HPCL gains over 6%, while IOC, ONGC fall as brokerages dissect deal dynamics

HPCL gains over 6%, while IOC, ONGC fall as brokerages dissect deal dynamics

In the context of mergers and acquisitions (M & A) in the oil and gas space, oil trading companies (WTO) reacted in various ways in the stock markets.

HPCL shares rose more than 6 percent intraday, while ONGC and the IOC fell between 1 and 2.3 percent. Investors were encouraged after prospects HPCL reported discussions on mergers.

In the meantime, they were cautious about the rest because the deal would mean more trouble and pain for both.

Oil Minister Dharmendra Pradhan said on Wednesday that the merger between the two companies will be completed during the current year, CNBC-TV18 quoted quoting agencies as saying.

The PTI news agency said earlier this month that the government was trying to sell 51 percent of HPCL to ONGC to more than Rs 26 billion rupees.

Following the outbreak of the Council of Ministers, the government could move to appoint valuation and transaction advisers, while ONGC may also decide to hire commercial banks to arrive at the assessment of government involvement.

ONGC had a cash reserve of 13,014 crore rupees and will finance the acquisition of government participation in HPLC, will be provided at least Rs 10 billion crores, the source said.

Major global brokers have highlighted the good times in the HPLC warehouse, but said the deal could mean difficult times for the IOC and ONGC. Moneycontrol examines the views of the transaction.

The global financial services firm said that since such an operation could be considered as a transfer between shares between developers, it does not require the approval of minority shareholders and can not trigger a mandatory open offer. However, the minority shareholders of both companies may have something to say in this type of transaction, he added.

Minorities HPCL, according to the report, may be worth an evaluation exercise to determine a fair value for the action and see if a control premium is warranted.

“The likely intention of the government (as reported) to seek the advice of independent evaluators and request the open offer exemption, therefore, may indicate caution on their part because the two issues could be the subject of controversy for minorities,” he said. The Citi report.

On the other hand, he highlighted how ONGC may have to sell its stake to finance the acquisition. He cited media reports stating that significant energy could consider selling a 13.8% stake in the IOC.

“This could make a logical sense for ONGC as the value of its share is equal to 4.1 billion dollars, almost equal to the value of the government’s participation in HPLC 51% ($ 4.3 billion CMP),” said the firm In its report.

Citi added that the evolution of strong trends in fuel consumption and daily fuel prices are positive. “While the first quarter could be affected by inventory losses, we asked investors to look beyond these factors,” he added.

CLSA also cited media reports on the completion of the transaction by the end of the year. In addition, he also emphasized how the ONGC debt could increase in the back of this proposed transaction.

“More importantly, an NGO holding structure would be created implying a possible leakage value of Rs 6.5 / sh (4% of the current price) using a 50% premium at the current HPLC price and assuming that the market Allocates a holding company (that is, 20%), “the company analysts wrote in its report.

Meanwhile, for minority shareholders, he said, since it is a government-to-government transaction, it may not be a specific minority approval.

As for the monetization of its problems, he said that with the ONGC plan to sell the money in the IOC, the government also plans to sell part of its 57 percent of the IOC.

“We are seeing a global offer of $ 6 billion or 20% participation in the IOC in the short and medium term, which can be a huge inertia for the population,” the report added.

In addition, he indicated that the activity could lead to many of those transactions. In the oil space, he said, the IOC could be the next big company that could be invited to acquire the small Oil India.

“If offered as an ONGC it could imply a loss of value for IOCL and it would be negative,” said

Baba Ramdev forays into private security business with ‘Parakram Suraksha’

Baba Ramdev forays into private security business with ‘Parakram Suraksha’

The founder of Patanjali Ayurveda and yoga Baba Ramdev guru launched his own security company called Parakram Suraksha Pvt on Thursday

In statements to the ANI, Acharya Balakrishna, CEO of Patanjali Ramdev said: “Security is a very important issue for a man or a woman.

Our goal is to prepare individuals for the safety of the person and the country and that is why we form Parakram.

