Speculation surrounding the future of the Swiss banking giant, <keyword id="48085" type="General" weightage="20" keywordseo="credit-suisse" source="Orion">Credit Suisse</keyword> has been going on for several months in the markets, in business and political circles, as well as on social networks, The Street reported. The second Swiss bank and one of the largest banks in the world is in deep trouble and is currently fighting for its survival. A negative outcome is likely to cause a shock similar to that caused by the bankruptcy of the US bank Lehman Brothers in September 2008. This event triggered one of the most serious financial and economic crises since the Great Depression. A year ago, Credit Suisse had a market capitalisation of $22.3 billion. Today, its market value is only $10.4 billion. Credit Suisse shares fell 56.2 per cent in one year to $3.98, The Street reported. It is a real nightmare for the bank which had succeeded in weathering the financial crisis without losing too many feathers. At the time of this crisis, Credit Suisse shares had certainly fallen but they were down only to the level of $45, which seemed to be a feat for a bank at the time. In recent days, employee morale has been gloomy. The bank has not yet renewed the contracts of certain contractors. Departures are no longer really replaced, TheStreet has learned. The talent is leaving. The bank has just lost one of its senior dealmakers, Jens Welter, who left to join Citigroup after 27 years with the establishment. Welter was global co-head of banking when he left. Another departure is head of global credit products Daniel McCarthy. "I am conscious that there is lots of uncertainty and speculation both outside and within the company," Chief Executive Officer Ulrich Korner told employees in a memo on September 30. "While you will appreciate that I am unable to share details of our transformation plans before October 27, I also want to make sure that you hear from me directly during this challenging period. I will therefore be sending a regular update to you all until then." In this memo seen by TheStreet, the CEO explained that "this is a critical moment" for the bank and warned employees that the rumors and speculations will continue and will become even louder. He assured them that the stock price does not reflect the financial health of the firm. "I trust that you are not confusing our day-to-day stock price performance with the strong capital base and liquidity position of the bank," he said. "We are in the process of reshaping Credit Suisse for a long-term, sustainable future - with significant potential for value creation," Korner added. "I am confident we have what it takes to succeed." The mistakes of the investment bank have plunged Credit Suisse into numerous successive scandals in recent years, reviving speculation about its bankruptcy or its merger with its rival UBS, The Street reported. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/corporates/news/infosys-to-lead-it-sectors-q2-show-with-4-revenue-growth-says-jefferies/articleshow/94606976.cms">Infosys to lead IT sector’s Q2 show with 4% revenue growth, says Jefferies</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/corporates/news/suzlon-energys-founder-chairman-tulsi-tanti-passes-away-due-to-cardiac-arrest/articleshow/94596261.cms">Suzlon Energy’s founder chairman Tulsi Tanti passes away due to cardiac arrest</a>

Swiss banking giant Credit Suisse fighting for its survival says report

Sensex, Nifty50 end a tad higher amidst volatility ahead of Budget 2023

The country is likely to add nearly 80 airports in the next four to five years, the aviation regulator has said, adding that aerodromes meanwhile need to fulfil certain requirements to start the operation of flights. In the last eight years, the number of airports in the country has increased from 74 to 141, and as per the Ministry of <keyword id="6368649" type="General" weightage="80" keywordseo="civil-aviation" source="Orion">Civil Aviation</keyword>, this will grow up to 220 in the next four to five years. The Civil Aviation Ministry has given 'in-principle' approval for setting up of 21 greenfield airports across the country, including Mopa in Goa; Navi Mumbai, Shirdi and Sindhudurg in Maharashtra; Kalaburagi, Vijayapura, Hassan and Shivamogga in Karnataka; Dabra in Madhya Pradesh; Kushinagar and Noida (Jewar) in Uttar Pradesh; Dholera and Hirasar (Rajkot) in Gujarat; Karaikal in Puducherry; Dagadarthi (Nellore), Bhogapuram and Orvakal (Kurnool) in Andhra Pradesh; Durgapur in West Bengal; Pakyong in Sikkim; Kannur in Kerala; and Hollongi (Itanagar) in Arunachal Pradesh. So far, eight greenfield airports -- namely Durgapur, Shirdi, Sindhudurg, Pakyong, Kannur, Kalaburagi, Orvakal and Kushinagar -- have been operationalised. As per the Aviation Ministry, in the financial year 2022-23, the Centre has granted site clearance to the Himachal Pradesh government for development of a new greenfield airport at Nagchala, Mandi. Besides, 35 airports, helipads and water aerodromes are targeted for development during FY 2022-23 under RCS-UDAN. An official said that for safety purposes, an aerodrome needs to meet the specifications regarding its management systems, operational procedures, physical characteristics, assessment and treatment of obstacles, visual aids, rescue and fire-fighting services, as per the <keyword id="6354787" type="General" weightage="80" keywordseo="dgca" source="Orion">DGCA</keyword> CAR (Civil Aviation Requirement). While these guidelines are for the licensing of the aerodrome from the technical point of view, the licence for operation of airports is granted by the Central government as per the Civil Aviation policy. As far as site clearance for a greenfield airport for public use is concerned, prior to commencing the construction, the owner or developer of the greenfield aerodrome will have to file applications to the steering committee at the Ministry of Civil Aviation. The request for site approval and issuance of in-principle approval in respect of these aerodromes will be dealt by the concerned department in the Ministry as per the greenfield airport policy. Licence for the aerodromes is given in two categories, including for private use and for public use and usage of private use aerodromes excludes the operation of scheduled flights. For the public use category, the Ministry of Civil Aviation will grant site clearance and 'in-principle' approval for all proposals as per the greenfield airport policy. On the other hand, for the private use category, site clearance as well as 'in-principle' approval will be granted by the regulator as per technical assessment of the site and based on usage of the airport. The 'in-principle' approval granted by DGCA indicates that the proposed airport is essentially meant for non-commercial operations by the licensee and by individuals specifically authorised by the licensee only, said the DGCA, as per the new guidelines. Explaining the procedure for converting the usage of airports, the guidelines said that the government approvals as per the prevailing policy will be required for this. SEE ALSO: <a href="https://www.businessinsider.in/business/corporates/news/suzlon-energys-founder-chairman-tulsi-tanti-passes-away-due-to-cardiac-arrest/articleshow/94596261.cms">Suzlon Energy’s founder chairman Tulsi Tanti passes away due to cardiac arrest</a> <a href="https://www.businessinsider.in/business/telecom/news/airtel-5g-services-launched-in-eight-cities-the-entire-country-to-be-covered-by-2024/articleshow/94579199.cms">Airtel 5G services launched in eight cities, the entire country to be covered by 2024</a> <a href="https://www.businessinsider.in/policy/economy/news/the-fed-has-the-world-in-its-hands-and-its-aggressive-moves-are-creating-global-economic-chaos-that-could-come-back-and-hurt-the-us/articleshow/94587248.cms">The Fed has the world in its hands — and its aggressive moves are creating global economic chaos that could come back and hurt the US</a>

