ICICI Bank under fire for allegedly trying to influence I-Sec's minority investors Read more at: https://economictimes.indiatimes.com/markets/stocks/news

 

Mumbai: ICICI Bank is under fire for allegedly coaxing minority shareholders of ICICI Securities (I-Sec) to support the private lender's proposal to delist the broking and investment banking arm.

Shareholders of ICICI Securities claimed on social media that the bank's executives contacted them directly, asking them to vote in favour of the resolution that proposes to delist the broking subsidiary. Lawyers and market participants said such alleged actions could result in regulatory scrutiny of the voting process.

The e-voting for the delisting of ICICI Securities, which started on March 22, ended on March 26.

Under the scheme of arrangement, ICICI Bank aims to delist ICICI Securities, through a share swap deal. As per the terms, for every 100 shares held, public shareholders in ICICI Securities would receive 67 shares of ICICI Bank. The share swap ratio for delisting the brokerage has been opposed by a section of minority shareholders.

On Tuesday, various shareholders of ICICI Securities took to social media, claiming they received phone calls from ICICI Bank executives in this matter. These individuals shared screenshots of call details and WhatsApp messages from bank staff with some of them alleging that executives asked them to share the one-time password (OTP) in the voting process.

Some said the bank executives also asked ICICI Securities shareholders to share the screenshots of their voting.

An ICICI Bank spokesperson did not respond to ET's queries on the matter.

"The fact that mid-level and junior-level executives of ICICI Bank are personally calling ICICI Securities shareholders over the weekend is a reflection and almost blatant acceptance of the injustice being inflicted by the bank on minority shareholders of ICICI Securities," said Manu Rishi Gupta, founder of MRG Capital, a Bengaluru-based investment fund, which has been one of the most vocal opponents of the delisting plan. "We have sufficient evidence to demonstrate the unlawful actions of ICICI Bank, which we will share with all regulatory authorities."

Securities lawyers said rules do not explicitly bar players from influencing such decisions, but ICICI Bank may be treading in the regulatory twilight zone."PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, which prohibit deceptive practices in securities markets, and the LODR Regulations, enforcing transparent disclosure of information that impacts investor decision-making, are the key regulations that play a key role in market integrity," said Sonam Chandwani, managing partner at KS Legal & Associates. "Furthermore, the Sebi Regulations, designed to ensure fair procedures in acquisitions or delisting, and the Prohibition of Insider Trading Regulations, which guard against the misuse of confidential information, are also significant."

Some said there is a possibility of market regulator Sebi looking into the matter.

"Seeking support for voting in a specific manner isn't explicitly regulated or forbidden but is grounded in corporate governance principles and ensuring fairness in the process," said Sumit Agrawal, founder of Regstreet Law Advisors. "Sebi possesses extensive authority to investigate such practices and, in response to any complaints, can implement heightened scrutiny on the voting process."

"Omnibus provisions of SEBI Act, LODR Regulations, and Delisting Regulations are usually interpreted in favour of transparency and fairness," he added.

According to a news report, ICICI Bank's largest public shareholder, Norges Fund Investment Bank, voted in favour of the resolution. Quantum Mutual Fund said recently it voted against it.

On Tuesday, shares of ICICI Securities fell 1.75% to ₹738. ICICI Bank closed 0.6% lower at ₹1,084.

Read more at:

https://economictimes.indiatimes.com/markets/stocks/news/icici-bank-under-fire-for-allegedly-trying-to-influence-i-secs-minority-investors/articleshow/108804298.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Sterlite & GIC to set up $1 billion JV for power transmission :-ET March 27,2024

 

Vedanta Group's privately held power transmission arm Sterlite Power Transmission Ltd (SPTL) and Singapore's sovereign wealth fund GIC are jointly setting up a $1 billion platform for the power transmission sector in India, said people aware of the development.

