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Market Update

RBI Accelerates Debt Restructuring Plans, Adani to Raise $3.5 B

Author: Mukesh Buch
Last Update: 8:45 AM ET June 09 2015

6:00 PM Mumbai – Reserve Bank of India permitted banks to tighten grip on debt defaulters and force corporate restructuring. Adani Group plans to raise $3.5 billion through global bonds. HDFC plans to raise up to ₹5,000 crore through non-convertible debentures.

Stocks in Mumbai eased and banks were in focus after Reserve Bank of India encourages banks to convert troubled loans to equity holding.

Banking sector is struggling with mounting non-performing loans and corporations are looking to raise more capital to to drive capital investments and expansion.

The latest move by the central bank will tighten bank’s grip on loan defaulters and accelerate restructuring in industrial sectors that are heavily indebted.

Rupee strengthened 16 paisa to 63.92 against one U.S. dollar.

The Sensex Index decreased 41.84 to close at 26,481.25. The CNX Nifty fell 21.75 or 0.3% to 8,022.40.

Gainers & Losers

Adani Ports and Special Economic Zone Limited gained 1.4% to ₹306.60 after the port services provider reported that Adani Group plans to raise ₹25,000 crore or $3.5 billion through global bonds in the next couple of month.

Cipla Limited declined 3.4% to ₹593.50 after the pharmaceutical products maker’s France-based rival Mylan launched an asthma drug in the United Kingdom.

Housing Development Finance Corporation Ltd advanced 1.2% to ₹1,190.70 after the housing loan provider plans to raise up to ₹5,000 crore through non-convertible debenture offering.

KEC International Limited surged 16.8% to ₹125.65 after the power and telecom cables maker won new orders of ₹1,002 crore in its transmission & distribution, railways and cables businesses.

Rajesh Exports Limited jumped 4.1% to ₹237.50 after the gold and diamond jewellery maker secured an export order worth ₹1,302 crore from A1 Jameelat Jewellery, United Arab Emirate.

Vedanta Limited jumped 3.7% to ₹183.60 and the oil and gas explorer plans to merge with subsidiary Cairn India. Cairn India stock jumped 5%.

Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc