Tag: non-banking financial companies (NBFCs)

IL&FS’ new board to meet for second time on Friday

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

Listen to the Article (6 Minutes)

The newly constituted board of Infrastructure Leasing and Financial Services (IL&FS), headed by veteran banker Uday Kotak, will meet for the second time Friday to decide on the further course of an action plan for the cash-crunched company, a source said.

In the maiden meeting held on October 4, the six-member board undertook an initial assessment of the ground reality of the company and discussed the way forward.

“In tomorrow’s meeting, the board will now be looking into various issues, including fundraising plan, for the company,” said one of the source.

The firm needs an immediate capital infusion of Rs 3,000 crore and is also planning a Rs 4,500-crore rights issue.

Speaking to reporters after the first board meeting, last week, Kotak had hinted that the crisis at the infra lending and engineering conglomerate was much more complex than earlier thought as the number of its subsidiaries and associates have more than doubled to 348.

“We undertook an initial assessment of the ground reality and the way forward. We’ll meet frequently to implement the directions of NCLT and to prepare a roadmap and turnaround,” Kotak had said.

As per the NCLT order, the board is required to give a roadmap for the company by October 31.

Kotak had said the resolution will take some time and the board’s focus is to preserve the fair value of the assets and the enterprise to the maximum extent.

On October 1, the government superseded the board of IL&FS and appointed a six-member board with Kotak as the executive chairman.

The other members of the board include former Sebi chairman GN Bajpai, ICICI Bank non-executive chairman GC Chaturvedi, IAS officer and the director general of shipping Malini Shankar and Vineet Nayyar and veteran auditor Nandkishore.

The company as of March 2018 owed over Rs 91,000 crore to banks and other creditors.

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

SP Tulsian initiates buy call on Bajaj Auto, Hero Moto & Eicher Motors

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

Listen to the Article (6 Minutes)

Market expert SP Tulsian spoke to CNBC-TV18 about the current trends in the stocks market and shared his outlook.

Speaking about the partial cut in excise duty on aviation turbine fuel (ATF), he said, “This is not a selling opportunity and if you are an adventurous investor, I don’t think that there is any kind of risks seen because you have to take this call also that the crude cannot sustain beyond these levels after November 6-7 when the mid-term elections will get over in US and then the stands will get known of US also because if the Iran sanctions doesn’t go through and if India keeps buying from Iran, that will be seen as quite positive”.

“I won’t say that that is a sole factor for the crude to get eased out. It all depends on the outcome of the results also of the mid-term in the US on November 6 and that will be a deciding factor. If you take these into accounts, you are approaching for a small holiday season where the fears are seen to be rising and that will be seen positive. Small excise cut in ATF is also seen as a positive step in that direction. So this is the right time to take plunge into all three aviation stocks,” he said.

With regards to the auto stocks, Tulsian said, “We have initiated a buy call on Bajaj Auto, Hero Motocorp and Eicher Motors for the last one week or so post seeing the sales numbers of the month of September”.

“We have been liking Zee Entertainment in the last couple of weeks or so. On Monday, I have said that ahead of the numbers if you want to play safe, one can wait to see the results because nothing seems disappointing for Q1 numbers and along with Q2, the management commentary will be very important and that will give the direction. On a risk reward basis, share seems to have bottomed out and we are seeing good upside potential on the stock price from hereon with a view of next 8-10 months,” said Tulsian.

Have you signed up for Primo, our daily newsletter? It has all the stories and data on the market, business, economy and tech that you need to know. 

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

Ashmore Investment expects one more rate hike by RBI this year, three next year

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

Listen to the Article (6 Minutes)

Ashwini Agarwal, co-founder and partner of Ashmore Investment Management India LLP, spoke to CNBC-TV18 about the current selloff in the equity market and his takeaways from the Reserve Bank of India (RBI) policy.

“Whether this is a bull market or a bear market is not something that I would like to comment on,” Agarwal said on Monday.

