2020-04-04 IFR Magazine

(Rick Simeone) #1
„ FRONT STORY INDIA

Privatisation target missed

Record Rs2.1trn target for 2020/21 looks difficult to achieve


India has missed its privatisation target for
THEûlSCALûYEARûûANDûONûCURRENTû
MARKETûTRENDSûTHEû2STRNû53BN ûTARGETû
FORûûLOOKSûJUSTûASûDIFlCULTûTOûACHIEVE
$EPARTMENTûOFû)NVESTMENTûANDû0UBLICû!SSETû
Management data show the government
RAISEDû2SBNûTHROUGHûTHEûSALEûOFûSTAKESûINû
STATE
OWNEDûCOMPANIESûINûTHEûYEARûTOû-ARCHû
 ûMISSINGûITSûDOWNSIZEDûTARGETûOFû2SBN û
AFTERûCAPITALûMARKETûACTIVITIESûSLOWEDûDOWNûINû
THEûLATESTûQUARTERû4HEûTARGETûHADûALREADYûBEENû
CUTûFROMûANûINITIALû2STRN
3HAREûSALES ûINCLUDINGûPRIVATISATIONS ûHAVEû
COMEûTOûAûNEARûHALTûWITHûTHEûCORONAVIRUSû
PANDEMICûANDûAû
DAYûNATIONWIDEû
LOCKDOWNûINû)NDIAûFROMû-ARCHû
)NûTHEûlNALûQUARTERûOFûTHEûlNANCIALûYEAR û
THEûGOVERNMENTûWASûUNABLEûTOûLAUNCHûTHEû
PLANNEDû2SBNû)0/ûOFûINDIAN RAILWAY FINANCE
CORPûANDûSELL
DOWNSûINûAXIS BANK and ITC

LIC IPO CHALLENGE
Bankers said the government has stopped

INTER
MINISTERIALûCONSULTATIONSûANDûMEETINGSû
WITHûMARKETûINTERMEDIARIESûONûSHAREûSALES
h)NSTEAD ûWEûHAVEûBEENûASKEDûFORûSUGGESTIONSû
ONûHOWûTOûPROVIDEûRELIEFûTOûMARKETûPARTICIPANTSû
ANDûCOMPANIESûINûTHEûCURRENTûSITUATION vûAû
-UMBAI
BASEDûBANKERûSAID
4HEûPLANûINCLUDESûANûUPûTOû2SBNû)0/ûOFûLIFE
INSURANCE CORPORATION OF INDIAûLATERûTHISûYEAR
h)0/S ûESPECIALLYûLARGEûONESûLIKEû,)# ûLOOKû
VERYûDIFlCULTûATûTHISûSTAGEû4HEûMARKETSûHAVEûTOû
REVIVEûANDûREMAINûBULLISHûFORûAûSUSTAINEDûPERIODû
FORûAûLANDMARKûDEALûLIKEûTHISûTOûMATERIALISE vû
ANOTHERû%#-ûBANKERûSAIDû4HEûBENCHMARKû30û
"3%û3ENSEXûISûDOWNûûINûTHEûYEARûTO
DATE
/THERûBIG
TICKETûTRANSACTIONSûINCLUDEûSTRATEGICû
STAKEûSALESûINûAIR INDIA and BHARAT PETROLEUM
h3UCHûTRANSACTIONSûINVOLVEûREGULARû
MEETINGSûWITHûBUREAUCRATSûANDûSITEûVISITSûTOû
COMPANIESû!LLûTHISûISûIMPOSSIBLEûFORûSOMEû
MOREûMONTHS vûTHEûBANKERûSAID
$IPAMûHASûALREADYûEXTENDEDûTHEûDEADLINEû
FORûEXPRESSIONSûOFûINTERESTûINûAûûSTAKEû
INû"HARATû0ETROLEUMûTOû*UNEûûFROMû-AYû

