Latest news with #ElaraCapital
Entrepreneur
6 days ago
- Business
- Entrepreneur
Eraaya Lifespaces Announces Exit from USD 120 Mn FCCB Program
The move follows a detailed assessment of the issuance, which was originally intended to fund the acquisition of Ebix Inc. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. Eraaya Lifespaces Limited has announced that its Board of Directors has approved a strategic exit from its USD 120 million Foreign Currency Convertible Bonds (FCCBs) program. The move follows a detailed assessment of the issuance, which was originally intended to fund the acquisition of Ebix Inc. Although the acquisition was completed through alternative funding routes, the company reports that USD 40 million of the raised amount remains unjustifiably withheld by Elara Capital PLC and certain bondholders. This development, Eraaya stated, has obstructed the primary commercial intent behind the FCCB issuance and has made its continued operation legally untenable under the Indian Companies Act, 2013. In its official communication, the Board expressed concerns over the fragmented state of the bonds, which it believes threatens the company's governance and regulatory compliance. A significant point of contention is the role of Oyster Bay, an FCCB subscriber managed exclusively by Elara Capital, which also served as the issuance advisor. Eraaya cited this as a serious conflict of interest and a breach of fiduciary duty. Despite repeated appeals to release the withheld funds, Elara Capital and associated bondholders have reportedly failed to cooperate. The company also stated that it has faced coordinated attempts to destabilise operations through regulatory complaints, targeted media reports, and threats directed at its leadership. The advisory board of Eraaya, which includes respected figures such as former Enforcement Directorate official Karnal Singh, ex-SEBI Chairman G.N. Bajpai, and former Central Vigilance Commissioner T.M. Bhasin, has unanimously supported the decision to exit the program. Eraaya emphasised that no legitimate bondholder would face financial loss and that all resolutions would be executed transparently and in accordance with the law. The company also reserved the right to seek legal remedies for any damages resulting from the alleged misconduct linked to the FCCB issuance.
India Today
18-07-2025
- Business
- India Today
Axis Bank shares tank 7% today. Should you sell or hold the stock?
Axis Bank shares dropped sharply on Friday, falling over 7% to hit a low of Rs 1,073.95 on the BSE. The fall came after the private bank reported a 4% drop in its standalone net profit for the April–June quarter of net profit for the quarter stood at Rs 5,806 crore for Axis Bank, down from Rs 6,035 crore in the same quarter last bank's net interest income (NII) remained nearly unchanged at Rs 13,560 crore, showing no growth when compared to the same quarter last year. This flat performance did not go down well with investors, leading to a sharp sell-off in the stock has been on a downward trend in recent times. It has fallen 5.77% in the last five days, 9.14% in the past one month, and 15.27% over the last BEFORE PROVISIONS ROSE, BUT PROVISIONS NEARLY DOUBLEDAxis Bank's operating profit before provisions and contingencies rose 14% year-on-year to Rs 11,515 crore in Q1FY26, up from Rs 10,106 crore in the same period last year. However, this improvement was overshadowed by a sharp rise in bank set aside Rs 3,948 crore as provisions during the quarter, nearly double the Rs 2,039 crore it had set aside a year ago. This higher provisioning dragged down the bank's overall bank's total provisions (excluding those for non-performing assets) stood at Rs 11,760 crore at the end of the June quarter. This gave the bank a standard asset coverage ratio of 1.12% as of 30 June provision coverage ratio (which includes specific, standard, and additional provisions) stood at 138% of gross non-performing assets (NPAs). The credit cost for the quarter (annualised) was reported at 1.38%.EXPERTS FLAG WEAK ASSET QUALITY AND LOWER EARNINGSMarket experts and brokerages expressed concerns over Axis Bank's asset quality and earnings outlook.'Axis Bank posted a weak performance in Q1FY26,' said Prakhar Agarwal of Elara Capital. 'Asset quality was disappointing, with slippages above 3% and credit cost above 130 basis points. Even if we exclude technical slippages, this quarter's numbers were soft.'Agarwal added that the bigger worry now will be around how asset quality trends evolve. 'The direction may improve, but for now we are cautious. Net slippages and credit cost will be key for investors looking for a recovery in the stock,' he Capital has lowered its target price on Axis Bank from Rs 1,485 to Rs 1,365 and has revised its rating from 'Buy' to 'Accumulate'. 'There are no strong near-term triggers for a re-rating,' Agarwal Oswal Financial Services has also revised its view. 'We reduce our earnings estimates for FY26 and FY27 by 8.6% and 5.7% respectively, due to higher credit costs and pressure on margins,' the brokerage now expects the bank to post a return on assets (RoA) of 1.6% and return on equity (RoE) of 14.6% in FY27. The brokerage has maintained a 'Neutral' rating on the stock with a target price of Rs 1,250, based on 1.6 times FY27 estimated adjusted book value.(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)- Ends advertisement