According to Agarwal, market faced a lot of events such as IL&FS default, PSU banks merger, Rana Kapoor’s term at Yes Bank in a short span of time.

“I think what has happened is that in the last two-three weeks, there have been multiple events the market has dealt with whether it is the IL&FS, whether it is the merger of the three public sector undertaking (PSU) banks, whether it was the Yes Bank issue, the sudden realisation that the non-banking financial companies (NBFCs) might have a funding problem on a more sustainable basis and then last week’s oil marketing companies (OMCs) issue as well as a potential disappointment on the Reserve Bank of India (RBI) policy. So if you put all of this together, spate of events which have surprised the markets and I think the market is taking time to adjust to that,” said Agarwal.

“So the real question to ask is how much of this is short-term in nature and how much of this is medium-term in nature in terms of debilitating growth prospects,” he said.

Talking about the quarterly results that will kick-off soon, Agarwal said, “I think the September quarter numbers should be fine and one hopes that the changes that we are seeing in the bond market and the FX market will not have a significant impact on earnings in the next six months, so we will have to just wait and see how this all pans out.”

With regards to the Reserve Bank of India’s rate hike trajectory, Agarwal said, “One should expect one more rate hike from this year followed by three more rate hikes next year. Markets are always about discounting the unknown rather than discounting the known. So in the sense that the known is usually priced in. so I am not worried about rate increases from here if they are of the order of three-four rate increases. I think a lot of that is currently priced in in the carnage that we are seeing in the markets.”

“What has been helping the market so far this year has been the fact that mutual fund (MF) inflows have remained reasonably robust. They have come off from roughly Rs 20,000 crore down to Rs 6,000-7,000 crore but they are still in the positive territory and whether these will turn negative or not is the big question,” he added.

Have you signed up for Primo, our daily newsletter? It has all the stories and data on the market, business, economy and tech that you need to know. 

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

Government could introduce more import curbs

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

Listen to the Article (6 Minutes)

The government will soon announce steps to boost exports, while not ruling out further import curbs, a senior finance ministry source said on Thursday.

The government on Wednesday raised import tariffs on 19 “non-essential items”, in a bid to reduce a widening current account deficit and tackle a dramatic slide in the rupee.

The finance ministry expects the tariff hike, on goods including air conditioners, refrigerators, footwear and aviation turbine fuel, will raise Rs 4,000 crore ($551 million) annually, the source, who declined to be identified, told reporters.

Another senior finance ministry official earlier added the ministry saw no impact on Indian airlines from its decision to impose a 5 percent import duty on jet fuel, after shares of companies including Jet Airways fell on Thursday.

The first source said the finance ministry expects robust economic growth despite the fall in the rupee and rising crude oil prices, but would need to conserve its foreign exchange reserves.

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

Fear that more skeletons could come out of closet in banking sector: Vikas Gattani

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

Listen to the Article (6 Minutes)

Vikas Gattani, Founder & CEO of Progress India Opportunities Fund manages about a hundred million dollars and has previously worked with JPMorgan, Merrill Lynch and UBS.

In an interview with CNBC-TV18, Gattani spoke about his reading of the market and his outlook.

“Long-term capital gains (LTCG) was a definite negative both, from a foreign and domestic investor’s point of view. We expect further selling pressure till the end of month of March”, he said.

“Interest rates in India have definitely bottomed out and with the rise in inflation and inflation expectations, we see that rates in India are also likely to rise and that is not helping the market as well”, he added.

“While the steps for resolution of stressed assets have been taken and issues have been addressed, there is always a fear that more skeletons may come out of the closet and that is also not helping the sentiment”, said Gattani.

According to him, tightening of trade finance by banks could also put a dent in the economic functioning.

Speaking on real estate sector, he said that with proper implementation of goods and services tax (GST) and real estate regulatory authority (RERA), weaker realty players will move out of the system in 12-18 months.

“Remain overweight in non-banking financial companies (NBFCs) and looking to add to our positions”, he further mentioned.

For more, watch 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