Tag: restructuring

Bajaj Electricals to restructure consumer, power biz; recovers 12.5% in past 5 sessions

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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In a bid to “unlock value” for shareholders, Bajaj Electricals intends to create separate entities for its consumer and power businesses. The demerger is likely in nine months, Bajaj Electricals executive director Anuj Poddar said on Monday.

Poddar said, “We will have an entity focused on the consumer business, and a separate entity focused on the power infrastructure business. The rationale for that is very clear and very compelling. If I talk from an investor perspective, they have been asking for this for a long while. I do believe this will unlock value if all the internal benefits come through, of course, it will unlock value for investors. As well, it will allow the company to attract a wider and deeper set of investors who typically look for targeted business entities and not consolidated businesses.”

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Bajaj Electricals shares are trading 2.2 percent in the green at the time of publishing. In the past five trading sessions, the stock has recovered 12.6 percent to trade flat when seen over a month’s period.

Poddar said the company has been taking several steps to pare its debt. The total liabilities for the company stood at Rs 2,509 crore for FY21.

The company is also looking to manage costs to maintain its margins for the year. It is likely to end the year with single-digit growth, Poddar added.

Poddar said, “We have not taken a price hike so far in this quarter. I think demand has been kind of on the fence in this quarter so waiting for the right time. We will do that at the appropriate time. We have been taking other measures to actually mitigate the cost side impact in our P&L. So we are looking to maintain margins.”

For full management commentary, watch the video.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Expect margins to remain rangebound or see slight improvement, says LIC Housing Finance

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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LIC Housing Finance posted its Q4FY21 earnings. Y Viswanatha Gowd, Managing Director and CEO at LIC Housing Finance, discussed the performance.

In terms of restructuring he said, “Last year, 1.5 percent of the portfolio was permitted to have restructuring facility. Going forward, quite a good number of people may opt for it.”

“In retail segment, we have seen good surge as far as restructuring is concerned,” he added.

Overall, our loan book size grew by more than 10 percent in the last year, he shared.

According to Gawd, margins will remain rangebound going ahead, as lending rates have bottomed out. “Overall, we are very confident that margins will be certainly maintained or slight improvement will be seen,” he stated.

On fund infusion from the promoter, he said, “We have to thank our promoters, they are infusing capital to the tune of nearly 4.54 crore of shares of equity through the preferential allotment. That will give us good leverage and further support in our growth on expansion in the days to come.”

“This year we want to consolidate further and improve our ratios better,” he further mentioned.

For the full interview, watch the accompanying video.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

RBI has simplified process of co-lending model for NBFCs; will work with banks: Indiabulls Housing Fin’s Gagan Banga

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Reserve Bank of India (RBI) has simplified the process of the co-lending model for non-banking financial companies and Indiabulls Housing Finance Ltd (IBHFL) will run collaborated model with banks rather than compete with them, said Gagan Banga, Vice Chairman and Managing Director of the housing finance major on Monday. Banga also said that we will do 66 percent via direct lending and balance under the co-lending model.

Speaking about the good sequential earnings from IBHFL in the third quarter, Banga said, “I believe that the spread improvement has just started last quarter while rates had moved down quite materially for NBFCs in general given the risk aversion in the market, the rates were not effectively getting transmitted. It is only over the last 3-4 months that transmission has started. My expectation is that over the next two quarters we are actually going to be much larger beneficiaries of the reduced cost of funds.”

On restructuring, Banga said, “At 1.50 percent we will land up creating additional provisions in the ballpark of about Rs 1,000 crore which is the provisions that we have made additionally made through the course of the current fiscal as well. We have already provided something like 3.50 percent of the loan book.”

Macro indicators are supportive, Banga added, “On the wholesale side what has to be appreciated is that residential cycle is at 8-9 year high and sales are happening, marginal price appreciation has also started. So large part of the confidence that we have on the wholesale book performance is also stemming out of the fact that these projects we have financed would get supported by macro moves.”

