BPCL, HPCL take 25% each in IOC’s LPG pipeline

Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL) will acquire 25% stake each in Indian Oil Corporation’s (IOC’s) LPG pipeline project connecting Kandla in Gujarat with Gorakhpur in UP, ensuring capacity utilisation of the Rs 9,000-crore project aimed at bulk availability of the clean cooking fuel in the heart of the country.

The three state-run companies signed an agreement on Monday for forming a joint venture company to implement the project, proposed in 2016 in anticipation of demand rising due to the Narendra Modi government’s move to rid rural India of smoky kitchens by providing LPG connection free of cost under the Ujjwala scheme.

The Ujjwala scheme has turned the country into the world’s second-largest importer of LPG after China since 2017-18 as demand jumped by 8% due to addition of over seven million poor households to the consumer base since the scheme’s launch in May 2016.

Since India is deficit in LPG and largely depends on its import, the proposed pipeline will ease transportation from the main import terminal and cater to a quarter of the population by feeding 22 bottling plants along its route.

The pipeline will wheel 6 million tonne of LPG from the Kandla import terminal and west coast refineries to the north via Ahmedabad in Gujarat, Ujjain, Bhopal in Madhya Pradesh, Kanpur, Allahabad, Varanasi, and Lucknow in UP.

This will be the country’s longest LPG pipeline. State-owned gas utility GAIL operates a 1,415-km pipeline from Jamnagar in Gujarat to Loni near Delhi, wheeling 2.5 million tonne of the fuel. GAIL also has a 623-km Vizag-Secunderabad pipeline.


Fastest growing economy? India to grow at 7.5% in FY20, says World Bank

India’s growth forecast is the brightest spot in a grim forecast for the world economy.

As Finance Minister Nirmala Sitharaman prepares her budget, the World Bank reports Indias economy grew by 7.2 per cent in 2018-19 in contrast to the recent Indian Central Statistical Office (CSO) estimate of only 6.8 per cent growth during the period.

The Bank’s Economic Prospects Report released on Tuesday forecast India’s economy to grow by 7.5 per cent during this and the next two fiscal years, retaining its top spot as the fastest growing major economy. It would be helped by a “more accommodative monetary policy” and low inflation, it said.

The report retained the forecasts it made in January for India.

India’s growth forecast is the brightest spot in a grim forecast for the world economy. The report said that the global growth rate was estimated at 3 per cent last year and is forecast to dip steeply to 2.6 per cent this year, before edging up to 2.7 per cent next year and 2.8 per cent in 2021.

India “is estimated to have grown 7.2 per cent in fiscal year 2018-19, which ended March 31”, the report said. “A slowdown in government consumption was offset by solid investment, which benefited from public infrastructure spending”.

The Bank said that the cut-off dates for data used in the report was May 23.

On May 31, the CSO said that India’s gross domestic product (GDP) growth during the 2018-19 fiscal stood at 6.8 per cent, lower than the previous year’s 7.2 per cent.

The CSO said the Indian economy grew by only 5.8 per cent in the fourth quarter. That dragged down the fiscal year’s growth rate.

Finance Secretary Subash Garg attributed the slowdown to “temporary factors like stress in non-banking financial company (NBFC) sector affecting consumption finance”.

The World Bank report said, “Growth in India is projected to accelerate to 7.5 percent in FY 2019-20.”

“Private consumption and investment will benefit from strengthening credit growth in an environment of more accommodative monetary policy, and with inflation below the Reserve Bank of India’s target”, it added.

Growth projections for India made by different organisations vary a lot. Last month, UN downgraded India’s growth rate for the current fiscal year to 7 per cent, a cut of 0.6 per cent from the projection made in January and reduced the forecast for the next fiscal year by 0.4 per cent to 7.1 per cent. It estimated last fiscal year’s growth rate to be 7.2 per cent.

In April, the IMF cut India’s growth projections for this year by 0.2 per cent from the 7.5 per cent made in January to 7.3 per cent. It projected next year’s growth at 7.5 per cent, though lower than the earlier 7.7 projection.

The Asian Development Bank said in April that India’s growth rate would be 7.2 per cent this year and 7.3 per cent next year.

China’s economy grew by 6.6 per cent last year and is forecast to grow by 6.2 per cent this year and further decelerate to 6.1 per cent next year and 6 per cent in 2021, the World Bank said.

