Tag: corporate and business

Paytm up 17%, Central Bank, IOB gain from selloff hopes, BFSI News, ET BFSI

Banking & Finance

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Mumbai: Indian Overseas Bank and Central Bank were among the top gainers in the stock exchanges on Wednesday after investors speculated that these might be the two banks lined up by the government for divestment. Meanwhile, Paytm shares continued on their road to recovery, gaining 17% on Wednesday to end at Rs 1,753, but still remain 18% below their issue price of Rs 2,150. This was despite the broader sensex falling 323 points to 58,341.

The government on Tuesday released the list of bills that it will seek to pass in the winter session of Parliament. Among them is the Banking Laws (Amendment) Bill 2021. This bill describes the need for amendments in the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and 1980. In addition to this, there are some amendments needed in the Banking Regulation Act, 1949.

The privatisation of two public sector banks was announced in the Union Budget for 2021-22 by finance minister Nirmala Sitharaman. The banks’ disinvestment, along with that of the Life Insurance Corporation of India, was expected to fetch Rs 1.75 lakh crore for the government.

Shares of Indian Overseas Bank opened at Rs 22 and touched the day’s high of Rs 23.8 before closing 13% higher at Rs 22.5. At the current price, the bank’s market capitalisation is Rs 42,436 crore. Shares of Central Bank opened at just under Rs 23 and touched a high of Rs 23.7 before closing over 10% up at Rs 22.7. The bank currently has an mcap of Rs 19,706 crore.

Paytm shares saw reduced volatility on Wednesday on the back of what appeared to be buying interest from institutional investors. Shares had fallen 35% in the first two days of trade, but found support at lower levels later. At the current price, the payment giant is valued at nearly Rs 1.14 lakh crore — more than Nykaa (Rs 1.06 lakh crore) but still behind Zomato (Rs 1.22 lakh crore).



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Indiabulls Real Estate posts Rs 5.6 crore profit in Q2; Sameer Gehlaut to step down as chairman, BFSI News, ET BFSI

Personal Finance

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NEW DELHI: Indiabulls Real Estate Ltd (IBREL) on Thursday reported a consolidated net profit of Rs 5.64 crore for the quarter ended September and announced the resignation of Sameer Gehlaut as the non-executive director and chairman of the company with effect from December 31. Mumbai-based IBREL said Gehlaut will now focus on Dhani Services Ltd.

The resignation of Gehlaut comes amid the proposed merger of IBREL projects with the Bengaluru-based Embassy Group.

After the conclusion of the merger process, Embassy Group will become the main promoter after the completion of amalgamation process.

In a regulatory filing, IBREL reported a consolidated net profit of Rs 5.64 crore for the quarter ended September. The company had posted a net loss of Rs 76 crore in the year-ago period.

Total income in the second quarter of this fiscal rose to Rs 381.24 crore from Rs 50.70 crore in the corresponding period of the previous year.

IBREL said Gehlaut has informed the board that he would resign as the chairman by the end of this year.

“…to focus on business of providing technology-enabled transaction finance and primary healthcare services by Dhani Services Ltd, of which Sameer Gehlaut is the founder promoter, Chairman & CEO, at the aforesaid meeting Gehlaut informed that he would be leaving the office of non-executive director & chairman of the company by the end of the year,” it said.

Accordingly, Gehlaut submitted his resignation effective from December 31, 2021.

On the proposed merger of its assets with the Bengaluru-based realty firm Embassy Group, IBREL said it has got regulatory approvals from Competition Commission of India (CCI), National Stock Exchange of India (NSE), BSE Limited (BSE) and the Securities and Exchange Board of India (SEBI).

The company has filed the requisite joint application with jurisdictional bench of NCLT, for its approval to the scheme of merger.

“The application for approval of merger with NCLT is listed in the current quarter,” it said.

Last year, Embassy Group entered into a definitive agreement to merge its certain residential and commercial projects with IBREL through a cash-less scheme of amalgamation.

Embassy Group will become the promoter of the merged entity.

Embassy Group has around 14 per cent stake in IBREL and the same will increase to 45 per cent after the merger of assets of these two companies.

Post-merger, the combined entity will have 80.8 million square feet of launched and planned development potential. The merged entity will have about 30 projects.

Under the terms of the agreement, the IBREL’s shares are being valued at Rs 92.5 per share.



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Equitas resumes works on merger of promoter company into small finance bank, BFSI News, ET BFSI

Banking & Finance

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The banking regulator has allowed the bank to put an application toward this end.

“RBI vide its communication dated July 09, 2021 has permitted the bank to apply to RBI, seeking approval for scheme of amalgamation,” Equitas said in a regulatory filing.

“We would be initiating steps to finalise the scheme of amalgamation, submit to the boards of the bank and EHL for approval and take further action thereafter in accordance with applicable regulations and guidelines,” the bank said.

The Equitas group since 2018 was looking for the reverse merger of the holding company with the bank but could not take it forward as the sector regulator did not allow it to do so.

Under the licensing agreement, a promoter of a small finance bank can exit or cease to be a promoter after the mandatory initial lock-in period of five years. In case of Equitas, the initial promoter lock-in expires on September 4, 2021.



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