This will help develop the military instinct of all citizens of the country to awaken the spirit and determination of individual and national security.
“Ramdev has hired members of the armed forces and the police retired to train young recruits interest and intend to make a sure mark,” added Balakrishna.
The latest review

Patanjali Ramdev, made the richest person 25 in India with Rs. 25.6 billion crore of wealth.

The consumer goods company, Patanjali Ramdev that was introduced, has expanded its market, which is a threat to the multinational corporation (MNC) and the giants of large domestic consumption.

Gartner forecasts 2.4% growth in worldwide IT spending in 2017

Gartner forecasts 2.4% growth in worldwide IT spending in 2017

Global IT spending to reach $ 3.5 trillion in 2017, an increase of 2.4% over 2016, according to Gartner, Inc.

This growth rate is higher than expected in the previous quarter of 1.4%, due to the United States. Dollar decline in relation to many foreign currencies.

“Digital business has a profound effect on the way we do business and how we are supported,” said John-David Lovelock, vice president and analyst at Gartner.

“The impact of digital activities that give rise to new categories, for example, the convergence of more intellectual property software.

These next-generation offerings are fueled by commercial and technological platforms that will drive new categories of spending. Industry-specific disruptive technologies include the Internet of Objects (IO) in manufacturing, the chain block in financial services (and other industries), and intelligent machines in retail.

The focus is on how technology alters and enables businesses, “he said.
The global enterprise software market is expected to increase by 7.6% in 2017, up from the 5.3% growth in 2016.

As software applications enable more organizations to generate revenue from digital business channels will require a greater need to automate and publish new applications and features.

“With the growing adoption of business based on SaaS applications, there is also an increase in the acceptance of IT operations management tools (ITOM) delivered from the cloud,” said Lovelock.

“These cloud-based tools enable infrastructure organizations and operations (I & O) to add features faster and adopt the latest technologies to help manage faster release cycles

. If the S & S team does not monitor and does not follow the rapidly changing environment, it may be a deterioration of infrastructure and application services, which affects the end-user experience and can affect both the brand of the brand.
IT spending grew in 2016, but only two of the top 10 IT suppliers of organic revenue growth reported.

With revenue sources still being related to Nexus Forces (convergence of society, mobility, cloud and information), some of the top 10 providers will be better in 2017 thanks to the mobile phone sales force.

Global spending on devices (computers, tablets, mobile phones and UMPC) to increase by 3.8% in 2017, reaching 654 billion. It is from the forecast in the previous quarter of 1.7%.

The growth of the mobile phone depends on the average selling price (ASP) of the premium phones in mature markets due to the iPhone’s 10th anniversary and the increase in the mix of basic phones in commercial phones.

However, the tablet market continues to decline, as replacement cycles are widespread.

GST: How companies are gaming the system

GST: How companies are gaming the system

MUMBAI: A non-descriptive textile trading company registered in Mumbai with an annual turnover of Rs 1 crore or less has become very active.

The company started selling out-of-state products in different categories and could do business of more than Rs 50 crore by the end of the year.

Indirect tax officials suspect that this is one of many fictitious companies used to avoid GST.

Taxpayers control the waves of activity in older companies and the formation of some companies fear that these are created specifically for the TPS game, officials and tax advisors said.

“Many inactive companies have become active and are trading various product categories that they have never occupied.

In many cases, these companies appear to be deliberately included in important areas of activity, “said a tax manager based in Mumbai on ET.

Many companies, especially those with a turnover of 50 million rupees between Rs and Rs 200 million rupees, set up specialized companies to take advantage of GST.

These Shell companies were used to take credit in a transaction from one state to another and accumulate an entry credit, only to be closed one year later before the arrival of the tax inspection.

There are indications that these companies use. Just like in the case of an artificial jewelry maker, a trick that could be replicated by many is running, says a senior tax expert with a law firm.

“The company first sell out of the state through a holding company and claimed 18% GST with the government.

Proponents expect they would stop paying the GST after a couple of transactions, “said a familiar person. Others plan to build the system by repairing products with fairness.

