GOVERNMENT DIVESTED
Olympus Capital Asia divests 9% stake in Aster DM Healthcare for Rs 1,530 crore
According to bulk deal data from BSE, Olympus Capital Asia Investments sold 4.50 crore shares, equivalent to a 9% stake in Aster DM Healthcare, in two tranches. The shares were sold within the price range of Rs 340 to Rs 340.13 each, totalling Rs 1,530.08 crore.
First among equals: 5 PSU stocks which have benefited the most due to government policy push, spending & may continue their journey
Right from perennial under-performers like oil marketing and refining companies to PSU banks. Literally every stock which has the tag of “PSU” stock has seen a re-rating in the last two years. Now that the exit polls are predicting what the street has been looking for, that is continuity in the policy making framework, there is a high probability that there will be another round of re-rating of PSU stocks. So, continued policy and continued re-rating. Like the earlier re-rating, this time also, some sectors and stocks in the PSU space will outperform others. A company which is going to be providing finance for the expansion of the solar energy network which is the next focus area of the government. The overall demand runway for some of the sectors is longer. This essentially means that while every PSU is likely to see a push, there are a select few which are likely to see more tailwinds of business growth and valuation expansion.
RBI's ₹2 lakh-crore boost may help India's new govt have an easy-peasy run to achieve a goal
The RBI on May 22 announced a record-high dividend transfer to the government equivalent to 0.6 per cent of GDP ( Rs 2.1 lakh) from its operations in FY24. The figure has surpassed the 0.3 per cent of GDP expected in the FY25 budget from February. Hence, the rating agency said that it will aid the authorities in meeting near-term deficit reduction goals.
RBI's record dividend presents a delicious dilemma for new Indian government
As India prepares for a new government by June 4, a significant Rs 2.11 lakh crore windfall awaits allocation. Options range from faster deficit reduction to increased spending. Analysts anticipate positive investor sentiment, though preferences vary between deficit reduction and expenditure. The BJP-led government's cautious approach contrasts with opposition promises
Hindustan Zinc shares double in 1 month but the boom isn't so much about zinc
Hindustan Zinc is also the best-performing metal stock in 2024 so far with a staggering return of 146% YTD. It is India's only silver producer and after recording its highest-ever silver production in FY24, it has become the third-largest silver producer globally.
TikTok parent seeks to fast-track suit over US divest-or-ban law
ByteDance Ltd. and TikTok challenge US law in appeals court to avoid irreparable harm from potential ban, citing national security concerns about Chinese government accessing user data and influencing US citizens. The legal battle could reach the US Supreme Court, with TikTok urging an expedited decision by Dec. 6.
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Railways stocks: Stay bullish, just hedge a bit to avoid mistake of selling in haste: 7 outperforming railways stocks across different segments
Even the best of the rational brain can make wrong decisions when there is too much noise which gets created due to a narrative. Now for the last few days a narrative has been created that due to polls, FPI are selling. These kinds of narratives tend to hit the sector and stocks which are sitting with big gains and are dependent on government policy push. Railways was among the last sectors to get re-rated due to the policy focus. Whether it was companies which are financing the expansion of railways or private sector companies which are making coaches, all of them have done extremely well. Given the fact the railways is likely to be the focus area, the long term story remains intact. Only thing is that one might end up selling the long term winner early because of the narrative. Rather than getting jittery, it would be better to create a hedge and stay with the stocks where there has been a big change in the fundamental ways things operate and the sector has a long runway.
LIC gets more time for 10% public holding
Earlier, LIC had got a one-time exemption to meet a 25% minimum public shareholding within 10 years by May 2032 of its listing in May 2022. The government divested the stake through an offer for sale (OFS) and raised ₹21,000 crore by selling a 3.5% stake then.
Get your portfolio ready for election results: Hedge the re-rated oil and gas sector stocks
Right from power, railways, PSU banks, sectoral lenders to oil and gas there are many sectors which have made a comeback in the last 10 years. Comeback both in the real business sense, where the operating matrix and fundamentals of the sector have improved which has led to better performance. Also a comeback on valuation front, where the stocks which were quoting at a price earning multiple of single have been now consistently quoting in high double multiples. A number of them have seen this transformation due to a stable policy environment, policy push and policy cleanup which the government has undertaken in the last ten years. The consensus estimate of the street is that policy continuity is the most critical thing for the re-rating to continue. In this new series, we take a different sector and how much they are dependent on government policy and how investors can protect their portfolio from any sudden decline.
TikTok creators file suit to block US divestment or ban law
The suit, which seeks injunctive relief, says the law threatens free speech and "promises to shutter a discrete medium of communication that has become part of American life."
Post-Covid capex pumps PSU muscles
A reappraisal of PSUs, however, could slow the longer trend of GoI getting out of business. And it needs to filter out the temporary effects of economic management. PSU banks are unlikely to retain their new-found health against private competitors for an extended period. Government capex, similarly, has a shelf life, after which private investment is expected to take over. That means companies borrowing from the cheapest lender, often from abroad, to build capacities. Neither consumption- nor investment-led growth assures a special place for PSUs. They will have to compete.
Government gains PSU muscle as stocks climb peaks
The value had touched a high of 22% of total market capitalisation of listed firms in June 2009, dropping to a low of 5.1% in September 2020 before doubling since then, according to data from primeinfobase.com. Re-ratings amid large valuation discounts, high dividend yields, record cash flows and news of possible privatisation triggered a sharp rally in public sector companies over the last three years.
