Source: DRHP Filings of Penta Gold Ltd
Source: DRHP Filings of Penta Gold Ltd
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Linkfest: 27 March, 2018
Some stuff I am reading today morning:
Flop show of ICICI Securities IPO (BS)
Most Equity Funds fail to beat benchmarks (BL)
TPG Group nears deal for Fortis (Quint)
India bonds lose their charm for foreign investors (Reuters)
Why getting the ‘right price’ for Air India will be tough (Rediff)
Is money really an incentive? (Subramoney)
CEO Pay: Unlinked to performance (IIAS Advisory)
There is no next Warren Buffett (TRB)
On the one hand (Common Sense)
Buffett & Munger on investing in spinoffs (Value Walk)
This post belongs to my This is India ! series
NMDC held a Board Meeting on 17th March, 2018 and decided not to issue an interim dividend
The market reacted very badly and the stock crashed by around 7% the next trading day.
So imagine the market’s surprise when less than 10 days later NMDC offered a whopping interim dividend of Rs.4.3 (Dividend Yield of 3.5%)
The fact that the dividend is proposed to be paid before 31st March, 2018 betrays the fact that the Co was arm twisted by its largest shareholder (the Govt of India) who will gain around 1,340 Crores from the dividend.
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Markets: The worst could be behind or…
The government and the Reserve Bank of India (RBI) may have to step in to avoid an unprecedented event in Indian banking. Close to Rs 1,000 crore of Union Bank of India’s exposure on account of letters of undertakings (LoUs) issued by Punjab National Bank is due in the next few days.
If the state-owned PNB does not pay back the amount by March 31, Union Bank (another government owned lender) will have to treat PNB as a defaulter in its books, provide for the loan, and even classify the amount as non-performing asset (NPA) if auditors insist.
“It would be a peculiar situation because for the first time a bank would be technically described as defaulter,” a senior banker told ET. In the event of fraud, banks are required to make full and immediate provisioning against outstanding as well as categorise the loan as NPA.