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News18
3 days ago
- Business
- News18
Indian Overseas Bank to raise Rs 4,000 cr this financial year: MD & CEO
Chennai, Jul 18 (PTI) Public sector Indian Overseas Bank has drawn up plans to raise Rs 4,000 crore during this financial year through various instruments, including Qualified Institutional Placement (QIP), a top official said on Friday. With the proposed plan to fund raise, the Government of India's shareholding in the Chennai-headquartered bank is expected to come down to 90 per cent from the current 94 per cent, the bank's Managing Director and CEO Ajay Kumar Srivastava said here. 'Last year, we raised about Rs 1,440 crore in March. This year we are looking for about Rs 4,000 crore to raise. For that we are talking to various authorities for their approval," he told reporters after declaring the financial performance of the bank. Asked about the kind of instruments that would be used for the fund raise, he said, 'It will be a mix. Most of it will be through QIP (Qualified Institutional Placements). With this, Government of India shareholding will come down to 90 per cent from 94 per cent." To another query on when the fund raise was expected to occur, Srivastava said, 'We expect it will happen by Q3 end or Q4." Indian Overseas Bank reported a 76 per cent jump in net profit to Rs 1,111 crore during the April-June 2025 quarter. The bank had earned a net profit of Rs 633 crore in the same quarter of the previous financial year. Total income of the bank during the June quarter rose to Rs 8,866 crore from Rs 7,568 crore recorded in the same quarter of last financial year. Asked on the drivers for the increase in net profit, he said, the driver is interest income. 'We have been doing quality lending at a healthy rate of interest. So that is one. The net interest income has increased. We have been able to control our expenses to a certain extent and the other income has increased for the bank." he said. 'The third most crucial part is less provisioning requirement and all these factors combined have given 75 per cent increase in net profit", he said. PTI VIJ VIJ KH view comments First Published: July 18, 2025, 19:45 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
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Business Standard
6 days ago
- Business
- Business Standard
₹6,500 cr realty shake-up: Commercial deals soar 2X, residential slumps
Commercial real estate commanded a lion's share of deal activity in the second half of 2025. According to data analysed by consultancy firm Grant Thornton , commercial assets accounted for a dominant 62% of the ₹6,500 crore in total transaction value in the second quarter, up sharply from 30% in Q1. The momentum is being driven by institutional capital flows into rent-yielding office and retail assets, even as residential and mixed-use deals lag behind. Supporting this trend, Grant Thornton Bharat's Real Estate Q2 2025 Dealtracker revealed that the sector recorded transactions worth $2.5 billion (approx. ₹20,875 crore) in the first half of the year. Although that marks an 8% decline from $2.7 billion in H1 2024, the volume of deals actually rose—from 40 last year to 45 this year—highlighting deeper market participation. Total Deal Value: $2.5 billion worth of real estate deals in H1 2025, down 8% from $2.7 billion in H1 2024. Deal Volume: 45 transactions in H1 2025, up from 40 in H1 2024. Commercial real estate accounted for 62% of ₹6,500 crore in total deal value in Q2 2025. Blackstone's $378 million acquisition of South City Mall, Kolkata — the quarter's largest private equity transaction Total Q2 investment stood at ₹6,500 crore, showing a measured slowdown in momentum. Top contributors included office, warehousing, and retail segments. Private equity interest remains strong, especially in income-yielding assets. Investors are focusing on core and core-plus strategies amid market uncertainty. Q2 Activity: 17 deals worth $1.3 billion, including IPOs and QIPs. Commercial Real Estate Dominance: Institutional capital continues to flow into commercial platforms. Capital Market Revival: Return of IPOs, SME REITs, and anticipation of India's largest REIT. Outlook: Sector poised for a more mature, innovation-led investment cycle in H2 2025. 'The data reflects a sector recalibrating for long-term strength,' said Shabala Shinde, Partner and Real Estate Industry Leader at Grant Thornton Bharat. 'While deal values moderated, institutional capital continues to flow steadily into commercial platforms, reinforcing the asset class' resilience.' Notably, the revival of IPO and SME REIT activity also signals increasing investor interest in structured real estate products. The anticipation of India's largest-ever REIT listing in the coming months is expected to further cement the capital market's role in funding real estate growth. In Q2 alone, there were 17 deals worth $1.3 billion, with IPOs and Qualified Institutional Placements (QIPs) returning to the fore. While residential deals declined slightly, commercial real estate saw strong activity across metros—driven by office parks, warehousing hubs, and retail portfolios with long-term lease visibility. With rising interest from global pension funds, sovereign wealth funds, and domestic institutions, the second half of 2025 is poised for a more mature, innovation-led investment cycle, say experts. The shift indicates a flight to stability amid global volatility, with Grade-A office assets and logistics parks emerging as preferred bets. In contrast, residential and proptech saw muted action Residential segment: Accounted for 23% of total deal volumes in Q2 2025. Contributed only 10% of the total transaction value, indicating smaller ticket sizes compared to commercial. Proptech segment: Made up 15% of total deal volumes. Represented just 5% of total deal value, reflecting modest deal sizes and lower investor allocation. Number of M&A transactions: 6 deals Total deal value: USD 195 million Annual change: A 45% decline compared to the corresponding quarter last year This reflects a significant slowdown in M&A activity, highlighting that strategic consolidation in the real estate sector took a backseat in Q2 2025.