GIC will invest $500 million in the JV for a 49% stake while Sterlite Power will deploy a similar amount for a 51% stake. Both companies are likely to make a formal announcement shortly, the people said.

Read more at:
https://economictimes.indiatimes.com//industry/energy/power/sterlite-gic-to-set-up-1-billion-jv-for-power-transmission/articleshow/108800025.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Reliance Power's 2 subsidiaries settle Rs 1,023-cr debt :-ET March 27,2024

 

NEW DELHI: Reliance Power on Wednesday said its two subsidiaries have settled debt worth Rs 1,023 crore with Authum Investment's arm Reliance Commercial Finance. Reliance Power Ltd's two subsidiaries -- Kalai Power Pvt Ltd and Reliance Cleangen Ltd, have signed a debt settlement and discharge agreement with Reliance Commercial Finance Ltd (RCFL), a wholly-owned subsidiary of Authum Investment & Infrastructure Limited, a regulatory filing said.

In a stock exchange disclosure, the company informed that the value of total outstanding debt that has been settled stood at Rs 1,023 crore.

The debt settlement with Reliance Commercial Finance came a few days after Reliance Power announced the sale of its 45 MW wind power project in Maharashtra to JSW Renewable Energy, for a consideration of Rs 132 crore.

According to a company official, the funds raised from the sale of these assets were used to retire the debt.

Authum Investment, in a banks-led resolution process, had acquired Reliance Commercial Finance and Reliance Home Finance from Reliance Capital Ltd in 2022.

Over the past few months, Reliance Power has been actively signing debt settlement agreements with various banks, including DBS Bank, ICICI Bank, and Axis Bank.

Reliance Power is aiming to be a debt-free company, on a standalone basis, by the end of March 31, 2024. At the end of fiscal 2023, the company had an outstanding debt of around Rs 700 crore.

Read more at:
https://economictimes.indiatimes.com/industry/energy/power/reliance-powers-2-subsidiaries-settle-rs-1023-cr-debt/articleshow/108808561.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Six workers presumed dead after crippled cargo ship knocks down Baltimore bridge :-ET

 

BALTIMORE - Six workers were missing and presumed dead from a bridge that collapsed in Baltimore Harbor early on Tuesday after a massive cargo ship crippled by a power loss rammed into the structure, forcing the closure of one of the busiest ports on the U.S. Eastern Seaboard.

With dive teams facing increasingly treacherous conditions in the darkened, wreckage-strewn waters, active search-and-rescue operations were suspended about 18 hours after the accident, U.S. Coast Guard and Maryland State Police officials said.

Coast Guard Rear Admiral Shannon Gilreath said there was no hope of finding the missing workers alive due to the frigid water and the length of time elapsed since the accident.

State Police Colonel Roland Butler said authorities hoped to return divers to the water after sunrise on Wednesday in an effort to recover the workers' remains.

The Singapore-flagged container vessel named Dali, heading out of Baltimore Harbor bound for Sri Lanka, plowed into a support pylon of the Francis Scott Key Bridge over the mouth of the Patapsco River at about 1:30 a.m. (0530 GMT).

Read more at:
https://economictimes.indiatimes.com/news/international/world-news/six-workers-presumed-dead-after-crippled-cargo-ship-knocks-down-baltimore-bridge/articleshow/108804040.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Pedestal Rock, Tamanrasset, Sahara, Algeria

 

India plans to shift from minimum wage to living wage by 2025 :-ET

 

Living wages – a minimum income necessary for a worker to meet their basic needs, factoring in key social expenditure by an individual such as housing, food, healthcare, education and clothing – were endorsed by the ILO earlier this month. These would be higher than basic minimum wages. “We could go beyond minimum wages in a year,” a senior govt official told ET.