“If a Mumbai company sends goods at a high GST rate say 28% of a company in Delhi, but the invoice shows that they carry food grains, which are 5%.

The buyer in New Delhi will never show merchandise sales and never pay the GST, “said a tax expert.
“These ghost companies, after the GST credit transfer can be again inactive and not be captured if the evasion by company is around Rs 5 crore,” said one person in the know.

Experts point out that, in many cases, tax officials come on fraud, but it will take at least a year or more. At that time, companies have closed their stores and no one is at the registered office.

“The government can possibly capture all those who use ghost companies to build credit and make money.

The only way to make this effective is to monitor in real time and across multiple channels, “said MS Mani, partner of Deloitte Haskins and Sells.

A senior tax official said some tax experts help business people to set up such businesses and the department can follow first.

At a recent conference in Mumbai, several industry experts, including Kerala Finance Minister Isaac Thomas warned that in commercial (B2B) operations, some people might be able to replicate the system.

Paytm acquires majority stake in Insider.in

Paytm acquires majority stake in Insider.in

Paytm acquired a majority stake in the ticketing platform for Insider.in events and properties, including NH7 Weekender, EDC and Fest larva, for an undisclosed amount.

This will allow all Paytm customers to discover a wide range of events and book immediately, according to a company statement.

The industry event organized by the country is currently at Rs 4,000 crore, with organized sports leagues and events representing the majority of ticket sales, according to industry estimates.

The online ticket is only 10% of the total volume due to the discovery of limited facts.

After setting up its online ticketing service spanning 3,500 screens in 550 cities Paytm has grown in sales and uncovering events, helping customers discover events on their platform in a statement.

“The booking of discovery tickets and the event is a challenge for customers and organizers … We believe the digital discovery and experience in event marketing will increase the supply of quality events in India.

This is a natural extension for us as we continue to build for India for movies and online events, “said Madhur Deora, chief financial officer and SVP, in a statement.

Privileged curator of events and experiences that users can discover perfection the best way to spend their free time. The platform also provides tools, data and analysis to the organizers that allow them to conceptualize, market and execute their events more efficiently.

This partnership with Paytm allows Insider.in to reach out to more organizers and exponentially expand this ecosystem in India, he said. DSR NRB

Get the latest news and updates in real time on your computer with the News application. Download the new The Times of India application for your device.

Flipkart Said to Be Readying Up to $950 Million Offer for Snapdeal

Flipkart Said to Be Readying Up to $950 Million Offer for Snapdeal

The e-commerce leader Flipkart should make a revised offer of 900-900 million dollars (about Rs 5,800 crore – Rs.6122 crore) for the purchase of rival Snapdeal, according to sources.

The new offer is almost equivalent to the original $ 1 billion sale price for the acquisition of the besieged e-commerce market, private development sources said.

They do not want to be identified because the discussions are always over and the agreement has not been signed.

A source said a new offer of 900-900,000,000 should be made next week.

When contacted, Snapdeal, Flipkart and Softbank declined to comment.

The Snapdeal Board has already rejected an offer of $ 800 million to $ 850 million (about 5.5 million pounds) of Flipkart when it felt that the amount has underestimated the company since the due diligence report was clean.

SoftBank, the largest investor Snapdeal, played a mediating role in the sale for several months. The Snapdeal Council was also represented by its founders (Kunal Bahl and Rohit Bansal), Nexus Venture Partners and Kalaari Capital.

Snapdeal also participates in separate talks to sell FreeCharge (mobile portfolio operations) and Vulcan Express (logistic arm).

These offers are also likely to be closed in the coming weeks.

The case between Snapdeal and Flipkart, if completed, will mark the largest acquisition in India’s e-commerce space.

One of the major competitors in the Indian segment of retail electronics, Snapdeal has seen its fortune fail amid intense competition from Amazon and Flipkart.

Snapdeal’s valuations also fell around $ 6.5 trillion in February 2016. SoftBank has canceled more than $ 1 billion for the valuation of its investment in Snapdeal.

