Odisha News, Odisha Latest news, Odisha Daily - OrissaPOST
  • Home
  • Trending
  • State
  • Metro
  • National
  • International
  • Business
  • Feature
  • Entertainment
  • Sports
  • More..
    • Odisha Special
    • Editorial
    • Opinion
    • Careers
    • Sci-Tech
    • Timeout
    • Horoscope
    • Today’s Pic
  • Video
  • Epaper
  • News in Odia
  • Home
  • Trending
  • State
  • Metro
  • National
  • International
  • Business
  • Feature
  • Entertainment
  • Sports
  • More..
    • Odisha Special
    • Editorial
    • Opinion
    • Careers
    • Sci-Tech
    • Timeout
    • Horoscope
    • Today’s Pic
  • Video
  • Epaper
  • News in Odia
No Result
View All Result
OrissaPOST - Odisha Latest news, English Daily -
No Result
View All Result

Beijing monitors share prices of Indian companies linked to Chinese businesses

PTI
Updated: March 17th, 2023, 14:30 IST
in Business
0
BSE, NSE, Sensex, Nifty, Stock market

Representational image

Share on FacebookShare on TwitterShare on WhatsAppShare on Linkedin

Singapore: China’s financial market regulators are monitoring the overvaluation of India-listed companies which have business dealings with Chinese-origin companies in Asia, following a recent dispute settlement of two firms from both countries, informed sources said Friday.

The sources cited a judgment by the Singapore International Commercial Court (SICC) this month, involving India’s Kiri Industries and DyStar Global Holdings (Singapore), a subsidiary of the world’s largest dye manufacturer from China.

Also Read

India-US trade

Trade pact negotiations with US making fast progress: Goyal

11 hours ago

India looks forward to boosting ties with Maldives, committed to support capacity building: PM Modi

14 hours ago

The Hong Kong-based sources pointed out that Kiri’s hope for a $603.8-million buyout of its stake by DyStar is looking dim.

The deal, as per the sources, is the buyout of Kiri’s 37.57 per cent interest in Dystar which was valued at $603.8 million.

China’s regulatory approvals for such a massive outflow of funds is unlikely, as regulators in Beijing are convinced that the Indian company’s stake is highly overpriced due to speculative play in share prices.

Hong Kong-based Senda International Capital, a Beijing-connected company, is likely to buy out Kiri’s stake in Dystar, according to the sources.

“Senda has no more than $65 million on its balance sheet,” said the sources.  “No bankers in their right mind would fund a $600-plus million deal by Senda without a corporate guarantee from its parent, Zhejiang Longsheng Group, a Shanghai-listed manufacturer and supplier of dye to more than a fifth of the world’s textile companies.

The sources said several banks approached on the buyout were not prepared to fund Senda’s acquisition of Kiri’s shares in the absence of a guarantee from Longsheng.

“And good luck on Longsheng getting approval to send that kind of money out of China in this kind of climate,” the sources said, pointing out that major banks were already evaluating all existing exposures amidst some banking and corporate failures.

In 2010, Senda provided much-needed funding to rescue Kiri’s earlier acquisition of Dystar, a manufacturer of dyes and specialty chemicals founded in 1995 by German multinationals Hoescht AG and Bayer Textile Dye.

The latter, sources said, is likely to baulk at the high valuation for Kiri’s stake, which effectively values Dystar at more than $1.6 billion.

“They probably can set up another Dystar at half that amount, doesn’t make sense for them to pay two times to get 37 per cent. Even if Longsheng is inclined to back the deal, getting the necessary approvals from the various regulators in China will be insurmountable.”

The sources added that even if all the obstacles are “miraculously” overcome, it could be months if not a year before any deal can be approved by all stakeholders after it is all scrutinised by the Chinese regulators.

Kiri’s share price on Mumbai’s National Stock Exchange rallied a week ago following news of the SICC’s judgement on the final valuation of its stake in Dystar.

However, a closer examination of Kiri’s historical share price suggests that its fortunes are closely pegged to its progress and outcome of the litigation, according to the sources.

This has raised concern in Beijing and China’s regulators are monitoring speculative plays in share prices of companies good for Chinese investments.

As it is, Beijing and New Delhi are vetting all acquisitions of corporate stakes on both sides, given that their corporate heavyweights are exploiting global markets, said the sources.

PTI

Tags: beijingBusinessChinaIndiaInvestmentSurveillance
ShareTweetSendShare
Suggest A Correction

Enter your email to get our daily news in your inbox.