India to add 80 airports in next 4-5 years; new rules for aerodromes

<ul><li>The possible resurgence of Covid-19 in the country spooked investors on Wednesday, with the benchmark indices <keyword id="6484188" type="General" weightage="20" keywordseo="sensex" source="Orion">Sensex</keyword> and Nifty50 falling 1%.</li><li>While the 30-stock Sensex lost 635 points to close at 61,067, the 50-stock Nifty50 closed 186 points lower at 18,199.</li><li>Pharma stocks dominated the list of top gainers on the Nifty50 index, with the top five stocks all being from this sector.</li></ul>Indian benchmark indices closed nearly 1% lower on Wednesday as rising Covid cases in China brought back worries of an economic slowdown. Most of the sectoral indices closed the day in the red, with metals, banks and realty stocks amongst the top losers. While the 30-stock Sensex lost 635 points to close at 61,067, the 50-stock Nifty50 closed 186 points lower at 18,199. All sectoral indices were in the red except information technology and pharmaceuticals. The Nifty IT index closed 0.53% higher while the Nifty Pharma index ended 2.39% higher. The top five gainers on the Nifty50 index were all pharma stocks, as mounting concerns of Covid-19 resurgence pushed stocks of hospitals, pathology labs and select companies which make Covid-related drugs. This includes Divi’s Labs (4.88%), Cipla (3.51%), Apollo Hospitals (3.34%), Sun Pharmaceuticals (2.13%), and Dr. Reddy’s Laboratories (0.99%). “Investors are also worried that mounting Covid cases in China may lead to further deterioration in global economic health prompting traders to cut their equity market exposure,” said Shrikant Chouhan, head of equity research (retail), Kotak Securities. India VIX, an index that measures volatility in the markets, rose sharply by 12.94% to 15.56, indicating a rise in fear among investors. The Indian rupee closed the day marginally lower at 82.81 against the US dollar, with a decline of 5 paise. Meanwhile, minutes of the Reserve Bank of India’s three-day monetary policy committee meeting are expected to be released later today. Foreign institutional investors (FII) were net sellers on Wednesday, pulling out ₹1,119 crore while domestic institutional investors (DII) were net buyers, pumping ₹1,757 crore. Government steps up vigilance against Covid-19 Earlier in the day, Union Health Minister Mansukh Mandaviya chaired a meeting with experts and health officials to discuss the Covid-19 situation in the country. In an advisory later, the central government advised people to mask up once again in crowded areas, while clarifying that there are no changes in international air travel guidelines yet. “ln view of the sudden spurt of cases being witnessed in Japan, United States of America, Republic of Korea, Brazil and China, it is essential to gear up the whole genome sequencing of positive case samples to track the variants,” stated health secretary Rajesh Bhushan in a letter to all states. <keyword id="35189" type="General" weightage="20" keywordseo="asian-markets" source="Orion">Asian markets</keyword> give mixed cues Despite the rising concerns of Covid-19 in China, Asian markets were mixed on Wednesday. While Nikkei 225 lost the most with a 0.68% fall, it was followed by the Shanghai SE Composite Index, which fell 0.17%. However, the Taiwan SE Weighted Index gained 0.45%, while Hang Seng gained 0.34%. In the US, the Dow Jones closed 0.28% higher on Tuesday and the tech-heavy Nasdaq Composite Index closed almost flat while the S&amp;P 500 ended 0.10% higher. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Top gainers </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">% change </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Top losers </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">% change </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Thyrocare Technologies </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">15.16% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Suzlon Energy </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-11.30% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Vijaya Diagnostic </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">12.41% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">New India Assurance Company </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-10.61% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Glenmark Pharmaceuticals </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">7.61% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">General Insurance Corp of India </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-10.57% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Metropolis Healthcare </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">7.01% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">IRFC </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-9.40% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Dr Lal Pathlabs </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.26% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Bank of Maharashtra </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-8.97% </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table>Note: Nifty500 index (With inputs from PTI) SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/insurance-stocks-climb-on-governments-common-licence-proposal-for-all-insurance-businesses/articleshow/96398989.cms">Insurance stocks climb on government’s common licence proposal for all insurance businesses</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/telecom/news/reliance-jio-continues-to-lead-the-telecom-industry-as-its-active-subscribers-increase-by-4-9-million/articleshow/96395806.cms">Reliance Jio continues to lead the telecom industry as its active subscribers increase by 4.9 million</a>

