Federal Bank Launches Rs. 2,000 Crore Share Sale To Institutions

Mumbai: Private sector lender Federal Bank Ltd has launched a share sale to raise Rs. 2,000 crore, with an option to increase the amount by Rs. 500 crore, according to a deal term sheet.

Federal Bank said in a regulatory filing on Wednesday it had launched a so-called qualified institutions placement of shares but did not give details.

Federal Bank Launches Rs 2,000 Crore Share Sale To Institutions

The bank is selling new shares in a price range of Rs. 111.50 to 116.70, equivalent to a 4.5 percent discount to the stock’s close on Wednesday at the bottom of the range.

Citi, Deutsche Bank, IIFL Holdings and Kotak Mahindra Capital are the banks on the deal.

 

Asian Stocks Rise As Oil Tries To Claw Up From 10-Month Low

Singapore: Asian stocks advanced on Thursday as oil prices struggled to climb off a 10-month low hit overnight on concerns over a supply glut and falling demand.

MSCI’s broadest index of Asia-Pacific shares outside Japan climbed 0.3 percent.

Japan’s Nikkei fell 0.1 percent, with shares in auto air bag maker Takata Corp plunging 50 percent as they exchanged hands for the first time since sources said last week it was preparing to file for bankruptcy.

South Korea’s KOSPI added 0.2 percent, while Australian shares jumped 0.6 percent.

Asian Stocks Rise As Oil Tries To Claw Up From 10-Month Low

Chinese shares added to gains made on Wednesday after MSCI included mainland shares in its emerging market indexes. The blue-chip index rose 0.4 percent. Hong Kong’s Hang Seng was flat.

Crude oil crept up from multi-month lows hit on Wednesday after data showed a drop in U.S. inventories, but gains were capped as investors fretted about whether OPEC-led output cuts would dent a three-year glut.

“The time for contrarian trades in oil is fast approaching, but I would want to see some stability in price and the technicals start to become more convincing,” said Chris Weston, chief market strategist at IG in Melbourne.

U.S. crude futures rose 0.1 percent, or 5 cents, to $42.58 a barrel. They closed down 1.6 percent on Wednesday after touching their lowest level since August.

Global benchmark Brent climbed less than 0.1 percent, or 3 cents, to $44.85. It closed down 2.6 percent on Wednesday after touching a seven-month low.

The resulting decline in oil shares hit indexes in Europe and on Wall Street overnight.

Britain’s FTSE, Germany’s DAX and France’s CAC 40 closed between 0.3 percent and 0.4 percent lower.

The Dow Jones Industrial Average closed down 0.3 percent, while the S&P 500 was slightly lower. Nasdaq closed up 0.7 percent, lifted by biotech stocks.

Financial stocks also contributed to losses on Wall Street, driven lower by a drop in the Treasury yield curve to its flattest in almost a decade, as investors tried to reconcile a hawkish Federal Reserve with deteriorating inflation measures.

Boston Fed President Eric Rosengren and Fed Vice Chair Stanley Fischer suggested they are concerned less about raising rates too fast or too high than about keeping them too low for too long.

“I think the market may be pricing in a little higher odds of another rate hike before the end of the year, and that is helping drive some of the flattening,” said Gennadiy Goldberg, an interest rate strategist at TD Securities in New York.

The yield curve between five-year notes and 30-year bonds flattened to 95 basis points, the narrowest since December 2007, on Thursday.

The dollar eased, falling 0.3 percent to 111.03 yen.

The dollar index edged lower to 97.502, extending Wednesday’s 0.2 percent loss.

The New Zealand dollar gained 0.4 percent to $0.7248 after the central bank left its interest rate unchanged at a record low as expected and reiterated it would remain steady for a while.

Sterling was slightly lower at $1.267 after Wednesday’s 0.3 percent gain on comments by the Bank of England’s chief economist that he was likely to vote for an interest rate hike this year. Until now, he has been seen as largely supportive of keeping rates low.

The euro was flat at $1.117, holding on to Wednesday’s 0.3 percent gain.

The weaker dollar lifted spot gold, which rose 0.6 percent to $1,252.60 an ounce.

 

Government Allows Co-Operative Banks To Deposit Old Notes With RBI

The Finance Ministry on Tuesday allowed banks, post offices and district central cooperative banks to deposit the scrapped Rs. 500 and 1,000 rupee notes with the Reserve Bank of India within 30 days and exchange the value of notes deposit with the new notes.

