Edelweiss Financial Services Ltd (EFSL) on Monday said its ₹200-crore public issue of secured redeemable non-convertible debentures (NCDs) mobilised over ₹240 crore with the base issue as well as the greenshoe option fully subscribed.
EFSL’s NCD issue, amounting to ₹100 crore (base issue), with an option to retain over-subscription up to ₹100 crore aggregating to a total of ₹200 crore, opened for subscription on December 23, 2020, and was closed early on January 4, 2021. The issue was originally scheduled to close on January 15, 2021.
The company, in a statement, said the retail category of the issue has been oversubscribed by 2.27 times with a total collection of about ₹181 crore (based on the subscription figures available on the electronic platform of BSE as on January 4, 2021).
Motilal Oswal has initiated coverage on the stock of Varun Beverages, with a price target of Rs 1,101, which is 21 per cent higher from the current levels.
According to the brokerage firms report, Varun Beverages single-handedly accounted for 80% of PepsiCo India’s business in CY19 (v/s 45% in CY17) on the back of various expansions and acquisitions in the last few years.
“Penetration level in the newly acquired territories is comparatively lower compared to existing territories. Replication of existing distribution network model, coupled with supply-chain, should increase penetration in these new territories and help gain incremental market share. The newer geographies (South and West) would also provide consistent volume sustainability in the medium to long term. The company’s newly set-up Tropicana plant in Pathankot should further boost push volumes as it has acquired the rights to sell and distribute Tropicana fruit juices from PepsiCo India,” Motilal Oswal has said in its report.
Varun Beverages is engaged in the manufacture, sale, bottling, and distribution of PepsiCo’s beverages in pre-defined territories in India (27 states and seven Union Territories). Its India operations contributed 82% to CY19 revenue. The company is also present in Sri Lanka, Nepal, Morocco, Zambia, and Zimbabwe.
VBL is PepsiCo’s second-largest bottler outside the US and handles over 80% of the cola giant’s India business. While its link with PepsiCo provides it with long-term growth sustainability, robust distribution and supply-chain network should improve its market share in newly acquired territories and push volume growth.
The company is diversifying its product portfolio with the commencement of the new Tropicana plant in Pathankot. This should help reduce concentration risk and improve margin as realizations in non-carbonated beverages (NCB) are 10% higher than in carbonated soft drinks (CSD). Inorganic expansion in the Water segment and increasing share of the international business should help it diversify further.
“Increasing electrification per household in rural and semi-rural areas, growing refrigeration penetration, and rising per capita income, is expected to drive overall consumption of beverages. VBL is poised to gain market share from the consolidation in new territories,” Motilal Oswal report says.
According to the report, capacity utilization during peak months (May-June) is barely 60%. This surplus capacity provides enough headroom to meet increasing demand without additional capex. Higher sweating of assets should further improve its operating profit.
“We estimate 12%/31% revenue/PAT CAGR over CY19-22E, driven by newly acquired territories and stable operating margin. We value the stock at 30x CY22E EPS of Rs 36.2 to arrive at our target price of INR1,100. We initiate coverage with a Buy rating,” the broking firm has stated.
For investment related articles, business news and mutual fund advise
2021 has begun on a solid note, with the markets now at a record high. Many investors continue to wonder whether the momentum will continue and the Sensex would breach the 50,000 points mark.
Auto numbers that have come in for the month of December have been very encouraging as well and so have global cues. Relentless purchases by foreign Institutional Investors is what is driving the markets currently.
“Global cues were positive as investors look forward to an economic recovery in 2021 after one of the most tumultuous years in memory for equities. The coronavirus pandemic continues to be the main focus for European markets, now that the U.K.’s separation from the EU was completed on New Year’s Eve.
On the domestic side, strong FIIs inflows continue to support the positive sentiments. Nifty continued its upward trend on the second trading day of Jan 2021,” Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd says.
FPI Inflows surge
Net FPI inflows
Oct, 2020
Rs 14,537 crores
November, 2020
Rs 65,317 crores
December, 2020
Rs 14,537 crores
“Technically, Nifty has to continue to hold above 13950-14000 zones to witness a fresh rally towards 14200 then 14500 zones while on the downside major support exists at 13850 and 13777 levels. Option data suggests a wider trading range in between 13700 to 14500 zones while an immediate trading range in between 13900 to 14300 zones. Volatility needs to sustain below 20 zones to support the bullish market setup and fuel the bulls with a higher market base,” Khemka adds.
Will the market momentum continue?
The ferocious rally has surprised many, though there is some more steam left for the markets.