Read more at:
https://economictimes.indiatimes.com/news/economy/policy/india-plans-to-shift-from-minimum-wage-to-living-wage-by-2025/articleshow/108755469.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Toyota, Hitachi return around 100% in one year. Is Japan finally out of the woods? ET Prime -used here only for educational purposes

 On March 19, Bank of Japan ended its era of negative interest rates. This is seen as an essential to bring the consumer price inflation back to the 2% target. It seems a virtuous cycle is now in place in the Japanese landscape where economic expansion is aiding stock market heft, and investors are loving it.

The sun is shining brighter on the Japanese market. In fact, the country’s stock market is poised to rise even higher as it sheds its zero-interest-rate regime and moves towards an inflationary environment.

On March 4, 2024, the Japanese Nikki 225 Index closed above 40,000 — a record high after being subdued for 34 years. Over the past year, the index has gained 49%. And there are two specific reasons for this.

• Japan is shedding its zero-interest regime and shifting to an inflationary economy.
• Big corporate reforms are taking place that will help companies to grow at a faster rate.

Goldman Sach’s research expects the TOPIX, the Tokyo Stock Index which also has some semi-conductor stocks, to reach new highs over the next 12 months. Presently, the index is trading at 2,817. Goldman Sachs strategists Kazunori Tatebe and Bruce Kirk in a recent report said that Japanese companies will benefit from a strong US economy and a weaker Yen. They further said that earnings per share will be up 32% over the next three years as the global manufacturing cycle continues to improve. Again, there are talks of wage hikes in Japanese companies, which is expected to boost consumption.

In terms of corporate reforms, the Tokyo Stock Exchange has requested companies to implement management changes that are conscious of share price and cost of capital.

Japanese companies over the last three decades have not actively looked at equities or their market capitalisation as the market itself was down. It turned into a feedback effect where companies did not concentrate on EPS growth in a low-interest rate regime. Again, a low interest rate regime keeps the cost of capital low but then the ROE (return on equity) of the company also suffers.

Interestingly, Japanese companies themselves are now busy buying non-financial stocks.

So, how can Indian investors take exposure to the Japanese market?

The Japanese economy

At its peak in December 1989, Japan accounted for almost 45% of the world’s total stock market capitalisation. The superior market performance was preceded by years of innovations in sectors like engineering and industrials through the 1970s.

By 1980s, Japan became the world’s second-largest economy. Then China caught up over the years and snatched the second-largest economy tag from it.

After 1990s, Japan got mired into a vicious cycle of stagnation and deflation – crashing its share in world stock market capitalisation to 6% in 2023 – a mighty fall from the heydays of 45%.

Things have now changed almost 180 degrees for the Japanese economy in past couple of years – as growth came back accompanied with inflation. Japan’s share in the world market capitalisation is starting to inch up.

Positive territory

On Tuesday (19 March), the Bank of Japan ended its era of negative interest rates that was in place since 2016. The hike — first in 17 years — brought policy rate into positive territory, with a range of 0% to 0.1%, from negative 0.1%. Higher rates are being seen as essential to bring consumer price inflation back to the 2% target.

A series of recent measures by the country’s financial regulators boosted the investors' confidence. Depressed valuations and lower Yen attracted foreign investors eager to beat index returns.

It seems a virtuous cycle is now in place in the Japanese landscape where economic expansion is aiding stock market heft, and investors are loving it. Foreign investors have their eyes set on Japanese stocks.

Rising company margins

Rising inflation means companies are being able to pass on the price increases, thereby expanding margins. Households need to invest their savings to beat inflation. Decades of deflation in Japan earlier killed any incentive for investment as the purchasing power of cash was being protected. But things have changed now.

Pricing power with companies means profitability is rising.

As per the Bank of Japan data, current profits based on all industries and enterprises have reached the highest level since the April-June quarter of 1985, from when comparable data are available.

Large firms’ profits are supported by a recovery in economic activity and hikes in selling prices. A depreciating Yen also boosted profits via foreign exchange gains and increased dividend income from overseas subsidiaries.

