Kotak Mahindra Bank shares tank 3.5% after RBI setback on stake reduction; should you buy or sell stock?
Posted on 16th August 2018 |
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| Shares of Uday Kotak-run Kotak Mahindra Bank tanked by nearly 3.5% on Thursday, after India’s apex bank RBI notified on Tuesday that the bank’s preferential issue does not meet its dilution norms. Under RBI’s current norms, Founder and Promoter Uday Kotak was required to reduce his stake in the bank to 20% by December 2018 and 15% by March 2020. Accordingly, Uday Kotak had expanded his paid-up capital by issuing 52% more perpetual non-convertible preference shares. The expansion had effectively brought down his share in the paid-up capital from 30% to a little under 20%, but there were questions regarding RBI’s stake dilution norms. The opinion on RBI’s stake dilution remains mixed, as some believe Kotak has to just cut his stake in the total paid-up capital. However, others contend that he is required to bring down his stake as a percentage of voting shares. Kotak Mahindra Bank shares were seen trading at Rs 1,253.60, down by more than 3% in the morning trade. The major reaction was seen today, as yesterday the stock markets were closed on account of Independence Day. Research firm Citi said that the bank could now look to raise equity from the primary markets. Further, the firm said that Uday Kotak may look to sell part of his holding in the secondary market. Citi has a target price of Rs 1,565 on the shares. The firm’s target price implies an upside of 25% from the current market prices. Citi expects a meaningful acquisition in the banking space or in life insurance, AMC or NBFC. Morgan Stanley has an overweight rating on the shares, with a target price of Rs 1,435. The target price implies an upside of more than 14% from the current price levels. “Given the RBI requirement bringing the promoter’s stake down to 20 per cent by December 2018 and 15 per cent by March 2020, for us it implies large dilution or a stock supply equivalent to Rs 25,000 crore (at current prices), or a large acquisition,” Nomura said in a note. |
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Bharti Airtel defers Q2 results till Nov 14 over ambiguity on AGR verdict
Posted on 29th October 2019 |
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Bharti Airtel said on Tuesday it has postponed its second-quarter earnings report to mid-November, as the wireless operator sought clarity on the court ruling asking telecom firms to cough up overdue payments to the government.
Shares of the company, which was expected to release its quarterly numbers later in the day, dropped 3.3 per cent in early trade. |
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Rupee slips 8 paise vs US dollar in early trade amid drop in oil prices
Posted on 7th October 2019 |
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The rupee on Monday opened eight paise lower at 70.96 against the US dollar amid drop in crude oil prices and rise in Asian equities. The domestic unit on Friday closed almost flat at 70.88 against after the Reserve Bank of India (RBI) in a widely expected move cut key interest rates by 0.25 percentage point. On a weekly basis, the local unit slumped by 32 paise. |
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LIC pips private insurers in first-year premium growth during April-August
Posted on 13th September 2019 |
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In the first five months of the current financial year, first-year premiums of life insurance companies grew by 39.84% (year-on-year) at Rs 1.05 lakh crore as compared to Rs 75,588.35 crore in April-August of 2018-19. Life Insurance Corporation of India (LIC) continued to grow at a faster pace compared to private insurance players, shows the data from the Insurance Regulatory and Development Authority of India (Irdai). |
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Apollo Hospitals rules out further stake sale
Posted on 13th September 2019 |
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Apollo Hospitals Enterprise (AHEL) has ruled out further dilution of promoters’ stake in the company. The company also said its Rs 1,337-crore stake sale of Apollo Munich Health Insurance with mortgage major HDFC will be concluded by October. Following these stake sales, the promoters’ pledged position will come down from a high of 76% to 54% by October and eventually to 20% by November or December, company sources said here. |
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World trusts India on Kashmir, not us: Pakistan minister Ijaz Ahmed Shah
Posted on 13th September 2019 |
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In a major embarrassment for Pakistan and its Prime Minister Imran Khan, the country's Interior Minister Ijaz Ahmed Shah, a retired brigadier, said the international community didn't believe Pakistan's narrative on Kashmir; instead it is India whose version is trusted. |
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