JM Financial Services to use AIFs to grow distressed asset business

Services group is tweaking its strategy to grow distressed asset business. It will increasingly use alternate investment fund (AIF) to expand this business while putting less emphasis on asset reconstruction company (ARC) route.

The company does not want to have high leverage in ARC business due to delays it faced from the National Company Law Tribunal (NCLT) as well as other resolutions. The interest costs hurt a lot in terms of profitability. And from next year, it will incrementally grow this business through AIFs, and not grow it necessarily through ARC balance sheet, according to an analysts call transcript for Q2FY21.

AIFs are Sebi-registered entities to make investment on behalf of sophisticated investors. They blend the operational ease of a mutual fund and the flexibility of portfolio management schemes (PMS) to give optimum performance for investment objective.

Distress asset business has been impacted due to the restricted activity at NCLT after Covid-19 hit the economy. The pace of resolution of existing cases was also hit by lockdowns.

ARC, a subsidiary, booked an income of Rs 183 crore in six months ended September 2020 (H1FY21), down

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M-cap: Six of top 10 valued domestic companies add Rs 91,629 crore

Six of the top-10 most valued domestic firms added Rs 91,629.38 crore cumulatively in last week, with ICICI Bank and Tata Consultancy Services clocking maximum gains.

During the last week, which was holiday-truncated, the Sensex rallied 929.83 points or 2.10 per cent.

The list of gainers had Reliance Industries Ltd (RIL), Tata Consultancy Services (TCS), Hindustan Unilever Ltd (HUL), Infosys, ICICI Bank and Bharti Airtel. On the other hand, HDFC Bank, HDFC, Kotak Mahindra Bank and Bajaj Finance saw decline in their valuation.

Among the gainers, ICICI Bank saw maximum rise with an addition of Rs 20,272.71 crore to take its valuation Rs 3,46,497.75 crore. TCS m-cap zoomed by Rs 17,579.92 crore to Rs 10,22,900.07 crore, followed by Bharti Airtel which witnessed Rs 16,694.01 crore jump in valuation at Rs 2,69,449.98 crore.

The market capitalisation of Infosys rose by Rs 14,524.89 crore to reach Rs 4,83,304.06 crore and that of HUL gained Rs 11,970.99 crore to Rs 5,14,118.15 crore. The valuation of RIL rose by Rs 10,586.86 crore to Rs 12,34,003.83 crore.

In contrast, HDFC Bank’s valuation declined by Rs 30,589.19 crore to Rs 7,62,747.36 crore and the market

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Romanians Shun Vote As Liberals, Socialists Emerge ‘Neck-and-neck’

Romania’s governing liberal PNL party and the left-wing opposition Social Democrats (PSD) have emerged neck-and-neck from the country’s parliamentary election, according to an exit poll released by Romanian media Sunday after polls closed in a parliamentary election which saw a historically low turnout.

The exit poll put the PSD on 30.5 percent and the PNL on 29 percent.

If borne out by official results expected later in the evening, that would still put the PNL on course to form a government in alliance with the smaller, recently formed USR-Plus party, which is on 16 percent in the exit poll.

Prime Minister Ludovic Orban has been running a minority government

More than 18 million Romanians were eligible to take part in the vote, carried out with the now familiar virus safety measures of social distancing, mask-wearing and hand disinfectant.

But broad disillusion with Romania’s political class along with a harsh second wave of the coronavirus pandemic depressed turnout for the election, which stood at around 33 percent, a record low for a parliamentary election.

PNL Prime Minster Ludovic Orban noted Sunday evening that the exit poll did not account for votes cast by Romanians abroad — who

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