RBI eases overseas investment norms for Indian corporates

The RBI had announced the curbs on ODI in the context of prevailing macro-economic situation.

The Reserve Bank today relaxed norms for overseas investment by Indian corporates by raising their borrowing limit. "It has, however, been decided that any financial commitment exceeding USD 1 billion (or its equivalent) in a financial year would require prior approval of the Reserve Bank even when the total financial commitment of the Indian Party is within the eligible limit under the automatic route...," RBI said in a notification.

The financial commitment should be limited within 400 percent compared to earlier level of 100 percent of the net worth as per the last audited balance sheet of the company, it said. "It has been decided to restore the limit of Overseas Direct Investments (ODI) or Financial Commitment (FC) to be undertaken by an Indian Party under the automatic route to the limit prevailing, as per the extant FEMA provisions, prior to August 14, 2013," it said. 

Last year, RBI had reduced the ODI limit to 100 per cent of a company's net worth from 400 per cent for all companies. However, the restriction was not applicable on public sector firms like Oil India and ONGC Videsh. The RBI had announced the curbs on ODI in the context of prevailing macro-economic situation. 

Nickel futures weaken on global cues, sluggish demand.

Nickel prices moved down by 0.62 per cent to Rs 1,180.80 per kg in futures trade today as participants reduced their exposures, tracking a weak trend overseas and sluggish demand from alloy-makers in the spot market. 

At the Multi Commodity Exchange, nickel for delivery in August month declined by Rs 7.40, or 0.62 per cent, to Rs 1,180.80 per kg in a turnover of 42 lots. 


Similarly, the metal for delivery in July traded lower by Rs 8.60, or 0.56 per cent, to Rs 1,175.20 per kg in 1,517 lots. 

Coffee Day plans to raise up to Rs 1500 crore via IPO

Domestic listing will see holding company, Coffee Day Resorts, sell 10-15 per cent for $150 mn. The holding company of Cafe Coffee Day, India's biggest cafe chain, is gearing up to mop up Rs 1,200-1,500 crore through a proposed initial public offering ( IPO) in about nine to 12 months, according to reports. Report said that the domestic listing will see holding company, Coffee Day Resorts, sell 10-15 per cent for $150 mn. Private equity (PE) investors are expected to dilute up to 10% of their stake, stated reports.

GMR Infra gains on raising Rs 1,500 crore via QIP

GMR Infrastructure is currently trading at Rs. 31.55, up by 0.40 points or 1.28% from its previous closing of Rs. 31.15 on the BSE.

GMR Infrastructure has raised Rs 1,500 crore through qualified institutional placement (QIP). The company launched the QIP on July 2, 2014, which saw active investors interest from globally renowned players.

Moreover, the QIP saw high interest and attracted total investments worth Rs 2,300 crore almost double the required sum. GMR had initiated the process to raise Rs 1,200 crore but finally went ahead and closed the issue at Rs 1,500 crore.

The average price was Rs 31.50 per share and blue-chip investors including GIC of Singapore and funds managed by George Soros participated in the QIP. The investors will be getting around 9% through this issue in GMR Infrastructure.

GMR Infrastructure is a Bangalore headquartered global infrastructure major with interests in Airports, Energy, Highways and Urban Infrastructure sectors. It has successfully employed the public-private partnership model to build a portfolio of high quality assets.