Business News, Financial News, Analysis, Commentary, Views, Opinion
Fulford (India)’s parent Dashtag, a subsidiary of Merck & Co. has postponed its delisting plans, a decision it has attributed to a sharp rise in Fulford’s share. But a reference to Sebi’s decision to amend the delisting regulations indicates some influence from that side as well. Shareholders reacted with dismay, sending the stock down by 20%on […]
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The relationship between Diageo-controlled United Spirits and the UB group has taken a curious turn. A company meeting called last week to put to vote a number of related material party transactions, saw minority shareholders vote against all UB group-related transactions except for one. Link. In another development, shareholders rejected a postal ballot for a related […]
Continue ReadingState Bank of India has got government approval to raise equity capital Rs 11,576 crore in equity capital. SBI said that it will raise Rs 2,000 crore by way of a preferential equity issue to the government, which is its main shareholder, and also raise Rs 9,576 through a qualified institutional placement. The government’s approval is subject to its stake in the company not falling below 58%, from the current level of 62.3%.
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Equity markets in the emerging market sphere are celebrating after the US Federal Reserve’s statement issued on July 31. The Fed’s statement, that the US economy grew at a modest than expected pace in the first half, has been taken as a sign that the Quantitative Easing ‘taper’ is nowhere in sight. They may be right but they should also pay heed to the Fed’s statement about the improving health of the US economy, and if upcoming indicators point to a recovery on expected lines then the Fed may commence a taper.
Continue ReadingVivimed Labs is acquiring a drug-making facility in India, that comes with regulatory approval from the US Food and Drug Administration (US FDA), giving it acess to the US market. It will get two products as part of the deal and some outsourcing contracts that will give it access to quicker revenue streams. In the longer run, it plans to file to sell new drugs from this facility.
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The Telecom Regulatory Authority of India has proposed a hike in foreign direct investment limits in the broadcasting sectors, chiefly television and FM radio. The move follows the government’s desperation to bring in FDI follows to help bridge the balance of payments problem.
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The Reserve Bank of India (link) did the predictable by holding on to rates at current levels in its quarterly monetary policy review. The repo rate has been retained at 7.25% and the reverse repo rate has been kept at 6.25%. Repo is when banks borrow from the RBI to meet temporary funds requirement and the reverse repo is when banks park surplus funds with the RBI.
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Engineering and construction company Larsen & Toubro (link) has won a sizeable international order from the Arriyadh Development Authority (link), as part of a consortium to build a metro for the city of Riyadh, in Saudi Arabia. L&T said that it has got an order worth $1.4 billion or Rs 8,250 crore for design, construction and commissioning of a metro project.
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A merger of Ambuja Cements and ACC has been long speculated upon, since both are owned by the same parent company Holcim. On July 24, Ambuja Cements declared its results and also announced a rather complex restructuring to bring ACC into its fold.
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The government announced on July 18 that it had issued an ordinance to give Sebi more powers against illegal collective investment schemes and to curb insider trading. The release went on to say that
A. Sebi would have powers to regulate any collective investment schemes with a corpus of Rs 100 crore or more,
B. Sebi could seek information, including call records, from anybody in connection with its investigations, and lastly
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