Pakistan was estimated to have grown by 5.2 per cent last year, but is forecast to steeply decline to 3.4 per cent this year and 2.7 per cent next year, before recovering to 4 per cent in 2021, according to the report.

This despite “financial assistance from Gulf countries and China and an International Monetary Fund programme (that) have helped rebuild confidence”, it said.

Last year, the report said, Bangladesh recorded a growth rate of 7.9 per cent — the highest of all nations, regardless of size, although with a GDP of only about $250 billion, or less than a tenth of India’s, it is not considered a major economy. Bangladesh’s growth is forecast to fall to 7.3 per cent this year, the Bank reported. It is forecast to rise to 7.4 per cent next year and dip to 7.3 per cent in 2021.

Commenting on the global economic outlook, World Bank Group President David Malpass said, “Current economic momentum remains weak, while heightened debt levels and subdued investment growth in developing economies are holding countries back from achieving their potential. It’s urgent that countries make significant structural reforms that improve the business climate and attract investment”.

The Bank report added several notes of caution for India and the South Asia region. “Fiscal deficits continue to exceed official targets in India and Pakistan, and supply bottlenecks and business climate obstacles could hold back investment potential in the region,” it said.

“In addition, non-performing assets in the region remain high. A sharper-than expected deceleration of growth in major economies or an intensification of trade frictions could have spillover effects for the region,” the report added.

It is also an oil importer at risk from vagaries of the oil market.

Brexit also poses another risk to the region, it said: “A number of economies have preferential trade arrangements with the UK, and would be vulnerable to a turbulent UK exit from the European Union.”


Shyam Steel Industries files IPO papers, eyes to raise Rs 500 crore

Axis Capital, Edelweiss Financial Services, SBI Capital Markets and IIFL Holdings are the book running lead managers to the issue and Link Intime is the registrar

Shyam Steel Industries has filed draft papers with markets regulator Sebi for its initial public offering.

The IPO consists of fresh issue of up to Rs 200 crore and an offer for sale of up to 66.70 lakh shares, comprising up to 11.60 lakh shares by the promoter selling shareholders and up to 55.09 lakh shares by other selling shareholders, according to the Draft Red Herring Prospectus (DRHP).

Market sources said the IPO size is estimated to be around Rs 500 crore.

The Kolkata-based firm proposes to utilise the net proceeds from the IPO towards repayment/prepayment of certain borrowings of the company and its subsidiary Shyam Steel Manufacturing and for other general corporate purposes.

Axis Capital, Edelweiss Financial Services, SBI Capital Markets and IIFL Holdings are the book running lead managers to the issue and Link Intime is the registrar.

Shyam Steel Industries is a thermo mechanically treated rebar (TMT Rebar) player having integrated steel plants. The company operates all its steel manufacturing plants in West Bengal.


FPI inflows into equity markets till May 2019 is the best in six years

In the first five months (January – May) of the current calendar year 2019 (CY19), FPIs have invested a net of Rs 76,051 crore ($ 10.9 billion) into the Indian equities.

Foreign portfolio investor (FPI) flows to the equity market till May 2019 have been the best in the past six years. Till May 2019, FPIs have pumped in nearly $11 billion on expectation of more business-friendly measures and continuity in ongoing policies post the outcome of the general elections.

And their bet proved correct with the Narendra Modi – led National Democratic Alliance (NDA) winning the 2019 general election with a thumping majority. FPIs remained net buyers for the fourth straight month in May.

In the first five months (January – May) of the current calendar year 2019 (CY19), FPIs have invested a net of Rs 76,051 crore ($ 10.9 billion) into the Indian equities. During the same period of CY18, they were net sellers of Rs 1,599 crore. On Monday, June 3, 2019, FPIs turned net buyers of Rs 994 crore, taking their total net investments in equities to Rs 77,045 crore for CY19, as per data available with NSDL.

Mutual funds, on the other hand, have been cautious and have mostly been fence-sitters. On a YTD basis, their investment in equities totals Rs 3,027 crore, as compared to Rs 59,372 crore in the corresponding period in 2018.

The strong FPI inflow has taken the benchmark indices to their respective all-time high with the S&P BSE Sensex closing above the 40,000 mark for the first-time ever on Monday. Thus far in CY19, the S&P BSE Sensex and Nifty 50 index have rallied 12 per cent and 11 per cent, respectively.

