Voda Idea losses spill over to other AB Birla group firms; m-cap down 6.2%
Posted on 30th July 2019 |
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| The continued losses at Vodafone Idea are spilling over into other AB Birla group firms, led by Chairman Kumar Mangalam Birla. The combined m-cap of the AB Birla group firms was down 6.2 per cent on Monday, led by losses at Vodafone Idea. In all, group firms lost nearly Rs 18,000 crore m-cap on Monday. The telecom major has lost 44.3 per cent of its m-cap in July, wiping out most of the gains it made after it raised Rs 25,000 crore by way of a rights issue in May this year. Vodafone Idea now has a m-cap of Rs 19,454 crore against Rs 39.942 crore at end of last month. The biggest surprise for the analysts was, however, a sharp 9 per cent fall in Grasim Industries stock price, the flagship company and the main operating and holding company for the AB group. It was the worst fall in Grasim share price in the last two years, raising fears about a spill-over effect from Vodafone Idea's poor performance. Grasim is the single largest promoter shareholder of Vodafone Idea with 11.55 per cent stake in the company at the end of June 30. In all, Birla's owned 27.18 per cent stake in the telecom joint venture. Grasim also owns a majority stake in UltraTech Cement, Aditya Birla Capital and Aditya Birla Money. Besides, the company is a minority shareholder in Hindalco Industries and Aditya Birla Fashion, other two key AB Birla group companies. Analysts expect a reduction in Grasim's financial flexibility if it is forced to make an incremental equity investment in Vodafone Idea to compensate for its losses as it did in the recent past. The mobile operator reported a net loss of Rs 4,873.9 crore during April-June 2019 quarter, its tenth loss in the last 11-quarters. The continued losses in the mobile venture has led to a large erosion in the market value of Grasim equity investment in Vodafone Idea. According to Capitaline database, Grasim's total equity investment worth Rs 7,311 crore (at book-value) in the telecom venture will now only fetch a value Rs 716 crore based on Vodafone Idea current share price. |
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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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