Latest news with #AxisFinance
Yahoo
2 days ago
- Business
- Yahoo
Blackstone (NYSE:BX) Considers Acquisitions in India and French Telecom Sector
Blackstone has been actively engaged in substantial acquisition discussions and strategic bids, including their interest in acquiring Axis Finance Limited and the potential joint bid for SFR. Over the last quarter, Blackstone's share price increased by 27%, a notable move amidst market conditions influenced by trade uncertainties and tariff deferments. While broader market forces may impact stock movements, Blackstone's involvement in high-profile deals, like the aforementioned discussions and other strategic alliances, likely bolstered investor sentiment. As the market remained generally stable, these specific corporate actions could have contributed added momentum to the company's share price. We've spotted 3 weaknesses for Blackstone you should be aware of, and 1 of them makes us a bit uncomfortable. Trump's oil boom is here — pipelines are primed to profit. Discover the 22 US stocks riding the wave. The recent acquisition discussions involving Blackstone, such as their interest in Axis Finance Limited and the potential joint bid for SFR, could significantly influence Blackstone's future business landscape. Such activities, while enhancing investor confidence in the short term, may have longer-term implications on the company's operational efficiencies and profitability, specifically as it continues to expand in infrastructure and digital sectors. These strategic moves could challenge Blackstone's ability to maintain high revenue and earnings growth, given the potential risks of saturation and technological shifts within these rapidly evolving industries. Over the past five years, Blackstone has achieved a total return, inclusive of share price and dividends, of approximately 240.18%. This long-term performance underlines its strong value creation, although recent 12.5% U.S. market returns outpaced Blackstone's, which underperformed relative to the Capital Markets industry return of 37% over the last year. Despite this, Blackstone's earnings growth of 18.2% last year surpassed the industry average of 14%, signifying robust operating performance even with market challenges. As analysts project Blackstone's revenue to grow at 15.7% annually, any successful acquisitions or joint ventures could catalyze these forecasts. However, the company's reliance on large-scale projects and potential operational inefficiencies could temper earnings growth, which is forecasted to rise 27.09% per year. With Apple's current share price at US$137.36 closely aligned with the bearish analyst's price target of US$138.17, any forward-looking revenue and earnings projections developed in light of recent strategic activity will need to be critically assessed against Blackstone's current valuation and industry landscape. Gain insights into Blackstone's outlook and expected performance with our report on the company's earnings estimates. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NYSE:BX. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Time of India
26-06-2025
- Business
- Time of India
Axis Bank won't infuse more capital into NBFC; it will tap market
Mumbai: Axis Bank has committed to the Reserve Bank of India ( RBI ) that the lender will not infuse any new capital into its wholly-owned finance company Axis Finance , Amitabh Chaudhry , CEO of the private bank, told ET. The NBFC is working on plans to raise ₹3,000 crore through an initial public offering (IPO), he said. The commitment to the RBI comes in the backdrop of the central bank's draft guidelines issued last October on 'Forms of Business and Prudential Regulation for Investments.' The guidelines say that core lending business should be undertaken by the bank while restricting lenders and their NBFC units from duplicating similar revenue streams. Products which are offered by Axis Bank such as gold loans, loans against property and two-wheeler loans are also offered by its subsidiary finance company. "As per its growth plans, Axis Finance will need a couple of thousand crores of capital over the next few years," Chaudhry said. "We are in no position to infuse further capital because that is the commitment we have made to RBI. We have no option but to go to the market and try to raise the capital. We are running a process right now to do that." Chaudhry added that Axis Finance will be classified as an upper layer NBFC soon and that the bank is evaluating an appropriate timeline for listing or a stake sale. The RBI has directed that those finance companies, with asset books exceeding ₹50,000 crore, be classified as upper layer NBFCs and they will have to be listed within a stipulated time frame. Live Events Axis Finance, too, may face a hurdle if the RBI does not issue final guidelines or clarify its stand of the matter. "All the investors know that this is something which will get finalised over a period of time and it could have some long-term implications," Chaudhry said. "When we are talking to the potential investors, we have been quite clear that we will do what is best for the entity concerned and we do not want to destroy value in any form or shape." Chaudhry added that while investors want Axis Bank to stay on as the majority investor, the bank is hoping to find a right investor. "It (RBI draft circular) does have an impact because at the end of the day any amount of uncertainty does mean that the investors will apply some kind of discount," he said. At the end of FY25, Axis Finance reported a profit after tax of ₹676 crore which was up 11% on year. Asset quality was stable with net NPA at 0.37%. Its total loan book stood at ₹39,079 crore, with wholesale at 50% of the book and retail loans at 47%. HDB Finance, a subsidiary of HDFC Bank, too, had to go public with an equity issuance mainly because it is classified as an upper layer NBFC. However, the pricing of the initial public offering-at ₹700-₹740 a share-is at more than a 40% discount to the price the stock was traded in the unlisted space.