SBI reduces NEFT, RTGS charges by 75%

SBI reduces NEFT, RTGS charges by 75%

The country’s largest lender, State Bank of India (SBI) has cut the National Electronic Funds Transfer (NEFT) and real-time gross settlement (RTGS) to 75%, beginning July 15.
In order to promote digital transactions.

The revised charges will apply to Neft and SLBTR transactions through Internet banking or mobile banking services offered by the bank, OSE said in a statement.

NEFT and RTGS are electronic payment systems, which allow the transfer of funds between accounts in different banks.

Previously, OSE poured Rs. 2 for the transfer of funds up to Rs. 10,000 for Neft modes using the Internet or mobile banking. It has now been reduced to Rs 1 (excluding 18% GST).

For Neft transactions of Rs 10,000 to Rs 1 lakh, the charge was reduced to Rs.

2 Rs. 4 above. Similarly, OSE has revised its money transfer rates between Rs 2 lakh and Rs 5 lakh through RTL on its mobile banking platform and network, to Rs 5. This charge was Rs 20 earlier.

“Analysis and excellence in operations is one of our key strategies to provide customer comfort.

This has reduced delivery time and extended customer benefits, “said Rajnish Kumar, General Manager (NBG) to the SBI.

“In line with our strategy and completing the Indian Government’s goal to create a digital economy, we have taken a step further to promote the use of Internet banking and mobile banking for NEFT RTB transactions and cost reduction,” He added. .
The latest review

In addition, the bank has also waived up to a fund transfer fee of Rs 1000 carried through the immediate payment service (IMPS) from July 1, 2017, according to the statement.

IMPS is a money transfer service that can be achieved with mobile phones or Internet banking.

The IMPS service helps to transfer money to the beneficiary’s account immediately when a fund transfer request is made by mobile phone or Internet.

With tweak in SEZ rules, Adani group firm gets Rs 500-crore bonus

In August, the government decided to change the rules relating to special economic zones that allowed an Adani group company to benefit from a bonus of around Rs 500 crore. While a predictable and correct Adani Group representative stated that the company had done nothing wrong or illegal, senior officials of the Ministry of Finance (including Finance Minister Arun Jaitley) and the Ministry of Industry and Commerce (including the Minister of State Nirmala Sitharaman that Head of Department) did not respond to the detailed questionnaires sent by Economic and Political Weekly that two weeks ago, asking for an explanation of the reason for government actions that seem to favor a particular company. The Adani group is led by Gautam Adani, who is supposed to be close to Prime Minister Narendra Modi.

In August 2016, the Regulation on Special Economic Zones in 2016 was amended by the Ministry of Commerce to insert a provision on claims under the Special Economic Zones Act 2005. The Law of Special Economic Zones in which the Special Economic Zones Rules are initially framed provided no provision for reimbursement of any kind before introducing the change. The change has allowed Adani limited food to have the opportunity to ask for customs repayments at the rate of Rs 500 crore. Adani limited feed claimed to have customs duties paid for raw materials and consumables, that is, imported coal for power generation. However, documents released to the EPW clear limited food qu’Adani had not actually paid the duty on raw materials and consumables Rs 1 billion rupees from the end of March 2015. Apparently, Alteration of the rules of special economic zones to insert a provision that companies are demanding reimbursement customs, the Department of Commerce allows Adani limited food with the claim of restitution by the right that was never paid for it in the first place.

Adani limited feed imports coal from Indonesia. The import of coal by the company (with others such as Reliance Infrastructure, Pink Power Supply, Essar Group companies, among others) from Indonesia has been a review of the Directorate of Revenue Intelligence for some time. In March 2016, management, research by the Ministry of Finance Finance Department, said that Indonesia’s coal imports were overburdened by diverting funds out of the country and electricity generation companies, including Adani limited food, has a Higher rate compensation based on the artificially inflated price of imported coal. In addition to this, the companies of the Adani and Essar groups have been accused of overloading imported equipment from the plants. These reports first appeared in the WPA in April and May last year. This instance of the so-called set of escape tasks is consistent with the claims claim rights which, in fact, have not been paid.

