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Thomson Reuters Announces New US$600 Million Share Repurchase Program and US$605 Million Return of Capital and Share Consolidation Transactions

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Return of Capital and Share Consolidation Transactions - Using Illustrative Share Consolidation Ratio

Up to US$600 million of shares to be repurchased pursuant to amended normal course issuer bid

US$605 million return of capital and share consolidation expected to be completed in May

TORONTO, Feb. 25, 2026 /PRNewswire/ — Thomson Reuters (TSX/Nasdaq: TRI) today announced that it plans to repurchase up to US$600 million of its common shares under an amended normal course issuer bid (NCIB) that has been approved by the Toronto Stock Exchange (TSX) and that it plans to return US$605 million to shareholders through a return of capital transaction.

Amended Normal Course Issuer Bid

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Shares will be repurchased for the new US$600 million repurchase program under an amended NCIB. The amended NCIB, which has been accepted by the TSX, will become effective on February 27, 2026. The amended NCIB will increase the maximum number of common shares that may be repurchased by an additional 6 million. Under the amended NCIB, up to 16 million common shares (representing approximately 3.55% of the company’s 450,687,724 issued and outstanding shares as of August 12, 2025) may be repurchased between August 19, 2025 (the Effective Date) and August 18, 2026. The NCIB, as originally approved in August 2025, contemplated the repurchase of up to 10 million common shares. To date under the current NCIB, Thomson Reuters has repurchased 6,022,437 common shares for a total cost of approximately US$1.0 billion, representing an average price of US$166.05 per share.

Under the amended NCIB, shares may be repurchased on the TSX, the Nasdaq Global Select Market (Nasdaq) and/or other exchanges and alternative trading systems or by such other means as may be permitted by the TSX and/or the Nasdaq or under applicable law. Based on the average daily trading volume on the TSX of 364,105 for the six months preceding the Effective Date (net of repurchases made by TR during that time period), daily purchases are limited to 91,026 common shares, other than block purchase exceptions. Any shares that are repurchased will be cancelled.

Prior to its next regularly scheduled quarterly blackout period, Thomson Reuters intends to enter into an automatic share purchase plan (ASPP) with its broker to allow for the purchase of shares under the NCIB during pre-determined times when the company would ordinarily not be permitted to purchase shares due to customary blackout periods or other regulatory restrictions. Purchases under the ASPP are made by the company’s broker based upon parameters set by Thomson Reuters when it is not in possession of material non-public information relating to the company or the shares. The ASPP will be entered into in accordance with the requirements of the TSX and applicable Canadian and U.S. securities laws, including Rule 10b5- 1 under the U.S. Exchange Act of 1934, and will terminate when the NCIB expires, unless terminated earlier in accordance with its terms. All purchases made under the ASPP are included in computing the number of shares purchased under the NCIB. Outside of pre-determined blackout periods, shares may be purchased under the NCIB based on management’s discretion, in compliance with TSX rules and applicable securities laws.

Decisions regarding any future share repurchases will depend on certain factors, such as market conditions, share price and other opportunities to invest capital for growth. Thomson Reuters may elect to suspend or discontinue share repurchases at any time, in accordance with applicable laws.

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Return of Capital

Thomson Reuters will return gross proceeds derived from the May 2024 sales of London Stock Exchange Group shares through a return of capital consisting of a special cash distribution of US$605 million in the aggregate, or approximately US$1.36 in cash per participating share (estimated based on the number of common shares issued and outstanding as of February 24, 2026 and assuming no shareholders opt-out of the return of capital transaction), followed by a share consolidation, or “reverse stock split”, which will reduce the number of common shares on a basis that is proportional to the special cash distribution. To that end, the share consolidation ratio will be based on the volume weighed average trading price of the common shares on the Nasdaq Stock Market LLC for the five trading days immediately prior to the transactions becoming effective.

Return of Capital and Share Consolidation Transactions - Using Illustrative Share Consolidation Ratio

The proposed return of capital is intended to distribute cash on a basis that is generally expected to be tax-free for Canadian tax purposes. Taxable non-Canadian resident shareholders (which include taxable U.S. resident shareholders and others) will be able to opt out of the return of capital. This right to opt out is being provided to those shareholders because in jurisdictions other than Canada the tax consequences of not participating in the return of capital may be preferable to those associated with participating in the return of capital. A taxable non-Canadian resident shareholder that chooses to opt out will not receive the special cash distribution and will continue to hold the same number of Thomson Reuters shares that they currently hold. Taxable non-Canadian resident shareholders are strongly urged to read the management proxy circular and other related materials carefully and to consult with their financial, tax and legal advisors prior to making any decision with respect to the return of capital and share consolidation transactions.

