Shares of 10 public sector companies forming the Goldman Sachs managed Central Public Sector Enterprises Exchange Traded Fund will be on investors’ radars this week as the new fund offering begins on March 19 for retail investors. The NFO, which raised ₹850 crorethrough anchor investors, ends on March 21. It provides an opportunity for investors to own equity in the country’s top 10 PSUs - ONGC, Gail, Coal India, IndianOil, Oil India, PFC , REC, Container Corp, Bharat Electronics and Engineers India.
SBI: Retiring bad loans but at what cost?
SBI shares rose 2.7 per cent on Tuesday on reports that the bank is planning to sell ₹5,000 crore of its ₹67,799-crore of bad loans to asset reconstruction companies (ARCs). While this is a positive step to ensure efficient recovery of bad loans, ARCs usually discount the value of loans. In the past, the main reluctance for banks to tread this path has been the pricing that ARCs offer. Hence, it needs to be seen how much loans are sold off and at what price. ARCs normally pay 5-10 per cent in cash and issue security receipts for the balance.
Tata Power: Rights issue to light up activity
Shares of Tata Power will remain in focus this week, as the stock will turn ex-rights from Wednesday. The company has fixed March 20 (Thursday) as record date to identify eligible shareholders for the rights issue. The country’s largest private power producer will allot seven equity shares for every 50 shares held by an investor in the company under its ₹2,000-crore rights issue. The money will be utilised to fund the power producer’s expansion plans. Tata Power has an operational capacity of more than 8,560 MW.