 

OrissaPOST epaper Sunday POST OrissaPOST epaper

Click Here: Plastic Free Odisha

slide 2 to 4 of 30
#MyPaperBagChallenge

Mandakini Dakua

December 12, 2019
#MyPaperBagChallenge

Spinoj Pattnaik

December 12, 2019
#MyPaperBagChallenge

Ankita Balabantray

December 12, 2019
#MyPaperBagChallenge

Aishwarya Ranjan Mohanty

December 12, 2019
#MyPaperBagChallenge

Pragyan Priyambada

December 12, 2019
#MyPaperBagChallenge

Anasuya Sahoo

December 12, 2019
#MyPaperBagChallenge

Diptiranjan Biswal

December 12, 2019
#MyPaperBagChallenge

Faiza Firdous

December 12, 2019
#MyPaperBagChallenge

Adyasha Priyadarsani Sendha

December 12, 2019
#MyPaperBagChallenge

Manas Samanta

December 12, 2019
#MyPaperBagChallenge

Ramakanta Sahoo

December 12, 2019
#MyPaperBagChallenge

Anshuman Sahoo

December 12, 2019
#MyPaperBagChallenge

Aman Kumar Barisal

December 12, 2019
#MyPaperBagChallenge

Smitarani Sahoo

December 12, 2019
#MyPaperBagChallenge

Shreyanshu Bal

December 12, 2019
#MyPaperBagChallenge

Tabish Maaz

December 12, 2019
#MyPaperBagChallenge

Mrutyunjaya Behera

December 12, 2019
#MyPaperBagChallenge

Praptimayee Biswal

December 12, 2019
#MyPaperBagChallenge

Geetanjali Patro

December 12, 2019
#MyPaperBagChallenge

Ipsita

December 12, 2019
#MyPaperBagChallenge

Debasis Mohanty

December 12, 2019
#MyPaperBagChallenge

Sisirkumar Maharana

December 12, 2019
#MyPaperBagChallenge

Parbati Mohanty

December 12, 2019
#MyPaperBagChallenge

Sitakanta Mohanty

December 12, 2019
#MyPaperBagChallenge

Kamana Singh

December 12, 2019
#MyPaperBagChallenge

Pitabas Tripathy

December 12, 2019
#MyPaperBagChallenge

Surya Sidhant Rath

December 12, 2019
#MyPaperBagChallenge

Chinmay Kumar Routray

December 12, 2019
#MyPaperBagChallenge

Amritansh Mishra

December 12, 2019
#MyPaperBagChallenge

Tapaswini Mallick

December 12, 2019
#MyPaperBagChallenge

Mandakini Dakua

December 12, 2019
#MyPaperBagChallenge

Spinoj Pattnaik

December 12, 2019
#MyPaperBagChallenge

Ankita Balabantray

December 12, 2019
#MyPaperBagChallenge

Aishwarya Ranjan Mohanty

December 12, 2019

Archives

Select Month

    Editorial

    Honeytrap Alarm

    July 26, 2025

    If your password is still “1234” and you think a luxury hotel room is a safe space, you’re probably not...

    Read more

    Exit Mystery

    Jagdeep Dhankhar
    July 23, 2025

    A major controversy has erupted after the sudden resignation of Vice President Jagdeep Dhankhar, tendered hours after he had attended...

    Read more

    Voting At 16

    Ballot Box
    July 22, 2025

    It has long been held that when one is young, one tends to subscribe to pro-poor and people-oriented progressive politics,...

    Read more

    Water Bomb

    OPiate
    July 21, 2025

    On 19 July, China began constructing a $167.8 billion dam on the Brahmaputra River in Tibet, close to the Indian...

    Read more
    • Home
    • State
    • Metro
    • National
    • International
    • Business
    • Editorial
    • Opinion
    • Sports
    • About Us
    • Advertise
    • Contact Us
    • Jobs
    Developed By Ratna Technology

    © 2024 All rights Reserved by OrissaPOST

    • News in Odia
    • Orissa POST Epaper
    • Video
    • Home
    • Trending
    • Metro
    • State
    • Odisha Special
    • National
    • International
    • Sports
    • Business
    • Editorial
    • Entertainment
    • Horoscope
    • Careers
    • Feature
    • Today’s Pic
    • Opinion
    • Sci-Tech
    • About Us
    • Contact Us
    • Jobs

    © 2024 All rights Reserved by OrissaPOST

      • News in Odia
      • Orissa POST Epaper
      • Video
      • Home
      • Trending
      • Metro
      • State
      • Odisha Special
      • National
      • International
      • Sports
      • Business
      • Editorial
      • Entertainment
      • Horoscope
      • Careers
      • Feature
      • Today’s Pic
      • Opinion
      • Sci-Tech
      • About Us
      • Contact Us
      • Jobs

      © 2024 All rights Reserved by OrissaPOST