In an official notification the Finance Ministry said, “Specified bank notes may be deposited by such Bank, Post Office or District Central Cooperative Bank, as the case may be, in any office of the Reserve Bank, within a period of 30 days from the commencement of these rules, and get the exchange value thereof by credit to the account of such Bank, Post Office or District Central Cooperative Bank, as the case may be, subject to the satisfaction of the Reserve Bank of the conditions specified in the said notification and the reasons for non-deposit of the specified bank notes within the period under that notification.”

Banks can deposit old notes with RBI within 30 days.

The relaxation comes against the backdrop of reports that many district co-operative banks did not have enough cash to disburse to farmers, particularly in Maharashtra. The reason, the banks say, is that nearly six months after demonetisation, they still have crores of cash in old currency, which the Reserve Bank of India (RBI) is refusing to accept.

Nashik’s District Central Cooperative Bank told NDTV they still have a stockpile of Rs. 340 crore in old 500 and 1,000 notes. Unless this money is converted to new, payments will be hard to make, said Narendra Darade, Chairman of Nashik’s DCCB.

The demonetisation of high value currency notes of Rs. 500 and Rs. 1,000 announced on November 8, 2016 led to scrapping of over Rs. 15 lakh crore from the system.

 

Telecom Sector Woes Do Not Pose Systemic Threat To Banks, Says Fitch

Mumbai: In the wake of recent liquidity crisis at Reliance Communications, global rating agency Fitch Ratings today said though the country’s banks do not have large exposure to the telecom sector, but defaults could affect lenders with weak financials.

“Indian banks’ exposure to troubled telecom companies is not large enough to pose a systemic threat, but defaults could add to problems at banks with weak balance sheets,” the rating agency said in a note here today.

According to Reserve Bank, total debt owed by telcos to banks is only Rs. 91,300 crore, accounting for just 1.4 per cent of all bank loans.

Telecom Sector Woes Do Not Pose Systemic Threat To Banks, Says Fitch

Anil Ambani-led Reliance Communications is struggling to repay Rs. 45,000 crore of debt to its lenders.

Due to weak operating performance and liquidity condition the company and its various debt instruments were downgraded by multiple rating agency including Fitch Ratings.

Last week, the lenders to Reliance Communications agreed to restructure its debt under strategic debt restructuring of Reserve Bank of India. The lenders have given the company a seven month breather to repay a part of the debt.

Fitch further said the credit profiles of the country’s telcos are under pressure from fierce competition stemming from the entry into the market of Reliance Jio last year and rising capex required for the roll-out of 4G services.

“Some companies could find it difficult to service their debt and we have the sector on a negative outlook,” it said.

The banks already have significant asset quality issues that could be made worse by stress in the telco sector.

It, however, said exposure to other troubled sectors is much larger. Lending to iron and steel companies, for example, accounts for 4.7 per cent of total lending. The power sector accounts for 8.7 per cent and the road sector for 2.7 per cent.

The agency said loans to telcos are also generally backed by spectrum assets, which should provide a better chance of recovery than, for example, a steel factory operating below capacity or a power plant that lacks a power purchase agreement.

“That said, the sale of spectrum assets might take longer than banks expect and not fetch full value, given that the top-three telcos now have sufficient spectrum to run their operations for the medium term,” the report said.

 

Sebi Relaxes Norms For Lenders Buying Stake In Distressed Companies

Mumbai: Markets regulator Sebi on Wednesday relaxed norms for stake purchase in distressed listed companies by lenders, exempting them from making open offers for shareholders.

The relaxation would be subject to certain conditions, including shareholders’ approval of the stake acquisition by way of special resolution.

The Sebi decision comes against the backdrop of the government and Reserve Bank of India stepping up efforts to tackle the menace of bad loans, amounting to Rs. 6 lakh crore.

Sebi Relaxes Norms For Lenders Buying Stake In Distressed Companies

At the board meeting here, Sebi decided to ease the norms for restructuring in stressed companies that are listed on exchanges as well as for resolution plans approved under the Insolvency and Bankruptcy Code.

Clearing the proposals, the Securities and Exchange Board of India (Sebi) said they are aimed at facilitating “turnaround of listed companies in distress which will benefit their shareholders and lenders”.

Currently, relaxations from preferential issue requirements and from open offer obligations are available for lenders undertaking restructuring of distressed listed companies under Strategic Debt Restructuring (SDR) scheme.

There have been representations made to Sebi that lenders who have acquired shares and propose to divest them to new investors faced difficulties as the latter have to make an open offers. Such offers further reduce the funds available for investment in the company concerned.

In view of the concerns raised, Sebi has decided to extend the relaxations to the new investors acquiring shares in distressed companies pursuant to such restructuring schemes.

“Such relaxations shall be subject to certain conditions like approval by the shareholders of the companies by special resolution and lock-in of their shareholding for a minimum period of three years,” the regulator said in a release.