Sensex, Nifty50 fall 1% as Covid-19 scare grips markets – Healthcare stocks surge while metals, banks and realty stocks tumble

<ul><li><keyword id="8087626" type="General" weightage="100" keywordseo="prosus" source="Orion">Prosus</keyword>, the company behind PayU has terminated a $4.7 billion deal to acquire <keyword id="225041" type="General" weightage="80" keywordseo="billdesk" source="Orion">BillDesk</keyword>.</li><li>The company has said that certain conditions precedent were not met by the deadline at the end of September.</li><li>Prosus had announced the deal in August last year.</li></ul> Prosus NV, which owns PayU, has terminated a $4.7 billion (about Rs 38,400 crore) deal to acquire Indian payments firm BillDesk after conditions on the deal weren't met. In a statement, Prosus said certain conditions precedent weren't met by the deadline at the end of September. Approval of the Competition Commission of India (CCI), which was one of the conditions precedent, was received on September 5 but Prosus did not specify which other conditions were not met. A condition precedent is a stipulation that defines certain conditions that must either occur or be met by either party to ensure progress or execution of a contract. The amalgamation of BillDesk with PayU of Prosus would have created a digital payments giant with an annual total payment volume (TPV) of $147 billion. Its closest rivals in India such as Razorpay and CCAvenue, which is owned by Infibeam, are estimated to have an annual TPV of over $50 billion and $18-20 billion, respectively. This would have been the largest acquisition of Prosus, a Dutch e-commerce company. Prosus had on August 31 last year announced the acquisition of BillDesk in an all-cash deal to expand its footprint in India's booming fintech sector under the umbrella of its payment gateway PayU. There is no break-free associated with the deal. Prosus, majority owned by Naspers, serves more than 4,50,000 merchants with over 100 payment methods. Prosus has been a long term investor and operator in India investing close to $6 billion in technology companies like Swiggy, and Pharmeasy since 2005, it said. BillDesk, founded by three consultants from Arthur Andersen LLP - MN Srinivasu, Ajay Kaushal and Karthik Ganapathy - in 2000, benefited from a surge in growth in digital payments as smartphones adoption grew and Internet access became ubiquitous. The founders would have collected $500 million each from the deal. "Closing of the transaction was subject to the fulfilment of various conditions precedent, including approval of the CCI," Prosus said in a statement. While CCI approval was secured on September 5, 2022, "certain conditions precedent were not fulfilled by September 30, 2022 long stop date and the agreement has terminated automatically in accordance with its terms and, accordingly, the proposed transaction will not be implemented," it said. It remains committed to the Indian market and growing its existing business within the region, Prosus statement added. Launched when the term fintech didn't even exist, BillDesk - which counts private equity firm General Atlantic as its single-largest shareholder with a holding of about 14.2 per cent - is said to have the largest roster of business clients among payment gateways in India. It provides solutions ranging from settlements, collections, reconciliations, and auto settlements. It also partners with companies in categories such as billing, utility payments, direct-to-consumer procurement, government payments, financial services, and telecom. TA Associates held a 13.1 per cent stake while Visa had 12.6 per cent in the firm. The three founders had close to 30 per cent shareholding. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/heres-all-you-need-to-know-about-suzlon-energys-1200-crore-rights-issue-after-founder-tulsi-tantis-death/articleshow/94617068.cms">Here’s all you need to know about Suzlon Energy’s ₹1,200 crore rights issue after founder Tulsi Tanti’s death</a> <a href="https://www.businessinsider.in/business/corporates/news/infosys-to-lead-it-sectors-q2-show-with-4-revenue-growth-says-jefferies/articleshow/94606976.cms">Infosys to lead IT sector’s Q2 show with 4% revenue growth, says Jefferies</a> <a href="https://www.businessinsider.in/business/news/mumbai-tops-real-estate-sales-and-new-launches-in-september-quarter/articleshow/94613731.cms">Mumbai tops real estate sales and new launches in September quarter</a>

