OUTSTANDING DEBTS
Are Indian households overleveraged in the equity market?
Reserve Bank of India has released new data revealing a surge in Indian household financial assets, driven by significant growth in equity investments. Despite this, household debt has also doubled since 2019, raising questions about the impact of this financial wealth on consumer spending.
Heat's now on for PSU banks with Adani Group exposure
Indian lenders account for more than ?88,000 crore of the Adani Group's total debt of ?2.41 lakh crore as of March 31, 2024, according to a group presentation. Following the Hindenburg report in January 2023, several Indian banks and financial institutions had disclosed their exposure to the Adani Group.
Vedanta Resources may raise $1.2 billion to refinance debt
The company is in talks with investors to raise $500 million in the coming weeks through a bond issue to partly refinance $606 million of outstanding 13.875% notes maturing in 2028. This is a re-tap of the bonds raised in September and the instrument is likely to be priced around 10.2%, where the bond is trading.
Rs 9.74 lakh crore debt borrowed by YSRCP govt identified so far: Andhra CM
Andhra Pradesh Chief Minister N Chandrababu Naidu revealed that a debt of Rs 9.74 lakh crore, accumulated during the previous YSRCP government's tenure, has been uncovered. This staggering sum encompasses state debt, public account liabilities, corporation debt, and significant outstanding dues to vendors and employees. Naidu expressed concern that further investigation might unearth even more debt.
Household debt at new record squeezing low-income Americans
Higher debt levels for mortgages, auto loans, credit cards and student loans last quarter drove overall consumer debt to a new record of $17.9 trillion, according to the Federal Reserve Bank of New York. Households in the aggregate saw incomes rise more than their debt, but younger consumers and lower earners faced more strain, Fed researchers said.
Acme Solar Holdings made a disappointing debut at the bourses. What should investors do?
Acme Solar Holdings listed at a 13% discount to its issue price, indicating subdued investor response. The company operates in the promising renewable energy sector and has shown strong growth and improved profitability. However, the high debt-to-equity ratio remains a concern.
Vedanta Resources plans to sharply reduce cost of funding by April
The $850 million private credit facility from Standard Chartered Bank, which carries a high interest rate of 18%, is secured against future brand fee receivables. These brand fees, projected at around $300 million annually, help VRL with a recurring revenue stream that partially services this private credit.
MTNL defaults on Rs 5,726 cr loans; total debt at Rs 32,097 cr
MTNL, the state-owned telecom company, has defaulted on a payment of Rs 5,726.29 crore owed to various banks. The company's total debt has reached Rs 32,097.28 crore, significantly exceeding its annual income. Union Telecom Minister assured that the debt is backed by a sovereign guarantee and MTNL's business will be transferred to BSNL.
Shapoorji Group in talks for Rs 8,000 crore raise via bonds
PFC directors questioned the legal constraints on transferring Tata Sons shares in the event of a default. ET had earlier reported that Tata Trusts had stated that Tata Sons shares are not freely transferable.
SP Group aims to repay Rs 7,300 cr to Debenture Holders
Shapoorji Pallonji Group entity Goswami Infratech is set to repay ?7,300 crore to debenture holders this week, halving its outstanding debt from a ?14,300 crore issuance in May 2023. The repayment will be funded by proceeds from the recent IPO of Afcons and the sale of Gopalpur Ports to the Adani group.
Reliance Power arm Rosa Power prepays Rs 485 cr debt, becomes zero-debt firm
Reliance Power's subsidiary, Rosa Power Supply Company, has cleared its debt by prepaying Rs 485 crore to Varde Partners. This follows a previous prepayment of Rs 833 crore, making Rosa Power debt-free. This move, along with a recent equity infusion, strengthens Reliance Power's position to pursue opportunities in the green energy sector.
IL&FS group resolves debt of Rs 38,082 crore as of September-end
IL&FS Group, grappling with debt, has successfully repaid Rs 38,082 crore to its creditors by September 30, 2024. The resolution process, involving asset monetization and debt restructuring, aims to resolve a total of Rs 61,000 crore, representing a significant portion of the group's outstanding debt.
Sebi proposes doubling threshold for 'High Value Debt Listed Entities' to Rs 1,000 cr
Sebi proposes raising the threshold for High Value Debt Listed Entities from Rs 500 crore to Rs 1,000 crore to reduce compliance burdens. It includes governance obligations, filing reports in XBRL format, and harmonising reports with equity-listed entities. Public comments are open until November 15.
The rising impact of retail investors on debt capital markets
The debt market, traditionally dominated by institutional investors, is evolving to include retail participants. With regulatory reforms reducing retail debt participation from Rs 10,00,000 to Rs 10,000, smaller companies can now raise funds through public NCD issues. This transformation, evidenced by significant growth in corporate bond issuance, promises to enhance liquidity and drive economic development in India.
Zoomcar implements debt restructuring for the next long drive
Zoomcar is actively restructuring its debt to reduce obligations of $31 million by June 30, 2024. The company has negotiated with lenders and vendors to convert 75% of its debt into deferred payments or reduced settlements. This effort aims to be completed by November 2024, lowering cash outflow and enabling future investments.
Realty developer M3M reduced debt by Rs 2,473 crore
Realty developer M3M group has repaid Rs 2,473 crore of debt by August 31, 2024, reducing its outstanding debt to Rs 1,302 crore. This significant reduction improves the group's financial flexibility. Boosted by a 37% sales increase in Q1FY25, M3M is on track for future growth, focusing on robust project deliveries and efficient cost management.
Financial tips on shifting from regular job to private practice
Switching from a regular job to private practice is a major financial decision. Rodriguez must assess her risk tolerance and ensure that her financial position is strong enough to make this move.
Banks bat for frequent Lok Adalats to settle small-value loans
Banks have urged the government to organize more Lok Adalats through Debt Recovery Tribunals to settle distressed loans out of court. Public sector banks believe that increasing the frequency of these adalats will expedite loan recoveries. Currently, Lok Adalats hear cases under ?20 lakh, having recovered substantial amounts in FY23.
NHAI saves around Rs 1,000 crore of interest through debt payment plan
The state-owned NHAI reported saving approximately Rs 1,000 crore in interest payments by pre-paying Rs 15,700 crore of its debt. This move has significantly reduced NHAI's total debt to around Rs 3,20,000 crore. The organization also secured lower interest rates from banks, dropping from 8.10% to 7.59%.
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