Further, the relaxations would be applicable for the lenders under other restructuring schemes undertaken in accordance with the RBI guidelines.

Sebi board has also cleared the proposal to provide exemption from open offer obligations “for acquisitions pursuant to resolution plans approved by NCLT under the Insolvency and Bankruptcy Code, 2016”.

Under the Code, lenders or the companies seeking insolvency proceedings have to first approach the National Company Law Tribunal (NCLT).

 

Infosys Sued In US For ‘Discrimination’ Against Non-South Asian Employees

 

BENGALURU: 

A former head of immigration at IT major Infosys in the US has filed a lawsuit against the company, accusing it of “discrimination” against non-South Asian employees, and demanded a trial by jury.

The law suit filed by Erin Green, before a US district Court in the Eastern District of Texas on June 19, names two senior company officials, Head of Global Immigration Vasudeva Nayak and Executive Vice President and Global Head of Talent and Technology, Binod Hampapur, and makes serious charges against them.

Infosys Sued In US For 'Discrimination' Against Non-South Asian Employees

Green reported to Nayak, who quit the company last year.

Green’s counsel Kilgore & Kilgore, PLLC has said, “Plaintiff was terminated because of Defendant’s obsessional preference for employees of South Asian race and national origin, usually Indian, and as retaliation for reporting Nayak and Hampapur’s discriminatory treatment of himself and others on the basis of race and national origin.”

“His termination was in violation of Defendant’s policy which requires progressive warnings or placement on a performance improvement plan prior to termination,” he claimed.

“Plaintiff received no such warnings, and had no discussions with employee relations regarding any of the conduct related to the stated reason for his termination prior to his termination.. Plaintiff had no disciplinary entries on his official work record during his four-and-a-half-year tenure,” the lawsuit said.

The 53-page lawsuit also pointed out that from October 2011 to June 28, 2016, the plaintiff was employed by the Defendant in Plano, Texas and his experience with Infosys demonstrates the “discriminatory nature of Infosys’s employment practices.”

Responding to a query about the lawsuit, the company said, “Infosys does not comment on ongoing litigation.”

The lawsuit has come at a time when Infosys has announced that it will hire 10,000 Americans in the next two years and open four centres in the US in a bid to woo the Trump administration, which has been critical of outsourcing firms for unfairly taking jobs away from US workers.

 

Sensex Jumps Over 100 Points; Energy, Pharma Stocks Gain

Indian shares opened higher on Thursday tracking Asian shares, which advanced as oil prices climbed off a 10-month low hit overnight on concerns over a supply glut and falling demand. The BSE Sensex jumped over 130 points to 31,417 while the Nifty50 index gained nearly 35 points to 9,669. Buying was visible across the sectors although energy and auto stocks gained the most.

Reliance Industries was the top gainer in Nifty up 1.2 per cent. Including today’s gains, the stock has rallied over 10 per cent in last one month. Tata Motors DVR, Ambuja Cements, Yes Bank, Aurobindo Pharma were the other major gainers in the Nifty rising between 1-1.2 per cent.

Meanwhile, Gail India was the top loser in Nifty, down 1.29 per cent followed by Hindustan Unilever, Lupin, Tata Power, Wipro and ONGC.

Sensex Jumps Over 100 Points; Energy, Pharma Stocks Gain

Buying was also visible in mid and small cap shares. The BSE Mid Cap index gained 0.49 per cent while BSE Small Cap index advanced 0.63 per cent.

Elsewhere, other Asian shares advanced on Thursday. Japan’s Nikkei was up 0.13 per cent, Shanghai Composite added 0.76 per cent while Shanghai Composite advanced 0.76 per cent as of 9.35 am.

Overnight, Dow Jones Industrial Average closed down 0.3 per cent tracking continued selloff in crude oil prices, the S&P 500 was slightly lower and Nasdaq closed up 0.7 per cent, lifted by biotech stocks.

 

Nothing can stop her: Model Melanie Gaydos is breaking all fashion stereotypes

Very few have the courage to challenge societal norms and model Melanie Gaydos is one of them. Born with ectodermal dysplasia, a condition that makes her teeth, nails, pores and bones grow abnormally, Gaydon also has alopecia, and is partially blind too. But all of that did not stop the model from foraying into the world of fashion and making it on her own.

Gaydos, an art graduate based in New York City, has worked with several photographers, including Spanish photog Eugenio Recuenco, and counts singer Miley Cyrus as one of her fans. She has also appeared in a video by Recuenco for metal band Rammstein.

Gaydos’s first tryst with modelling happened during her college days, when she responded to an online advert looking for ‘unique people’ for fashion photographers to shoot. And even though she does get a little hate, she never lets trollers pull her down.

