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June 30th 2017: Catholic Syrian Bank-Fairfax deal collapses on valuation

Catholic Syrian Bank-Fairfax deal collapses on valuation:

Prem Watsa-helmed Fairfax Financial Holdings Ltd’s proposed deal to pick up a 51% stake in Catholic Syrian Bank has fallen through over differences in valuation, according to five people aware of the matter.

The Canadian billionaire arrived at a valuation of Rs60-100 a share after an exercise conducted by global audit firm KPMG, said one of the five. All five spoke on condition of anonymity.

The bank’s own valuation done by an external agency put the number way higher. According to a 30 May Bloomberg report, this agency arrived at a valuation of Rs165-200 a share, plus a control premium of at least 15%.

Spokespersons for Fairfax and Catholic Syrian Bank did not immediately respond to emails seeking comment.

“As a policy we cannot comment on company-specific information,” said a KPMG spokesperson.

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June 27th 2017: TMB plans to list by 2019

TMB plans to list by 2019:

(TMB) is planning an initial public offering  (IPO) before 2019. “Shareholders’ issues are being resolved. Two courts have ruled on share issues related to two factions that should resolve the matter once and for all,” said S Annamalai, chairman, TMB. If all went well, the IPO was likely before 2019, he added.


The 96-year-old bank will list to meet Reserve Bank of India regulations. The IPO will provide an exit to some investors, mainly foreign institutional investors.


TMB executives said the bank’s shares were privately traded at around Rs 400 and this price could double before the IPO.


Foreign institutional investors (FIIs) have indicated they might dilute 5-10 per cent of their holdings, Annamalai said. hold around 20 per cent in TMB. The FII stakes are mainly held by Ramesh Vangal of Katra Holding. Disputes have erupted over transfer of shares by Katra Holding and RST Ltd to Subcontinental Equities. According to reports, Subcontinental Equities is a subsidiary of Standard Chartered Bank.
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June 16th 2017: CDSL public offer to impact BSE

CDSL public offer to impact BSE:

The coming initial public offering (IPO) of equity in Central Depository Services (CDSL) will impact its parent, BSE, in multiple ways. First, there will be capital gains, as BSE’s stake in the company will come down to 24 per cent, from 50 per cent. In fact, BSE had sold a 4.15 per cent stake in CDSL for Rs 34 crore during the December 2016 quarter and booked some gains. Second, given the sticky nature of CDSL’s revenues and high margins, it contributed 36 per cent to BSE’s consolidated net profit and 18 per cent to its revenue in FY17.  With a lower share, …

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June 16th 2017: Galaxy Surfactants: Taking risk for success

Galaxy Surfactants: Taking risk for success

Risk is associated with growth. The greater the risk, the bigger the chance of growth. Taking risk is thus not only a business strategy but can also be a life-changing experience. Take the case of the founders of Galaxy Surfactants that is a leading manufacturer of surfactants and specialty chemicals which are used as intermediate raw materials by marquee brands.

The story of how Galaxy Surfactants came into being goes all the way back to 1979, when G. Ramakrishnan or Geera, wrote a letter addressed to his four friends on Valentine’s Day. The letter harked about a vision of growth and prosperity and set out a way to achieve that “definite goal”. The letter was so convincing that all five (including Geera) quit their high paying jobs and plunged headlong into the business. And they never had to regret that momentous decision.

Five friends shocked their families and friends by chucking their high paying jobs even before they could zero in on a business plan.  This move largely influenced by Alexander the Great was to ensure that they did not have an exit options. Success was their only option and they used that option to the hilt.

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June 16th 2017: Eyeing a relevant spot among exchanges

Eyeing a relevant spot among exchanges:

Back in 2012, when the MCX Stock Exchange (MCX-SX) was working towards starting its equity segment, its actions were being closely watched by the existing two stock exchanges – the BSE and the National Stock Exchange (NSE). To be fair, the unveiling in February 2013 did make an impact, albeit for a short period of time.

Enhanced technology got a foot in the door while brokers saw benefit as membership fees came down drastically. For the first time, perhaps, there was disruption in a segment where the NSE was the dominating big brother and BSE was a distant second with no third player in the fray.

But much water has flowed under the bridge since then. Today, there is no MCX-SX. What exists is the rechristened Metropolitan Stock Exchange of India (MSEI) and even after being in business for close to a decade – it started its currency trading segment in 2008 – it is still trying to find a place in the hugely competitive exchange space.

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June 15th 2017: Are PNB HF’s premium valuations sustainable?

Are PNB HF’s premium valuations sustainable?

Since making its debut on the bourses on November 7 last year, (PNB HF) has rewarded investors handsomely. The stock has more than doubled in this period (over its issue price) to Rs 1,649. Valuations, too, have re-rated, with its price to book valuations having raced ahead of larger peers like Indiabulls Housing (Indiabulls HF) and Dewan Housing Corporation (DHFL). At current levels, PNB HF trades at 4.4 times the FY18 estimated book, as against 3.6 times and 1.7 times for Indiabulls HF and DHFL, respectively. Though some factors that differentiate PNB HF from its peers, these premium valuations appear sustainable.