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Shareholders will be asked to approve the proposed return of capital and share consolidation transactions at a special meeting of shareholders of Thomson Reuters to be held on Tuesday, April 28, 2026 at 12:00 p.m. (Toronto time). The proposed transactions require approval by at least two-thirds of the votes cast at the shareholder meeting. The board of directors of the company is unanimously recommending that shareholders vote in favor. Woodbridge has indicated that it plans to do so and, accordingly, it is expected that the shareholder vote will pass. The proposed transactions also require the approval of the Ontario Superior Court of Justice (Commercial List). If shareholder and court approval are obtained, Thomson Reuters expects to effect the proposed transactions in early May.

Full details of the proposed return of capital and share consolidation transactions will be described in the company’s management proxy circular and other related materials. Those documents are expected to be mailed or otherwise distributed to shareholders, filed with applicable Canadian securities regulatory authorities and made available without charge on SEDAR+ at www.sedarplus.ca and made available without charge on EDGAR at www.sec.gov, and posted on the company’s website at tr.com, in mid-March.

Thomson Reuters
Thomson Reuters (TSX/Nasdaq: TRI) informs the way forward by bringing together the trusted content and technology that people and organizations need to make the right decisions. The company serves professionals across legal, tax, audit, accounting, compliance, government, and media. Its products combine highly specialized software and insights to empower professionals with the data, intelligence, and solutions needed to make informed decisions, and to help institutions in their pursuit of justice, truth and transparency. Reuters, part of Thomson Reuters, is a world leading provider of trusted journalism and news. For more information, visit tr.com.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

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Certain statements in this news release are forward-looking statements within the meaning of Canadian and U.S. securities laws, including statements relating to the company’s plans to repurchase up to US$600 million of its common shares; the timing for the approval and implementation of the return of capital and share consolidation transactions, and the filing of materials related thereto; and the anticipated tax treatment for shareholders participating in the return of capital and share consolidation transactions and those opting out of the return of capital. These forward-looking statements are based on certain assumptions and reflect our company’s current expectations. As a result, forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including other factors discussed in materials that Thomson Reuters from time to time files with, or furnishes to, the Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission. There is no assurance that the return of capital and share consolidation transactions will be completed or that other events described in any forward-looking statement will materialize. Except as may be required by applicable law, Thomson Reuters disclaims any obligation to update or revise any forward-looking statements.

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Neurodiverse workers could thrive in AI economy, says CareLineLive founder

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Neurodiverse workers could thrive in AI economy, says CareLineLive founder

Neurodiverse workers could hold a distinct advantage as artificial intelligence reshapes the modern workplace, according to a UK technology entrepreneur who says businesses are overlooking a critical talent pool at a pivotal moment of change.

Josh Hough, founder of home care software firm CareLineLive, has argued that traits commonly associated with neurodiversity, including heightened focus, pattern recognition and unconventional problem-solving, are becoming increasingly valuable as organisations accelerate their adoption of AI-driven systems and workflows.

Speaking during Neurodiversity Celebration Week, Hough said many employers remain too focused on traditional hiring frameworks, despite the growing need for adaptability and innovative thinking.

“A lot of businesses still want people who tick every box,” he said. “The reality is, people who think differently often solve problems differently.

“In a world where everything is changing quickly, that’s a real advantage. You need people who don’t just follow a process, but can see a better way of doing things.”

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His comments come as businesses across the UK and globally invest heavily in artificial intelligence to drive productivity, automate processes and unlock new growth opportunities. However, this shift is also redefining the types of skills and mindsets organisations require, placing a premium on cognitive diversity rather than uniformity.

Hough’s own approach to leadership and hiring has been shaped by personal experience. Born with a rare muscle-weakening condition that left him reliant on a wheelchair for much of his early life, he developed a mindset centred on adaptability and alternative problem-solving from a young age.

“When you grow up having to do things differently you don’t assume the standard way is the best way,” he said. “That carries through into business.”

Founded in 2014, CareLineLive has grown into a significant player in the digital care technology space, supporting more than 700 home care providers across multiple countries and used by over 25,000 carers. Its platform is designed to streamline operations across the care sector, from staff management and patient records to real-time communication between care providers, families and healthcare professionals.

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At a time when the care sector is under sustained pressure from staffing shortages, rising demand and regulatory complexity, Hough believes technology, combined with diverse thinking, is essential to improving efficiency and outcomes.

“One of the biggest challenges in care is how information flows between people and services,” he said. “Too often, information doesn’t move between people in the way it should. That creates risk and wastes time.