 

Rihanna’s Final Manolo Blahnik Collaboration Comes With A Weed Reference

In case you have been living under a rock for the past decade or so, Rihanna is very, very weed-friendly. So much so that she named her latest collaboration with Manolo Blahnik—wait for it—”So Stoned.” That’s our bad gal.

Surprisingly, or perhaps not that surprising when you consider the other end of the collaboration—the shoes are not emblazoned with pot leaf motifs, but rather, large gemstones. Get it?

With Matt Kemp at a Cleveland Caveliers and  Los Angeles Clippers game in 2010, keeping it casual in jeans and sneakers.

Rihanna announced the latest collection on Instagram today, posting a photo of herself draped in a fur coat paired with a pair of knee-high gladiator sandals from the line, captioning the photo: “JULY 6… the ‘SO STONED’ collection is dropping! My hands down favorite collaboration with @manoloblahnikhqPictured above: ‘Poison Ivy'”

The shoes made their official debut, however, last week, when the singer donned the same pair in the very sartorially-charged video for DJ Khaled’s “Wild Thoughts,” which she is featured on, pairing the shoes with turquoise Alberta Ferretti minidress and bright red lips.

The collection marks Rihanna’s third and final collaboration for the footwear brand. The singer released her first designs for the house back in March 2016 with a collection named “Denim Desserts,” which included the instantly Internet famous thigh-high boots-meet-chaps, which Jennifer Lopez wore in the video for “Ain’t Your Mama.”

“So Stoned” consists of four styles: Poison Ivy, a gladiator stiletto; Bajan Princess, a high-heeled mule; Spice, a mid-heeled mule; and Purple Chalice, a strappy high-heel. Each style is done in clear PVC, decorated with multi-colored Swarovski crystals and finished with a Persplex heel. The collection, which ranges in price from $1,325 to $2,325, will be available in stores and online beginning on July 6th, so unfortunately, you’ll have to find something else to wear to your Fourth of July barbecue.

The 8 pieces of jewellery you should treat yourself to

Meet The Telegraph’s Timeless Style columnist, Anna Harvey: the Ex-Vogue deputy editor, consultant to Princess Diana and author of Timeless Style: dressing well for the rest of your life (£12.89, Double-Barrelled Books).  

Anna Harvey
Anna Harvey

I recently read that when the actress Elisabeth Moss won her first Golden Globe, she bought herself a ring – often mistaken for an engagement ring. “January Jones taught me this: to buy jewellery for yourself,” she explained of her co-star in Mad Men. “That way it’s never like, ‘Oh, a man got me this so I can’t wear it now that we’ve broken up.’” I was intrigued and not a little envious.

Then I saw that the supermodel Adriana Lima had posted a picture on Instagram of herself wearing a diamond ring, with the words, “What’s up with the ring? It’s symbolic, I am committed to myself and my own happiness. I am married with me.”

It isn’t only celebrities. According to new reports, all sorts of women are buying their own fine jewellery. It makes sense; women now have the disposable income to indulge themselves with clothes, accessories, holidays – and jewellery. And they do. How I should adore to be in this position. To be able to buy that diamond solitaire I have so often dreamt of, an armful of bangles for the summer, or even a simple ankle bracelet to wear on holiday by the pool. (I believe the history of this last piece is colourful – in some cultures indicating that you are “available”. Be warned.)

Instead, I have been imagining what I might go out and buy were I a self-made young woman looking to treat myself to the perfect jewellery wardrobe.

jewellery

Clockwise from left: White ceramic and steel J12 watch, £4,200, Chanel; Elsa Perretti bean pendant and necklace, £215, Tiffany; Bella drop earrings, £59, Swarovski

I have settled on eight essential pieces (we have to draw the line somewhere,), that my alternate self couldn’t 
live without.

I’d start with a magnificent ring – a Jessica McCormack solitaire, perhaps, which could be turned into something more bling for special occasions with one of her clever “party jackets” – a jewelled surround that can be slotted around your everyday ring. Then an everyday watch that’s chic but not too pretty – perhaps Chanel’s classic J12. Add to the mix the simple stud, drop or hoop earrings from Swarovski or Kiki McDonough; longer earrings for the evening (SJ Phillips have some wonderful Georgian choices); a classic silver bracelet or Cartier’s Love bracelet; a pendant and chain necklace from Tiffany; a more showy evening necklace – for this I might choose costume jewellery, but Marni, Miu Miu and Vicki Sarge all have lovely pieces, or for a semi-precious option I’d visit John Lloyd Morgan or Pomegranate. And finally? I’d have to have some pearls –perhaps a little something from Coleman Douglas.