Vodafone Idea, Reliance Communications hit new lows
Posted on 3rd April 2019 |
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Shares of telecom services provider Vodafone Idea and Reliance Communications (RCom) have hit their respective new lows on the BSE in an otherwise strong market. At 11:03 am, the S&P BSE Sensex was up 0.44 per cent or 171 points at 39,228.
Vodafone Idea hit a new low of Rs 16.40, down 3 per cent, on the BSE on Wednesday, falling 10 per cent in past three trading days, after the stock turned ex-date for rights issue on March 29.
The company's board of directors had approved Rs 25,000-crore rights issue on March 20. The company's shareholders would be able to buy 87 shares for every 38 held for an issue price of Rs 12.50 a share. The rights issue opens on April 10, 2019, and closes on April 24, 2019.
The telecom services provider had fixed April 2, 2019, as the record date for the purpose of determining the shareholders who will be eligible to apply for the rights issue.
In the past three weeks, Vodafone Idea has dipped 20 per cent after India Ratings and Research (Ind-Ra) downgraded the company’s long-term issuer rating to ‘IND A+’ from ‘IND AA-’ and placed it on rating watch negative. In comparison, the S&P BSE Sensex was up 4 per cent during the period.
Ind-Ra understands that Vodafone Idea is seeking near-term bridge funding to conserve the cash balances until the proceeds of the rights issue are available. A timely conclusion of the infusion remains critical for servicing debt in July 2019 (Rs 29,000 crore) and October 2019 (Rs 3,100 crore). While the Ind-Ra believes that there is a high probability of Vodafone Idea successfully tying-up additional funds given financially resourceful promoters, timely tie-up of funds as expected without adversely impacting its near-term liquidity is a key rating sensitive factor, the rating agency said in rating rational.
RCom too hit a new low of Rs 3.59, down 5 per cent, and locked in the lower circuit for the eight straight trading days on the BSE. A combined 1.75 million changed hands and there were pending sell orders for 33 million shares on the NSE and BSE so far.
RCom on March 27, informed the stock exchanges that the promoter’s stake in the company fell to 21.97 per cent after its lenders invoked the shares pledged with them and sold it in the markets. The lenders invoked and sold 431 million or 15.6 per cent of RCom stakes pledged to them, between March 25 and March 27, 2019. |
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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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