“Our focus has always been on making sure the right people have the right information at the right time.”

Beyond operational efficiency, Hough’s comments highlight a broader shift in how businesses should think about talent in the AI era. As automation takes over routine and process-driven tasks, the ability to think laterally, identify patterns and approach problems from new angles is becoming more strategically important.

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This has significant implications for recruitment, workplace culture and long-term competitiveness. Companies that continue to prioritise rigid skill checklists and conventional career paths risk missing out on individuals who may be better suited to navigating complexity and change.

Hough said the conversation around neurodiversity must evolve beyond compliance or risk management and instead focus on value creation.

“Not everyone is going to fit a traditional mould,” he said. “But that doesn’t mean they can’t be excellent at what they do.

“If anything, in the current environment, thinking differently is exactly what businesses need.”

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As AI adoption accelerates and the nature of work continues to shift, his message is clear: the future workforce will not just be defined by technical capability, but by diversity of thought, and those who recognise this early may gain a decisive edge.


Amy Ingham

Amy is a newly qualified journalist specialising in business journalism at Business Matters with responsibility for news content for what is now the UK’s largest print and online source of current business news.

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Malaysian E-Commerce Startup Borong Leads Asia-Pacific’s Fastest-Growing Companies Ranking

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Malaysian E-Commerce Startup Borong Leads Asia-Pacific's Fastest-Growing Companies Ranking

A Malaysian e-commerce technology platform has claimed the top spot in Asia-Pacific’s most closely watched corporate growth ranking, as the region’s startup ecosystem continues to defy a challenging global economic backdrop.

Key takeaways

  • Borong of Malaysia leads 500 Asia-Pacific high-growth companies with a staggering 295 per cent compound annual growth rate between 2021 and 2024.
  • Singapore and India top the ranking by volume with 101 companies each, while Chinese firms make their first-ever appearance in the index.
  • IT and software dominate for the fourth straight year at 21.4 per cent of the list, confirming technology as the region’s primary engine of corporate growth.

Borong, a business-to-business e-commerce platform headquartered in Kuala Lumpur, clinched first place in the Financial Times/Statista High-Growth Companies Asia-Pacific 2026 ranking, rising from second position the previous year. 

The company recorded revenues of $99.7 million, translating into a compound annual growth rate of 295 per cent over the three years to 2024, a figure that underscores the explosive appetite for digital commerce infrastructure across Southeast Asia.

The eighth edition of the annual ranking lists the 500 fastest-growing companies across the Asia-Pacific region, measured by organic revenue growth between 2021 and 2024. This year’s edition carries a notable milestone: Chinese companies appear in the ranking for the first time, expanding both the competitive field and the geographic scope of one of the region’s most prestigious business benchmarks.

South Korea Claims Two Podium Places

Borong’s ascent to the summit comes as South Korea cements its reputation as a breeding ground for high-growth technology ventures. Two Korean companies claimed the second and third positions respectively: Bznav, a tax software firm, and InPock, an e-commerce technology platform, reflecting Seoul’s growing influence in the digital services economy.

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India and Singapore Dominate by Volume

When measured by the number of entrants, Singapore and India each contributed 101 companies to the ranking, more than any other market, highlighting the twin engines of the region’s innovation ecosystem. Japan followed with 82 companies, and South Korea placed fourth with 79.

The breadth of representation signals a maturing startup culture across diverse economies, from the technology hubs of Bangalore and Singapore’s financial district to the manufacturing corridors of Japan.

Technology Retains Its Iron Grip

For the fourth consecutive year, IT and software companies dominated the sectoral composition of the list, accounting for 21.4 per cent of all ranked firms. Fintech, financial services and insurance followed at 9.6 per cent, while healthcare and life sciences took 5.6 per cent, a share that reflects sustained post-pandemic investment in medical technology and digital health.

The persistence of IT and software at the top of the table points to a structural shift in how Asia-Pacific economies are generating value: less through manufacturing and commodities, and increasingly through scalable, asset-light technology platforms.

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The Bar Is Rising

Entry into the ranking has become incrementally harder. The minimum compound annual growth rate required to qualify rose to 8.4 per cent this year, edging up from 8.1 per cent in the prior edition, a modest but telling signal that the pool of high-performing applicants is deepening.

The ranking is drawn from companies that voluntarily submitted and certified their revenue figures, signed off by a chief financial officer, chief executive or member of the executive committee, during an application window that ran from July to December 2025.