3ELLINGûOFFûSHARESûINû!IRû)NDIAûAûCHALLENGINGû
TASKûATûTHEûBESTûOFûTIMES ûLOOKSûEVENûMOREû
PROBLEMATICûNOWûTHATûTHEûCORONAVIRUSûHASû
GROUNDEDûMUCHûOFûGLOBALûAIRûTRAVELû!IRû)NDIAû
SUSPENDEDûALLûITSûDOMESTICûANDûINTERNATIONALû
mIGHTSûLASTûWEEKûUNTILû!PRILû
#APITALûMARKETûTRANSACTIONSûINûû
INCLUDEûOFFERSûFORûSALEûINû'ENERALû)NSURANCEû
#ORPORATIONûOFû)NDIA û.EWû)NDIAû!SSURANCE û
(INDUSTANû!ERONAUTICS û"HARATû$YNAMICSû
ANDû"HARATû%LECTRONICSû4HEûSIZEûOFûEACHûDEALû
WILLûDEPENDûONûTHEûSHAREûPRICEûATûTHEûTIMEûOFû
THEûTRANSACTION
!MONGûTHEûLASTûSTATEûDIVESTMENTSûINûû
WASûTHERMALûPOWERûDEVELOPERû.40#SûPURCHASEû
OFûTHEûGOVERNMENTSûûSTAKEûINû4($#û
)NDIAûFORû2SBNûANDûAûûSTAKEûINû.ORTHû
%ASTERNû%LECTRICû0OWERû#ORPûFORû2SBNû"OTHû
TRANSACTIONSûWEREûCOMPLETEDûONû-ARCHû
4HEûLASTûCAPITALûMARKETûTRANSACTIONûOFûTHEû
lNANCIALûYEARûWASûAû2SBNûOFFERûFORûSALEûINû
ENGINEERINGûCONSULTANCYû2ITESûINû.OVEMBER
Anuradha Subramanyan

Amadeus raises €1.5bn for most adverse scenarios


Existing cash, debt and new funds provide €4bn of liquidity


3PANISHûTRAVELûBOOKINGSûGROUPûAMADEUS IT
MOVEDûSWIFTLYûTOûPROVIDEûCERTAINTYûONûITSûFUTUREû
WITHûAûõBNûCOMBOûEQUITYûANDûCONVERTIBLEû
BONDûFUNDRAISINGûONû4HURSDAYûNIGHT
!MADEUSûSAIDûINûAûTRADINGûUPDATEû
ACCOMPANYINGûTHEûDEALûLAUNCHûTHATûTHEû
FUNDRAISING ûEXISTINGûCASHûANDûDEBTûFACILITIESû
WOULDûPROVIDEûõBNûOFûLIQUIDITY ûENOUGHûTOû
hCONFRONTûEVENûTHEûMOSTûADVERSEûSCENARIOSv
(AVINGûLANDEDûONûAûõBNûTARGET ûWALL
CROSSINGûWASûCARRIEDûOUTûDURINGûTHEûDAYûONû
4HURSDAYûFORûBOTHûLEGSûOFûAûõMûEQUITYû
PLACINGûANDûõMûOFûlVE
YEARûCONVERTIBLEû
BONDSû3TRONGûSUPPORT ûINûPARTICULARûFROMû
EXISTINGûSHAREHOLDERS ûALLOWEDûFORûBOTHûTHEû
EQUITYûANDûTHEû#"SûTOûLAUNCHûWITHû
INDICATIONSûINûEXCESSûOFûTHEûDEALûSIZE
/NûTHEûEQUITY ûMûSHARESûWEREûPLACED û
REPRESENTINGûAROUNDûûOFûPRE
MONEYûSHAREû
CAPITAL ûATûõûAPIECEûFORûAûûDISCOUNTûTOû
THEûõûCLOSE
!ûBOOKûOFûCLOSEûTOûûLINESûDREWûSTRONGû
INTERESTûFROMûBOTHûLONG
ONLYûACCOUNTSûANDû

