government's programme to privatise state-owned firms restarted with the handing over of debt-laden national carrier Air India to the Tata Group. With the new owner shelling out Rs 18,000 crore for the buyout of the 'Maharaja', this would be the highest-ever amount garnered through privatisation, and is even more than the cumulative sum mopped up through strategic sales from 1999-00 to 2003-04. The government had in October last year inked the share purchase agreement with the Tata Group for sale of national carrier Air India for Rs 18,000 crore. Tatas would pay Rs 2,700 crore cash and take over Rs 15,300 crore of the airline's debt.
Lower returns seen drying up investor demand this financial year
State-run lending agency Power Finance Corp may raise Rs 5,000 crore (Rs 50 billion) through a tax-free bond issue, a move that would result in lowering borrowing costs for the company.
State-run power sector lenders Power Finance Corp and Rural Electrification Corp are mulling a foray into the banking space, a move that would foster greater competition in infrastructure funding.
Those in the fray include three Power Finance Corp officials believed to be among the front-runners for the post of the company's chairman and managing director, as the present chief V K Garg retires on July 31 next year.
Mutual funds were predominantly buyers in the banking, engineering, power, IT, and media space in February
ETFs function like a mutual fund scheme and have underlying assets of government-owned companies.
Moody's has revised to positive the outlook on the long- term ratings of private sector lenders
At the current market price of the stock, that stake would be valued at about $1.5 billion.
Market cap of government companies has remained unchanged in the past 8 years.
The government is bullish on Coal India and ONGC's stake sale programme which are to be held soon.
Finance Minister Nirmala Sitharaman on Wednesday announced Rs 3 lakh crore collateral free automatic loan for businesses, including MSMEs, to benefit 45 lakh small businesses. Detailing parts of the Rs 20 lakh crore economic stimulus package, she said this loan will have a 4-year tenure and will have 12-month moratorium, she said.
All listed firms were required to have at least one woman director on their boards from April 1, 2015, as per a Sebi directive.
De-allocation could raise import bill by $3 billion, add to coal shortage.
Ajit Mishra, vice president, Research, Religare Broking, answers your queries.
Restructured debt from Indian power distributors lures investors
Mukesh Ambani-led RIL, which had a cash chest and marketable securities worth over Rs 90,000 crore (Rs 900 billion) at the end of the last fiscal, is known for very effectively managing its financial resources by placing them in liquid instruments and highly rated securities.
Allegations of a particular market player being favoured over others were flying thick and fast in the early days of the scam.
New Delhi has missed its target for partial privatisations for the past five years
Move aimed at boosting retail investor participation in disinvestment.
Ajit Mishra, vice president, Research, Religare Broking, answers your queries.
The government's disinvestment programme is set to get a boost this Diwali, with the finance ministry planning to hit the market to sell a five per cent stake in Steel Authority of India Ltd (SAIL) by October.
When big offers hit the market, broader indices corrected 2-4%
In the long run, the decision could bring clearer rules to a sector that has failed to provide India with enough power because it has been so hamstrung by confusion and scandals over concessions allegedly handed to government cronies.
Budget in the medium term aims to kick-start the investment cycle.
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