On the co-lending model, he said, “RBI has been working with all NBFCs, taking feedback and via various circulars have actually simplified the process. At a big picture level the realisation at least the Indiabulls is that we would want to run a collaborative model with banks rather than trying to compete with banks.”

Watch the video for more

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Equitas Small Finance Bank Q3: NIMs to steady at 9%, GNPA to fall in Q4, says management

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Equitas Small Finance Bank reported its Q3 results on Thursday with net interest margins (NIM) at 5 quarter low and their gross NPA saw some deteriorating. To discuss this and the outlook for 20201 PN Vasudevan, MD and CEO of the bank spoke to CNBC-TV18.

On non-performing assets (NPAs) Vasudevan said, “Any customers who were having stress because of the COVID related issues most of them are likely to have shown up by the December quarter so it was expected that NPA would kind of show up in terms of December quarter. Its the First time it has gone to the 4 percent level. It is 4.2 the Pro-forma NPA I am talking of. Otherwise historically we have never crossed a 3 percent level it is always steady at 2.7-2.8 percent.”

On restructuring of portfolio, he said, “We have received requests for about Rs 340 crore which is just under 2 percent of the book. Most of them will get between January and February. So the restructuring will get reflected in the system between January and February. Part of that Rs 340 crore of restructuring includes about Rs 57 crore of NPA which will get restructured during this quarter.”

On NIMs said, “Our NIM is normally steady around the 9 percent level and yield on advances there is not much of a change between September and December there is no change in our yield on advances.”

“Loan growth was 19 percent for the quarter and I think for the year we may probably end between 15-20 percent,” he added.

Watch the video for full management commentary

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

GMR Infra gets nod from stock exchanges on proposed rejig plan

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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GMR Infrastructure on Monday said it has received consent from stock exchanges, with no adverse observations, on its proposed restructuring involving demerger of its non-airport vertical business. The company said it will file the scheme with the National Company Law Tribunal (NCLT) within six months.

”…The company has received consent of the stock exchanges, with no adverse observations, to file the scheme with the National Company Law Tribunal, within six months,” GMR Infrastructure said in a regulatory filing. The company said it had filed an application to ”the BSE and National Stock Exchange of India towards the composite scheme of amalgamation and arrangement amongst GMR Power Infra (GPIL), GMR Infrastructure, GMR Power and Urban Infra and their respective shareholders (scheme)”.

In August this year, GMR Infrastructure unveiled a strategic group restructuring plan involving demerger of non-airport vertical business as part of efforts to simplify the corporate holding structure. The restructuring is a step in the right direction towards creating pure plays in different businesses of the group thereby attracting sector-specific global investors and unlocking value for the current shareholders of GMR Infrastructure, the company had then said in a statement.

Separate listing of both the airport and non-airport businesses will also help in simplifying the corporate holding structure. The vertical split demerger will go a long way in facilitating deeper understanding of the airport business independently as compared to other business verticals within the group, the statement added. Currently, GMR group operates the country’s busiest aerodrome, Indira Gandhi International Airport in New Delhi, and Hyderabad’s Rajiv Gandhi International Airport. Also, it operates Cebu airport in the Philippines.

Once the scheme is implemented, GMR Infrastructure would emerge as India’s only pure play-listed airports company and all existing shareholders would continue to have their same shareholding in the company. The scheme is subject to customary approvals including stock exchanges and NCLT.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Malaysia Airlines seeks aid from wealth fund Khazanah, creditor talks continue

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Malaysia Airlines’ parent company has sought financial aid from its sole shareholder, the nation’s sovereign wealth fund, as debt restructuring talks with creditors drag on, the company said on Saturday.

“Malaysia Aviation Group has requested financial support from our shareholder Khazanah Nasional although the company isn’t in a position to comment on the amount at this point in time,” it said in an email to Reuters.

The group said it remains in talks for restructuring and that it was targeting a commercial agreement in the first week of December.

