mumbai | tuesday,5january2021 firmstilttowards fixed ... · mumbai,4january...

4 COMPANIES MUMBAI | TUESDAY, 5 JANUARY 2021 1>

SACHIN P MAMPATTAMumbai,4January

C ompanies have increased the share offixed-ratebonds innewbond issuancesamid falling interest rates.Thenetoutstandingdata,which reflects all

outstanding bonds and not just the bondsissuedduringagivenperiod,showsthatover90percentof thebondswerefixed-rateones intheMarch, June, and September quarters.

This is the first time that it has crossed thismarksinceDecember2017. Itwas90.42percentinMarchandabove91percent inbothJuneandSeptember. The share of floating-rate bondshas fallen to low-single digits (see chart).

Companiespayinterestratesthatcanchangeonthebasisofanunderlyingbenchmarkinfloat-ing-rate bonds. The interest rate remains thesame throughout the term in fixed-rate bonds.

These are the two major bond categories.Other instruments likestructurednotesaccountfor therest.Themovetowards fixed-ratebondscomes even as the cost of borrowing hasreduced significantly. TheRBI inMay last yearcut its key lending rate, called the repo (repur-chase) rate, to 4 per cent. This is the lowestsince the benchmark was introduced 20 yearsago in 2000. It also took other steps to ensurethatcompaniescouldborrowcheaplytosurviveeven as gross domestic product (GDP) fell byalmost a quarter amid theCovid-19 pandemic.

“…liquidity-augmentingmeasures,amount-ing to ~12.8 lakh crore (6.3 per cent of 2019-20nominal GDP), resulted in the lowest financialmarketsborrowingcosts inadecade,withyieldson instruments like the 3-monthTreasurybill,commercial paper (CP) and certificates ofdeposit (CDs) tradingcloser to the lowerboundof thepolicyratecorridor inthesecondarymar-ket,” said the central bank in its “Report onTrend and Progress of Banking in India 2019-20”, released onDecember 29.

The report noted there were record corpo-rate bond issuances of ~4.4 trillion betweenApril and October 2020, compared to ~3.5 tril-lion in the same period in 2019. This period ofaccommodation is not expected to last. “Weanticipate the RBI will withdraw accommoda-tion and reduce liquidity in turn starting theprocess of rate normalisation. Unless we see ahuge fiscal consolidation or downwardgrowth/inflationshockratecuts looksunlikely…”saidaDecember18noteentitled“Hindsight

is20/20”,byAxisAssetManagementCompany.Itsaidthecentralbankwaslikelytohikerates

slowly to avoid endangering the current eco-nomic recovery. The rising rates are expectedcomeinduringthenext12-18months,accordingto the note. This may be a time for caution forinvestors in lower-ratedcompanies.

“…as a general principle, at the bottom of arate cycle it is prudent to demand higher com-pensation for deeper commitments of capital.While a steep yield curve is possibly providingthis for longer tenor commitments (at least atparticular points on the yield curve whereimpliedforwardratesarequiteattractive),cred-itspreadsonlowerratedassetsingeneralmaynolonger be doing so,” said a December 24 noteentitled“WhereTheLightIs:AYear inReview”,by Suyash Choudhary, head (fixed income),IDFCAssetManagementCompany.

Firms tilt towardsfixed-rate bondsfor borrowingMovecomesasinterestratesfallamidthepandemic

ADITI DIVEKARMumbai,4January

L&THydrocarbonEngineering,a wholly owned subsidiary ofLarsen & Toubro, on Mondaysaid it has won an order fromHPCL Rajasthan Refinery(HRRL)worthover~7,000crore,thebiggestEPCCcontractawa-rdedinthecountryintherefin-ery and petrochemical sector.

HRRL is a joint venturebetweenHindustanPetroleumCorporation (HPCL) and thegovernment of Rajasthan. TheEPCCcontractisforsettingupadual feed cracker unit (DFCU)fortheprojectatBarmer,Rajas-

than, said the company in arelease. “We are very delightedtobepartof thismegadevelop-mentproject inRajasthanandIwould like to thankHRRL andHPCL for having trust in ourcapabilitiestodeliversuchcom-plex process plants with highstandards ofHSEandQuality,”Subramanian Sarma, whole-time director and senior EVP(Energy) atL&Tsaid.

TheDFCUisusedtoconvertrefinery naphtha and offgasesto produce polymer-grade eth-ylene and propylene by theprocessof thermal cracking.

Theethyleneandpropyleneis used as feedstock for down-

stream polyethylene unit andpolypropyleneunit.Theprocessalso produces by-products likebutadiene, benzene, tolueneandgasoline.

