Latest news with #Mauritius-based
Economic Times
4 days ago
- Business
- Economic Times
YES Bank shares in focus as Carlyle arm trims 2.62% stake
Shares of YES Bank will be in focus on Thursday after the private sector lender announced that CA Basque Investments, a Mauritius-based special purpose vehicle owned by the Carlyle Group, has offloaded 2.62% of its stake in the bank, reducing its holding to 4.22%. ADVERTISEMENT With this sale, CA Basque has fallen below the minimum shareholding threshold required to retain board nomination rights under the investment agreement signed with YES Bank on July 29, 2022. As per the agreement, CA Basque's right to nominate a director to the bank's board automatically ceases once its stake drops below the prescribed level. Also Read: MRF snatches India's highest-priced stock crown back from Elcid Investments Separately, YES Bank on Tuesday said its board has approved a fundraising plan of up to Rs 16,000 crore through a combination of equity and debt instruments to support its business board cleared a proposal to raise up to Rs 7,500 crore via equity securities through various permissible routes. The bank noted that the total dilution from this issuance, including any conversion of convertible debt securities, will not exceed 10%. ADVERTISEMENT Also Read: These 10 Nifty microcap stocks can rally 70-200% in the next 12 months In addition, the board approved raising up to Rs 8,500 crore via eligible debt securities in Indian or foreign currency, with the same dilution cap of 10%. The board also approved amendments to the Articles of Association, in line with the share purchase agreement dated May 9 between YES Bank, Sumitomo Mitsui Banking Corporation (SMBC) and State Bank of India (SBI). The changes are subject to approval from the Reserve Bank of India (RBI) and the bank's shareholders. ADVERTISEMENT Also Read: Ola Electric, Kalyan Jewellers among 10 firms where promoters pledge increased in Q4 According to Trendlyne, the average target price for YES Bank is Rs 16, implying a potential downside of 22% from current levels. Of the 12 analysts tracking the stock, the consensus rating is 'Sell'. ADVERTISEMENT On Wednesday, YES Bank shares closed 1.44% higher at Rs 21.15 on the BSE, while the Sensex gained 0.32%. The stock has rallied 29% in the last three months but is still down 3% over the past year. The bank's market capitalisation stands at Rs 66,328 crore. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
4 days ago
- Business
- Time of India
YES Bank shares in focus as Carlyle arm trims 2.62% stake
Live Events YES Bank Share Price Target and Performance (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Shares of YES Bank will be in focus on Thursday after the private sector lender announced that CA Basque Investments , a Mauritius-based special purpose vehicle owned by the Carlyle Group, has offloaded 2.62% of its stake in the bank, reducing its holding to 4.22%.With this sale, CA Basque has fallen below the minimum shareholding threshold required to retain board nomination rights under the investment agreement signed with YES Bank on July 29, per the agreement, CA Basque's right to nominate a director to the bank's board automatically ceases once its stake drops below the prescribed YES Bank on Tuesday said its board has approved a fundraising plan of up to Rs 16,000 crore through a combination of equity and debt instruments to support its business board cleared a proposal to raise up to Rs 7,500 crore via equity securities through various permissible routes. The bank noted that the total dilution from this issuance, including any conversion of convertible debt securities, will not exceed 10%.In addition, the board approved raising up to Rs 8,500 crore via eligible debt securities in Indian or foreign currency, with the same dilution cap of 10%.The board also approved amendments to the Articles of Association, in line with the share purchase agreement dated May 9 between YES Bank, Sumitomo Mitsui Banking Corporation (SMBC) and State Bank of India (SBI). The changes are subject to approval from the Reserve Bank of India (RBI) and the bank's to Trendlyne, the average target price for YES Bank is Rs 16, implying a potential downside of 22% from current levels. Of the 12 analysts tracking the stock, the consensus rating is 'Sell'.On Wednesday, YES Bank shares closed 1.44% higher at Rs 21.15 on the BSE, while the Sensex gained 0.32%. The stock has rallied 29% in the last three months but is still down 3% over the past year. The bank's market capitalisation stands at Rs 66,328 crore.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Mint
4 days ago
- Business
- Mint
Stocks to watch: Vedanta, BEL, Yes Bank, REC, Power Grid among shares in focus today