Higher incomes and spending

Rising nominal wages alongside gains in equity markets are leading to higher demand. Full-time employees’ salaries have reflected the results of annual spring labour-management wage negotiations in 2023, which ended up with the highest wage growth rate since 1993, as per the Japanese government official data.

Minimum wages for part-time employees have been raised amid tight labour market conditions. This indicates that economic expansion will be steady and not sporadic.

Consumer inflation has matched or exceeded BOJ’s target of 2% for 22 consecutive months, as per the latest data. It has fallen from the 41-year high levels hit in 2023.

Japan’s real GDP grew at 1.9% in 2023, as compared to 1% in 2022, as per the International Monetary Fund data. Growth in 2024 is projected to moderate to 1%.

Economic growth has been accompanied by rising exports. Exports of goods and services as a percentage of GDP have risen to 21.54% in 2022, up from 16.05% in 2016, as per the World Bank data.

The Bank of Japan expects the economy “to continue growing at a pace above its potential growth rate”, on the back of virtuous cycle from income to spending gradually intensifying.

Indians can take exposure to the Japanese equity market through the Nippon India Japan Equity Fund, which invests into Japanese equity and equity-related securities. Over the past one year, the fund has returned 24.78% against S&P Japan 500 TRI at 22.54%.

(Graphics by Mohammad Arshad)

An aerial view of the Queen's Necklace, where the sea seems to merge into the sky or is it the sky that stoops down to the sea?

 

Moscow attack: video captures gunmen storming concert hall and shooting ...

Gun attack at Moscow concert leaves more than 60 dead Read more at: https://economictimes.indiatimes.com/news/international

 Gunmen opened fire at a Moscow concert hall on Friday killing more than 60 people, wounding more than 100 and sparking an inferno, authorities said, with the Islamic State group claiming responsibility.

Attackers dressed in camouflage uniforms entered the building, opened fire and threw a grenade or incendiary bomb, according to a journalist for the RIA Novosti news agency at the scene.

Fire quickly spread through the Crocus City concert hall in Moscow's northern Krasnogorsk suburb, as smoke filled the building and screaming visitors rushed to emergency exits.

Alexei, a music producer, was about to settle into his seat before the start of a rock concert when he heard gunfire and "a lot of screams".

"I realised right away that it was automatic gunfire and understood that most likely it's the worst: a terrorist attack," said Alexei, who would not give his last name.As people ran towards emergency exits, "there was a terrible crush" with concert-goers climbing on one another's heads to get out, he added.

Russia's Investigative Committee said Saturday that more than 60 people had been killed, raising an earlier toll of 40, according to Russian news agencies.Russia's Health Minister Mikhail Murashko said 115 people were hospitalised, including five children, one of whom was in grave condition. Of the 110 adult patients, 60 were in serious condition.

Authorities said a "terrorist" investigation had been started and President Vladimir Putin was receiving "constant" updates, his spokesman Dmitry Peskov told Russian news agencies.Russia's national guard said it was on the scene and looking for the perpetrators. An AFP reporter saw police officers with sniffer dogs inspecting vehicles parked next to the building.

The Islamic State group said its fighters attacked "a large gathering" on Moscow's outskirts and "retreated to their bases safely".Fire contained

Telegram news channels Baza and Mash, which are close to security forces, showed video images of flames and black smoke pouring from the hall.

Other images also showed concert-goers hiding behind seats or trying to escape.Security services quoted by Interfax said between two and five people "wearing tactical uniforms and carrying automatic weapons" opened fire on guards at the entrance and then started shooting at the audience.

A witness told AFP it was a few minutes before the start of the concert by Piknik when automatic gunfire rang out.About 100 people escaped through the theatre basement, while others were sheltering on the roof, the emergency services ministry said on its Telegram channel.

Three helicopters were involved in efforts to put out the fire, dumping water on the giant concert hall that can hold several thousand people and has hosted top international artists.

