- IDBI Bank: The bank has said that its board has granted in-principle approval to divest the bank’s entire 19.18% stake in Asset Reconstruction Company (India) Ltd (ARCIL), in a statement to the stock exchanges post market hours Friday. The sale would comprise 6.23cr shares of the lender. Avenue India Resurgence Pte Ltd, the Indian unit of the US-based investment firm Avenue Capital Group, in March became the largest ARCIL’s largest shareholder, acquiring 27% stake in the company from six of its shareholders. These included IDFC Bank, South Africa’s FirstRand Bank Ltd, a Quiveo Enterprises Ltd, Lathe Investment Pte Ltd (a subsidiary of Government of Singapore Investment Corporation Ventures), Karur Vysya Bank Ltd and Barclays Bank Plc.
- Lakshmi Vilas Bank: The Reserve Bank has initiated Prompt Corrective Action (PCA) against Lakshmi Vilas Bank (LVB) due to high level of bad loans, lack of sufficient capital to manage risks and negative return on assets for two consecutive years, the private sector lender said on Saturday. This action, the bank said, was based on the central bank’s risk-based supervision for FY19. Under PCA, banks are mandated to cut lending to corporates and focus on reducing concentration of loans to certain sectors. They are also restricted from opening new branches and paying dividends. The RBI move comes amidst the Delhi Police's Economic Offences Wing registering a complaint against the board of LVB alleging cheating and misappropriation of funds.
- Future Consumer Ltd: The company said it has bought out its JV partner's 50% stake in Genoa Rice Mills, making it its wholly-owned subsidiary Ltd, in a statement to the stock exchanges post market hours Friday. The company has acquired shares by way of an all-cash deal, it said in the filing.
- IRCTC IPO: Indian Railway Catering and Tourism Corporation (IRCTC) initial public offering (IPO) is all set to hit the primary market today. The IPO is part of the government's divestment programme, the price band for which has been fixed at Rs315-320/share. The company will not receive any proceeds of the IPO, as it is an offer for sale issue. The issue will close on October 03, 2019, following which the government's stake in IRCTC will come down by 12.5%. Of the total shares on offer, 50% will be available for allocation to qualified institutional buyers (QIBs), including 2 lakh equity shares for the mutual fund portion on a proportionate basis. Another 15% of the offer is allocated to the non-institutional investor category (HNI) and 35% will be made available to the retail category. There's an additional discount at Rs 10 per share for the retail category and eligible employees. The lead managers for the IRCTC IPO are SBI Capital Markets Limited, IDBI Capital Markets & Securities Limited and Yes Securities (India) Limited.
- Dewan Housing Finance Ltd: Debt-ridden mortgage lender DHFL on Saturday floated a draft resolution plan, proposing to convert debt into equity, subject to the approval of investors and bankers. The company had, on 27 September, held a meeting to present the draft resolution plan to all institutional creditors, including banks, financial institutions, mutual funds, insurance companies and other institutional bond holders, and to apprise them of the various steps required to be undertaken to implement the resolution plan, DHFL said in a filing to stock exchanges on Saturday. A price of Rs54 per share was assumed for conversion of debt into equity by lenders to acquire 51% in the company, it said. The Wadhawan family, who owns a little over 39% in the company, has been looking at ways of coming out of the stress, which first came to light late last year following the IL&FS bankruptcy.
- Indiabulls Real-estate Ltd: Indiabulls Real Estate (IB Real) on Saturday said shareholders have approved proposal to sell its London property to promoters for 200mn pounds in an annual general meeting held on September 28, the company said in a statement to stock exchanges. Earlier, the company had disclosed its plans to focus on its India business and cut down on debt. It had also informed that the promoter of the company has come forward to acquire the London property for an aggregate consideration of 200 million pounds, which is significantly above the cost of its acquisition i.e. GBP 161.5mn and CBRE, UK recent valuation i.e. GBP 189mn.
- Glenmark Pharma Ltd: Glenmark Pharmaceuticals on Saturday said it has received shareholders’ approval to raise up to $200mn (about Rs 1,413 crore) through issuance of debt securities. The Mumbai-based drug maker said that the proposal was approved at the company's annual general meeting held on September 2. The company, however, did not disclose the reason for the fund-raising. As per the proposal, Glenmark Pharma plans to raise up to $200mn in Indian and/or international market through bonds, debentures or other debt securities in one or more tranches. The price at which the debt securities will be issued shall be determined by the board in accordance with applicable laws and consultation with appropriate advisors, the company said.
- Reliance Capital Ltd: Reliance Capital Ltd has completed sale of its 21.54% stake in Reliance Nippon Life Asset Management Ltd (RNAM) to Nippon Life Insurance of Japan for Rs3,030cr, the company said in a statement to the exchanges on Saturday. Reliance Capital will further monetise its balance 4.28% stake in RNAM worth Rs700cr, the statement said. Reliance Capital had earlier sold 17.06% of its shareholding in RNAM, in three successive offers for sale, aggregating over Rs2,480cr. The entire proceeds from the RNAM stake monetization—around Rs6,200cr—will be utilised to reduce Reliance Capital’s outstanding debt obligations.
- Cox & Kings Ltd: Cash strapped Cox & Kings has now signed an agreement with EbixCash to sold its Indian corporate travel business to Mercury Travel, EbixCash's corporate travel division. Post the agreement, some of the core employees of Cox and Kings will be transferred to the EbixCash payroll. Cox & Kings has defaulted on multiple payments of commercial papers since June 2019, when the first default of Rs150cr was announced. As per the company latest regulatory filing, the company has defaulted on payments worth Rs30cr on September 20.
- 63 Moons Technologies: The technology firm announced that the company has completed all the stipulations, applicable before closing, given in NCLAT order dated 22 July 2019 for the sale of its 55.35% stake in ATOM, a subsidiary of the Company, for an aggregate consideration of $9.24mn to NTT Data Corporation, Japan. Further, as per the terms of the Share Purchase Agreement dated 27 November 2018, 63 moons received a sum of $8.83mn and $0.4mn has been deposited in the Escrow account. The funds received by 63 moons shall be utilised in the manner and for the purpose as stated in the NCLAT order.
The Dow Jones Industrial Average dropped Friday, after reports emerged that the US was considering banning portfolio flows into China.. The Dow Jones (IA) slipped 70 points, or 0.26%, to close at 26,820.25. The S&P 500 fell 15.83 points, or 0.53%, to finish at 2,961.79, and the Nasdaq Composite slipped 91 points, or 1.13%, to close at 7,939.63.
The US is considering delisting all Chinese companies, according to Bloomberg, and banning US pensions from investing in Chinese stocks. Details remain limited, and the plan would still need to be approved by President Donald Trump.