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Business Standard
18-07-2025
- Business
- Business Standard
₹23,500 cr June MF inflows: Flexicap funds win, 50% go to just 10 schemes
After hitting a 13-month low in May 2025, equity mutual fund (MF) inflows surged back in June to ₹23,500 crore, a sharp recovery from ₹19,000 crore the previous month. However, beneath the headline number lies a story of concentration and selective investor appetite, with just a handful of schemes dominating the inflow charts. Data analysed by Elara Capital shows that the top 10 mutual fund schemes accounted for nearly 50% of all active fund inflows last month. Flexi Cap and Midcap Schemes Dominate The Flexi Cap category led the charge with ₹5,700 crore in inflows—the highest since July 2021. Much of this was absorbed by the Parag Parikh Flexicap Fund, which alone accounted for 12.6% of total active inflows and 50% of the category's one-year inflow. Notably, a significant portion of this fund's capital is either sitting in cash or has been deployed into primary market issuances—a key trend across MF cash movements this year. In the midcap segment, while inflows remained in line with historical averages, around 42% of incremental capital went into just one fund—Motilal Oswal Midcap—highlighting continued fund-level concentration. Sectoral and Thematic Funds Lose Steam Investor enthusiasm for sectoral and thematic funds seems to be waning. The category saw modest inflows of only ₹470 crore in June. Energy funds, once popular, saw outflows of ₹740 crore—the sharpest monthly redemption in four years. Manufacturing funds faced redemptions for the seventh consecutive month, while Quant and Logistics-themed schemes also witnessed fresh selling pressure. "The most pronounced investor enthusiasm since 2023 was seen in Manufacturing, Innovation, Business Cycle, and Infrastructure-themed funds. However, Manufacturing has already witnessed redemptions over the past few months, and inflows into other categories have also sectoral funds, Energy and Infra categories have also begun to see outflows," noted the report. Top-10 schemes take 50% of the total active inflows in Jun led by Parag Parikh Flexicap Fund (12.6%), HDFC Flexicap Fund (7.4%), Motilal Oswal Midcap Fund (5%), Bandhan Smallcap Fund (3.5%) and HDFC Focused Fund (3.3%) Large-cap Reallocation Underway June also saw a noticeable uptick in Large Cap allocations across scheme categories: Midcap schemes increased their largecap exposure by 3.7% Large & Midcap schemes added 2.4% Flexi Cap schemes raised it by 1.1% However, Multicap allocations remained unchanged, and Small Cap funds are already near their record largecap allocation of 7.2%. Despite these shifts, most equity schemes remain underweight on largecaps compared to long-term averages—implying further reallocation could be underway, particularly as markets stabilize. Cash Levels Plunge—Where Did the Money Go? A sharp drawdown in MF cash positions was one of the most significant trends in June. Overall cash levels fell to 5.5%, down from 6.3% in May and a peak of 6.8% in April. This translates to an INR 16,400 crore decline in cash, with total cash across active equity MFs now at ₹1.84 lakh crore—close to pre-COVID averages. The capital has largely been deployed into primary market issues, including IPOs and pre-IPO placements. Historical trends suggest that such aggressive deployment phases have historically preceded both market peaks (2012, 2013, 2017) and major uptrends (2013, 2016, 2020), making this a critical signal for investors to monitor. Notably: Largecap schemes marginally increased cash to ₹17,580 crore. Midcap funds saw the sharpest cash drawdown—from 7.3% to 5.3%, led by deployment from Motilal Oswal Midcap Fund. Smallcap funds also trimmed cash from 8.3% in April to 7% in June. What It Means for Investors While the headline rebound in inflows signals improved sentiment, concentration risk remains high, with a few high-performing funds attracting a majority of capital. Investors should remain mindful of this trend when evaluating MF portfolios. The aggressive cash deployment may hint at institutional bullishness, but it also means that fund managers are now more exposed to market swings. Meanwhile, fading interest in thematic and sectoral funds suggests a shift towards core diversified categories and quality stock-picking. Key Takeaways for Investors: Diversify across fund houses and not just top-performing schemes. Monitor largecap exposure in your MF holdings; many funds may realign portfolios over the next quarter. Be cautious with thematic bets, especially in funds facing sustained redemptions. Watch for signals in cash allocation trends, which may precede market shifts.