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June 15th 2017: ICICI Lombard shares gain traction in grey market as IPO nears

ICICI Lombard shares gain traction in grey market as IPO nears:

ICICI Bank’s nod to the initial public offering (IPO) of its general insurance subsidiary, ICICI Lombard, has given a boost to the latter’s share prices in the grey market. According to sources, Lombard’s share price has surged to Rs 550 per share, from Rs 450 a week ago. Notably, Fairfax’s recent 12 per cent stake sale in Lombard has bumped up its valuation to Rs 20,300 crore. In 2015, Lombard was valued at Rs 17,200 crore, based on Fairfax’s purchase of a nine per cent stake in the company.  Ashley Coutinho More AMCs plan to go public   Last …

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June 15th 2017: CDSL IPO offers growth at a reasonable price

CDSL IPO offers growth at a reasonable price:

High operating profit margins, stable revenue streams along with the addition of new growth avenues strengthen the prospects of India’s second largest depository – Central Depository Services (CDSL). Promoted by BSE, the company is looking to raise up to Rs 524 crore through its initial public offering (IPO) slated to open for subscription on June 19. The depository, which holds securities in an electronic form, operates in an industry with high entry barriers and has limited capex requirements going forward. Large part of its costs are towards technology upgradations and …

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June 15th 2017: Hero FinCorp likely to pick-up Future Enterprise’s 50% stake in Future Generali: Sources

Hero FinCorp likely to pick-up Future Enterprise’s 50% stake in Future Generali: Sources:

Hero FinCorp has emerged as the likely frontrunner to buy Future Enterprise’s 50 percent stake in Future Generali, according to sources.

Hero FinCorp – the non-banking finance company and financial services arm of the Hero Group – may replace Future Enterprise in its insurance joint venture with Generali.

Future Generali stake is pegged at approximately Rs 4,000 crore, reports CNBC-TV18’s Nisha Poddar.

Future Group and Hero FinCorp did not offer any comment on the likely insurance deal.

There are currently said to be three players in line to buy stake in Future Generali General Insurance.

The debt of Kishore Biyani-led Future Enterprises is expected to halve post the stake sale in the insurance business. The total debt of the company stands nearly at Rs 4,200 crore.

June 6th 2017: Metropolitan Stock Exchange to launch corporate bond platform in July

Metropolitan Stock Exchange to launch corporate bond platform in July:

Aiming to widen its market presence, Metropolitan Stock Exchange of India (MSE) will launch its corporate bond platform in July and is also planning to bring in a slew of products in equities and derivatives segment later in the current financial year.

With the launch of new products MSE is targeting to increase its market share to 15-20% in non-equity segments and by nearly 5% in equities. The market is largely dominated by the two other national bourses — the National Stock Exchange (NSE) and BSE.

“The corporate bond segment will be launched in July. MSE is launching electronic book building platform for bond raising on the exchange platform, subsequent listing and trading in these securities,” MSE COO (strategy & development) Abhijit Chakraborty told PTI.

“The e-booking software has additional features of live viewing of quotes and facility to modify bids,” he added.

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June 6th 2017: ICICI Lombard gets ICICI Bank board approval for IPO

ICICI Lombard gets ICICI Bank board approval for IPO:

The board of ICICI Bank has approved the stake sale in its general insurance venture ICICI Lombard General Insurance through an initial public offering (IPO). The bank’s life insurance venture ICICI Prudential Life Insurance is the first and only listed insurance entity in India.

“The size and other details of the offer would be determined in due course,” it said. ICICI Lombard is a joint venture between ICICI Bank and Fairfax Financial Holdings.

However, sources said that the bank may pare down 8-10 percent for the stake sale. The bankers for the deal have almost been shortlisted and the timeline would also be decided in the next few months.

In a statement to the exchanges, the Bank said that their board on Monday approved the sale of a part of its shareholding in ICICI Lombard in an initial public offering by the company, subject to requisite approvals and market conditions.

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May 3rd 2017: CDSL to launch its IPO this month

CDSL to launch its IPO this month:

Securities depository in India, Central Depository Services (India) Limited is planning to come up with initial public offering. After grand listing of BSE Limited with a premium of 35%, investors are bracing for CDSL IPO. The objectives of the IPO are to achieve the benefits of listing and to enhance its visibility and brand image and provide liquidity to its existing shareholders.

The tentative date for the IPO is out. The IPO issue is likely to open on June 19 and closing on June 21, 2017. It is likely to follow book building process wherein price band is fixed at Rs 113 to Rs 115 per equity share. The minimum order quantity is one market lot which constitutes 130 shares.

The issue size stands at 3,51,67,208 equity shares.

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