Mint
03-07-2025
- Business
- Mint
Stocks to watch: Nykaa, DMart, PVR Inox, Nestle India among shares in focus today
FSN E-Commerce Ventures, the parent company of Nykaa, is expected to see a secondary stake sale as early investor Harindarpal Singh Banga, along with Indra Banga, plans to sell shares worth up to ₹ 1,200 crore via a block deal. Indian Overseas Bank (IOB) announced that its shareholders have given the green light to a plan for raising up to ₹ 4,000 crore in equity capital through multiple channels, such as Qualified Institutional Placements (QIPs), rights issues, and employee stock schemes. India's top cinema exhibitor aims to invest up to ₹ 400 crore to expand its network by adding 200 new screens over the next two years. The company has been issued a show cause notice by the Central GST Commissionerate in Dehradun, citing alleged GST shortfalls related to a merged entity for the financial years 2018 to 2021. The company posted a record-high mined metal production of 265 kilo tonnes for the first quarter, marking a 1% year-on-year increase. Avenue Supermarts, the operator of the DMart retail chain, reported a 16% year-on-year increase in standalone revenue for the first quarter of FY26, reaching ₹ 15,932.12 crore. Punjab National Bank (PNB) delivered a stable operational performance in the June quarter of FY26, with its global business growing by 11.6% year-on-year to reach ₹ 27.19 lakh crore. RVNL has named Chandan Kumar Verma as its new Chief Financial Officer, with the appointment taking effect from July 2, 2025. Coromandel International has received approval from the Competition Commission of India (CCI) to acquire 10.69 crore shares, representing a 53.13% stake in NACL Industries. The company's planned demerger has encountered a regulatory setback, as the Ministry of Petroleum and Natural Gas raised objections during the NCLT hearing held on July 2.


Economic Times
01-06-2025
- Business
- Economic Times
The primary market puzzle: Too much, yet too little?
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Typically, when primary markets are buzzing with palpable action, it is often a reflection of surging business confidence and economic momentum. When companies raise large sums of money through IPOs and QIPs (Qualified Institutional Placements), that new capital often flows into productive uses—new projects, capacity expansion, technology upgrades, and other capital the well-known multiplier effect of such investments, this can set off a virtuous cycle of economic growth. That is how usually the rub-off effect plays out for the economy from the robust primary flows. Is that the case now too?FY25 saw a remarkable surge in capital raising, with over ₹3.14 trillion mobilized through IPOs and QIPs—a level rarely seen before. In fact, it's hard to recall any prior instance when Indian markets saw such a deluge of primary fund inflows. It could very well be a historical the natural question is: Are we about to witness a new wave of economic growth, this time powered by private capex turn?Let's dive in to dig deeper to find the this exercise, all that we need to do is to go back and assess how the funds raised in the previous year translated into actual capital investments. In terms of fundraising from primary markets, FY24 was not far behind the year gone by (FY25).It was equally a blockbuster year in its own right - though the overall quantum was smaller compared to the surge seen in FY25, it still marked a significant uptick in the primary market led primarily by QIP Markets witnessed fundraising of over Rs 1.40tn from primary markets in the year FY24, predominantly driven by QIPs which constituted over 54% of the overall quantum. This much is well known. But what has not received the deserved attention is how these funds were utilized only a little over a quarter of the capital raised was actually deployed in new projects or any capacity expansion. A significant share went towards debt repayment and general-purpose corporate expenditure, while a substantial portion found its way into the hands of institutional investors or promoters through Offer for Sale ( OFS ) story is no different for FY25 with new capital projects receiving a meagre share of the overall fundraising. While this is good for the promoters and institutional investors, not so good for the economy. One doesn't need to go too far to understand this than to look at the much-trumpeted Hyundai IPO that happens to be the largest ever IPO India has seen. It was entirely an Offer for Sale(OFS) by the parent company, Hyundai Motor Company, involving the sale of a 17.5% stake in its Indian subsidiary. No new shares were issued, and the Indian entity did not receive any proceeds from the is not going to stop here. Looking at the pipeline of IPOs, the story is likely to follow a similar script even in the current year. Many more MNC promoters are lining up to tap into the premium valuation that India offers to cash out in a hurry, especially given their financial challenges back home. It is a question of time before the LGs and Whirlpools of the world swing into this seductive IPO/QIP what kind of multiplier impact it would have had on the growth if a larger share of the fundraising had gone into new capital projects. That much for the IPO intriguing—and somewhat concerning—that India Inc. has yet to fully unleash its animal spirits to invest in new projects and capacity expansion, especially at a time when the sun is clearly shining on the primary markets. For context, the share of private sector investment as a percentage of GDP has been stagnating around 11% for several was a brief glimmer of improvement in FY23, when this figure inched up to 12.3% from 11.4% in FY22. However, this momentum failed to sustain. Despite a booming primary market in FY24, private investment slipped back to 11.2% and is estimated to have further dipped below the 11% mark in FY25—the lowest in over a decade, excluding the Covid-induced slump of FY21 when it fell to 10%.Global surplus capacity in many commodities, persistent Chinese dumping and the ongoing tariff related uncertainties could be the factors that are keeping India Inc. hesitant when it comes to unleashing new projects. It is hard to blame India Inc for not doing its the subdued global outlook, these challenges are unlikely to recede any time soon. This means that the wait for the ever-elusive turn in the private capex cycle may be longer than previously hoped by the markets. While the market may continue to pin its hopes for a quicker turn, one needs to keep a tab on where the money gets utilized from the ever-increasing fund raise in the primary markets for any hints on such a turn. Interesting Times!(The author, ArunaGiri N is the Founder CEO & Fund Manager at TrustLine Holdings)(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)


Time of India
01-06-2025
- Business
- Time of India
The primary market puzzle: Too much, yet too little?