Prosus terminates $4.7 bn deal to acquire BillDesk

<keyword id="10627165" type="General" weightage="20" keywordseo="Appointment-on-compassionate-ground" source="Orion">Appointment on compassionate ground</keyword> is a concession not a right and the object of granting such employment is to enable the affected family to tide over a sudden crisis, the <keyword id="6354977" type="General" weightage="20" keywordseo="supreme-court" source="Orion">Supreme Court</keyword> has said. The apex court last week set aside the judgement of a division bench of the Kerala High Court, which confirmed the verdict of a single judge directing the Fertilisers and Chemicals Travancore Ltd and others to consider the case of a woman for appointment on compassionate ground. A bench of <keyword id="12024223" type="General" weightage="20" keywordseo="Justices-M-R-Shah" source="Orion">Justices M R Shah</keyword> and <keyword id="333383" type="General" weightage="20" keywordseo="Krishna-Murari" source="Orion">Krishna Murari</keyword> noted that the father of the woman was employed with Fertilisers and Chemicals Travancore Ltd and died while on duty in April 1995. At the time of his death, it noted, his wife was serving and therefore not eligible for appointment on compassionate ground. "After a period of 24 years from the death of the deceased employee, the respondent shall not be entitled to the appointment on compassionate ground," the bench said. According to the law laid down by the apex court on appointment on compassionate ground, equal opportunity for all government vacancies should be provided to all aspirants as mandated under Articles 14 and 16 of the Constitution. Article 14 of the Constitution deals with equality before law and Article 16 with equality of opportunity in matters of public employment. "However, appointment on compassionate ground offered to a dependent of a deceased employee is an exception to the said norms. The compassionate ground is a concession and not a right," the bench said in its judgement delivered on September 30. The apex court noted that when the employee had died in 1995, his daughter was a minor. On attaining the age of majority, she made an application for appointment on compassionate ground, the court said. It also noted that after a period of around 14 years after his death, his daughter had submitted an application for appointment on compassionate ground. Referring to previous judgements of the top court, the bench said as per the law laid down, compassionate appointment is an exception to the general rule of appointment in the public services and is in favour of dependants of a person dying in harness and leaving his family in penury and without any means of livelihood. In such cases, out of pure humanitarian consideration, a provision is made in the rules to provide gainful employment to one of the dependants of the deceased who may be eligible for such employment, the court said. "The whole object of granting compassionate employment is, thus, to enable the family to tide over the sudden crisis. The object is not to give such family a post much less a post held by the deceased," the bench said. Allowing the appeal filed by Fertilizers and Chemicals Travancore Ltd and others against the March this year verdict of the high court, the court said that if such an appointment is made now it shall be against the object and purpose for which the appointment on compassionate ground is provided. Setting aside the high court judgement, it said both the single judge as well as the division bench had committed an error in directing the appellants to reconsider her case for appointment on compassionate ground. The bench noted that her application for compassionate appointment was rejected in February 2018 on the grounds that her name was not in the list of dependants submitted by the deceased employee and that the policy was to give employment to widow or son or unmarried daughter of the employee. It also noted that in December 2019, the appellants had again rejected her application for appointment on compassionate ground on the grounds that 24 years had lapsed since the death of the employee. It also did not meet the primary test of scheme that the deceased employee should be the "sole bread winner of his family" since his wife was gainfully employed with the Kerala State Health Services Department at the time of his death, the bench said. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/corporates/news/infosys-to-lead-it-sectors-q2-show-with-4-revenue-growth-says-jefferies/articleshow/94606976.cms">Infosys to lead IT sector’s Q2 show with 4% revenue growth, says Jefferies</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/corporates/news/suzlon-energys-founder-chairman-tulsi-tanti-passes-away-due-to-cardiac-arrest/articleshow/94596261.cms">Suzlon Energy’s founder chairman Tulsi Tanti passes away due to cardiac arrest</a>

Appointment on compassionate ground concession not a right: SC

<ul><li>Indians are taking more personal and <keyword id="1897540" type="General" weightage="20" keywordseo="consumer-durable-loans" source="Orion">consumer durable loans</keyword>, boosting the overall growth of retail credit in the country.</li><li>Personal and consumer durable loans almost doubled between FY19 and FY22, despite a lull for two years due to Covid-19.</li><li>Tier 2 and lower cities and districts have joined the party, with home loans seeing a surge in these areas due to WFH.</li></ul>Indians are taking more <keyword id="35520" type="General" weightage="100" keywordseo="personal-loans" source="Orion">personal loans</keyword> and buying consumer products on credit than ever before, according to a new report by credit bureau <keyword id="2509365" type="General" weightage="80" keywordseo="crif-high-mark" source="Orion">CRIF High Mark</keyword>. Personal loans, consumer durable loans and business loans carry relatively higher risk for lenders, when compared to home and auto loans. Despite this, personal and consumer durable loans grew at a high CAGR of 25% between FY19 to FY22 – almost doubling in this period, according to a report by Kotak Institutional Equities. Overall, the total lending market in India stood at ₹174.3 lakh crore in FY22, with the retail segment accounting for 48.9% of it. While the overall lending market grew 11.1% in FY22, it has capped off the sluggish growth in FY20 and FY21 – two years highly impacted by Covid-19 and the lockdowns. “FY22 witnessed tremendous growth in new loan originations across retail, microfinance and commercial loans. This resurgence in the credit landscape signals economic recovery and is extremely encouraging,” said Sanjeet Dawar, Managing Director, <keyword id="2302542" type="General" weightage="20" keywordseo="CRIF" source="Orion">CRIF</keyword> High Mark. <cmsannotation type="cmsannotation" annotationid="Economic recovery sounds good, so why are personal loans surging?" comment="subhead" text="Economic recovery sounds good, so why are personal loans surging?">Economic recovery sounds good, so why are personal loans surging?</cmsannotation> An economic recovery sounds like a positive development, but the surge in personal and consumer durable loans might also be hinting at another problem. A surge in these two loan segments suggests people are conserving cash, so they are taking loans and buying products on EMIs to ensure they have enough liquidity. On a positive note however this also suggests two other things – there is a revival in consumer demand, and that people are optimistic about their cash flows, giving them the confidence that they can repay loans on time. “Early warning indicators are at a comfortable level today across all loan segments. Delinquency levels in high-risk segments like consumer durables, personal loans and credit cards are also at a comfortable level today, indicating no reason to be concerned today,” the Kotak report added. This means that both lenders and borrowers are placed securely, and overdue loans are within a comfortable range. <cmsannotation type="cmsannotation" annotationid="Revenge shopping is adding to the surge – and Tier 2+ cities are joining the party" comment="subhead" text="Revenge shopping is adding to the surge – and Tier 2+ cities are joining the party">Revenge shopping is adding to the surge – and Tier 2+ cities are joining the party</cmsannotation> Another factor at play is revenge shopping – lockdowns and Covid-19 restrictions resulted in muted festivities for two years, but everything has opened up in 2022.<a href="https://www.businessinsider.in/business/ecommerce/news/online-festival-sales-likely-to-be-28-higher-than-pre-covid-levels-at-11-8-billion-report/articleshow/94076810.cms"> Experts believe online festival sales could be 28% higher</a> than pre-Covid levels, which suggests that people are itching to shop. Joining the party are people from Tier 2, 3 and 4 cities. “We are forecasting 4x growth in the number of online shoppers from 2018. This growth has been driven by accelerated digital adoption and increasing penetration in Tier 2+ cities,” said Sanjay Kothari, associate partner, Redseer Strategy Consultants. Better yet, this surge is not limited to personal or consumer durable loans – home loans, which have much higher ticket sizes and are relatively less risky than personal loans, have also seen an increase in T3 and T4 districts. According to a<a href="https://www.businessinsider.in/finance/news/home-loans-growing-at-a-faster-rate-in-tier-3-and-4-districts-thanks-to-wfh-sbi-report/articleshow/94393267.cms"> report by SBI</a>, T3 and T4 districts account for 36% of fresh disbursals in FY22, up from 32% in FY19 – thanks to a boom in Work from Home, freelance jobs, and a renewed focus on work-life balance. SEE ALSO: <a href="https://www.businessinsider.in/finance/banks/news/credit-suisse-is-in-trouble-but-this-is-not-2008-investors-remain-wary-of-the-all-is-well-soundbites/articleshow/94641570.cms">Credit Suisse is in trouble, but this is not 2008 – investors remain wary of the ‘all is well’ soundbites</a> <a href="https://www.businessinsider.in/business/auto/news/auto-sales-remain-buoyant-in-september-with-reports-of-a-good-festive-season-ahead/articleshow/94622721.cms">Auto sales remain buoyant in September with reports of a good festive season ahead</a> <a href="https://www.businessinsider.in/stock-market/news/heres-all-you-need-to-know-about-suzlon-energys-1200-crore-rights-issue-after-founder-tulsi-tantis-death/articleshow/94617068.cms">Here’s all you need to know about Suzlon Energy’s ₹1,200 crore rights issue after founder Tulsi Tanti’s death</a>