EXISTINGûSHAREHOLDERSûWITHûTHEûTOPûûACCOUNTSû
TAKINGûMOREûTHANûûOFûTHEûDEALûANDûTHEûTOPûû
MOREûTHANûû,ONG
ONLYûMONEYûACCOUNTEDûFORû
APPROXIMATELYûûOFûTHEûBOOK
h)NVESTORSûAREûKEENûTOûPUTûMONEYûINTOû
COMPANIESûANDûMANAGEMENTûTHATûTHEYûLIKEû
ANDûWHEREûTHEYûKNOWûTHATûISSUANCEûISûBEINGû
DONEûWITHûAûCLEARûRATIONALEûTHATûITûISûREQUIRED vû
SAIDûAûBANKERûINVOLVEDûINûTHEûEQUITYûPLACINGû
!ûDELTAûPLACINGûWASûOFFEREDûTOûFACILITATEûHEDGINGû
BYûBUYERSûOFûTHEûCONVERTIBLESû(OWEVER ûTHEûlNALû
SIZEûWASûJUSTûõMûFROMûAûMAXIMUMûOFûõMû
BASEDûONûAûûDELTAû)NVESTORSûWEREûGIVENûTHEû
OPTIONûOFûHEDGINGûNONE ûHALFûORûTHEûFULLûDELTA
h!TûAROUNDûûOFûTHEûDEAL ûTHEûDELTAûISûVERYû
SMALLûANDûTHATûTELLSûYOUûTHEûOUTRIGHTûBIDûWASû
STRONG ûNOTûONLYûFROMûOUTRIGHTS ûBUTûWITHûAû
GOODûNUMBERûOFûHEDGEûFUNDSûRUNNINGûANû
OUTRIGHTûPOSITIONûASûWELL vûSAIDûANûEQUITY
LINKEDûBANKERûINVOLVED
/FFEREDûWITHûAûCOUPONûOFûnûANDûAûn
ûPREMIUM ûTHEûBONDSûCANûBEûCALLEDûFROMû
THREEûYEARSûSUBJECTûTOûAûûTRIGGERû!MADEUSûISû

RATEDû"""ûBYû30ûANDû"AAûBYû-OODYS
!ûCREDITûASSUMPTIONûOFûBPûWASûDERIVEDû
FROMûTWOûOUTSTANDINGûSTRAIGHTûBONDSûANDûBORROWû
WASûPLENTIFULûATûBPû)MPLIEDûVOLûWASûn
0RICEûSENSITIVITYûSAWûTERMSûSETûATûTHEûBESTû
ENDûFORûINVESTORSûWITHûAûûCOUPONûUPûû
3ETûFROMûTHEûõûEQUITYûPRICING ûTHEû
CONVERSIONûPRICEûISûõû)MPLIEDûVOLûONû
PRICINGûWASûûANDûTHEûBONDSûWEREûTRADINGû
AROUNDûPARûONû&RIDAYûAFTERNOON
4HEûSHARESûRESPONDEDûWELLûONû&RIDAYû
AGAINSTûAûSOFTûMARKETû!MADEUSûSHARESû
OPENEDûATûõ ûPUSHINGûUPûTOûõûBYûEARLYû
AFTERNOON ûATûTHATûPOINTûUPûûONûTHEûDAY
h4HEûMARKETûWILLûREWARDûTHOSEûCOMPANIESû
THATûMOVEûQUICKLYûTOûSECUREûTHEIRûBALANCEûSHEETû
ANDûLIQUIDITYûANDûEQUIPûTHEMSELVESûPROPERLYûFORû
HOWEVERûLONGûITûGOESûONûANDûWHETHERûORûNOTûITû
GETSûWORSE vûSAIDûTHEûEQUITY
LINKEDûBANKERûh4HEû
MARKETûWILLûDEMANDûAûLEVYûFORûTHOSEûTHATûDITHERû
ORûAREûNOTûASûCLEARûINûTHEIRûSTRATEGYv
JP Morgan WASûSOLEûGLOBALûCOORDINATORûANDû
JOINTûBOOKRUNNERûWITHûCitigroup and Credit
Agricole CIB
Robert Venes

International Financing Review April 4 2020 95

EQUITIES


Australia  China  India  New Zealand  South Korea  Thailand 
Estonia  Italy û Norway  UK  United States 

10 IFR Equities and SE 2327 p 95 - 106 .indd 95 03 / 04 / 2020 20 : 40 : 32

Free download pdf