Shortly after midnight, the emergencies ministry said the fire had been contained.President Putin -- who was informed of the attack "within the first minutes", according to the Kremlin -- wished a speedy recovery to the wounded victims, Russia's deputy prime minister Tatyana Golikova was quoted as saying by Russian news agencies.

Putin has not commented publicly on the attack.'Odious crime'

Outside the burning building, heartbroken relatives of those at the concert spoke of hopelessness as they frantically tried to contact loved ones.

Semyon, 33, whose wife attended, said "nobody knows" where she is. "I've called five hospitals, all busy," he said. "I'm in a complete panic, my whole body hurts."

Russia's foreign ministry spokeswoman Maria Zakharova said it had been a "bloody terrorist attack".The whole international community must condemn this odious crime," she said on Telegram.

The US presidency called the attack "terrible" and said there was no immediate sign of any link to the conflict in Ukraine.

Ukraine's presidency said Kyiv had "nothing to do" with the attack, while its military intelligence called the incident a Russian "provocation" and charged that Moscow special services were behind it.

The Freedom of Russia Legion, a pro-Ukrainian militia responsible for attacks on Russia's border regions, also denied any role.

Former Russian president Dmitry Medvedev vowed on Telegram that Ukraine's top officials "must be found and ruthlessly destroyed as terrorists" if they were linked to the attack.The United States, European Union, France, Spain, Italy, the United Nations and several other countries condemned the attack.

The White House said its "thoughts are with the victims of this terrible shooting attack", while French President Emmanuel Macron also expressed "solidarity with the victims, their loved ones and all the Russian people".

Orthodox church leader Patriarch Kirill was "praying for peace for the souls of the dead", said his spokesman Vladimir Legoyda.Previous warnings

Moscow and other Russian cities have been the targets of previous attacks by Islamist groups but there have also been incidents without any clear political motive.

Earlier this month, the US embassy in Russia said it was monitoring reports that "extremists" were planning "to target large gatherings in Moscow", including concerts.In 2002, Chechen separatist fighters took 912 people hostage in a Moscow theatre, the Dubrovka, demanding the withdrawal of Russian troops from the region.

Special forces attacked the theatre to end the hostage-taking and 130 people were killed, nearly all suffocated by a gas used by security forces to knock out the gunmen.

Read more at:
https://economictimes.indiatimes.com/news/international/world-news/gun-attack-at-moscow-concert-leaves-more-than-60-dead/articleshow/108721565.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

SALUTE TO OUR FREEDOM FIGHTERS WHO SACRIFICED THEIR LIVES FOR THE INDEPENDENCE OUR NATION FROM BRITISH RULE.

 

Shaheed Diwas 2024: From history to significance, here's all that you need to know about the special day.

Shaheed Diwas 2024: 

Shaheed Diwas or Martyr's Day is celebrated in India on a lot of occasions to commemorate the sacrifices of the freedom fighters of the country who sacrificed their lives for the independence of the nation. The British ruled the country for two hundred years, inflicting terror, torture and trauma on the countrymen. Many people rose to the occasion and started joining the freedom movement to save Mother India from the chains of the British government and make the nation free. 

In March, Shaheed Diwas is observed on March 23 to commemorate the fateful day when three freedom fighters - Bhagat Singh, Shivaram Rajguru, and Sukhdev Thapar – were hanged by the British Government. As we gear up to observe Shaheed Diwas, here are a few things to keep in mind.

Date:

Every year, Shaheed Diwas is observed on multiple dates throughout the year commemorating the sacrifices of the freedom fighters. In March, Shaheed Diwas is observed on March 23.

History:

Bhagat Singh, along with his companions, Shivaram Rajguru and Sukhdev Thapar, became an inspiration for the youngsters of the country for their daring adventures. On April 8, 1929, they threw bombs at the Central Legislative Assembly while shouting the slogan – Inquilab Zindabad. They were soon arrested and charged with murder. On March 23, 1931, Bhagat Singh, Shivaram Rajguru, and Sukhdev Thapar were hanged.

