Shriram City Union Finance Limited to raise up to Rs750 crore through Secured Non Convertible Debentures

The NCD issue would aggregate up to Rs375 crore with an option to retain over-subscription up to Rs375 crore for issuance of additional NCDs aggregating to a total of up to Rs750 crore

Shriram City Union Finance Limited, a deposit-accepting NBFC (non-banking financial company) registered with the RBI (Reserve Bank of India) and the largest small enterprise finance company in India, plans to raise funds through the debt capital market on 11th August with a public issue of Secured Non Convertible Debentures (NCDs) of face value of Rs1,000 each. The NCD issue would aggregate up to Rs375 crore with an option to retain over-subscription up to Rs375 crore for issuance of additional NCDs aggregating to a total of up to Rs750 crore.

The NCDs proposed to be issued under this issue have been rated CARE 'AA' by CARE for an amount of up to Rs750 crore, and CRISIL 'AA-/Stable' by CRISIL for an amount of up to Rs750 crores. The funds raised through this issue, after meeting expenses, will amongst others, be used for Shriram City's various financing activities including lending and investments. The funds would also be used to repay the company's existing loans and for its business operations including for the capital expenditure and working capital requirements. The NCDs are proposed to be listed on the NSE (National Stock Exchange) and the BSE (Bombay Stock Exchange).

JM Financial Consultants Private Limited, AK Capital Services Limited and ICICI Securities Limited are the lead managers to the issue while Karvy Investor Services Limited is the co-lead manager to the issue.

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Geojit BNP Paribas forms JV with Bank of Bahrain and Kuwait

The new entity, BBK Geojit Securities KSC, will be headquartered in Kuwait City and will start operations initially with two offices

Geojit BNP Paribas Financial Services Ltd, India, has announced the formation of a joint venture with Bank of Bahrain and Kuwait (BBK) and Kuwait-based JZ Associates LLC. The new entity, BBK Geojit Securities KSC, will be headquartered in Kuwait City and will start operations initially with two offices. The company will meet the needs of the burgeoning non-resident Indian (NRI) population for accessing Indian capital markets. BBK Geojit Securities KSC will offer services including brokerage services, depository services, and mutual funds of Indian stock markets.

This move by Geojit BNP Paribas Financial Services Ltd is in line with its overall strategy of ramping up its presence in the booming Middle East region.
 
Kuwait, with over 600,000 NRIs, is expected to be a lucrative market for the new venture and plans are afoot to increase its presence to six offices.
 

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Demand-supply mismatch causing inflation: Govt

Minister of state for finance Namo Narain Meena said that the RBI's monetary tightening has helped to moderate aggregate demand. He "Credit growth also moderated from the peak of 24.2% in end December 2010 to 18.6% in mid-July 2011," he added

New Delhi: Attributing the persisting high inflation to demand-supply mismatch, the government today said it would have been higher had not the Reserve Bank of India (RBI) increased its key policy rates.

"The monetary policy operates with long and variable lags... The transmission of monetary policy action taken in the past is still playing out. However, inflationary pressure have persisted due to a combination of supply and demand factors," minister of state for finance Namo Narain Meena said in a written reply to Rajya Sabha.

He said this in reply to a question on whether frequent changes in interest rates have been effective in reducing inflation during the current fiscal year.

Mr Meena said the RBI's monetary tightening has helped to moderate aggregate demand.

"Credit growth also moderated from the peak of 24.2% in end December 2010 to 18.6% in mid-July 2011.

In the absence of (monetary) tightening, inflation perhaps would have been higher on account of demand pressures," he said.

The minister said a series of supply shocks, particularly of global commodities, has raised input costs and spiked the headline inflation.

Headline inflation, as measured by the Wholesale Price Index (WPI), stood at 9.44% in June.

The RBI has projected inflation to remain around 9% during the first half of the fiscal and then moderate to 7% by March 2012.

In reply to another question on dearness allowance for government employees and pensioners, the minister said an additional instalment of DA has become due with effect from 1st July and will be released in September.

"The All India Consumer Price Index includes a component pertaining to fuel. Dearness allowance (DA) and Dearness relief (DR) to central government employees/pensioners is revised twice a year... based on the accepted formula after Sixth Pay Commission and is normally released in the months of March and September," Mr Meena said.

He said inflation based on the All India Consumer Price Index for Industrial Workers has shown an increase during the first six months of 2011. Measures had been taken to contain prices of essential commodities, he added.

Mr Meena said among other steps taken is the decision to suspend futures trading in rice, urad and tur by the Forward Market Commission.

Besides, it has also extended stock limit orders in the case of pulses, paddy and rice up to 30th September.

The minister said the 'Core Group of Central Ministers and State Chief Ministers on Prices of Essential Commodities" met in April last year under the chairmanship of the prime minister and constituted three working groups.

The three groups comprise the Working Group of Agriculture Production, the Working Group of Consumer Affairs and the Working Group on Food and Public Distribution.

"The Working Group on Agriculture Production presented its report in December 2010. It proposes, inter alia, measures to improve yields, expand winter rice cultivation in eastern India, electric power availability, water control, improved farming system, new varieties and hybrid seeds... insurance and other related matters," Mr Meena said.

The Working Group on Consumer Affairs presented its report in March 2011 and recommended measures to improve competition in Agriculture Produce Markets and Reforms on APMCs, besides developing single unified agricultural market, reducing barriers, improving infrastructure and setting up of cold chain facilities.

"Reports are yet to be considered by the Core Group", Mr Meena said, adding the Working Group on Food and Public Distribution in yet to submit its report.

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COMMENTS

rprtr

5 years ago

The RBI should have raised the interest rates earlier , not in baby steps, but decisively.

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