Indians are taking more personal loans, buying consumer goods on credit, says report

Auto sales remain buoyant in September with reports of a good festive season ahead

<ul><li>The price band for the initial public offering of the Hyderabad-based consumer durables retail chain is ₹56-₹59/share.</li><li>The company plans to raise ₹500 crore through fresh issue of shares.</li><li>The company’s net profit in FY22 grew 78% from the previous financial year while its EBITDA margin rose marginally to 6.7%, from 6.4% in FY21.</li></ul>The initial public offering (IPO) of Hyderabad-based Electronics Mart India, a consumer durables retail chain, is set to open on October 4 and close October 7. It plans to raise ₹500 crore through fresh issue of shares through the IPO, the price band for which is set at ₹56 to ₹59 a share. Money raised through the IPO will be utilised for capital expenditure plans like opening of new stores and warehouses, working capital, debt payment and for general corporate purposes. The shares of the company are currently commanding a grey market premium, or GMP, of ₹30 per share. GMP is the premium at which IPO shares are traded in an unofficial market before they are listed on the stock exchanges Analysts at Angel One broking firm have recommended subscribing to the IPO because of factors including better revenue growth in two years. “EMIL has better revenue growth (CAGR of 17%) over 2 years, better return on equity and expansion plan on the cards. Considering all the positive factors, we believe this valuation is at reasonable levels. Thus, we recommend a SUBSCRIBE rating on the issue,” Angel One said in a report. The company’s net profit in FY22 grew 78% from the previous financial year while its EBITDA margin rose marginally to 6.7%. Covid restrictions hurt its EBITDA margin in FY21, which slipped to 6.4%, from 7.2% a year earlier. “Our operations at all of our stores were impacted during the lockdown period due to the Covid-19 restrictive guidelines issued by the respective state governments,” the company said in its regulatory filing. Electronics Mart India offers a range of products including air conditioners, televisions, washing machines, refrigerators, mobiles, small appliances and IT products. The company offers product categories from more than 70 consumer durable and electronic brands. It operates across three channels – retail, wholesale and e-commerce. In the filing, Electronics Mart India said a risk factor attached to its business was that the company may not return to the pre-Covid growth levels due to a possible change in consumer trends post the Covid lockdowns. People may choose to opt for only essential items and do away with discretionary products like the ones they offered, the company said. “In addition, since most of our product offerings being discretionary in nature to an extent, we may not achieve pre-Covid-19 level of footfalls in our stores and consequently, the pre-Covid-19 level of sales. The consumers may not choose to shop discretionary products as compared to essentials, immediately after lifting of lockdown owing to inter alia, the economic slowdown and job cuts leading to less disposable income for discretionary spends,” said the company in its regulatory filing. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Fiscal year </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Revenue </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Net Profit </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">EBITDA margin </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY22 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹4,353 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹103 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.71% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY21 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹3,207 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹58 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.37% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY20 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹3,179 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹81 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">7.18% </td></tr></tbody></table>It has 112 stores across 36 cities, of which 100 stores are multi-brand outlets (MBOs) and 12 stores are exclusive brand outlets. It operates MBOs under the name Bajaj Electronics, Electronics Mart and Kitchen Stories, which caters to the kitchen-specific demands of customers, and Audio &amp; Beyond, which focuses on home audio and home automation solutions. Currently, Electronics Mart India has a leadership position in South India and aims to deepen its store network in its existing clusters and increase its market share in Telangana and Andhra Pradesh. It also intends to build its store network in the NCR by opening 26 MBOS with the proceeds of the IPO. Here are some of the important details of the IPO: <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Issue details </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;"> </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Price band </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">₹56-₹59 </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">IPO open date </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">October 4 </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">IPO close date </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">October 7 </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Allotment date </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">October 12 </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Initiation of refunds </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">October 13 </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Credit of shares to demat account </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">October 14 </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">IPO listing date </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">October 17 </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Minimum lot </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">254 </td></tr></tbody></table> SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/sensex-nifty-fall-over-1-on-weak-global-trends/articleshow/94619815.cms">Sensex, Nifty fall over 1% on weak global trends</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/heres-all-you-need-to-know-about-suzlon-energys-1200-crore-rights-issue-after-founder-tulsi-tantis-death/articleshow/94617068.cms">Here’s all you need to know about Suzlon Energy’s ₹1,200 crore rights issue after founder Tulsi Tanti’s death</a>