Shaheed Diwas is observed to celebrate the sacrifices of the freedom fighters and remind us of the martyrs who fought for the nation and helped us gain the independence that we enjoy today. Shaheed Diwas is a constant reminder that we should never take our freedom for granted, and should never forget the freedom fighters who, through their heroic acts, made the nation free.

Source;-Hindustan Times

India's forex reserves hit record high of $642.5 bn: RBI data ;-The Economic Times March 22,2024

 

India's foreign exchange reserves rose for a fourth straight week to hit a record high of $642.49 billion as of March 15, central bank data showed on Friday.

The reserves rose by $6.4 billion in the reporting week, after rising $20 billion in the previous three weeks.The Indian economy is seen growing at 7.6% this year, one of the fastest among major global economies. This helped draw $20.7 billion in overseas equity flows in 2023 and $1.85 billion so far this year. In addition, India's inclusion on global bond indexes has drawn over $10 billion since late September.

The Reserve Bank of India (RBI) has chosen to absorb most of these flows to avoid a sharp appreciation in the rupee, adding to its reserves, analysts said.A large reserves pile gives the central bank the ability to manage the currency during periods of market volatility.

India's forex reserves, including the central bank's forward holdings, can now cover more than 11 months of imports, a nearly two-year peak.

"India's external metrics remain healthy with adequate level of reserves combined with low current account deficit and low external debt levels," IDFC FIRST Bank economist Gaura Sen Gupta said, adding the current level of reserves are "more than adequate", providing cover from external volatility.

The forex reserves were boosted by the maturity of a $5 billion dollar/rupee swap that matured on March 11.

"The rise in FX reserves was due to maturity of the RBI's $5 billion sell buy swap," Sen Gupta said. "Moreover, RBI has likely made additional dollar purchase during that week to the tune of about $3 billion."

Changes in foreign currency assets are caused by the RBI's forex market intervention as well as the appreciation or depreciation of foreign assets held in the reserves.

In the week of March 15, the rupee fell 0.1% against the dollar and traded in a range of 82.6400 and 82.9525.

The rupee settled at a record closing low of 83.4250 on Friday, down 0.7% for this week.

Read more at:
https://economictimes.indiatimes.com/news/economy/indicators/indias-forex-reserves-hit-record-high-of-642-5-bn-rbi-data/articleshow/108710715.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

India: Isro successfully executes landing mission of RLV 'Pushpak' in Ka...

ISRO successfully carries out landing experiment of RLV vehicle 'Pushpak' :- Hindustan Times

 

ISRO said that the landing experiment was carried out at around 7 am in Karnataka’s Challakere.

The Indian Space Research Organisation (ISRO) will on Friday successfully carried out the landing mission of its Reusable Launch Vehicle (RLV) named 'Pushpak' from the Aeronautical Test Range (ATR) in Karnataka’s Challakere.The rocket was launched at around 7 am from the Chalakere Runway.

This was the third landing mission of the RLV named after the legendary spaceship named in the Ramayan. The space agency had successfully carried out previous missions in 2016 and April last year.

Apple makes iPhones worth Rs 1 trillion in FY24; exceeds PLI target It has also exceeded its target for the third year in which the eligibility for incentives were pegged at a maximum of Rs 75,000 crore for the three vendors :-Business Standard

 

Three years after it entered the country, Apple Inc, through its three contract manufacturers, has hit a milestone by producing iPhones of over Rs 1 trillion in free-on-board (FOB) value in the first 11 months of the current financial year (2023-24, or FY24).

With this, the Cupertino-headquartered company has surpassed its target of producing Rs 1 trillion worth of iPhones by the fifth year of the production-linked incentive (PLI) scheme two years ahead of schedule.

