Adani, Sunteck Realty Show Interest in Acquiring HDIL
Adani Properties, Sunteck Realty and Suraksha Asset Reconstruction Ltd are among the companies which have submitted expressions of interest (EoI) to acquire the insolvent Housing Development and Infrastructure Limited (HDIL).
 
In a regulatory filing on Tuesday, HDIL said that bids of the three companies have been found eligible, while that of three other interested parties -- International Asset Reconstruction Company Pvt Ltd, NS Software and Harsha Vardhan Reddy were found to be ineligible.
 
"The Resolution Professional has received 6 (Six) EOI from interested parties," it said.
 
The invitation for EOI was first published in February and subsequently revised five times till July. Submission of EOI was closed on 31st July.
 
Any objection to inclusion or exclusion of a prospective resolution applicant in the provisional list may be made with supporting documents within five days from the date of issue of the provisional list, by 8th August.
 
"After considering the objections, if any, received by the Resolution Professional, final list of Prospective Resolution Applicants (PRAs) will be published. The final list will also be uploaded on the website of the HDIL," it said.
 
HDIL is under corporate insolvency resolution process pursuant to the provisions of the Insolvency and Bankruptcy Code, 2016. Its affairs, business and assets are being managed by the resolution professional, Abhay N Manudhane appointed by National Company Law Tribunal, Mumbai Bench.
 
Shares of HDIL on the BSE surged on the development. Currently, its shares on the BSE are at Rs3.16, higher by 4.98% from its previous close.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
  • Like this story? Get our top stories by email.

    User 

    COMMENTS

    bala.mathur

    2 months ago

    The 64 million $ question is, will the PMC Bank depositors get their money back?

    Slack Demand to Crimp Garment Maker Revenues by 25-30%: Report
    A sharp fall in both domestic and exports demand because of the corona virus (Covid-19) pandemic, lower profitability, and elongation of working capital cycle are expected to impair the credit profiles of readymade garment (RMG) makers this fiscal, says a research report.
     
    In the note, ratings agency CRISIL says, "The impact will be felt more by exporters owing to higher revenue de-growth and stretched receivables, an analysis of over 180 CRISIL-rated RMG manufacturers (representing revenue of around Rs40,000 crore) shows." 
     
    "The prolonged lockdown and lower discretionary spending are expected to reduce the revenue of RMG makers by 25-30% this fiscal. For exporters, the fall will be more because of tepid discretionary spending in the US and European Union (EU) accounting for about 60% of India's RMG exports," it added.
     
    According to Gautam Shahi, director of CRISIL Ratings over the past five fiscals, revenue growth of RMG makers was supported by domestic demand even as exports were muted. This fiscal, he says, "with domestic demand also falling significantly, revenues are expected to be materially impacted. Consequently, their operating margins are expected to contract 250-300 basis points (bps) to 7-7.5% for the sample set, despite softer cotton prices, and cost-reduction initiatives." 
     
    In addition, CRISIL says, RMG makers working capital cycle has elongated because of higher inventory and stretched receivables. "Last fiscal ended with 20-25% higher inventory as the Covid-19 pandemic took hold and lockdowns began in late March. With demand depressed in the first half of this fiscal, inventories will remain high. Adding to the woes of exporters will be weakening credit profiles of some large global brick and mortal retailers, which will stretch receivables."
     
    Kiran Kavala, associate director, CRISIL Ratings says, “A sharp fall in profits means RMG makers will not have sufficient cash accruals to meet repayment obligations in the first half of this fiscal. But they are expected to utilise the cushion available in their working capital facilities, and will be helped by the moratorium on loan repayments, the government relief package to micro, small and medium enterprises, and the Covid-19 emergency credit lines.”
     
    According to the ratings agency, for RMG makers cash flows are likely to improve in the second half of this fiscal due to pick-up in demand from the third quarter as the festive season begins in India and fall and winter season begins in the export markets. "That would put RMG makers in a better place to service debt obligations," it says, adding, "given the material impact of weak business performance in the first half, the ratios of net cash accrual to loan repayments, and interest coverage will still be significantly weaker at 1.4-1.7 times and well below 3 times expected this fiscal, compared with 2.4 times and 4 times, respectively, in fiscal 2020.
     