Electronics Mart India IPO set to open on Oct 4; commands grey market premium of ₹30/share

New Delhi, Nov 20 () Wind-turbine maker Suzlon Energy on Wednesday said the company is working on a resolution plan and lenders have time till January next year to work on a sustainable resolution plan before taking any extreme steps.
 "The company is continuously working on a resolution plan with the lenders and has also submitted a restructuring plan, which envisages segregating total debt into sustainable debt and unsustainable debt," Suzlon Energy said in a filing to BSE in response to a clarification sought by the bourse on a news item.
 The filing further added that "the lenders have already signed inter-creditor agreement and have time till January 2020 to work on a sustainable resolution plan before taking any extreme steps".
 The proposed restructuring is under consideration by the lenders, it added.
 The lenders have appointed process advisors, rating agencies and other professionals for conducting techno economic viability study and ratings.
 The company is also in discussions with the foreign currency convertible bond (FCCB) holders for settlement of the FCCB borrowing, the filing said.
 Suzlon Energy had reported widening of its consolidated net loss to Rs 777.52 crore in the quarter ended September 30, 2019.
 The company had reported a net loss of Rs 625.76 crore in the corresponding quarter last fiscal, Suzlon Energy had said.
 "The Group has continued to incur losses during for the current period, primarily due to lower volumes and finance costs and the negative net worth of the Group is Rs 9,606 crores as at September 30, 2019," the company had said.
 The shares of the company were trading at Rs 2.41, up 0.84 per cent on BSE. SID DRR

Company continuously working on a resolution plan: Suzlon

<ul><li>In last year’s budget Finance Minister Nirmala Sitharaman had announced ₹5.5 lakh crore ($74 billion) as capital investments.</li><li>As of November 2021, less than half of that has been spent</li><li>However, if it were to step up spending in the last three months to cover some of the slack, it could mean large orders for private companies like Larson &amp; Toubro, Bharat Electronics, ABB and Siemens.</li><li>Check out our <a href="https://www.businessinsider.in/bi-newsletter">weekly explainers</a> on the hottest topics and <a href="https://www.businessinsider.in/newsletters_signup.cms">sign up</a> if you like them.</li></ul>A big part of the market rally that unfolded post the budget speech last year was the government’s commitment to spend big bucks on infrastructure. However, at the end of November 2021, less than half of the budgeted amount was spent. As a report from HDFC Securities pointed out, the difference between the budgeted amount and the actual spending this year has been the highest in the last 4 years. The second wave of the pandemic, and the third one that’s underway right now, may have set back some of the spendings. <div type="image" title="budget capex" height="900" width="1200" msid="88852484" hostid="261"></div>Finance Minister Nirmala Sitharaman had said that the government would make capital investments worth ₹5.5 lakh crore by March 2022 on roads, metro rail network, renewable energy, and in building other such infrastructure. Such spending results in orders for construction companies like Larson &amp; Toubro, Dilip Buildcon, KNR Construction and IRB Infrastructure Developers, as well as equipment providers like Bharat Electronics, ABB and Honeywell. And, therefore, in better economic growth. These are the shortfalls compared to the budget promise across different sectors: <div type="image" title="sector capex" height="900" width="1200" msid="88852502" hostid="261"></div>A recent report by Crisil said that the central <a href="https://economictimes.indiatimes.com/news/economy/indicators/public-capex-turns-the-corner-central-spending-seen-jumping-12-over-pre-pandemic-level-report/articleshow/88048366.cms?from=mdr">government expenditure on capital investments was up 31% compared to the last financial year</a>, which was also the first year of the pandemic. The same number, when compared to 2019, is higher by 13%. In September last year, the Finance Minister <a href="https://indianexpress.com/article/business/spends-lagging-finmin-asks-ministries-to-step-up-capex-7538316/">told ministries to increase the pace of spending</a> to meet the targets. However, October and November continued to be lean months, according to a report by Elara Securities. If the government decides to cover some of the slack in the last three months, it could result in some big orders flowing in. That could explain the recent rally in capital goods stocks. “The lag in the spending for capital goods and infrastructure in FY22 was because of COVID-19 and related spending. This time the spending for these sectors started in October 2021. Even historically, the spending is high in the third and fourth quarter only as giving out tenders and finally giving the order to specific companies takes a lot of time,” said Kranthi Bathini, director of equity strategy at WealthMills Securities, told Business Insider. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Capital good companies </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">% change in last five days </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Greaves Cotton </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">37% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Suzlon Energy </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">23% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">India Cements </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">19% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Alok Industries </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">18% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Varroc Engineering </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">16% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Adani Green </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">15% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Prism Johnson </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">16% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">RHI Magnesita India </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">14% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Elgi Equipments </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">15% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Trident </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">13% </td></tr></tbody></table>The market also hopes that the emphasis on capital investments will continue in the upcoming budget too. “Budget 2022 is most likely to focus on improving infrastructure. It might include a detailed list of public roads to railways assets, which the government plans to monetise during FY 2022-23. Reports also suggest that it might especially prioritise highways and expressways,” said a <a href="https://www.bajajfinservmarkets.in/markets-insights/budget/budget-2022.html">report </a>by Bajaj Finserv. “We expect major initiatives to be announced to stimulate capital expenditure both on the private and public side. This has been the thrust of the government since COVID hit the country’s growth. We expect schemes for outlay for development of infrastructure including major spending towards roads, irrigation, healthcare and smart cities,” Anshuman Khanna, Director at Value Prolific Consulting Services (ValPro) told Business Insider. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/tiger-global-led-82-million-round-in-fintech-startup-refyne/articleshow/88837462.cms">INTERVIEW | This one-year-old startup raised $82 million led by Tiger Global to offer employees advance on their salaries</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/this-stock-has-gained-51-in-the-last-five-days-on-investors-new-found-love-for-electric-vehicles/articleshow/88841859.cms">This stock has gained 51% in the last five days on investors’ new-found love for electric vehicles</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/telecom/news/government-owning-vodafone-idea-is-just-half-the-task-the-other-half-is-to-find-the-money/articleshow/88836355.cms">Government owning Vodafone Idea is just half the task – the other half is to find the money</a>

