IT solutions company Mastek has been in focus with the stock
moving up over 35 percent this week. The company is set to demerge its
insurance business into a new company — Majesco — that would focus on software
products.
In an interview to CNBC-TV18, Farid Kazani, Group CFO &
Director Finance, Mastek, said the company demerged its insurance business due
to different capital requirements.
“We do feel the valuations of insurance products business in
the US are significantly different and the restructuring has been done in such
a manner that the entire value chain of the insurance business comes under the
US subsidiary, MajescoMastek US,” he said.
Kazani said the company will need to make necessary products
investment in insurance business and there are plans to grow the business both
organically and inorganically. Mastek has been looking at small-ticket
acquisitions in the insurance products business in the US. The company has Rs
130 crore of cash on the books, which can be used for the purpose.
Kazani said the
company may raise marginal debt in insurance business in the US at lower rates.
Any fundraising in US won’t affect the India business, he said, adding that
nothing has been finalised yet on the acquisition front.
12:20pm IFCI in
News Malay Mukherjee, CEO & MD, Industrial Finance Corporation of India
(IFCI) said the company has received three bids for its 2.5 percent stake in
National Stock Exchange (NSE) and the stake sale is in the process of
evolution. He expects the process to be over by September 30.
He further added that government might hike its stake in
IFCI via the preferential share route. The government holds 55 percent of IFCI
equity and wants to support the company in a big way, he said.
Speaking about the company’s financials, he said IFCI has
not seen much slippage in this quarter and recoveries are on target. However,
credit growth seen in FY15 won’t be as good as anticipated earlier, he said.
12:10pm Market Expert
R Sreesankar, Head of Institutional Equities at Prabhudas
Lilladher feels that one shouldn't be surprised by the market’s upmove today
given its euphoric mood last week.
According to him, the
only fact that could have unnerved the bulls and speculative positions for some
time could have been that the bypoll election results were not as per market's
expectations, as they were not in favour of BJP. Secondly, the uncertainty of
Fed move. But now the elections news seems to have been digested and the Fed
uncertainity out of the way, so the optimistic view for the market would
continue.
12:00pm Equity benchmarks extended the rally in noon trade with the
Sensex reclaiming 27000 level supported by banks, oil & gas and capital
goods stocks. In fact the market recouped all its losses seen in first two days
of the week.
The Sensex jumped
362.56 points or 1.36 percent to 26993.85 and the Nifty spiked 104.55 points or
1.31 percent to 8080.05. More than three shares advanced for every share
declining on the BSE.
The broader markets
continued to outperform benchmarks with the BSE Midcap and Smallcap indices
rising 1.7 percent and 2.5 percent, respectively.
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