The firm in a separate rele-asesaidithadwonanothercon-tract from the JVwith anordersize between ~2,500 crore and

~5,000 crore. The EPCC deal isfor setting up a petrochemicalfluidised catalytic cracking, in-cludingpropylenerecoveryunitfor the refinery project.The PF-CCwill convert the heavy hyd-rocarbonsfromthevacuumdis-tillation unit to produce morevaluable gasoline, diesel, pro-pylene and lighter products bycatalytic cracking.

“This is another packagethatLTHEhaswonfromHRRLamidstiffglobalcompetition.Itwillbeourendeavourto liveupto the trust reposed by HRRLand HPCL in our executioncapabilities and quality assur-ance,”Sarmasaid.

ISHITA AYAN DUTTKolkata,4January

Amid the noise around risingsteel prices, the rally contin-ued in the new year, withsome firms increasing pricesby ~1,000-2,400 a tonne andindicating more hikes in thecomingweeks.

Aprimaryproducersaidtheprices would be raised intranches this month and thetotal increasecouldbe~6,000atonne. “The first tranche isalready effective.We have inc-reased hot rolled coil prices by~1,500 a tonne and rebar byabout ~2,400 a tonne,” he said.

Jindal Steel & Power (JSPL)has increasedpricesby~1,000-1,500 a tonne. V R Sharma,managing director, said themarket was good, but priceswould stabilise if NMDC keptits iron ore prices at the samelevel.Thebuoyancyinthemar-ketwas reflected in JSPL’s pro-duction numbers released onMonday.Thecompanyrecord-ed its highest ever productionand sales in December; pro-duction increased 20 per centyear-on-year to 1.93 milliontonnesinQ3,whilesalesincrea-sed 12 per cent to 1.88 milliontonnes in the sameperiod.

Othermajorproducers, too,are expected to come outwitha good showing in the thirdquarter. Some companies,however, were waiting forNMDC’smoveonpricesbeforetakingacallonthequantumofincrease. “We will decide thisweek,” said a producer.

Since India entered the un-lockingphase,steelpriceshavebeenonacontinuousuptrend.

Sharmaexplainedthatthere

wasashortageof longproductsas secondary producers thataccountforabout40percentoftheproductionwerenotabletocome up to the right level ofproduction. “Theyareproduc-ing 30-31 per cent which isbeing made up for by the sixmajor producers,” he said.

The increase in prices,however,hascausedmuchdis-content among user indus-tries. Raw materials industry,

too, has raised thematter.About a week ago, the

Indian Steel Association (ISA)wrote to the Prime Minister’sOffice (PMO), explaining thereasonsbehindtheprice incre-ases undertaken by the indus-try. Primaryamong themwerethat international prices hadmovedfromabottomof$397atonne to $750 a tonne becauseof temporary shortage in glob-al supplies and a shortage ofiron ore, a key input material.

Theindustryalsohighlight-ed evacuation challenges withrespecttoironoreandsaidthatiron ore export competes withthe movement for domesticuse.TheISAhasurgedforasix-monthbanontheexportofironore till the situation stabilises.

Days after, the Federationof Indian Mineral Industries(FIMI) wrote to the PMO,countering ISA’s points. FIMIsaid that the ISA was obfus-cating the issue and justifyingthe unjustifiable increase insteel prices.

Theassociationalsopointedout that the Indiansteel indus-try fixes its products almost atparwithinternational levels;onthe contrary, Indian iron orepriceswerepricedmuch lowerthan international prices.

Steel companiesraisepricesbyupto~2,400atonne,morehikesexpected

L&TarmwinsbiggestEPCCcontractofover~7,000crore

ADITYA KALRA & RITSUKO ANDONewDelhi/Tokyo,4January

Japan’s beer maker KirinHoldings will invest $30mil-lion in New Delhi-based B9Beverages, the companiessaidonMonday, as it seeks tosecure a spot in India’s grow-ing craft beer market amidfalling salesathome.

The Japanese brewer willacquireastakeofunder10percentinB9,themakerofIndia’spopularcraftbeerBira,aKirinspokesmanandBiraCEOAn-kurJainsaid.Theydeclinedtogive financial details. B9 hadbeenintalkswithglobalbrew-ers, includingKirin,andotherinvestorstosellastakeofupto20percentinthefirm,Reutersreported inAugust.

