Muthoot Finance to remain in focus as IDBI Mutual deal gets stuck

Shares of Muthoot Finance may come under pressure as its plan to acquire IDBI Mutual Fund has been blocked by the Reserve Bank of India.

“We would like to inform that Muthoot Finance Ltd’s request for a no-objection certificate was not acceded to by the Reserve Bank of India on the ground that “‘the activity of sponsoring a Mutual Fund or owning an Asset Management Company is not in consonance with the activity of an operating NBFC’,” it said in a regulatory filing.

It has accordingly informed SEBI, through a letter on November 23, that it would be unable to proceed with the proposed transaction.

In November last year, Muthoot Finance had entered into a share purchase agreement with IDBI Bank, IDBI Capital Markets and Securities, IDBI Asset Management and IDBI MF Trustee Company to acquire 100 per cent equity shares of IDBI Asset Management and IDBI MF Trustee Company.

Kesar Terminals may come under pressure

Bank of Baroda, erstwhile Dena Bank, has filed an application to initiate a Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code, 2016, before the National Company Law Tribunal, Mumbai, against Kesar Multimodal Logistics, wholly-owned subsidiary of Kesar Terminals & Infrastructure, specifying the amount of default of Rs 88.10 crore as on October 31, 2020.

The company had given a bank guarantee and corporate guarantee against the loan provided by Bank of Baroda in consortium with two other banks in favour of Kesar Multimodal Logistics Ltd.

Shares of Kesar Terminal may come under pressure, even as its shareholders will watch further developments.

Gayatri Projects monetises arbitral award

Gayatri Projects has successfully monetised and received Rs 208 crore net of statutory deductions (gross Rs 219 crore) under the GOI scheme of monetisation of 'under litigation arbitral award' against bank guarantees.

The company, along with its JV partner, was awarded an arbitration claim worth Rs 703 crore, including interests for its road project in Nagaland; GPL portion in the same was Rs 264 crore. The company has now received 75 per cent of the claim (including further interest of Rs 27.74 crore) for the period from the date of award till the date of payment after furnishing bank guarantees of a similar amount.

This inflow is in line with the company's guidance of an inflow of Rs 200-300 crore under the GOI award monetisation scheme / conciliation scheme