The airline could be seeking as much as $500 million, said Malaysia’s Edge weekly, which first reported the news, citing unnamed sources.

Khazanah said any funding for the airline will depend on the outcome of discussions with creditors and lessors, which it said is crucial to the success of the restructuring.

Malaysia Airlines is seeking to restructure after the COVID-19 pandemic forced it to slash operations.

The parent company had warned leasing companies that Khazanah would stop funding the group and force it into a winding down process if restructuring talks with lessors were unsuccessful, Reuters reported last month.

The carrier restructured after two deadly crashes in 2014, with Khazanah pumping in 6 billion ringgit ($1.5 billion). This time the government has said it will not bail out the struggling company.

Chief Executive Izham Ismail told staff in a memo last month that the restructuring talks were taking longer than planned.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

ACC approves restructuring of SAIL’s board

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Appointments Committee of the Cabinet (ACC) has approved the restructuring of SAIL’s board, the steel ministry said in a statement on Friday. The restructuring of the board will bring in greater efficiency, and decentralisation in the company, it said. ”The Appointments Committee of the Cabinet has approved the restructuring of the board of SAIL. The 4 posts of CEOs of SAIL’s integrated steel plants are to be elevated as functional directors by designating them as directors-in-charge of Bokaro, Rourkela, Bhilai and one director-in-charge jointly for Burnpur and Durgapur steel plants,” the statement said.

The restructuring also involves merging the functions and duties of the post of Director (Raw Materials and Logistics) and that of Director (Projects, and Business Planning) with the post of Director (Technical) and its consequent re-designation as Director (Technical, Projects and Raw Materials). The restructured board will consist of Chairman, Director (Finance), Director (Commercial), Director (Technical, Project and Raw Materials), Director (Personnel), Directors in-charge of integrated steel plants (ISPs).

Besides, the board will have non-official directors as per the Companies Act 2013 and 2 government nominee directors as per the DPE (Department of Public Enterprise) policy. The move will facilitate greater decentralization and nimble decision making with the directors-in-charge of plants as direct ACC appointees, it said. Their views will have weightage in the central corporate governance structure. This will also facilitate speedy modernization and expansion program of the country’s largest steel making company, the ministry said.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

In worst case scenario we might touch 7.8-8% gross NPA, says SBI MD Ashwani Bhatia

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Reserve Bank of India (RBI) stepped in with several measures to cool yields, announced more operation twists, term repo operations of Rs 1 lakh crore and increased the amount of bonds that can be held to maturity. Ashwani Bhatia, MD of State Bank of India (SBI) — who has recently returned to the fold after having spent the last few years successfully heading their mutual fund division, taking it to the top position by way of assets under management (AUM) — shared his views and outlook of the bank.

As MD of SBI, Bhatia will head the IT and stressed asset resolution verticals.

Speaking about non-performing assets (NPAs), he told CNBC-TV18, “I guess it is still too early to arrive at that number. That will evolve over the coming months, but be sure the number we mentioned in our results, which was 9.5 percent of the book under moratorium – we stick to that number. Over the past few months, that number has been coming down.”

When asked whether banks needed to undertake further provisioning, he replied, “This is a moving number. As far as SBI is concerned, we have already provided for about Rs 3,000 crore at the end of Q1. As we move forward, we will decide on extra provisioning. Things are moving very fast on the restructuring.”

On operation twists from RBI, he mentioned, “There is no harm in swapping and the number that we are talking about are quite big. On SLR side itself, we get space in excess of Rs 80,000 crore and there will be good amount of saving on the interest also for the first LTRO that we had taken from the RBI. Both are very good positives for us.”

The loan stress would be more on the mid-segment and maybe the personal segment, he said.

In terms of gross NPAs, Bhatia stated, “Our net NPA currently is below 2 percent. Our gross NPA is around 5.8-5.9 percent. Even if you see a worst case scenario of around 2 percent going down, for us we may touch about 7.8-8 percent or so.”

Watch the video for more.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow