Indian companies issue bonds overseas post Moody’s upgrade

A few Indian companies including Reliance Industries, Adani and REC have taken advantage of Moody’s upgrade of India’s sovereign rating by issuing bonds worth about $1.7 billion abroad. The upgrade in sovereign rating could translate into lower interest cost for companies with strong credit rating as the risk premium comes down. The rates could go …

Corporate News – Wipro’s buyback

After Infosys, Wipro goes for Buyback In last week’s updates we focused on buyback of shares by Infosys amounting to Rs. 13,000 Crores, which begins November 30.  Meanwhile, Wipro also has announced buyback of its shares. The company had announced in August that it would be going for a buy-back of its equity shares upto …

Corporate News – Tax Watch

Tax woes for Vodafone-Idea merger The much-talked about merger of Vodafone with Aditya Birla’s Idea has received IT Department’s nod albeit with a caveat.  The Department is reported to have highlighted the dues of Rs. 22,100 Crores pending on account of the tax dispute between the tax authorities and Vodafone Plc, who had failed to …

Managing Expectations – Announcements Expected

Exemptions for crowd-funding It is reported in the media that the MCA is mulling exemptions from the requirements of private placement as given under Section 42 for the startups when they source funds from crowd-funding route. In the recent past, we have seen that RBI has issued Master Directions on peer-to-peer lending platforms. This shows …

Reviewing Norms for ARCs converting debt into equity

In April this year, the central bank had raised the minimum net owned funds (NOF) for Asset Reconstruction Companies (ARCs) from Rs2 crore to Rs100 crore by March 2019. Now, RBI has eased the norms for conversion of debt into equity in respect of companies undergoing reconstruction. ARCs that meet the conditions mentioned below are exempted …