Dalal Street

The River Ganga is considered amongst the holiest rivers in the country with thousands of pilgrims thronging its banks to take a dip. However, the river today holds the infamous distinction of being the fifth most polluted river in the world. The narendra Modi led government has promised to clean up the river and wants to complete the same over the next decade by spending Rs510bn on setting up sewerage plants in 118 towns and villages.

Sewerage treatment opportunity to Clean Ganga
Daily sewerage being generated by 50 cities (more…)

Kotak Bank will offer 725 shares for every 1000 shares held in ING Vysya Bank. The swap ratio at current prices implies a valuation of Rs159 bn for ING Vysya Bank (2.1x Sept- 14 BV) and is 2.6% higher than its last closing price. The good part is that Kotak is using its expensive stock currency (4.3x trailing book) to buy an asset at 2xBV. However, lower RoE for ING Vysyawill deplete the RoE for the combined entity and Kotak will have to grow fast to improve RoE over time. The deal will result in 18% dilution for Kotak Bank at current prices.

Kotak Bank will induct one member from ING Vysya Bank on the board of the merged entity. Kotak Bank intends to keep one savings account interest (more…)