The company announced that its renewable energy capacity has reached 1.03 GW and it is progressing steadily toward its goal of achieving 2.5 GW of green energy by 2030. This milestone was achieved by scaling up its round-the-clock renewable power capacity through power supply agreements. Clean energy player, promoter of Indosolar Ltd, will sell up to 4,76,495 equity shares, representing 1.15% of Indosolar's total paid-up equity capital, through an offer for sale (OFS) on June 5 and 6, 2025. Gland Pharma announced that its key subsidiary, Cenexi, has received the final inspection report from France's drug regulatory authority, ANSM, which includes 11 observations. A private sector bank reported that CA Basque Investments, a Mauritius-based special purpose vehicle owned by the Carlyle Group, has sold 2.62% of its shares in the bank, bringing its overall holding down to 4.22%. According to official data released last evening, Sunil Singhania's Abakkus Emerging Opportunities Fund was among the purchasers in the block deal involving Indegene Ltd. that occurred on Wednesday, June 4. The Maharatna public sector enterprise announced that its board has given the green light to a plan for raising up to ₹ 1.55 lakh crore via private placement of bonds or debentures. Bharat Electronics Ltd (BEL) has revealed that it has secured new orders totaling ₹ 537 crore since its previous announcement on May 16. The state-run Power Grid Corporation has taken over MEL Power Transmission Ltd (MPTL), a special purpose vehicle, for a sum of ₹ 8.53 crore. KEC International Ltd announced in a regulatory filing on Wednesday that it has received new orders totaling ₹ 2,211 crore across its transmission and distribution, oil and gas pipeline, and cables divisions. NTPC Green Energy Ltd, a subsidiary of NTPC Ltd, has secured a 1,000 MW allocation in the solar PV power project auction conducted by Uttar Pradesh Power Corporation Limited (UPPCL). Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
The Hindu
28-05-2025
- Business
- The Hindu
India's financial sector reforms need a shake-up
India's financial sector stands at an inflection point. For years, the government and regulators have attempted incremental reform in banking, financial services, and insurance (BFSI), yet systemic frictions persist. These frictions are not just inefficiencies. They are barriers that deter savers, discourage investors and delay growth. A truly professional, transparent and investor-friendly financial sector demands deeper structural corrections, particularly in corporate bond markets, retirement planning instruments, nomination processes across BFSI, and the growing menace of shadow banking. On nomination and nominees Let us begin with the nomination conundrum. Across BFSI verticals (banks, mutual funds, insurance), the rules governing nominees are startlingly inconsistent. A citizen can nominate a single person for one account but multiple for another, with different rights attached. This patchwork approach does not have logical or legal clarity. Rather, it confuses ordinary savers and benefits only those who seek to exploit legal ambiguities, often through protracted litigation. What public interest is served by maintaining three separate nomination regimes? A harmonised nomination framework, with clarity on nominee rights versus legal heir claims, is overdue. If the disconnect exists for a good reason, the government must share the evidence and case studies that justify it. Zooming out, the larger structural lacuna in India's financial landscape is the underdeveloped corporate bond market. Despite years of policy pronouncements, it remains shallow, illiquid and opaque. This matters because the cost of capital is the single biggest determinant of business viability. An efficient bond market can reduce funding costs by 2% to 3%, potentially unlocking massive gains for industry and employment. The Reserve Bank of India once mandated the National Stock Exchange (NSE) to develop a secondary bond market, but this directive was quietly ignored. Why? Equity trading offers more profit, especially through opaque algorithmic strategies that have previously attracted regulatory scrutiny and journalistic exposés. When a journalist called out malpractices, the NSE responded with a ₹ 100-crore defamation suit, only to be admonished by the High Court later. India's bond market reform cannot be divorced from broader regulatory concerns either, particularly around transparency in capital flows. As a member of the Financial Action Task Force (FATF), India is committed to implementing global Know Your Customer (KYC) norms, which include clear identification of Ultimate Beneficial Owners (UBOs). FATF's updated guidelines in 2022 underscore the need for countries to maintain accurate and accessible ownership data to prevent misuse of financial structures. Yet, practical implementation remains a challenge. For instance, in recent months, the Securities and Exchange Board of India (SEBI) has had to press two Mauritius-based foreign portfolio investors (Elara India Opportunities Fund and Vespera Fund) to disclose granular shareholder data related to their holdings in listed Indian firms. These funds reportedly did not comply with multiple disclosure requests, complicating regulatory oversight and delaying enforcement actions. Moreover, India's current UBO disclosure thresholds (10% for companies and 15% for partnerships) create loopholes that allow entities to structure investments just below these limits, thereby avoiding identification. This makes it difficult for regulators to ascertain the true economic interest behind trades in Indian exchanges or bond markets, particularly when routed through jurisdictions such as Mauritius. While this is not unique to India, opacity in ownership structures does weaken market integrity and may inhibit sustained long-term