Mop up from divestment, asset sale beats FY24 RE of Rs 30,000 crore
In FY24, government's capital receipts surpassed Rs 30,000 crore from disinvestment and asset monetisation. The budget combined targets under miscellaneous receipts. CPSE dividend collections reached a new peak of Rs 63,749 crore in 2023-24.
TikTok CEO expects to defeat US restrictions: 'We aren't going anywhere'
TikTok CEO Chew optimistic in legal fight against Biden's TikTok ban. ByteDance has 270 days to sell U.S. assets. Concerns over Chinese ownership. U.S. lawmakers pass bill. Tech war between Washington and Beijing escalates.
Explainer: What happens now that US TikTok bill has been passed?
ByteDance has 9 months to divest TikTok after Biden signs the bill. Potential injunctions could affect the sale process. Previous attempts by Trump and Biden regarding TikTok and WeChat bans are referenced in the article.
US Senate passes TikTok divestment-or-ban bill, Joe Biden set to make it law
U.S. Senate approves bill for ByteDance to divest TikTok within 9 months, addressing national security concerns. President Biden will sign the legislation, impacting the future of Chinese-owned apps in the U.S.
Godrej split: Board exits done, stake divestment to follow
The amicable separation is between two branches of the founding family with Adi Godrej and brother Nadir Godrej on one side and their cousins Jamshyd Godrej and Smita Godrej Crishna on the other. The latter two are brother and sister.
Govt garners Rs 16,507 crore via public sector enterprises disinvestment in FY24
The budget had pegged disinvestment proceeds for 2023-24 fiscal at Rs 51,000 crore. However, the revised estimates (RE) on February 1, 2024, did away with separate head for disinvestment receipts.
PTC India gets shareholders' nod to divest 100% stake in energy arm
In October, PTC India announced that the upstream firm ONGC had emerged as the successful bidder for acquiring 100 per cent stake in PTC Energy for an enterprise value of Rs 2,021 crore.
Chinese TikTok sellers complain of under-fire platform tightening US rule enforcement
Chinese-owned TikTok, which faces the threat of having to divest its US operations or be banned, has in recent weeks taken a harder stance toward enforcing its internal rules, according to five Chinese vendors on the site and an industry association that represents 3,000 Chinese stores selling products online.
Centre sanctions transfer of Air India Mumbai building to Maharashtra govt for Rs 1,601 crore
The Air India building in Mumbai has been transferred from AI Assets Holding Company Ltd to the Maharashtra government for Rs 1,601 crore. Maharashtra will waive DIPAM dues of Rs 298.42 crore owed by AI Assets Holding Company Ltd.
US House overwhelmingly passes TikTok ban bill
The US House of Representatives overwhelmingly approved a bill on Wednesday that would force Tiktok to divest from its Chinese owner or get banned from the United States.
US House to vote on TikTok crackdown; fate uncertain in Senate
The vote comes just over a week since the bill was proposed and after one public hearing with little debate. The House Energy and Commerce Committee last week voted 50-0 in favor of the bill, setting it up for a vote before the full House.
Donald Trump calls TikTok a threat but says some kids could 'go crazy' without it
Trump reiterated his concerns as lawmakers weigh a bill this week that would give TikTok's Chinese owner ByteDance about six months to divest the short video app used by 170 million Americans.
TikTok divestment bill would give government stronger legal position: US DOJ
The Justice Department gave a classified briefing to members of the House Energy and Commerce Committee on Thursday before the panel voted 50-0 on a bill to give ByteDance six months to divest short video app TikTok or face a US ban.
Divestment not a tool for fiscal consolidation, says Finance Secretary TV Somanathan
The government is confident of meeting the targets in the interim budget presented on Thursday. Finance Secretary TV Somanathan stated that the government capital expenditure continues to be high and expressed confidence in achieving the 5.1% fiscal deficit target in 2024-2025, with estimated revenue growth of 11.5% against GDP growth of 10.5%. The nature of public expenditure is unpredictable, but barring unforeseen events, the aggregate public expenditure is projected to remain unchanged, he added.
Budget 2024: Sitharaman cuts FY24 divestment target to Rs 30,000 cr, FY25 target at Rs 50,000 cr
BUDGET ANNOUNCEMENT: Finance Minister Nirmala Sitharaman has revised divestment target for FY24 and set a new one for FY25. Government is likely to miss divestment targets for fifth consecutive year. Privatization plans for BPCL, SCI, and CONCOR delayed due to pandemic. Strategic sale of CPSEs likely to be completed this year.
Budget 2024: India's divestment target could be its lowest in nine years, say sources
Interim Budget 2024: India may set a lower divestment target for state firms in fiscal 2024-25, falling short of this year's goal to be the lowest in nine years. The government is unsure whether regulatory delays will allow it to complete the sale of a majority stake in IDBI Bank, which is expected to bring more than RS 200 billion into government coffers when completed.
Divestment of shares of silver and zinc companies separately may be easier than divestment of HZL: Arun Misra
Arun Misra, CEO of Hindustan Zinc, says the company has seen a strong set of earnings with revenue growth of 8% and expanded margins. Demand in India is good, while global demand remains weak, especially in Europe and China. Hindustan Zinc expects zinc prices to remain between $2,500 and $2,600 per ton in the near term. The company has achieved cost reduction through various measures and maintains its production guidance for FY24.
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