“Going ahead, the market momentum seen in the last couple of months is likely to continue on the back of strong global cues, sustained inflows, and improving macros trends. Further highest ever GST collections for December at Rs 1.15 lakh crore can add to the positive momentum. The December quarterly results and Union Budget around 1st Feb will be some of the key event for the market. As the long term market structure remains positive, we would advise investors to adopt Buying on Dips strategy to accumulate quality stocks,” says Khemka.
Investors who are on the sidelines may have to wait long for any meaningful reaction to take place in the markets. At the moment it makes little sense to chase the momentum and investors would do well to book profits at higher levels.
For investment related articles, business news and mutual fund advise
2021 has begun on a solid note, with the markets now at a record high. Many investors continue to wonder whether the momentum will continue and the Sensex would breach the 50,000 points mark.
Auto numbers that have come in for the month of December have been very encouraging as well and so have global cues. Relentless purchases by foreign Institutional Investors is what is driving the markets currently.
“Global cues were positive as investors look forward to an economic recovery in 2021 after one of the most tumultuous years in memory for equities. The coronavirus pandemic continues to be the main focus for European markets, now that the U.K.’s separation from the EU was completed on New Year’s Eve.
On the domestic side, strong FIIs inflows continue to support the positive sentiments. Nifty continued its upward trend on the second trading day of Jan 2021,” Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd says.
FPI Inflows surge
Net FPI inflows
Oct, 2020
Rs 14,537 crores
November, 2020
Rs 65,317 crores
December, 2020
Rs 14,537 crores
“Technically, Nifty has to continue to hold above 13950-14000 zones to witness a fresh rally towards 14200 then 14500 zones while on the downside major support exists at 13850 and 13777 levels. Option data suggests a wider trading range in between 13700 to 14500 zones while an immediate trading range in between 13900 to 14300 zones. Volatility needs to sustain below 20 zones to support the bullish market setup and fuel the bulls with a higher market base,” Khemka adds.
Will the market momentum continue?
The ferocious rally has surprised many, though there is some more steam left for the markets.
“Going ahead, the market momentum seen in the last couple of months is likely to continue on the back of strong global cues, sustained inflows, and improving macros trends. Further highest ever GST collections for December at Rs 1.15 lakh crore can add to the positive momentum. The December quarterly results and Union Budget around 1st Feb will be some of the key event for the market. As the long term market structure remains positive, we would advise investors to adopt Buying on Dips strategy to accumulate quality stocks,” says Khemka.
Investors who are on the sidelines may have to wait long for any meaningful reaction to take place in the markets. At the moment it makes little sense to chase the momentum and investors would do well to book profits at higher levels.
For investment related articles, business news and mutual fund advise
Liquidity coverage ratio, a key financial indicator, stood at 115.5% compared with 107.3% in the previous quarter.
Yes Bank registered 1.3% quarter-on-quarter (q-o-q) growth in loans and advances to Rs 1.69 lakh crore during the December quarter, according to provisional data released by the bank on Monday. Similarly, deposits grew 7.7% to Rs 1.46 lakh crore in the quarter, compared to Rs 1.36 lakh crore in the September quarter.
The gross retail disbursements during the December quarter stood at Rs 7,563 crore, up 109% compared with Rs 3,764 crore in the September quarter. Rajan Pental, global head-retail banking at Yes Bank, had earlier told FE that the lender had set a target to disburse retail and small business loans worth Rs 10,000 crore in the December quarter of the current financial year. The bank also aims to double its retail assets and liabilities by 2023.
The certificate of deposits (CDs) grew 1.9% to Rs 7,395 crore from Rs 7,259 crore in the preceding quarter. The current account and savings account (CASA) deposits grew 12.6% to Rs 37,973 crore, compared to Rs 33,713 crore in the September quarter. Similarly, the proportion of total CASA deposits to total deposits grew 120 basis points (bps) to 27.4% in the December quarter, compared to 26.2% in the previous one.
Credit to deposit ratio in the quarter under review stood at 115.6% compared with 122.9% in the previous quarter. Liquidity coverage ratio, a key financial indicator, stood at 115.5% compared with 107.3% in the previous quarter.
The bank said it had registered 38.8% in the deposits during the nine-month period from April to December. However, loans and advances declined 1.4% during the same nine-month period. Earlier, Yes Bank was rescued by a clutch of financial institutions in March as per the reconstruction plan prepared by the Reserve Bank of India.
The lender’s liquidity coverage ratio was at 248.26% for the December quarter.
Federal Bank’s deposits grew 12% year-on-year during the third quarter of the current fiscal while gross advances reported a 6% year-on-year growth, the bank said in a regulatory filing.
The Kerala-based lender said at the end of the December quarter, total deposits stood at Rs 161,670 crore, against Rs 144,592 crore in the year-ago period. Advances at the end of the third quarter stood at Rs 128,174 crore, compared with Rs 120,861 crore in the third quarter of the previous fiscal.