Methodology and Limitations

The ranking was compiled in partnership with Statista, which canvassed tens of thousands of companies across 14 Asia-Pacific territories, including Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, the Philippines, Singapore, South Korea, Taiwan, Thailand and Vietnam. Companies were required to have generated at least $100,000 in revenue in 2021 and at least $1 million by 2024, with growth driven primarily by organic means.

As with any voluntary ranking, the list does not claim to be exhaustive. Many of the region’s fastest-growing businesses remain privately held and decline to disclose financial data, meaning the true universe of high-growth companies is almost certainly larger than the 500 featured.

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A special report accompanying the ranking is scheduled for publication on April 10, spotlighting some of the fastest-growing sectors shaping the region’s economic future.

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Hints, Answers and Full Breakdown for Puzzle #1013 on March 20, 2026

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Nancy Guthrie

The New York Times’ popular word-association game Connections delivered another brain-teasing challenge on Friday, March 20, 2026, with Puzzle No. 1013 featuring a mix of everyday terms, cultural references and clever misdirections that tested players’ pattern recognition and lateral thinking.

The New York Times Connections
The New York Times Connections

Released at midnight Eastern time as part of the daily rotation on nytimes.com and the NYT Games app, today’s puzzle drew praise and frustration in equal measure from the online community for its balanced difficulty and thematic variety. Solvers had to group 16 seemingly unrelated words into four themed categories of four words each, with yellow as the easiest and purple as the trickiest.

The 16 words in today’s grid were: ALARM, CONCERN, RATTLE, SHAKE, BOARDWALK, CHANCE, LUXURY, PARKING, FATE, FURY, MUSE, SIREN, CARTON, NOODLE, ROLL, TIMER.

As with every Connections puzzle, the goal is to identify the common threads without using more than four mistakes. Players receive color-coded feedback: yellow for the simplest category, green next, then blue, and purple for the most obscure.

### Hints for Today’s Puzzle

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Before diving into the full answers — which contain spoilers — here are progressive hints to guide solvers who want to crack it on their own:

– **Yellow (easiest):** These words all relate to causing unease or disturbance, often in a physical or emotional sense.
– **Green:** Think classic board game real estate and random events — items you’d find listed on a familiar property-trading board.
– **Blue:** These evoke figures from ancient Greek stories, often tied to destiny, emotion, inspiration or allure.
– **Purple (hardest):** These complete the phrase “egg _____” — a common compound word or expression involving the word “egg.”

Many players reported starting with the yellow group, as words like “shake” and “rattle” immediately suggested agitation or fear. The purple category proved elusive for some, relying on idiomatic English phrases rather than literal meanings.

### Full Answers and Category Breakdown

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Here are the complete groupings for Connections #1013 on March 20, 2026:

**Yellow: Disturb**
ALARM, CONCERN, RATTLE, SHAKE

This category captured synonyms for causing worry, fear or physical vibration. “Shake” and “rattle” evoke both literal trembling and figurative unease, while “alarm” and “concern” lean emotional. Solvers noted this as the most straightforward, often solved first.

**Green: Words on a Monopoly Board**
BOARDWALK, CHANCE, LUXURY, PARKING

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A nod to the iconic Parker Brothers (now Hasbro) game, these are direct spaces or cards: Boardwalk (the priciest property), Chance (the card deck), Luxury Tax (a space), and Parking (Free Parking, the beloved rest spot). The category rewarded pop-culture knowledge of the classic American board game, with many players calling it a satisfying “aha” moment.

**Blue: Figure in Greek Myth**
FATE, FURY, MUSE, SIREN

Drawing from classical mythology, these represent archetypal beings: the Fates (who spin destiny), a Fury (vengeful deity), a Muse (inspirational goddess), and a Siren (seductive sea creature). The category highlighted how Connections often weaves in literary or historical references, challenging players beyond everyday vocabulary.

**Purple: Egg _____**
CARTON, NOODLE, ROLL, TIMER

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The trickiest group completed familiar phrases: egg carton (packaging), egg noodle (pasta type), egg roll (appetizer), and egg timer (kitchen tool). This required thinking in compound words or set expressions, a hallmark of purple categories that often stump even seasoned players.

### Player Reactions and Difficulty Assessment

On forums like Reddit’s r/NYTConnections, users shared mixed experiences. Many achieved perfect solves in under a minute once yellow and green clicked, while others lost attempts to misfires like grouping “shake” with “roll” or “siren” with “alarm.”

“This one felt fair but sneaky — the Monopoly group was a giveaway, but egg phrases took forever,” one commenter wrote. Another praised the Greek myth tie-in: “Loved the blue category; reminded me of high school classics.”