investments, both domestic and foreign. Retirement planning Additionally, the long-term needs of India's young professionals, especially those in BFSI itself, remain unmet. Retirement planning in India is mostly routed through annuities — products that are costly due to the intermediation margin taken by insurance companies. There is a simpler and cheaper alternative that exists: long-dated zero-coupon government securities. The math is compelling, removing the 2% intermediation fee over a 30-year period leads to massive gains for the saver. We already have the technology to 'strip' principal and coupon payments and offer these as zero-coupon bonds, but the government and the Reserve Bank of India (RBI) have shown little initiative. We are missing an opportunity to build a vibrant, low-cost retirement ecosystem anchored on sovereign credibility. Shadow banking Then comes the most ominous blind spot: shadow banking. Non-banking financial companies (NBFCs), margin lenders, repo traders, and brokers are offering bank-like services without being subject to full regulatory oversight. This is not a fringe issue. Global economists warn that the next financial crisis could originate here, just as the 2008 financial crisis did in the United States via unregulated derivatives. In India, retail investors are being financed by brokers who offer loans masked as margin funding. The effective interest rates in such transactions can easily exceed 20%, often without the investor even realising it. The broker holds the investor's contribution as collateral, lends it back to them, and charges interest on the full amount — a classic shadow banking trick. Does the Finance Ministry or RBI even know the scale of this lending? The European Union has already passed legislation to gather comprehensive data on shadow banking activities. India must follow suit. Transparency must precede regulation, and data is the first step toward transparency. India's financial sector reforms must go beyond slogans and cosmetic amendments. We need a coherent, forward-looking strategy that harmonises rules across verticals, nurtures a deep bond market, innovates in retirement finance, and reins in shadow banking. Vaishu Rai is Legislative Assistants to Members of Parliament (LAMP) Fellow 2025 - PRS Legislative
Mint
23-05-2025
- Business
- Mint
FII favourite small-cap stock below ₹100 jumps over 4% from today's low. Do you own?
Shares of MIC Electronics Ltd, a small-cap FII-favourite stock trading below ₹ 100, witnessed renewed investor interest on Friday, May 24, following the company's earnings report for the quarter ended March 2025 (Q4FY25). The stock climbed more than 4 percent from its intraday low of ₹ 57.85 to hit a high of ₹ 60.42, driven by volume-led optimism despite a sharp year-on-year decline in net profit. MIC Electronics reported a net profit of ₹ 3.57 crore for Q4FY25, marking a significant 92.84 percent drop from ₹ 49.59 crore in the corresponding quarter of the previous fiscal year. The steep decline in profits came as a surprise to investors, especially given the company's impressive topline performance. Total income for the quarter stood at ₹ 45.15 crore, up 89.5 percent from ₹ 23.82 crore in Q4FY24, reflecting a substantial increase in business activity. On the operating front, the company reported a 37.74 percent rise in EBITDA to ₹ 8.65 crore, compared to ₹ 6.28 crore in the year-ago period, indicating improved operational efficiency and margin resilience despite bottom-line pressures. For the full year ended March 2025, MIC Electronics' net profit fell 84.10 percent to ₹ 9.83 crore from ₹ 61.84 crore in FY24. However, total annual sales jumped 73.65 percent to ₹ 94.76 crore, compared to ₹ 54.57 crore in the previous fiscal, driven by broader market penetration and product demand. While the drop in profit raises concerns about cost structures and possibly one-time adjustments, the sharp revenue growth signals robust order execution and customer expansion, especially in export markets. Foreign & Promoter Holdings Foreign Portfolio Investors (FPIs) held a 3.80 percent stake in MIC Electronics as of March 2025, slightly lower than the 4.15 percent held in the December 2024 quarter. However, the number of FPI investors increased from 7 to 12 during the period, reflecting broader institutional interest. Notably, Mauritius-based Multitude Growth Funds Limited acquired a 1.47 percent stake (3.55 million shares) in Q4FY25, highlighting strategic accumulation despite headline profit concerns. Promoter confidence remains high, with their stake rising to 66.48 percent in March 2025, up from the previous quarter. This suggests long-term conviction in the company's growth strategy. Founded in 1988, MIC Electronics has evolved into a key domestic player in LED display systems, telecom equipment, and medical devices. The company operates on a global scale, with presence in the USA, UK, and Australia. It has positioned itself as an innovation-driven, export-oriented manufacturer catering to government and industrial segments. Over the past year, the stock has returned nearly 9 percent. It has gained 4.75 percent so far in May following a 6 percent rise in April. However, the stock had a rough start to 2025, slipping 5.5 percent in March, 31 percent in February, and 3.9 percent in January.