JSW Energy offers ₹130-135 cr for wind projects of Reliance Power :-ET

 

MUMBAI: Sajjan Jindal-promoted JSW Energy has given a binding offer to Anil Ambani led Reliance Power to acquire its wind power projects for a cash consideration of ₹130-135 crore, said people with knowledge of the matter.

"Both the companies are in the advanced stage of negotiation, and the deal is likely to conclude this month," the people cited above said.The 45-megawatt wind power project is based in Vashpet, Maharashtra, which became operational in 2013. It has an agreement with Adani Electricity for power offtake.

Reliance Power and JSW Energy declined to comment on the development.

The proceeds from this transaction will be used to repay bank debt, they said. The 45mw-wind power plant was mortgaged with DBS Bank against a loan of ₹110 crore.In a stock exchange notice on Thursday, Reliance Power said, "The company has settled the entire obligations with respect to its borrowings from DBS Bank in accordance with the settlement agreement dated January 05, 2024 as a result the assets of 45 MW Wind Power Project are free from the encumbrance."

The company settled ₹400 crore loans from ICICI Bank, Axis Bank and DSB Bank, as reported by ET on March 20. The three lenders jointly recovered close to 30-35% of their principal loans. In April 2023, it settled JC Flowers ARC and Canara Bank loans, according to exchange disclosures.

Reliance Power's total financial indebtedness stood at ₹765 crore as of December 31, 2023. Although most debt is settled, it owes some lenders. As per the company's FY23 annual report, Bank of Maharashtra, Punjab National Bank, State Bank of India, US Exim, Asian Development Bank are among the other lenders.

Read more at:
https://economictimes.indiatimes.com/industry/renewables/jsw-energy-offers-130-135-cr-for-wind-projects-of-reliance-power/articleshow/108687522.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Anil Ambani’s Reliance making strong comeback, shares hit the top again after settling Rs 4000000000… Anil Ambani’s firm is now planning to head towards Rs 2100 crore debt settlement with JC Flowers Asset Reconstruction Company. ;-DNA March 21,2024

 

Anil Ambani is once again the part of headlines all over India as his key firm Reliance Power’s powerful rally in the stock market continues. According to data shared by Bombay Stock Exchange (BSE), shares of Anil Ambani’s Reliance Power once again hit the upper circuit and were trading for Rs 23.83. For those who are unaware, this is the third time that stocks of Reliance Power have touched the upper circuit in the past few days. The strong rally of Anil Ambani led Reliance Power’s stocks is a big comeback saga as the shares once plummeted down to Rs 1 by over 99% percent from its peak price. Reliance Power share in 2008 was trading for around Rs 260.78 and after a massive downfall, the share price was around Rs 1.13 on 27 March 2020. After making a slow recovery over the years, Anil Ambani’s Reliance Power once again has the attention of traders.

To recall, Reliance Power was India’s largest IPO in 2008. It was subscribed in less than 60 seconds. The rapid rally of Reliance Power came after reports of the firm settling debt with three major banks surfaced online. Anil Ambani’s Reliance Power has settled the debts owed to ICICI Bank, Axis Bank, and DBS Bank. According to a report by Economic Times, the lenders jointly had around Rs 400 crore and have approximately recovered 30-35% of the principal loans. The report also suggests that Anil Ambani’s firm is now planning to head towards Rs 2100 crore debt settlement with JC Flowers Asset Reconstruction Company.

Anil Ambani is the younger brother of India’s richest man Mukesh Ambani. He was once one of the richest in the country and the sixth richest man in the world and had a net worth of more than Rs 1.83 lakh crore. However, Anil Ambani declared bankruptcy before a UK court in February 2020.

Fed still sees three rate cuts in 2024 amid sticky inflation, stronger economy Read more at: https://economictimes.indiatimes.com

 

The Federal Reserve held interest rates steady on Wednesday, but policymakers indicated they still expect to reduce them by three-quarters of a percentage point by the end of 2024 despite stodgier expected progress towards the U.S. central bank's 2% inflation target.