The investment wouldallow Bira, which has postedlosses inrecentyearsandhasbeenhitby theCovid-19pan-demic, to break even in the2022 fiscal year which startsin April 2021, Jain said. “Thecompanies will be exploringbusinesssynergies,”Jainsaid,adding that the investmentwouldallowBiratoaccelerateplans to launch its productsinJapan later thisyear.

Jainaddedthatheexpectsthedealtobeclosedover“thenext fewdays”andtalkswereunderwaywith a view to sell-ingafurther10percentstakein Bira to financial investors.

An industry source withdirect knowledge of themat-ter saidKirinwould takea9.8per cent stake, with the seco-ndstakesaleexpectedtocon-clude by March. The sourcesaid the Indianbrewer is cur-rentlyvaluedat$300million.WhileBira, launched in 2015,is one of the smallest playersinIndia’sbroaderbeer indus-try,itscraftbeerofferingshavebecomeincreasinglypopularinrecentyears.Birasaysithasa 5-10 per cent share of thebeer market in cities such asNew Delhi, Mumbai andBengaluru. REUTERS

Japan’s Kirinto invest$30 mn inIndia’s craftbeer Bira

ON AN UPTREND| Rateshavebeen

ontherisesinceJuly2020inlinewithinternationalprices

| Globalpricesincreasedfrom$397atonneto$750atonne

| NMDCironorepricesincreasedfrom~1,960atonneinJuneto~4,610atonneinDecember

TAKING ADVANTAGEOF LOWER RATES

Note:Figures are for net outstanding amount raisedthrough corporate bondsSources: Sebi, depositories, BS calculations

IN THE BSE

UNDER THE PROVISIONS OF THE SECURITIZATION AND RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT OFSECURITY INTEREST ACT, 2002 (“the Act”) AND THE SECURITY INTEREST (ENFORCEMENT) RULES, 2002 (“the Rules”)

The undersigned being the Authorized Officer of Fullerton India Home Finance Company Limited (FIHFCL) under the Act and in exercise ofthe powers conferred under Section 13(12) of the Act read with Rule 3 issued Demand Notice(s) under Section 13(2) of the Act, calling upon thefollowing borrower(s) to repay the amount mentioned in the respective notice(s) within 60 days from the date of receipt of the said notice. Theundersigned reasonably believes that borrower(s) is / are avoiding the service of the Demand Notice(s), therefore the service of notice is beingeffected by affixation and publication as per Rules. The contents of Demand Notice(s) are extracted herein below :-

Name of the Borrower / Co-Borrowers Property Holders as the case may be Date of Demand NoticeU/s. 13(2) & Total O/s.Description of Secured

Assets / Mortgage PropertyLoan Account No. : 6018072100727741) Mr. Mangesh Mayekar C/o. Prodcon Tech Services Pvt. Ltd.,2) Megha Mohan VaradkarAdd. 1 : Vishwanath Yadav Chawl, Mahakali Shiv Shankar Ngr., Servics Rd., New AgariPada, Nr. Mitesh Medical, Santacruz (E), Mumbai-400055, Maharashtra. Add. 2 : 20/160,Anand Ngr., Vakola, Santacruz (E), Mumbai-400055, Maharashtra. Add. 3 : Flat No. B 209,2nd Flr., Shree Ganesh Apt., More Village, Nallasopara Virar Road, Nallasopara (East),Palghar-401203, Taluka : Vasai, Dist.: Palghar having its registered office at Vasai-2.

Date : 29.12.2020` 17,61,026.95

(Rs. Seventeen LakhSixty One ThousandTwenty Six and paisaNinty Five Only)

NPA Date :31.05.2019

Flat No. B 209, 2nd Floor,Shree Ganesh Apartment,More Village, NallasoparaVirar Road, Nallasopara(East), Ppalghar-401 203,Taluka Vasai, Dist. : Palgharhaving its RegisteredOffice at Vasai-2.

