India Ratings and Research on Monday downgraded Haldia Petrochemicals
Ltd's long-term issuer rating to AA-minus from AA while resolving the rating watch negative (RWN). The resolution of RWN and rating downgrade follow the likely increase in the net debt on account of the acquisition of Lummus, which is likely to hold a debt of $1.5 billion. Besides, HPL remains a single product-line entity producing polyolefins which exposes it to the volatility and cyclicality of the segment. Read more here.
Zuari Agro shareholders oppose transfer of Goa unit to Paradeep Phosphates
Minority shareholders oppose the Zuari Agro Chemical Ltd's decision to transfer its Goa unit to Paradeep Phosphates. According to them, the proposed transfer of the manufacturing unit will make ZACL merely a holding company, holding shares of many subsidiaries and Associates Company with hardly any business remaining in ZACL. Shareholders have reportedly been totally taken by surprise and anguished by the intention of promoters of the company. Read more here.
Credit cards, Gold ETFs: How India spent and saved during Covid-19 lockdown
The Covid-19 pandemic triggered a two-month nation-wide shutdown towards the end of March 2020 and brought all economic activity to a near standstill. According to a June 29 report by State Bank of India's economic wing, card spending declined significantly during April, with the total value of credit and debit card transactions slipping sharply from Rs 1.51 trillion in January 2020 to around Rs 50,000 cr in April 2020. Meanwhile, ETFs saw a cumulative investment of Rs 1,546 cr in April and May 2020, which is equivalent to 3.7-3.8 tonne of gold. Read more here.
Chinese firms take record 50% of global equity raised in first half of 2020
Firms in China brought in half of the equity capital raised globally this year so far, setting a record that highlights the economy's earlier revival from the Covid-19 pandemic, plus the degree to which soured US relations are turning Chinese firms homeward. China-based companies sold shares worth $32.1 billion in January-June including multi-billion-dollar secondary listings in Hong Kong, equivalent to 49.8% of worldwide offerings, showed data from Refinitiv. Read more here.
States GSDP may contract by up to 14.3% in FY21 on Covid-19: Ind-Ra report
The gross state domestic product (GSDP) of all states is likely to contract up to 14.3 per cent in the current financial year due to the impact of Covid-19-induced lockdown on economic activities. States such as Assam, Goa, Gujarat and Sikkim are likely to witness a double-digit contraction in FY2021, India Ratings and Research said in a report on Monday. However, sectors namely agriculture, industry and services were less impacted. Read more here.
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