Heard on the Street: Big Broking player seen shutting shop soon
The market is agog with speculation that the institutional broking arm of a financial services group, which also has presence in the real estate sector, is shutting down.
By ET Bureau | Updated:
Big Broking player seen shutting shop soon
The market is agog with speculation that the institutional broking arm of a financial services group, which also has presence in the real estate sector, is shutting down. Top officials at rival firms said they have been interviewing employees of this brokerage in the past few weeks. While employees hunt for jobs at other brokerages, the firm is rumoured to have surprised officials with an increment. The talk of this group looking to exit its institutional broking business comes when margins of most brokerages in the segment have been squeezed because of intense competition.
Hotel Leela ventures takes a knock on equity eilution fears
Shares of Hotel Leela Venture fell 1.8% to .`39.00 as the company’s move to seek shareholders’ nod to garner .`1,000 crore raised concerns about sharp equity dilution. The company is raising money through share placements to institutions or foreign currency convertible bonds to retire debt that weighed down its consolidated net profit in 2010-11. Hotel Leela’s fourth quarter earnings, which were announced on Monday, matched analysts’ estimates. Brokers said investors’ reaction to the fundraising plans was ‘kneejerk’, as retiring high-cost debt will be key to the company’s future profitability. Analysts estimate Hotel Leela Venture’s debt in 2010-11 at .`3,800 crore, with debt to equity ratio rising to 1.8 times from 1.4.
Contributed by Nishanth Vasudevan
The market is agog with speculation that the institutional broking arm of a financial services group, which also has presence in the real estate sector, is shutting down. Top officials at rival firms said they have been interviewing employees of this brokerage in the past few weeks. While employees hunt for jobs at other brokerages, the firm is rumoured to have surprised officials with an increment. The talk of this group looking to exit its institutional broking business comes when margins of most brokerages in the segment have been squeezed because of intense competition.
Hotel Leela ventures takes a knock on equity eilution fears
Shares of Hotel Leela Venture fell 1.8% to .`39.00 as the company’s move to seek shareholders’ nod to garner .`1,000 crore raised concerns about sharp equity dilution. The company is raising money through share placements to institutions or foreign currency convertible bonds to retire debt that weighed down its consolidated net profit in 2010-11. Hotel Leela’s fourth quarter earnings, which were announced on Monday, matched analysts’ estimates. Brokers said investors’ reaction to the fundraising plans was ‘kneejerk’, as retiring high-cost debt will be key to the company’s future profitability. Analysts estimate Hotel Leela Venture’s debt in 2010-11 at .`3,800 crore, with debt to equity ratio rising to 1.8 times from 1.4.
Contributed by Nishanth Vasudevan
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