Located in Mundra, Gujarat, Adani Food Limited claims to have established the first coal-based power plant based on India’s “super critical technology”, with an installed capacity to generate 660 megawatts of electricity. The center of Mundra, located in the port and Adani SEZ, has a total capacity to generate 4,620 MW. The Mundra power plant.

Is it better for India to have bigger but fewer banks?

There are reports that India is going to participate in a new cycle of consolidation in the banking public. Governor of the Reserve Bank of India, Urjit Patel, recently pointed out at Columbia University that it is better for the country to have fewer, healthier banks.

While the government intends to consolidate public sector banks, NITI Aayog, a policy think tank advising the Indian government had worked to formulate a road map and report before the first week of July.

In theory, the main reasons for these mergers are economies of scale and scope, increased revenue, maximize value, greater efficiency, cost savings, customer and asset diversification, and also that large banks contribute to international recognition. However, fusions, in general, are a challenge and must be carefully designed. They can succeed in similar institutions with similar culture but can not be widely adopted, as it could lead to job cuts, closure of branches and, in some cases, a reduction in the quality and quantity of services. The simple consolidation of weak banks does not produce a healthier institution. In fact, it can cause significant damage to the economy.

The crisis in Southeast Asia in 1997 has encouraged the consolidation and restructuring of banks in many Asian countries. In the US, there has been a consolidation of the banks since 1916.

Restructuring of Indian banks through mergers and acquisitions has been recommended by several commissions since 1972. To illustrate, the new Bank of India and the National Bank of Punjab merged the two PSBs in 1993. In 1998, M Narasimham headlined in the banking sector reforms also recommends PSB merger. Therefore, many banks have merged – for example, Saurashtra State Bank and Indore State Bank with a State Bank of India in 2008 and 2010, respectively.

In this context, the recent consolidation of the SBI and all its sister concerns should be considered as a continuation of the same process. The newly merged new OSE now has a base of 370 million customers, a network of nearly 24,000 bank branches and 60,000 ATMs. He was catapulted to the top 50 banks in the world in terms of assets.

It is necessary that while OSE, the largest lender in India, is competing with the best banks in the world in terms of size, and the network of business offices, faces competition within the country. On the other hand, consolidation is not only about size, but also efficiency and synergy, since economies of scale make the bank more productive, profitable and competitive. There is evidence that large PSBs are more efficient and work better than BSPs. Therefore, the need for consolidation.

If the consolidation of banks continued to strengthen PSB and solve the problem of increased delinquency and ongoing recapitalization needs, other alternatives such as privatization of PSB loss and cost benefits should also be explored. Many countries, including the former bloc countries, have privatized their nationalized banks.

This implies that the social control policy of 60 years in India should be reviewed. As the Planning Commission was a remnant of the socialist era, it is the same social bank. Is it the time to see if the PSB are really necessary to serve social banking in our country and, if so, at what price. Privatizing some PSB deficit will ensure that market discipline forces them to rectify their strategy, which will have a domino effect on other PSBs.

Move Over U.S., the Stampede Is On for European Equities

Move Over U.S., the Stampede Is On for European Equities

Europe has become a magnet for stock funds, attracting a record weekly inflow from investors who see the clouds lifting after populist Marine Le Pen was defeated in the French presidenEuropa se ha convertido en un imán para los fondos de acciones, atrayendo una entrada semanal récord de los inversores que ven las nubes levantarse después de que el populista Marine Le Pen fue derrotado en la elección presidencial francesa el 7 de mayo. , AttirantEurope has become a magnet for stock funds, attracting a record weekly inflow from investors who see the clouds lifting after populist Marine Le Pen was defeated in the French presidenEuropa se ha convertido en un imán para los fondos de acciones, atrayendo una entrada semanal récord de los inversores que ven las nubes levantarse después de que el populista Marine Le Pen fue derrotado en la elección presidencial francesa el 7 de mayo. , Attirant un flux d’investisseurs qui ont laissé les nuages ​​s’élever après que le populiste Marine Le Pen ait été vaincu lors de l’élection présidentielle française le 7 mai.