“Market discourse was dominated by politics for the larger part of H1CY19, with apprehensions around potential fractured verdict. With the return of Mr Modi as Prime Minister with a bigger majority for the Bharatiya Janata Party (BJP) and near two-thirds majority for the NDA, those worries are more than adequately addressed. From market’s perspective, the focus should now shift to fundamentals and the economy,” said analysts at Motilal Oswal Securities in a recent report.

Though India will remain on foreign investor’s radar, the pace of flows seen over the last few months going ahead may slow, analysts say. Foreign investors, according to them, will now wait-and-watch how the economy takes shape in the backdrop of doubts over monsoon, interest rate trajectory and other global events such as the US – China trade war.

“FPIs have invested at a scorching pace since the past few months. It is in the anticipation of policy reforms they have come in a big way. I think they will wait for the Budget announcements and other policy measures before the flow to India resumes in a big way. That said, the market valuation, too, is also a cause for concern,” explains U R Bhat, managing director at Dalton Capital.

A silver lining amid this is the fall in oil prices over the past few weeks. In the midst of the global trade war, crude prices have seen a significant fall (down by over $10/barrel) and global interest rates have almost crashed (US 10-yr yields down by 60 basis points in last three months). Both these augur well for India on the external / fiscal / monetary front, analysts say. The backdrop is well set for the government to capitalise on these trends and drive the growth outlook higher.

Most foreign brokerages, too, remain bullish on Indian equities and have revised their targets for the S&P BSE Sensex / Nifty50 post the general election outcome. Morgan Stanley, for instance, expects the S&P BSE Sensex to hit 45,000 by June 2020 as their base case – up 12.5 per cent from the current levels. Their bull-case level for the index is 50,000 by June 2020. BNP Paribas, too, sees the S&P BSE Sensex at 42,000 by December 2019-end.


CCI imposes Rs 74 cr fine on Himalaya Drug, 3 others for anti-competitive trade practices

Both the drug associations and pharma companies responsible for mandating the requirement of obtaining NOC prior to the appointment

The Competition Commission of India has levied a total fine of over Rs 74 crore on pharma firms — Himalaya Drug Company and Intas Pharmaceuticals — along with its senior officials as well as two Madhya Pradesh-based drug groupings for indulging in anti-competitive trade practices. The two drug associations are Madhya Pradesh Chemists and Druggist Association (MPCDA) and Indore Chemists Association (ICA) as per an order by the Competition Commission of India (CCI).

The fair trade regulator held both the drug associations and pharma companies responsible for mandating the requirement of obtaining NOC (No Objection Certificate) prior to the appointment as stockists which resulted in limiting and controlling the supply of drugs and medicines in Madhya Pradesh.

The act of entities contravened Section 3 of the Competition Act which pertains to anti-competitive agreement,the regulator said in an order dated June 3.

Regarding Himalaya Drug and Intas Pharmaceuticals, CCI noted that “despite advising the pharmaceutical companies not to facilitate such practices of the associations and directing the companies to bring to the notice of the Commission any kind of anti-competitive conduct being forced upon them by the trade association(s), the pharmaceutical companies have failed to demonstrate such ability.”

As per the CCI order, Himalaya Drug was fined Rs 18.59 crore while its three senior officials were fined a total of nearly Rs 4 lakh. Besides, Intas Pharmaceuticals was levied a penalty of Rs 55.59 crore and its four officials were fined Rs 11.78 lakh in total.

Similarly, MPCDA was fined Rs 4.18 lakh and ICA Rs 39,812.

In the matter of associations, the CCI said it has been proscribing anti-competitive practices of state and regional chemists and druggist associations in mandating NOC for appointment of stockists.

However, “despite various orders of the Commission passed in other matters and advisories issued by the Commission, the anti-competitive conduct on the part of the associations and their office bearers has been unrelenting,” the regulator said while imposing fine on MPCDA and ICA.

The ruling came on a complaint filed by Madhya Pradesh Chemists and Distributors Federation (MPCDF) which was aggrieved by the fact that one of its member, Pharma Agencies, despite having valid license was denied supply of products because of insistence on obtaining NOC from the two associations before being appointed stockist by pharmaceutical companies.

MPCDF is affiliated to the All India Chemist and Distributors Federation which is a registered organisation of chemists and distributors in the state of Madhya Pradesh.


