The coronavirus pandemic has not only put brakes on economic activity but has also forced companies to cut costs through salary cuts and layoffs. An online survey published by a media house found 15 percent of the respondents set to lose their jobs, while 39 percent faced salary cuts. … [Read more...] about Three ways through which you can plan your future by investing post COVID-19
Return of invested capital
SYDNEY (Reuters) - Bain Capital on Sunday said it was preparing a second-round proposal to buy Virgin Australia Holdings Ltd (VAH.AX), as the private equity group positioned itself as the “strongest” suitor to turn around the bankrupt airline. … [Read more...] about Bain Capital confirms second-round bid for Virgin Australia
New Delhi: Investments through participatory notes (P-notes) in the domestic capital market increased to Rs 57,100 crore as of April 30 after falling to over 15-year low at the end of the preceding month. P-notes are issued by registered foreign portfolio investors (FPIs) to overseas investors who wish to be part of the Indian stock market without registering themselves directly. They, however, need to go through a due diligence process. According to Sebi data, the value of P-note investments in Indian markets -- equity, debt, hybrid securities and derivatives -- stood at Rs 57,100 crore until April, while the same was at Rs 48,006 crore at the end of March. The figure at March-end was the lowest level of investment since October 2004, when the total value of P-note investments in Indian markets stood at Rs 44,586 crore. The lower figure in March comes amid significant volatility in broader markets on concerns over coronavirus-triggered recession. Of the total Rs 57,100 crore … [Read more...] about Investment via P-notes up at Rs 57,100 cr till April
Private equity (PE) investors, who are sitting on a record cash pile, are turning cold to pure play equity investment after the Covid-19 pandemic and the subsequent economic lockdown leading to increased uncertainty about the future of a business. As a natural corollary, their expectations on return on capital too have changed in tandem with their changing risk perceptions. To put it succinctly, the pandemic has tempered the risk-taking ability of PE investors substantially since the ready-to-go gauges like return on investment and the real growth of a business based on future cash flow projections are no longer amenable to any forecasting models.The volatile market has made it near nigh impossible to time the exit as well. This is what will drive a large number of PE players, who in their race to stay ahead of the curve, to change their investment style to a flexible structure that ensures certain minimum returns on the capital deployed or to peg the valuations based on the future … [Read more...] about Covid-19 Impact: Why are PE investors shying off from pure equity deals?
New Delhi: Telecom players have urged regulator Trai to move forward quickly on the issue of fixing floor price for tariffs, saying the matter is imperative to ensure that the sector is sustainable and in a position to bear the deferred spectrum and AGR dues. The Cellular Operators' Association of India (COAI) -- whose members include Bharti Airtel, Vodafone Idea and Reliance Jio -- has written to the Telecom Regulatory Authority of India (Trai) seeking an open house discussion on the issue "at the earliest". "Given the financial pressure on the sector and the fact that ARPU (Average Revenue Per User) and tariffs of the Indian telecom sector are the lowest in the world, floor pricing is imperative to ensure that the sector is sustainable, and is in a position to bear the deferred spectrum and AGR (Adjusted Gross Revenue) dues, while continuing to invest in world class networks and services," COAI said in its letter to Trai Chairman R S Sharma. The association said the industry looks … [Read more...] about Telcos approach Trai seeking early decision on floor price issue