The Fed's new policy statement described inflation as remaining "elevated," and updated quarterly economic projections showed the personal consumption expenditures price index excluding food and energy rising at a 2.6% rate by the end of the year, compared to 2.4% in the projections issued in December.

Still, 10 of the Fed's 19 officials still see the policy rate falling at least three-quarters of a percentage point by the end of this year, a median view first set in December and maintained despite recent stronger-than-expected inflation.

The sentiment was slightly more hawkish though. Eleven officials in December had seen three quarter-percentage-point cuts on tap for the year, and the new policy view came alongside an upgraded outlook for the economy. Growth is now seen at 2.1% for for the year compared to just 1.4% projected in December, while the unemployment rate is seen ending the year at 4%, lower than the 4.1% anticipated in December and barely changed from the 3.9% jobless rate recorded in February.

One key measure, the longer-run policy rate, was moved higher by a tenth of a percentage point, from 2.5% to 2.6%, reflecting the views of some Fed officials that the economy can support higher interest rates overall in the future.

Read more at:

https://economictimes.indiatimes.com/markets/stocks/news/fed-still-sees-three-rate-cuts-in-2024-amid-sticky-inflation-stronger-economy/articleshow/108657136.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

NOWRUZ HAPPY NEW YEAR

 

Reliance Power and its parent entity actively settling dues with lenders Read more at: https://economictimes.indiatimes.com

 

Mumbai: Anil Ambani-led Reliance Power settled the debts owed to three banks - ICICI Bank, Axis Bank, and DBS Bank - last week while its parent Reliance Infrastructure is working towards settling dues of Rs 2,100 crore to JC Flowers Asset Reconstruction Company, said people with knowledge of the matter.

"Reliance Power aims to be a debt-free company by the end of this fiscal year. The only debt on its books will be the working capital loan from IDBI Bank," said a senior executive from a commercial bank. The three lenders jointly had about Rs 400 crore and have recovered close to 30-35% of their principal loans, another lender said.

Reliance Infrastructure and JC Flowers ARC had entered into a standstill agreement, according to notice issued to the exchanges on January 7. Initially, the standstill was until March 20, 2024, according to a separate stock exchange disclosure. "This was recently extended to March 31, 2024," said a spokesperson of Reliance Infrastructure.

As per the standstill agreement, JC Flowers ARC will not take legal action against Reliance Infrastructure until March 31, giving the company time to arrange funds.ICICI, Axis and DBS Bank did not respond to ET's request for comments. Reliance Power did not comment on details of settlement of the loan.

Reliance Power raised Rs 240 crore equity from VFSI Holdings on March 13, a stock exchange disclosure showed. The proceeds were probably used to settle the dues of the banks, one of the bankers cited above said. VFSI Holdings is a subsidiary of Varde Partners, a global asset asset manager.

Yes Bank, the original lender, has transferred its Rs 48,000-crore distressed loan book to JC Flowers ARC, including loans given to Reliance Infrastructure and Reliance Power.

Reliance Power disclosed to the exchanges that as of December 31, 2023, its total financial indebtedness stood at Rs 765 crore. Separately, Reliance Infrastructure stated its total financial indebtedness was Rs 4,233 crore for the same period. In April 2023, Reliance Power settled loans with two lenders - JC Flowers ARC and Canara Bank - according to exchange disclosures.

Reliance Power had allotted 200 million equity shares to VFSI Holdings in September 2022 at Rs 15.55 per share; of this, 25% was subscribed at Rs 80 crore then, while the remaining were issued as warrants. VFSI exercised the right to convert warrants into shares resulting in an infusion of Rs240 crore.In August this year, Reliance Commercial Finance, which Authum Investment & Infrastructure acquired, invested Rs 1,043 crore in both the Reliance companies. It invested Rs 891 crore in Reliance Infrastructure and Rs 152 crore in Reliance Power.

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