The Indian government has spent less than half the money it had budgeted for capital investments, so far

<ul><li><keyword id="48085" type="General" weightage="100" keywordseo="credit-suisse" source="Orion">Credit Suisse</keyword>, one of the largest and oldest banks of the world, is in trouble after the sharp rise in its credit default swaps. </li><li>Loss of talent, bad risk management and loss of investor confidence have sent the bank’s stock into a spiral. </li><li>Market experts believe a 2008-like situation is possible if the bank sinks like Lehman Brothers did. </li><li>Citibank says it would be wary of drawing parallels with 2008 and that CS has multiple options. </li></ul>On 23 September Nassim Nicholas Taleb tweeted about his former employer Credit Suisse, and ever since social media platforms have not stopped buzzing. So much so that analysts have started coming out with reports explaining why the sharp fall in its stock and rise in credit default swaps is not similar to what happened in 2008. What’s happening at Credit Suisse is uncannily similar to what happened prior to the Global Financial Crisis in 2008, when financial markets saw a complete meltdown once Lehman Brothers went under. Taleb’s Tweet needs to be seen in the context of the GFC, which saw central banks unleashing large scale bond buying programmes and interest rates went to zero. In his Tweet, Taleb said: “15 years of near zero interest rates wiped out the brains at CS &amp; all those with risk &amp; market knowledge were forcibly retired; risk-blind profitable turkeys were promoted. It's the #FooledbyRandomness effect: evolution in reverse. Sadly, I worked there &amp; loved it.” Credit Suisse, one of the oldest and largest banks, has been in trouble for a while now. While the change of the CEO made some waves in July this year, it has become all the buzz in social media after its credit default swaps – which is nothing but the protection that credit instruments have against default – jumped sharply to levels seen last in 2008. This brought its stock down by 95% from its all-time highs. The buzz soon translated into a flurry of media reports, and statements from Credit Suisse that are eerily similar to what Lehman Brothers was saying prior to its collapse in 2008. Joining the Credit Suisse discussion in India was Sandeep Parekh, an independent director on HDFC Bank’s board, who said on Twitter that a “real shit show” was ahead, regardless of Credit Suisse going bust or being rescued by the Swiss government. The Global Financial Crisis that plunged the world into a recession was triggered by the burst of the housing bubble in the US, with Lehman Brothers at the center of it. This caused a spillover effect throughout the world given how interconnected economies are – for instance, the benchmark Nifty50 index fell 40% and took over nine months to recover since the fall of Lehman Brothers in September 2008. Given how large and systemically important Credit Suisse is – together with Deutsche Bank, Credit Suisse – has $2,800 billion worth assets under management. In comparison, Lehman Brothers’ AUM stood at $600 billion – the current crisis threatens to be another Lehman moment. While Deutsche Bank has lost 31% of its market cap this year, Credit Suisse’ stock has lost over 54% of its value in the same time. “I know it's not easy to remain focused amid the many stories you read in the media – in particular, given the many factually inaccurate statements being made. That said, I trust that you are not confusing our day-to-day stock price performance with the strong capital base and liquidity position of the bank,” Credit Suisse CEO Ulrich Koerner <a href="https://www.reuters.com/business/finance/credit-suisse-has-strong-capital-base-liquidity-ceo-memo-2022-09-30/">said</a> in a memo, assuaging investor concerns. However, people were quick to<a href="https://twitter.com/Spencerjakab/status/1576228237092749312"> point out</a> the similarities with statements from Lehman Brothers. While the 2008 recession was triggered by the housing bubble collapse, CDS could end up being the trigger for a collapse now. <div type="Article" hostid="261" msid="94393267" title="Home loans growing at a faster rate in Tier 3 and 4 districts, thanks to WFH: SBI report" mstype="2" mssubtype="0"></div> <cmsannotation type="cmsannotation" annotationid="Here’s why Credit Suisse is in trouble" comment="subhead" text="Here’s why Credit Suisse is in trouble">Here’s why Credit Suisse is in trouble</cmsannotation> The answer lies in credit default swaps, also known as CDS. Simply put, CDS is an insurance policy that lenders take against the loans they have given to someone. In this case, Credit Suisse borrows money to do business. Its lenders take insurance against Credit Suisse defaulting on its obligations. For this, they have to pay a premium to the issuer, just like you would pay a premium on your insurance policies. The problem is, the price of these <keyword id="15162793" type="General" weightage="20" keywordseo="credit-suisse-cds" source="Orion">Credit Suisse CDS</keyword>’ are off the charts now – higher than they were in 2008 when the banking industry collapse was imminent. This, combined with Credit Suisse’ inefficient risk management policies – it was involved in two massive debacles, Greensill and Archegos Capital, where its investors lost billions of dollars – has limited the bank’s avenues for obtaining finance, further increasing its borrowing costs. <div type="Article" hostid="261" msid="94510142" title="Jewellery chains are growing at the cost of standalone jewellers – and it’s only going to get worse, says World Gold Council report" mstype="2" mssubtype="0"></div> Essentially, Credit Suisse’ situation right now is of a person with multiple defaults in the past eroding their capital, causing their credit rating to go junk. As a result, that person’s borrowing costs increase since lenders are wary of defaults. This essentially increases the risk of the said person going bankrupt and investors losing their money. Apart from this, the bank has reported three consecutive quarterly losses, leading to the appointment of a new CEO in August. It also <a href="https://www.bloomberg.com/news/articles/2022-08-01/credit-suisse-hands-out-300-million-in-a-month-to-retain-talent">lost</a> over 60 executives in the past 18 months, with the <a href="https://www.businessinsider.in/business/corporates/news/swiss-banking-giant-credit-suisse-fighting-for-its-survival-says-report/articleshow/94610616.cms">latest high-profile departure being Jens Welter</a>, who defected to Citigroup after a 27-year stint at Credit Suisse. But analysts suggest this is not 2008 and Credit Suisse has multiple options in front of it to escape the current crisis. “We would be wary of drawing parallels with banks in 2008 or Deutsche Bank in 2016. Credit Suisse has a CET1 (Tier 1 capital) ratio of 13.5%, high vs peers, and would imply Swiss Franc 2.5 billion of excess capital vs a 12.5% ratio,” said a report by Citi Research. What does this mean? Essentially, Credit Suisse is placed comfortably when it comes to capital adequacy, and a run on the bank is not a certainty as of now. “The liquidity credit ratio at 191% is among best in class, with a Swiss Franc 235 billion high-quality liquid assets portfolio, so the liquidity position is very healthy. Rather than liquidity concerns, we see the current move in spreads as an inconvenience for funding costs,” the report added further, explaining where Credit Suisse stands currently, and what the impact of the flurry of negative media reports could be on the bank. The short of it is, Credit Suisse might experience higher financing costs in the interim until the bank’s management plans and executes a restructuring strategy. Everything hinges on whether Credit Suisse is able to navigate these choppy waters and execute its restructuring strategy efficiently or not. After all, the ‘all is well’ play will only work for so long before the fundamentals trigger a response. SEE ALSO: <a href="https://www.businessinsider.in/business/auto/news/auto-sales-remain-buoyant-in-september-with-reports-of-a-good-festive-season-ahead/articleshow/94622721.cms">Auto sales remain buoyant in September with reports of a good festive season ahead</a> <a href="https://www.businessinsider.in/stock-market/news/heres-all-you-need-to-know-about-suzlon-energys-1200-crore-rights-issue-after-founder-tulsi-tantis-death/articleshow/94617068.cms">Here’s all you need to know about Suzlon Energy’s ₹1,200 crore rights issue after founder Tulsi Tanti’s death</a> <a href="https://www.businessinsider.in/finance/news/rbis-interest-rate-hikes-not-over-yet-but-intensity-might-come-down/articleshow/94558336.cms">RBI’s interest rate hikes not over yet, but intensity might come down</a>