CASA was at Rs 55,739 crore during the quarter under review, an year-on-year increase of 23%. The CASA ratio was at 34.48%.
The lender’s liquidity coverage ratio was at 248.26% for the December quarter, compared to 181.30% for the year-ago period and 266.27% for the second quarter of the fiscal.
The lender had reported a 180% year-on-year increase in its second quarter net profit to Rs 68.9 crore on the back of higher interest income.
The gold loan portfolio of CSB Bank increased by 60.36% year-on-year during the third quarter to touch Rs 5,633.75 crore, the lender said in a regulatory filing. Sequentially, the gold loan portfolio grew 14%, from Rs 4,938.98 crore in the second quarter of the current fiscal.
The Thrissur based lender’s gross advances rose 22.64% year-on-year to Rs 13,425.24 crore in Q3, compared with Rs 12,761.80 crores in Q2. Total deposits increased by 16.48% YoY to touch Rs 17,752.97 crore during the third quarter.
CSB earlier reported that its gold loan portfolio grew by Rs 1,100 crore in the second quarter, an increase of 30% quarter-on-quarter and 47% year-on-year. RBI’s relaxation on LTV norms has helped the bank increase its gold loan portfolio.
The lender had reported a 180% year-on-year increase in its second quarter net profit to Rs 68.9 crore on the back of higher interest income.
Please refer to the RFP notice for the captioned work published on the RBI Website on December 15, 2020 inviting application from bidders, through e-tender on MSTC Portal (https://www.mstcecommerce.com/eprochome/rbi/).
2. In this context, it has been decided to extend the date and time of closing of bid submission. The revised date and time are furnished below:-
Task
Completion Date
Date & time of closing of online e- Tender for submission of online Technical and Financial Bid
1200 hrs on January 7, 2021
Date & time of opening of Part I (Technical Bid)
1400 hrs on January 7, 2021
Date & time of opening of Part II (Financial Bid)
1600 hrs on January 7, 2021
3. All other terms and conditions of the RFP shall remain unchanged.
For raising equity through QIP or FPO, the bank will take a call based on the market scenario and requirement.
Indian Bank is looking at diversifying loan growth across sectors and geographies by targeting manufacturing, service and infrastructure companies with good rating. It will also focus on refinancing of well-rated corporates where cash flows are strong. In an interview with FE’s Sajan C Kumar, Indian Bank MD & CEO, Padmaja Chunduru said the bank proposes to concentrate on industries with low and moderate risk due to the Covid impact. Excerpts:
The bank recently raised funds bonds. What was it for?
Bonds totalling Rs 1,608 crore were raised for augmenting the AT-1 capital and overall capital adequacy. During FY21, out of existing tier 1/tier 2 bonds, Rs 1,000 crore was repaid on maturity or exercise of call option and further there is a call option due in March 2021 for Rs 500 crore. There will be no additional interest burden as these bonds mainly replace the ones paid out during the year. Currently, we have no plan to raise equity capital from the Centre or financial institutions. For raising equity through QIP or FPO, the bank will take a call based on the market scenario and requirement.
Due to pandemic what kind of restructuring of accounts are you anticipating?
Owing to Covid-19 pandemic, stress was expected in almost all the sectors. Restructuring expected is up to 2% of total standard advances, of which corporate will be up to 1.5%. The retail segment has not approached much for restructuring, MSME has the same pace as in the previous tranches. Corporate restructuring requests are in line with expectations. The overall collection efficiency in November 2020 was at 86%.
Did disbursement improve in the third quarter ?
There has been discernible improvement in disbursements under retail assets in the first two months of Q3. In corporate and mid-corporate sector, up to November 2020, the bank had accorded approval for good number of proposals and while half of them have been disbursed, there is still a significant undisbursed amount. Corporate and agriculture credit has picked up in Q3. Also, the bank will look at diversifying growth across sectors and geographies by targeting manufacturing, services and infrastructure companies with good rating, along with refinancing well rated corporates where cash flows are strong.
What will be Indian Bank’s approach towards corporate lending?
Our endeavour is to maintain a good mix of RAM (retail, agri and MSME) and corporate portfolios. The bank is well positioned to grow in both the segments. Our RAM portfolio, at present, is 56% of the total credit. The share of retail assets is 32% of the RAM portfolio and 18% of the total credit portfolio. The bank proposes to concentrate on industries with low and moderate risk due to Covid impact. We are targeting a moderate growth of 10% in corporate credit. So far, the growth in corporate sector has been mostly for NBFC/govt/PSE segments. We expect private investments to pick up in Q4.
Indian Bank MD & CEO, Padmaja Chunduru
How much recovery do you expect by the end of this fiscal?
