Shares News: Bhel may fall after ratings reduce

Stocks of Bharat Heavy Electricals (Bhel) would be in spotlight after ratings agency CRISIL in a note dated 9 March 2016, reduced its rating on the long-term bank facilities of Bhel to CRISIL AA+/Negative from CRISIL AAA/Negative. CRISIL has reaffirmed its ratings on the company's small term bank facilities at CRISIL A1+. The reduce mirrors CRISIL's belief that Bhel's business threat profile would stay guarded over the medium term by sustained bad profitability and stretch in working capital cycle. 

CRISIL anticipates Bhel's profitability to stay under pressure, and its working capital extended over the medium term on account of the challenging operating situation in the power division. The rating may be further reduced if project execution is slower than anticipated and costs stay high, leading to sustained sufferers and a high receivable spot, CRISIL said. Conversely, the view may be revised to steady if profitability recovers, backed by a structural revival in the power division, translating into sooner project execution, and development in working capital position, CRISIL said.

HDFC declared after market hours yesterday, 9 March 2016, that it intends to increase Rs 525 crore through private placement of senior secured redeemable non-convertible debentures. The coupon price of debentures is 8.72 Percent/annum with a tenor of three years 35 days. The issue opens and ends on the same day on 11 March 2016. The object of the issue is to augment the long period resources of the company. The proceeds of the issue will be utilized for financing/refinancing the housing finance business requirements of the company.

Bajaj Auto said that the board of directors of the company at its gathering held yesterday, 9 March 2016, has measured and confirmed an interim dividend of Rs 50/stock for the year closing 31 March 2016. The declaration was made after trading hours yesterday, 9 March 2016.

The Reserve Bank of India (RBI) has declared removal of restrictions placed on the buy of stocks of Kotak Mahindra Bank by foreign investors. The RBI said that the aggregate share holdings by foreign investors in the private division bank has gone beneath the prescribed limit stipulated below the prevailing foreign direct investment (FDI) policy and hence the restrictions are removed. The RBI made the statement after trading hours yesterday, 9 March 2016.

Corporation Bank declared that its board of directors at a meeting held on 8 March 2016, approved increasing of capital of the bank to the scope of Rs 1000 crore in one or more tranches with Green Shoe option if any by method of either issue and allotment of equity stocks on preferential basis or by way of additional Tier I bonds or through different other means subject to necessary approvals. This is exclusive of previous approval of the board on 6 Nov.  2014 where in Rs 500 crore by way of additional Tier I bonds and Rs 500 crore by way of Tier II bonds is yet to be increased, Corporation Bank said. The declaration was made after market hours yesterday, 9 March 2016.