Credit Suisse is in trouble, but this is not 2008 – investors remain wary of the ‘all is well’ soundbites

In the financial year that ended on March 31, as many as 73 listed companies made <keyword id="382010" type="UNKNOWN" weightage="100" keywordseo="open-offers">open offers</keyword> worth nearly Rs 12,000 crore, seeing a fall of 32% from last fiscal, when open offers were made for Rs 17,352 crore, says a report by a Prime Database. 
 "This decrease can be attributed primarily to the base effect as 2014-15 had one mega offer of Rs 11,449 crore from Relay BV for United Spirits," Prime Database Managing Director Pranav Haldea said. He added that subdued activities were seen in open offers, <keyword id="589976" type="UNKNOWN" weightage="100" keywordseo="buybacks">buybacks</keyword> and <keyword id="6370555" type="UNKNOWN" weightage="100" keywordseo="Delisting">delisting</keyword> amid poor equity markets. 
 
The largest offer made came from Family Investment/Sunrise Associates/Goldenstar Enterprises and others for Suzlon Energy, standing at Rs 2,838 crore. However, it saw a zero per cent acceptance. 
 
The next biggest offers were from GE Energy Europe BV for Alstom T&amp;D India for Rs 1,927 crore and FIH Mauritius Investments for IIFL Holdings for Rs 1,621 crore. 
 
"On the acceptance side too, shareholders tendered far lesser shares; just Rs 2,971 crore or 25 per cent of the offer amount made. (In comparison, it was Rs 13,009 crore in 2014-15 75 per cent of the amount on offer)," he added. 
 
As per Securities and Exchange Board of India (SEBI) rules, open offers are mandatory for minority shareholders in the event of any major change in promoter holding of a listed company. However, in case of any direct or indirect acquisition of 25% stake, open offer is required for further acquisition of 26% stake from public shareholders. 
 
These offers in question are made by company promoters and other entities either for the consolidation of their holdings or as a part of substantial acquisition/change when publicly listed companies see management changes. 
 
Other than open offers, 15 buyback offers were also concluded last FY with an acquired amount of Rs 1,713 crore against an offered amount of Rs 1,763 crore, with the largest buyback being was by Bayer Cropscience for Rs 506 crore. 
 
In addition, nine delisting offers worth Rs 5,479 crore were made in last fiscal. Of these, eight offers worth Rs 5,477 crore were successful. 
 
<a href="http://inanews.in/wp-content/uploads/2016/02/1354698998_India-currency.jpeg">Image source</a>

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