Under NPA management, focus is on arresting fresh slippages and recovery in the existing accounts. Credit monitoring – a vertical with centres in Chennai and Kolkata, monitors and reviews on a daily basis all accounts showing incipient signs of any irregularity. Accounts in the watch list are closely monitored. SARFAESI action is being initiated in all eligible NPA accounts to speed up the recovery. Recently we have conducted mega e-auctions in which total 166 properties were sold. Online OTS (one-time settlement) portal has been implemented for small accounts up to outstanding of Rs 1 crore and field functionaries are advised to mobilise maximum OTS proposals.
How is your CASA position? Any plans to enhance it?
CASA being the core strength, the bank has been striving hard to increase the CASA ratio on a continuous basis. These efforts are getting translated every quarter as it has improved from 41.28% in March 2020 to 41.90% in September 2020. The bank will be leveraging data analytics and market research to constantly upgrade its product offerings for customer retention. It is also increasing its wallet share by aggressively cross selling other products such as retail loans, credit card, insurance products, mutual fund products and trading account services.
How well has the bank proceeded on integration of Allahabad Bank with Indian Bank?
Treasury operations have been fully integrated. Harmonised products, interest rates and service charges have been made available to customers of the amalgamated entity. A common gateway software (Co-Ex) is being used to provide interface to the two CBS systems to carry out basic financial and non-financial transactions from either bank branch. We expect to complete the CBS integration in this financial year as planned.
What is the update on finding a minority partner for Ind Bank Housing?
Our subsidiary IBHL is in process of engaging consultant to assist the company in its revival plan. The company is also engaged in informal discussion with potential investors. At present, we have not received any formal expression.
The pre-bid meeting for the captioned tender was conducted by the Estate Department from MOB, New Delhi through Webinar via Cisco WebEx on December 24, 2020 between 12:00 p.m. – 1:00 p.m. The following staff members of RBI and firms/prospective tenderers were present during the pre-bid meeting:
Sl. No.
Name and Designation of RBI Officials
1
Manoj Kumar Sharma, AGM (Estate)
2
Basab Bhattacharya, Manager (Estate)
Sl. No.
Name of the Representative
Name of the Firm/Prospective tenderers
1
Shri Pramod Sharma
M/s Kore Security Services
2
Shri Yogesh Bhatt
M/s M/S Tiger 4 Security & Facilities India Pvt. Ltd.
3
Ms. Manisha Joshi
M/s TRIG Group of Companies
4
Shri Karthik Kumar
M/s TRIG Group of Companies
The following queries/proposals were raised in the pre-bid meeting:
Sl. No.
Tender Details
Query/Proposal
Clarifications furnished by the Bank
1
Providing / provided security services in any one high security installation / establishment such as Airports, Defence, PSUs, embassies etc. continuously for last three years with deployment of 60 security personnel.
Under type of establishments, in PSU only Central Govt. undertaking or State Govt. undertaking will also be considered.
As per NIT.
2
Company having a local office and complete training setup both for professional and physical aspects covering unarmed combat as well as obstacle clearing course. They should also have proper infrastructure to be able to impart training on discipline and good bearing.
Can Tie up with training Institute will also be considered.
As per NIT.
3
The agency should be registered with the concerned authorities of Labor Department under Contract Labour (R&A) Act 1970 and Delhi Works Contract Act (wherever applicable).
Is it mandatory to have registered with Delhi Works Contract Act.
AS per NIT.
4
Income Tax Returns of last three years – FY 2017-18; 2018-19; 2019-20
ITR of F.Y. 2019-20 still not filed so can we submit provisional B/S & P/L of F.Y. 2019-20
Previous three years ITR / Balance sheets (2016-17, 2017-18 and 2018-19) and companies are required to submit a provisional certificate by its Statutory Auditors certifying its turnover for FY 2019-20 if balance sheet for FY 2019-20 has not been finalized and audited.
5
The bidder is required to provide securities services to various premises of the Bank as indicated in this document (Annexure-III) and is advised to visit and acquaint himself with the site conditions. The costs of visiting shall be borne by the bidder. It shall be deemed that the bidder has undertaken a visit to all the premises and is aware of the operational and site conditions prior to the submission of the tender documents.
Can visit be made during working hours on all working days?
Yes, As per NIT.
6
In Annexure -XI (Price Bid) all the Rates must be as per Minimum Wages Act and inclusive of all applicable statutory levies / taxes, GST/CGST/ SGST.
Whether annual rate and annual amount are all inclusive of all the applicable taxes.
Yes, as per NIT.
Note: This document shall form part and parcel of the tender. Hence, shall be signed and submitted along with the tender by the tenderers. All the other Commercial & Technical terms & conditions will be as per the tender document.
Financial Express is now on Telegram. 
