“2016 is the year that will separate the service dinosaurs from the savvy cannibalizers, as revenue growth slides towards negative territory and the onus shifts from selling more buttocks on seats to maintaining sexy profit margins,” added Phil Fersht, CEO of US-based HfS Research, an outsourcing-research firm.-from Mint
Data releases have become much less transparent and truthful at both a macro and a micro level. At a macro level the key issue is the ever increasing importance of China and India. China is the world’s second largest economy, but already much larger than the US in a broad swathe of sectors. India will be the world’s third largest economy within a decade. Unfortunately their rise is increasing the global cost of capital because an ever growing share of the most important data they produce is simply not credible. Currently stated Chinese real GDP growth is 7.1% and India’s is 7.4%. Both are substantially over stated. This obfuscation and distortion of data, whether deliberate or inadvertent, makes it increasingly difficult to forecast macro and hence micro as well, for an ever growing share of our investment universe.-from Nevsky Capital’s letter to clients
Source:Value Propositions
Private lender RBL Bank has raised Rs 488 crore via pre-IPO preferential placement to international investors Asian Development Bank, CDC Group Plc, family offices and long-only funds such as DVI Fund (Mauritius) Ltd and Rimco (Mauritius) Ltd.
The latest round of fundraising values the Kolhapur-headquartered bank, formerly known as the Ratnakar Bank Limited, at nearly Rs 6,500 crore. ADB has picked up 4.45% stake, making its maiden equity investment in RBL, while UK-based CDC Group, which had invested in the bank in 2014, will see its stake go up to 4.91% after the latest private placement.
The bank’s net total income in 2014-15 grew 59% toRs 960 crore from Rs 603 crore a year ago, while its net profit surged 124% to Rs 207 crore. Both advances and deposits grew 47% over that in the previous year, to Rs 14,450 crore and Rs 17,099 crore, respectively. At the end of the financial year, the bank’s gross and net non-performing assets stood at 0.77% and 0.27%, respectively. –from ET
The Securities and Exchange Board of India (Sebi)’s recent decision to not penalise unlisted entities in breach of the public issue norms is a shot in the arm for the latter’s initial public offering (IPO) plans.
At least six companies, according to a source, were not able to proceed with their IPO plans, having breached the investor cap prescribed in the erstwhile Companies Act.Sebi at its board meeting on November 30 clarified that such companies will avoid penal action if they provide investors an option to surrender their securities.
Sources said the IPO plans of diagnostics chain Thyrocare Technologies and private sector RBL Bank (former Ratnakar Bank) didn’t get the market regulator’s nod for this reason. Legal experts said Sebi’s latest clarification will help these two companies and five-odd others which have not been able to file their IPO documents.
“Sebi has come out with a pragmatic and good solution of not imposing any penalty if there is a refund of money to shareholders,” said Sudhir Bassi, executive director, Khaitan and Co, a leading law firm. “At least four-five companies which couldn’t file for IPOs due to this reason. Some of them will now come out with their IPOs.”-from BS