Top headlines: Retail rush for 4 IPOs, lenders worried over RIL-Future deal

Business Standard brings you top headlines this morning

Heavy retail rush for 4 IPOs puts banking system under pressure

The four initial public offerings (IPOs) that closed on Friday generated bids worth Rs 1.7 trillion and attracted over 10 million retail applications, putting severe strain on the banking system.

According to industry players, the many banks found it difficult to process the record number of applications at the same time, leading to higher failure rate and delayed OTP messages. Read more

RBI hints at normalising ultra-loose policy, bond yields jump to 6.24%

The August review of Reserve Bank of India’s bi-monthly monetary policy turned out to be more interesting than expected due to three reasons: a) no unanimous voting on policy stance b) more than expected revision in inflation forecast for FY22 and c) announcement of the variable rate reserve repo auction – an indication that the central bank has started the gradual withdrawal of the ultra-loose monetary policy that was in place since the onset of the Coronavirus (Covid-19) pandemic. Read more

Sebi halves the post-IPO lock-in period for promoters to 18 months

The Securities and Exchange Board of India (Sebi) on Friday relaxed the lock-in period with regard to pre-IPO shareholding and approved the concept of ‘controlling shareholders’. The regulator also eased the framework for the issuance of stock options and increased the investment headroom for alternative investment funds (AIFs) in unlisted companies.

The regulator has halved the lock-in period to 18 months that promoters have to observe on 20 per cent of their shareholding following an initial public offering (IPO). The lock-in on pre-IPO shareholding of non-promoters has also been halved to six months, while the minimum lock-in for venture capital funds will be six months from the date of acquisition, as against one year at present. Read more

RIL-Future deal: Lenders worried over big hair-cuts, IBC option open

With a shadow cast on the Reliance Retail-Future Retail merger deal, lenders are apprehensive about the debt-servicing capacity of the Kishore Biyani-owned company.

There is concern over a bigger hair cut on restructured loans. Option to take the Future group company to bankruptcy court is also on the table. Read more

 

Adani, Essar and DP World in race to develop Rs 2,500-crore ports

The government’s Rs 2,500-crore plan, announced in the Union Budget, to enlist private players to develop seven operational cargo berths at state-owned ports has been welcomed by the industry.

The tenders of VO Chidambaranar Port Trust (VOC) and Paradip Port have received interest from industry majors like Adani Ports and Special Economic Zone (APSEZ), the Dubai government-owned DP World, Essar, J M Baxi Group, and APM Terminals Management BV. Read more

With at least 12 mega-projects, Hilton eyes the big box in India

Hilton Worldwide Hot­els, the storied international hospitality chain that was founded over a century ago, is on the lookout to set up a “big-box” hotel to augment and bolster its presence here, its leadership in India said.

Navjit Ahluwalia, who is country head of Hilton India, runs 21 hotels with around 3,500 keys, and has hotel brands such as the Hilton, Hilton Garden Inn, Doubletree and Conrad, admits that the Hilton journey in India had been slow but it is on track to now focus on setting up a flagship hotel either in Mumbai or in New Delhi. And that they are scouting for the right partners. Read more