Typically, when primary markets are buzzing with palpable action, it is often a reflection of surging business confidence and economic momentum. When companies raise large sums of money through IPOs and QIPs (Qualified Institutional Placements), that new capital often flows into productive uses—new projects, capacity expansion, technology upgrades, and other capital investments. Given the well-known multiplier effect of such investments, this can set off a virtuous cycle of economic growth. That is how usually the rub-off effect plays out for the economy from the robust primary flows. Is that the case now too? FY25 saw a remarkable surge in capital raising, with over ₹3.14 trillion mobilized through IPOs and QIPs—a level rarely seen before. In fact, it's hard to recall any prior instance when Indian markets saw such a deluge of primary fund inflows. It could very well be a historical first. So, the natural question is: Are we about to witness a new wave of economic growth, this time powered by private capex turn? Let's dive in to dig deeper to find the answers. Live Events For this exercise, all that we need to do is to go back and assess how the funds raised in the previous year translated into actual capital investments. In terms of fundraising from primary markets, FY24 was not far behind the year gone by (FY25). It was equally a blockbuster year in its own right - though the overall quantum was smaller compared to the surge seen in FY25, it still marked a significant uptick in the primary market led primarily by QIP . Markets witnessed fundraising of over Rs 1.40tn from primary markets in the year FY24, predominantly driven by QIPs which constituted over 54% of the overall quantum. This much is well known. But what has not received the deserved attention is how these funds were utilized subsequently. Surprisingly, only a little over a quarter of the capital raised was actually deployed in new projects or any capacity expansion. A significant share went towards debt repayment and general-purpose corporate expenditure, while a substantial portion found its way into the hands of institutional investors or promoters through Offer for Sale ( OFS ) route. The story is no different for FY25 with new capital projects receiving a meagre share of the overall fundraising. While this is good for the promoters and institutional investors, not so good for the economy. One doesn't need to go too far to understand this than to look at the much-trumpeted Hyundai IPO that happens to be the largest ever IPO India has seen. It was entirely an Offer for Sale (OFS) by the parent company, Hyundai Motor Company, involving the sale of a 17.5% stake in its Indian subsidiary. No new shares were issued, and the Indian entity did not receive any proceeds from the IPO. It is not going to stop here. Looking at the pipeline of IPOs, the story is likely to follow a similar script even in the current year. Many more MNC promoters are lining up to tap into the premium valuation that India offers to cash out in a hurry, especially given their financial challenges back home. It is a question of time before the LGs and Whirlpools of the world swing into this seductive IPO/QIP syndrome. Imagine, what kind of multiplier impact it would have had on the growth if a larger share of the fundraising had gone into new capital projects. That much for the IPO boom. It's intriguing—and somewhat concerning—that India Inc. has yet to fully unleash its animal spirits to invest in new projects and capacity expansion, especially at a time when the sun is clearly shining on the primary markets. For context, the share of private sector investment as a percentage of GDP has been stagnating around 11% for several years. There was a brief glimmer of improvement in FY23, when this figure inched up to 12.3% from 11.4% in FY22. However, this momentum failed to sustain. Despite a booming primary market in FY24, private investment slipped back to 11.2% and is estimated to have further dipped below the 11% mark in FY25—the lowest in over a decade, excluding the Covid-induced slump of FY21 when it fell to 10%. Global surplus capacity in many commodities, persistent Chinese dumping and the ongoing tariff related uncertainties could be the factors that are keeping India Inc. hesitant when it comes to unleashing new projects. It is hard to blame India Inc for not doing its due. Given the subdued global outlook, these challenges are unlikely to recede any time soon. This means that the wait for the ever-elusive turn in the private capex cycle may be longer than previously hoped by the markets. While the market may continue to pin its hopes for a quicker turn, one needs to keep a tab on where the money gets utilized from the ever-increasing fund raise in the primary markets for any hints on such a turn. Interesting Times! (The author, ArunaGiri N is the Founder CEO & Fund Manager at TrustLine Holdings)