The borrower(s) are hereby advised to comply with the Demand Notice(s) and to pay the demand amount mentioned therein and hereinabovewithin 60 days from the date of this publication together with applicable interest, additional interest, bounce charges, cost and expenses till thedate of realization of payment. The borrower(s) may note that FIHFCL is a secured creditor and the loan facility availed by the Borrower(s) isa secured debt against the immovable property / properties being the secured asset(s) mortgaged by the borrower(s). In the event borrower(s)are failed to discharge their liabilities in full within the stipulated time, FIHFCL shall be entitled to exercise all the rights under section 13(4) ofthe Act to take possession of the secured assets(s) including but not limited to transfer the same by way of sale or by invoking any other remedyavailable under the Act and the Rules thereunder and realize payment. FIHFCL is also empowered to ATTACH AND / OR SEAL the securedassets(s) before enforcing the right to sale or transfer. Subsequent to the Sale of the secured assets(s), FIHFCL also has a right to initiateseparate legal proceedings to recover the balance dues, in case the value of the mortgaged properties is insufficient to cover the dues payableto the FIHFCL. This remedy is in addition and independent of all the other remedies available to FIHFCL under any other law.The attention of the borrower(s) is invited to Section 13(8) of the Act, in respect of time available, to redeem the secured assets and furtherto Section 13(13) of the Act, whereby the borrower(s) are restrained / prohibited from disposing of or dealing with the secured asset(s) ortransferring by way of sale, lease or otherwise (other than in the ordinary course of business) any of the secured asset(s), without prior writtenconsent of FIHFCL and non-compliance with the above is an offence punishable under Section 29 of the said Act. The copy of the DemandNotice is available with the undersigned and the borrower(s) may, if they so desire, can collect the same from the undersigned on any workingday during normal office hours.Place : Palghar Sd/-Date : 04.01.2021 Authorized Officer, Fullerton India Home Finance Company Limited

DEMAND NOTICE

FULLERTON INDIA HOME FINANCE COMPANY LIMITEDCorporate Office : Floor 5 & 6, B-Wing, Supreme IT Park, Supreme City, Powai, Mumbai-400076.Regd. Office : Megh Towers, Floor 3, Old No. 307, New No. 165, Poonamallee High Road, Maduravoyal,Chennai-600095.

NOTICE is hereby given to thepublic at large that my client name SmtMAHIMA SATYANARAYAN DUBEY isthe Owner of Flat no. 102, 1st Floor,Building know as Shree SiddhiVinayak Park, Pada no 4, LokmanyaNagar, Thane (W) 400 606 situateMajiwade, lying and being at SurveyNo 253, Hissa No 4, lying, being andsituated at Majiwade, Build up areaadmeasuring about 415 Sq.ft Village –Majiwade, Taluka & District- Thane,b e a r i n g S o c i e t y R e g . N o .TNA/TNA/HSG/TC/1353/2000 dated25-01-2000. The said Flat was in thename of Mr. RAJU BALLAPPA and hepurchased Flat from M/s ShreejeeEnterprises Through Agreement videan Agreement which is Registered inthe office of the Sub-Registrar Thanec i t y v i d e R e g i s t r a t i o nAcknowledgement No 2702/1996dated 11/04/1996. SATYANARAYANADYAPRASAD DUBEY hadpurchased Flat from Mr. RAJUBALLAPPA Through Agreement videan Agreement which is Registered inthe office of the Sub-Registrar Thanec i t y v i de documen t no . TNN-2/3000/2006 dated 19-04-2006.SATYANARAYAN ADYAPRASADDUBEY expired on 02-01-2018leav ing beh ind h im MAHIMASATYANARAYAN DUBEY (Wife) ash i s l e g a l h e i r . M A H I M ASATYANARAYAN DUBEY shall saleabove property to someone byagreement and the Share Certificate ofFlat No 102 bearing its MemberRegistration No 158, Shares from 791-795 are in the name of Smt MAHIMASATYANARAYAN DUBEY.

Registration agreement and Index2 which was registered between Mr.RAJU BALLAPPA & M/s ShreejeeEnterpr ises in Thane ci ty videRegistration Acknowledgement No2702/1996 AND 2) registrat iona g r e em e n t S ATYANARAYANADYAPRASAD DUBEY & Mr. RAJUBALLAPPA which was registered inthane city vide document no. Thane -2/3000/2006 has misplaced throughSmt MAHIMA SATYANARAYANDUBEY.For which Smt MAHIMASATYANARAYAN DUBEY. hadalready lodged a complaint atThanenagar police station videcomplaint no. 503/2019 dated 14thJune 2019.

If anyone finds the document orany person(s) having any claim inrespect of the above referred propertyor part thereof by way of sale,exchange, mortgage, charge, gift,maintenance, inheritance, possession,lease, tenancy, sub tenancy, lien,license, hypothecation, transfer of titleor beneficial interest under any trust,any gift deed, will, mortgage, or anytype of claim in respect of above saidproperty for claiming the title of theproperty, please file objection within 15days from the date of publication ofthis notice. For filing of objection inwriting, address is as below.

PUBLIC NOTICE

(Adv. Aditya H. Gade)High Court, Mumbai

A.G. Associates,401, Gajanan Commercial Complex

Above Global Business Centre,Near Cidco Bus Stop, Thane West – 400 601