Time of India
11-07-2025
- Business
- Time of India
ACME Solar gains nearly 3%, hits 52-week high after Elara Capital initiates coverage
Shares of ACME Solar Holdings rose nearly 3% on Friday's session to trade at Rs 295, following a bullish outlook from Elara Capital . The stock also touched a new 52-week high of Rs 303.94. The surge in the company's stock prices comes after Elara Capital initiated coverage on the stock with a 'Buy' rating and a target price of Rs 325, suggesting an upside of over 10% from current levels and around 30% from the time of the report's release. In its research report, Elara highlighted ACME Solar's strong execution track record and aggressive growth roadmap. The company currently operates 2,826 MW of solar power capacity and has another 4,143 MW under development. With a strategic focus on firm and dispatchable renewable energy (FDRE) and hybrid energy projects, ACME aims to boost returns and strengthen grid stability. The report projects that ACME Solar is poised to scale its capacity from 2.8 GW to 7.0 GW by FY28, supported by a robust project pipeline. During this period, the company is expected to deliver a 49% revenue CAGR and a 59% EBITDA CAGR. The stock trades at 8.3x FY28E EV/EBITDA and 13.2x FY28E P/E. Elara assigns a valuation multiple of 9.0x EV/EBITDA, justifying the Rs 325 target price. Live Events With India's renewable energy sector gaining momentum, ACME Solar's expanding footprint and strong financial outlook appear well-positioned to capitalise on long-term growth opportunities. Technicals: The 14-day Relative Strength Index (RSI) for the stock stands at 79.9, which is above the typical overbought threshold of 70. This suggests that the stock may be due for a short-term pullback or consolidation as buying momentum could be overheating. On the positive side, the stock is showing strong technical strength with all seven key Simple Moving Averages (SMAs)—ranging from the short-term 5-day SMA to the long-term 150-day SMA—trading below the current price. This bullish alignment of moving averages indicates sustained upward momentum and a healthy trend. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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Business Standard
10-07-2025
- Business
- Business Standard
ACME Solar soars 8%, nears record high; Elara Capital sees 15% more upside
ACME Solar Holdings share price Shares of ACME Solar Holdings hit a six-month high of ₹283.25, surging 8 per cent on the BSE in Thursday's intra-day trade amid heavy volume on expectations of strong earnings growth. The stock price of the power generation company was trading close to its record high of ₹292, which it touched on December 4, 2024. However, ACME Solar still trades below its IPO issue price of ₹289 per share. The company made its stock market debut on November 13, 2024. At 10:52 AM; ACME Solar was quoting 6 per cent higher at ₹278.65, as compared to 0.28 per cent decline in the BSE Sensex. The average trading volumes at the counter jumped over four-fold. A combined 4.5 million shares changed hands on the NSE and BSE. Catch Stock Market LIVE Updates: Sensex slides 200 pts, Nifty near 25,400 ACME Solar Holdings wins multiple orders On July 7, 2025, ACME Solar received an order of more than 3.1 GWh of Battery Energy Storage System (BESS) from leading global energy system suppliers including Zhejiang Narada and Trina Energy, renowned for their high efficiency and scalable storage Solutions. The delivery is planned in a phased manner over the next four to eight months of the current fiscal year. Earlier last month, ACME Solar informed the stock exchanges that it emerged as the winning bidder for NHPC's tender for cumulative capacity of 275 MW / 550 MWh standalone BESS projects in Andhra Pradesh across two projects at Kuppam and Ghani. Elara Capital initiates coverage of ACME Solar with a Buy rating ACME Solar has a robust growth roadmap supported by a strong execution history. The company currently operates 2,826MW of solar capacity, with an additional 4,143MW under development. It is increasingly focused on firm and dispatchable renewable energy (FDRE) and hybrid projects to enhance returns and improve grid reliability. With plans to scale up renewable capacity from 2.8GW to 7.0GW by FY28, it is poised for significant growth, with a revenue compounded annual growth rate (CAGR) of 49 per cent and an EBITDA CAGR of 59 per cent during FY25-28E. 'Currently, it is trading at 8.3x FY28E EV/EBITDA and 13.2x FY28E at P/E. We assign a valuation multiple of 9.0x FY28E EV/EBITDA, resulting in a target price of ₹325. We initiate coverage with a Buy rating,' Elara Capital said in the company report. About ACME Solar Holdings ACME Solar Holdings is a leading integrated renewable energy player with a diversified portfolio of 6,970 MW and 550 MWh spanning solar, wind, storage, FDRE and hybrid solutions. The operational capacity of ACME Solar stands at 2,890 MW with another 4,080 MW at various stages of implementation.
