The Ahmedabad-based Adanis are planning to sell half their stake in projects they took over in 2011 to develop an Australian coal mine and lay a rail line to finance a part of the $8-9 billion investment needed. The Adanis were in negotiations with China Rail Corporation and another Chinese company but no deal had been finalised, a high-ranking executive in the Adani group said. The Carmichael mine, in which the Adanis are planning to shed half their stake, needs an investment of around $5 billion. Another $2.5 billion must be spent on a 400-km rail line to cart the coal to a port, which in turn will need yet another $1 billion to build. The investments will be backed by Chinese banks, contracts to Chinese construction companies, and coal sales to the new investors. (Business Standard)
In a first, SBI to sell around Rs 5000Cr NPAs: For the first time in its over two centuries of history, the nation’s largest lender State Bank of India, which had reported 5.73% of its assets as bad loans in the December quarter, is going all out to stem the rot by offloading around Rs 5,000 crore ($816 million) of its Rs 67,799 crore ($11 billion) dud assets to ARCs before the end of the month. The move comes ahead of the tighter provisioning norms kicking in from next April, which the central bank had in May last year announced when it had more than doubled the provisioning for restructured loans to 5 from 2 per cent. Normally ARCs pay 5-10 per cent of the total bad loans being bought pay in cash and the rest could be security receipts (SRs). (Times of India)
IFCI may buy IDBI’s stake in SHCIL: After a bitter battle, IDBI Bank looks set to sell its 19% stake in Stock Holding Corporation of India (SHCIL), the country’s top custodial and depository service provider, to IFCI, which will give a majority control to the Delhi-based non-banking finance company. IDBI Bank and IFCI were involved in a tussle to control SHCIL but the finance ministry ruled against the former, arguing that it did not have sufficient capital to take control. A few months down the line, IDBI Bank is keen to exit SHCIL to raise funds during the current quarter itself to show a healthy bottomline as it is grappling with a high level of bad debt, which is taking a toll on its profits. IDBI Bank had approached exiting shareholders to sell its stake, including LIC and the Specified Undertaking of UTI, which hold 16.9% each. IFCI being the largest shareholder, with 34% stake, is seen as the front-runner to buy the stake, although others are also in the fray, sources said. (Times of India)
MCX-SX looks to bring in new investors: MCX Stock Exchange (MCX-SX) has said it might look to meet some of its capital requirements through funds raised from new investors. A decision on this would be taken after the company’s rights issue, scheduled to be completed by the end of this month. The company was said to be looking to raise Rs 300 crore ($49 million) through a rights issue to existing investors and Rs$ 200 crore ($33 million) from new ones, sources said. Among the major stakeholders in the exchange are IFCI (13.2%), Union Bank of India (11.47) and IL&FS Financial Services (9.18). Other stakeholders include HDFC Bank, Axis Bank and Bank of Baroda. Financial Technologies India and MCX hold five per cent stakes each in MCX-SX. (Business Standard)
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