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The initial public offer (IPO) of state-owned General Insurance Corporation of India was subscribed 80 percent on the first day of the bidding today. GIC Re’s Rs 11,370-crore IPO received bids for 9,93,04,384 shares against the total issue size of 12,47,00,000 shares. The portion meant for QIB was subscribed 1.55 times, but non-institutional investor category received just 1 percent subscription and retail segment received 6 per cent bids, according to the NSE data. The reinsurance company has fixed the price band at Rs 855-912 for its IPO which closes on October 13. If fully subscribed at the upper end of the price band, this will be the largest public float by a domestic company after the October 2010 offer by Coal India which had raised Rs 15,000 crore. The issue comprises fresh issue of 1,72,00,000 shares by the Corporation and an offer for sale of 10,75,00,000 shares by the promoter. The company proposes to utilise the proceeds towards augmenting the capital base to support growt

India’s bonds slumped on Wednesday, sending yield sharply higher, after the Reserve Bank of India (RBI) cut the statutory liquidity ratio, or the amount of bonds banks must set aside with the central bank, by 50 bps to 19.50 percent from mid-October. The decision, announced at the same time the RBI kept the repo rate unchanged at 6.00 percent, is meant to spur banks into lending more, but it would mean increased supply at a time of ample liquidity. The RBI said it would reduce banks’ statutory liquidity ratio by 50 bps to 19.5 percent from the fortnight starting Oct. 14. The benchmark 10-year bond yield rose 8 basis points to 6.70 percent from levels before the SLR announcement. Meanwhile the rupee strengthened to 65.26 per dollar from around 65.34 before the decision, while the broader NSE Nifty gained 0.7 percent.

State-run hydro power giant NHPC today said its shareholders have approved the proposal to raise Rs 2,000 crore via issuance of non-convertible debentures on private placement basis. The special resolution to authorise board to raise Rs 2,000 crore via the secured/unsecured, redeemable, taxable/tax-free, cumulative/non-cumulative, non-convertible debentures/bonds, in one or more series/tranches, aggregating through private placement, in domestic market was passed by the requisite majority, NHPC stated in a BSE filing. Besides, the shareholders approved the proposal for final dividend at the rate of 1 per cent on the paid up equity share capital, that is 10 paise per equity share. The board in its meeting held on May 30, 2017 recommended “a final dividend at the rate of 1 per cent (Rs 0.10 per equity share) on the paid up equity share capital of the company for 2016-17, excluding interim dividend at the rate of 17 per cent (Rs 1.70 per equity share) paid in January, 2017.” The sharehol

India will decide its October-March government borrowing amount on Thursday, a finance ministry official said on Tuesday. The government has said it will borrow 3.72 trillion rupees ($56.92 billion) via bonds during April-September, comprising 64 percent of its full-year borrowing. However, market participants expect the government to borrow more than the estimated amount in the second half of the fiscal year ending March, given its plans for fiscal stimulus to boost the economy which will entail higher-than-budgeted spending.

Masala bonds or rupee-denominated bonds issued overseas would now be part of only external commercial borrowings and not be part of the overall limit of corporate bonds to allow about Rs 44,000 crore more funds under corporate debt. Essentially, this amount pertaining to such bonds would be separately allocated to the investors, and it would essentially increase the corporate bond investment limit for foreigners. The issuance of such bonds overseas will now be within the aggregate current limit of Rs 2.44 lakh crore (Rs 244,323 crore) for foreign investment in corporate debt. This includes issuance of the masala bonds by resident entities of Rs 44,001 crore (including pipeline), which will be released over the next two quarters — Rs 27,000 crore in the third quarter, and Rs 17,001 crore in the fourth quarter, RBI said. An amount of Rs 9,500 crore in each quarter will be available only for investment in infrastructure sector by long term FPIs — Sovereign Wealth Funds, Multilateral Agen

Mumbai: The rupee on Monday strengthened marginally against the US dollar, tracking gains in the Asian currencies market. The home currency opened at 64.07 a dollar. At 9.15am, the rupee was trading at 64.04 a dollar, up 0.06% from its Friday’s close of 64.08. On Friday, the Reserve Bank of India reported current account deficit (CAD) data that soared to a four-year high of $14.3 billion, or 2.4% of the gross domestic product (GDP), in the June quarter as gold imports picked up ahead of the implementation of the goods and services tax (GST). In the March quarter of 2016-17, CAD was 0.6% of the GDP at $3.4 billion. Bond yields hit a fresh 15-week high. The 10-year bond yield was at 6.607% compared to its previous close of 6.597%. Bond yields and prices move in opposite directions. The benchmark Sensex index rose 0.30% or 95.83 points to 32,368.44. So far this year, it has risen over 21.09%. So far this year, the rupee has gained 6%, while foreign institutional investors (FIIs) have bou

Kuala Lumpur/ Singapore/ Mumbai:  Asia’s highest-yielding bonds are holding on to their fans, with top investors saying they’ll keep buying Indian and Indonesian debt—even if policy makers don’t keep easing. Rupee- and rupiah-denominated bonds lured a record $29 billion of inflows this year, with central banks in India and Indonesia reducing key interest rates amid lacklustre inflation and subdued growth. While swaps traders don’t see India cutting again this year and economists are mixed on the rate outlook for both countries, firms like Mirae Asset Global Investments Co. and Schroder Investment Management Ltd remain bullish on debt that offers the highest yields in Asia. “In a stable global environment with the world’s four major central banks very cautiously removing post-crisis unorthodox monetary policies thanks to low inflation, investors will continue to look for yield,” said Rajeev De Mello, head of Asian fixed income at Schroder, which oversees $543 billion globally. Yields t