Wednesday, 14 March 2018

Otis Elevators - Elevators, escalators seen lifted by infrastructure

Elevator and escalator sales are expected to grow by 7% and 66% respectively this year due to increased demand from affordable housing and infrastructure projects including metros and airports, industry officials and analysts said.

Residential segment

The residential segment, especially affordable housing, is projected to drive growth in elevators. The residential segment accounts for more than 80% of the demand for elevators in the country.
“This year, the sales volume of elevators is expected to grow to 60,000 units, as compared to 56,000 units last year, up 7%,” said Uday Kulkarni, MD, Schindler India. “However, escalator volume is expected to rise sharply to 3,000 units as compared to 1,800 units last year, up 66%, mainly on account of demand from metros and railways.”
Lower GST on elevators for affordable housing at 8% will act as a catalyst, he said.
“Infrastructure development presents a great opportunity for growth with the government’s focus on development,” said Sebi Joseph, president, Otis Elevator Company India. “This commitment toward speeding up the pace of urbanisation by investing in metros, railways, and airports could provide immense growth.”
The industry is projected to grow by 50% in four years, according to the Madras Consultancy Group.
“The industry is projected to reach $175 billion by 2021,” Shankar Gopalkrishnan, President, Madras Consultancy Group, said at the recent International Elevator & Escalator Expo 2018. The market for elevators and escalators stood at $115 billion in 2017, he said.
Speaking at the same event Ramesh Nair, CEO & Country Head, JLL India said,“The major demand is expected to come from residential and new commercial concepts like co-working spaces.”
“By 2022, around 20 % of overall demand is expected from co-working spaces. For residential space there is a big opportunity going forward in terms of affordable housing with a demand of 10 million apartments per year,” he added.

Sandip Ginodia , Director 
ALTIUS INVESTECH PVT LTD | ABHISHEK SECURITIES

We deal in over 60 unlisted companies with 15 years of experience .
For latest prices visit : www.abhisheksecurities.com/unlisted.htm / call : 09830271248 .

Little to fear from LTCG-tax regime - Unlisted Securities

LTCG on unlisted equity shares continued to be taxed after providing for indexation. Accordingly, taxpayers are generally familiar with the LTCG regime including the mechanism for indexing the cost of acquisition w.r.t inflation. The new regime for LTCG proposed in the Finance Bill, 2018 has been designed in a similar manner. In fact, the computation of LTCG is now simpler since the cost of acquisition is not required to be indexed. This computation process does not involve any discretion on the part of the taxman. Moreover, all doubts have already been clarified by way of FAQs released by the CBDT as early as on February 4, 2018. More such FAQs can be released in due course, if the need arises. Thus, there is no reason to believe that the proposal will give rise to any kind of governance issues.

Image result for taxation on unlisted


Sandip Ginodia , Director 
ALTIUS INVESTECH PVT LTD | ABHISHEK SECURITIES

We deal in over 60 unlisted companies with 15 years of experience .
For latest prices visit : www.abhisheksecurities.com/unlisted.htm / call : 09830271248 .

Tuesday, 13 March 2018

Fairfax to acquire 51% stake in Catholic Syrian Bank

Prem Watsa-owned Fairfax Holdings Ltd will buy 51% stake in Catholic Syrian Bank, the Kerala-based lender said in a statement on Saturday. The deal, which sets the stage for the first ever takeover of a bank by a foreign institution, has been valued at Rs140 a share. That translates into a deal value of around Rs12,000 crore, according to Mint calculations.
The deal is subject to shareholder and regulatory approvals, the statement said. Fairfax will acquire the stake through a full equity infusion.
Image result for catholic syrian bank
A price of Rs140 a share is lower than what the bank had initially expected. The decision to renew deal prospects with Fairfax comes a year after the bank abandoned talks with the financial institution following differences over valuation.
According to a 31 May 2017 Mint report, CSB was expecting a valuation of Rs160 per share plus a control premium of 15%. This valuation was decided based on a benchmark set by a secondary market transaction which involved Enam group’s Vallabh Bhansali, picking up 4% stake in CSB for Rs165 per share. CSB’s book value at the end of March 2017 was Rs123.5 per share.
However, this was far higher than the valuation assigned by Fairfax, which arrived at its estimate after taking into consideration Catholic Syrian Bank’s performance.
Since then, the bank had been in talks with other private equity investors for a private placement and had also floated the idea of raising funds through a qualified institutional placement (QIP). According to a 22 January Times of India report, CSB was in talks with private equity investors like Aion Capital and Everstone Capital for a 30% stake sale.
However the talks fell through as the bank did not get a fair valuation from these investors, said a person who spoke on conditions of anonymity.
For the September quarter, CSB made a loss of Rs13 crore compared to a profit of Rs53 crore during the corresponding period last year. Its net bad loans stood at 6.75% of its loan books and it had a capital adequacy at 11.09%.

Sandip Ginodia , Director 
ALTIUS INVESTECH PVT LTD | ABHISHEK SECURITIES

We deal in over 60 unlisted companies with 15 years of experience .
For latest prices visit : www.abhisheksecurities.com/unlisted.htm / call : 09830271248 .