Los inversores tienen un fondo neto de 6,1 millones de dólares en los fondos de acciones europeos en la semana hasta el 10 de mayo, según Bank of America Merrill Lynch, citant les données globales d’EPFR. L’argent a coulé alors que le centre Emmanuel Macron a battu le euro-sceptique Le pen en le ruissellement de dimanche. Las acciones de los Estados Unidos de América en los descuentos de 2,4 millones de dólares, después de la mayor economía del mundo, más el interés por la Europa después de la reunión de Trump.

Los inversores invirtieron un valor neto de 6.100 millones de dólares en fondos de renta variable europeos en la semana hasta el 10 de mayo, según Bank of America Merrill Lynch, citando datos de EPFR Global. El dinero fluyó cuando el centrista Emmanuel Macron venció al escéptico Le Pen en el desempate del domingo. Las acciones de Estados Unidos tuvieron 2.400 millones de dólares en salidas, ya que la mayor economía del mundo perdió más de su atracción relativa sobre Europa después de que el triunfo de Trump se estancara.tial election on May 7.L’Europe est devenue un atout pour les fonds d’actions, attirant un flux hebdomadaire record d’investisseurs qui voient les nuages s’élever après que le populiste Marine Le Pen ait été vaincu lors de l’élection présidentielle française le 7 mai.

Les investisseurs ont versé un montant net de 6,1 milliards de dollars dans des fonds d’actions européens dans la semaine jusqu’au 10 mai, selon Bank of America Merrill Lynch, citant les données globales d’EPFR. L’argent a coulé alors que le centre Emmanuel Macron a battu le euro-sceptique Le Pen dans le ruissellement de dimanche. Les actions des États-Unis avaient des sorties de 2,4 milliards de dollars alors que la plus grande économie du monde a perdu plus de son attrait relatif sur l’Europe après la fin du rassemblement de Trump.

Investors poured a net $6.1 billion into European equity funds in the week to May 10, according to Bank of America Merrill Lynch, citing EPFR Global data. The money flowed as centrist Emmanuel Macron defeated euro-skeptic Le Pen in Sunday’s run-off. U.S. equities had $2.4 billion of outflows as the world’s biggest economy lost more of its relative attraction over Europe after the Trump rally stalled.un flux d’investisseurs qui ont laissé les nuages ​​s’élever après que le populiste Marine Le Pen ait été vaincu lors de l’élection présidentielle française le 7 mai.

Los inversores tienen un fondo neto de 6,1 millones de dólares en los fondos de acciones europeos en la semana hasta el 10 de mayo, según Bank of America Merrill Lynch, citant les données globales d’EPFR. L’argent a coulé alors que le centre Emmanuel Macron a battu le euro-sceptique Le pen en le ruissellement de dimanche. Las acciones de los Estados Unidos de América en los descuentos de 2,4 millones de dólares, después de la mayor economía del mundo, más el interés por la Europa después de la reunión de Trump.

Los inversores invirtieron un valor neto de 6.100 millones de dólares en fondos de renta variable europeos en la semana hasta el 10 de mayo, según Bank of America Merrill Lynch, citando datos de EPFR Global. El dinero fluyó cuando el centrista Emmanuel Macron venció al escéptico Le Pen en el desempate del domingo. Las acciones de Estados Unidos tuvieron 2.400 millones de dólares en salidas, ya que la mayor economía del mundo perdió más de su atracción relativa sobre Europa después de que el triunfo de Trump se estancara.tial election on May 7.L’Europe est devenue un atout pour les fonds d’actions, attirant un flux hebdomadaire record d’investisseurs qui voient les nuages s’élever après que le populiste Marine Le Pen ait été vaincu lors de l’élection présidentielle française le 7 mai.

Les investisseurs ont versé un montant net de 6,1 milliards de dollars dans des fonds d’actions européens dans la semaine jusqu’au 10 mai, selon Bank of America Merrill Lynch, citant les donnée