    "Given the milieu, depreciation of the rupee against the dollar and the euro, and increase in incentive structure for exporters – which can help moderate the fall in profitability – will be the key monitorables," CRISIL concludes.
     
  • Like this story? Get our top stories by email.

    User 

    Price Hikes Led to a Rebound in India Pharma Formulation Sales in June 2020: Report
    Price hikes led to a rebound in India's formulation sales in June 2020 and the growth momentum is likely to improve with further easing of the lock-down restrictions in metros and tier-I cities, says a research note.
     
    In the report, India Ratings and Research (Ind-Ra) says, "Our analysis suggests limited prescription swapping during first quarter (1Q) of FY21 led to key large brands, gaining market share and witnessing sales growth above the representative therapy growth. However, this trend may not sustain as medical representatives (MR) start physical interactions with doctors."
     
    According to the ratings agency, growth in 2QFY20-21 (1QFY20-21 – declined 6%) will be led by seasonality and patients opting to undertake delayed surgeries. Ind-Ra says it maintains that the Indian pharmaceuticals market is likely to grow 3%-5% in size during FY20-21, despite 1QFY20-21 being impacted due to COVID-19 led business disruptions. Ind-Ra’s 
     
    Growth during June was led by cardiac, anti-diabetic, vitamins and central nervous system (CNS) therapies. While decline was observed in most therapies, cardiac and anti-diabetic therapies grew by 8% and 6%, respectively, even during 1QFY20-21, because of a continued demand. This was in line with Ind-Ra’s earlier estimates, the ratings agency added.
     
     
    Key large brands, having a strong market share, have seen above-market growth in June 2020, Ind-Ra says.
     
     
    Ind-Ra says its channel checks with stakeholders suggest gradual improvement in sales. "Our interactions with stake holders suggest a gradual recovery for the Indian pharmaceutical market. Growth in July 2020 is expected to be in line with June’s, and may pick-up as the unlock phase gains momentum. Growth could normalise from second half (2H) of FY20-21 (post September)." 
     
    "There has been a higher pick-up in sales in few states like Tamil Nadu, West Bengal, Bihar and Jharkhand while sales continue to be impacted in Maharashtra, Andhra Pradesh, Telangana due to lockdown. Despite the monsoon season being in full swing, the acute therapy segment is likely to perform slower than the chronic therapy segment, as patients avoid doctor visits for minor ailments," it added. 
     
    According to the ratings agency, online platforms are gaining traction and there is a significant jump in patients meeting doctors online (primarily chronic segment), while only need-based treatment is happening face to face. It says, there has also been a spurt in digital marketing activities and bonuses to distributors to gain or maintain market share.
     
  • Like this story? Get our top stories by email.

    User 

    We are listening!

    Solve the equation and enter in the Captcha field.
      Loading...
    Close

    To continue


    Please
    Sign Up or Sign In
    with

    Email
    Close

    To continue


    Please
    Sign Up or Sign In
    with

    Email

    BUY NOW

    online financial advisory
    Pathbreakers
    Pathbreakers 1 & Pathbreakers 2 contain deep insights, unknown facts and captivating events in the life of 51 top achievers, in their own words.
    online financia advisory
    The Scam
    24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
    Moneylife Online Magazine
    Fiercely independent and pro-consumer information on personal finance
    financial magazines online
    Stockletters in 3 Flavours
    Outstanding research that beats mutual funds year after year
    financial magazines in india
    MAS: Complete Online Financial Advisory
    (Includes Moneylife Online Magazine)
    FREE: Your Complete Family Record Book
    Keep all the Personal and Financial Details of You & Your Family. In One Place So That`s Its Easy for Anyone to Find Anytime
    We promise not to share your email id with anyone