Morning buzz: RIL may sell 8-10 percent in Reliance Retail, RBI to keep a close eye on excess liquidity, and more

RIL is likely to sell another 8-10 percent of Reliance Retail Ventures over the next 12-15 months to retire debt, fund expansion and make way for the initial public offering (IPO). Image: Shutterstock

RIL may sell 8-10 percent in Reliance Retail

RIL is likely to sell another 8-10 percent of Reliance Retail Ventures over the next 12-15 months to retire debt, fund expansion and make way for the initial public offering (IPO).As per the latest deal by the Qatar Investment Authority, the company is valued at $100 billion. As per listing rules the promoters have to list a minimum of 25 percent and the market may not have the liquidity to absorb such a large IPO. Prior to the IPO, the company may divest more of Reliance Retail to meet the minimum listing rules.
(Economic Times)

RBI to keep a close eye on excess liquidity

The Reserve Bank of India (RBI) minutes showed that while it is willing to look past transitory inflation pressures, it plans to keep a close eye on the excess liquidity in the system on account of the withdrawal of Rs 2,000 notes. Lastly, the minutes hinted the central bank would not hesitate to hike rates if inflation expectations became entrenched.
(Economic Times, Business Standard)

Antfin to sell over 3 percent in Paytm

Antfin is likely to sell a 3.6 percent stake in Paytm. The stake is owned by its Netherland arm and is expected to take place at Rs 880, which is a 2.7 percent discount to the closing price of Rs 904 the previous day. Citigroup has been appointed banker and Antfin has said there will be no change in the management of Paytm.
(Business Standard)

Increased surveillance by Sebi soils microchip party

Despite an upward trending market, microchips as a basket have underperformed. Out of the nearly 1,750 stocks with a sub Rs 500-crore market cap, two-thirds have underperformed the small cap index. This comes after the Securities and Exchange Board of India (Sebi) introduced an enhanced surveillance mechanism for micro cap stocks in June. This mechanism includes putting 100 percent of the margin upfront when buying these stocks and taking compulsory delivery.
(Business Standard)