Dewan Housing Finance Corporation Ltd. (DHFL)
Housing Finance
FV – Rs 10; 52wks H/L – 690/97; TTQ – 16.44 Lacs; CMP – Rs 111.60 (As On June 5th, 2019);                      
Market Cap – Rs 3502.26 Crs


Consolidated Financials and Valuations (Amt in Rs Crs unless specified)

Equity Capital

Net worth
Long Term Debt

 EPS (Rs)


Industry P/E


FY18 314 8556 70482 10529 1166 272.5 37.1 3.0 24.9 0.4 39.0 2.37
FY19 314 10715 45458 9936 1187 341.2 37.8 2.95 24.9 0.3 39.2 2.37



 Mr. Kapil Wadhawan: Chairman and MD

Mr. Harshil Mehta: Joint MD and CEO



  • Dewan Housing Finance Corporation Ltd.(DHFL) is a deposit-taking housing finance company, headquartered in Mumbai with branches in major cities across India.
  • For over three decades, DHFL has been providing easy access to affordable Housing Finance to realise home-ownership aspirations of millions of Lower and Middle income families in semi-urban and rural India.


Consolidated Financial Trends

  FY19 (Q3) FY 18 FY17 FY16 FY15 FY14 FY13 FY12
Equity Paid Up 314 314 313 292 146 128 128 117
Networth 10715 8556 7731 5390 4636 3575 3237 2033
Total Debt 45458 79296 71268 51556 40526 33890 876 934
Net Sales 9921 10515 8907 7324 5979 4968 4123 2468
Other Income 15 14 6 5.1 2.7 2.1 18 2
PAT 1187 1166 2806 749 621 529 452 306
Book Value (Rs) 341.2 272.5 247.0 184.6 317.5 279.3 252.9 173.8
EPS (Rs) 37.8 37.1 89.6 25.7 42.5 41.3 35.3 26.2


News and Notifications

On 6th June, 2019 Dewan Housing Finance Corporation Ltd. shares fell 15 percent intraday to hit five-and-half-year low on June 6 as rating agencies downgraded the rating on the commercial papers after the company defaulted on debt repayment.

The stock dropped into double-digit levels for the first time since February 4, 2019 and hit an intraday low of Rs 94.90, the lowest level since December 2013.

It has lost 86 percent of its value from the record high of Rs 690 touched on September 3, 2018. It was quoting at Rs 98.65, down Rs 12.95, or 11.60 percent on the BSE, at 9:30 Am.

Domestic rating agencies ICRA and Crisil, on June 6, downgraded the rating on Rs 850 crore worth of commercial paper of DHFL to ‘default’ from ‘A4’ due to the mortgage lender’s deteriorating liquidity condition.

Dewan Housing Finance (DHFL) had missed Tuesday’s interest payment deadline on a set of outstanding bonds, but the embattled company was in talks with financiers to help meet its Rs 1,000-crore-plus obligation within the seven-day grace period and prevent a default.

Multiple market sources stated that UTI Mutual Fund and some private sector lenders, including Axis Bank and IndusInd Bank, were among the investors that bought DHFL debt sold last year. Some individual investors are also said to have invested in these.

DHFL has been facing a cash crunch since September, when IL&FS defaulted on its payment obligations. The home financier has so far taken a two-pronged approach to raise money.

While it has been in talks with international private equity players to sell the promoter stake strategically, it has also been selling down loan portfolios.

Since the NBFC liquidity crisis began in September, DHFL has sold retail loans worth about Rs 30,000 crore via securitisation. In this period, the home financier has paid about Rs 40,000 crore of financial obligations.


  1. https://www.moneycontrol.com/news/business/markets/dhfl-icra-crisil-downgrade-default-4067641.html
  2. https://www.news18.com/news/business/dhfl-shares-crack-18-to-hit-over-5-year-low-after-crisil-icra-downgrade-ratings-2174315.html
  3. https://economictimes.indiatimes.com/markets/stocks/news/dhfl-fails-to-pay-rs-1000-crore-interest-on-bonds/videoshow/69661490.cms
  4. https://economictimes.indiatimes.com/markets/expert-view/not-prudent-to-exit-dhfl-now-kaustubh-belapurkar-morningstar/articleshow/69671265.cms


 Major Non-Promoter Holdings

Non – Promoters No. of Shares held % shares held
 Bnp Paribus Arbitrage 7393538 2.36
East Bridge Capital Master Fund Ltd 4392737 1.40
Government Pension Fund Global 3750041 1.19