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Data from community trackers suggests average solve times hovered around 4-6 minutes, with a moderate mistake rate. The puzzle earned a difficulty rating of about 3.2 out of 5 from aggregate player votes, placing it in the middle range for recent entries.

### How Connections Works and Tips for Success

Created by the New York Times Games team and launched in 2023, Connections has grown into one of the most popular daily brain games alongside Wordle and the Mini Crossword. Players see a 4×4 grid of words and must submit groups of four that share a hidden connection. Correct groups vanish in their assigned color; four mistakes end the game.

Strategies include:
– Scan for obvious synonyms or themes first (yellow often falls quickly).
– Look for proper nouns, brands or cultural references.
– Consider multiple meanings — words can fit literal, slang or idiomatic senses.
– Avoid forcing groups; sometimes stepping away reveals connections.

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Today’s puzzle exemplified the game’s appeal: accessible yet layered, rewarding both quick pattern spotting and deeper cultural knowledge.

For those who missed it or want to compare, the official archive on nytimes.com allows replaying past puzzles (subscription required for full access). The next Connections drops at midnight ET on March 21.

As the game approaches its third anniversary, its daily ritual continues to unite word lovers worldwide in a shared moment of mental gymnastics.

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up to 20,000 roles at risk as bank accelerates AI strategy

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HSBC unveils a sweeping cost-cut plan targeting $1.5bn in savings, signalling thousands of job cuts mostly in the UK.

HSBC is weighing up plans to cut as many as 20,000 jobs globally over the next three to five years as it accelerates the use of artificial intelligence to streamline operations, in what could become one of the most significant workforce reductions in modern banking.

According to reports, the lender is exploring how AI can reduce reliance on back- and middle-office roles, with up to 10 per cent of its 210,000-strong global workforce potentially affected. While the bank declined to comment, the proposals align with a broader strategic push under chief executive Georges Elhedery to simplify processes and reduce operational complexity.

In the UK, where HSBC employs around 34,700 people, a proportional reduction could see approximately 3,500 roles impacted. The bank’s domestic footprint spans retail banking, corporate operations and asset management, alongside its London headquarters.

The potential cuts form part of a wider transformation agenda as HSBC seeks to embed generative AI across the organisation. Speaking earlier this year, Elhedery said the bank was rolling out AI tools to all employees, aiming to both improve productivity and enhance customer-facing services through more personalised interactions.

“We want to simplify processes, procedures and policies and reduce complexity,” he said at the time, while also highlighting the role of AI in equipping frontline staff.

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The review of headcount began before the recent escalation in the Middle East, underscoring that the move is driven by long-term structural change rather than short-term economic shocks. Since taking over in 2024, Elhedery has already reduced staffing through divestments and a sharper focus on HSBC’s core markets, particularly in Greater China.

A reduction on this scale would place HSBC at the forefront of an emerging trend across global finance, where automation is increasingly targeting traditional white-collar roles. Industry estimates suggest banks could eliminate up to 200,000 positions worldwide in the coming years as AI systems take over tasks such as compliance checks, document processing and client onboarding.

Recent announcements from other sectors reinforce the direction of travel. Amazon has outlined plans to cut 16,000 roles, while Hewlett-Packard expects to shed up to 6,000 jobs over three years, both citing efficiency gains from AI. In the UK, Close Brothers this week confirmed 600 job cuts as it deploys AI “at pace” to reduce costs.

For HSBC, the financial incentives are significant. The bank reported a wage bill of $19.6 billion last year, up 6 per cent, and is targeting $1.5 billion in annualised cost savings ahead of schedule. AI-driven efficiencies are expected to play a central role in achieving those targets.

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Pam Kaur, HSBC’s chief financial officer, recently emphasised the dual benefit of AI adoption, highlighting both revenue opportunities and cost reductions. “We are focused on the benefits we can get through AI, whether it’s on better productivity around the revenue line or just the cost benefit,” she said.

The shift also reflects a broader evolution in workforce strategy, with HSBC increasingly adopting a performance-led model in which top performers receive a larger share of bonuses, while underperformers are encouraged to exit.

However, the scale of potential job losses raises questions about the pace at which AI can deliver tangible financial returns. A widely cited study last year found that the vast majority of corporate AI initiatives had yet to materially improve profitability, suggesting that expectations may still be running ahead of reality.

Even so, sentiment among large corporates appears to have shifted. Businesses are now more willing to act on anticipated gains from automation, betting that AI can meaningfully reshape cost structures without undermining service quality.

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For HSBC, the outcome of its deliberations will be closely watched across the financial sector. If implemented, the cuts would not only mark a major restructuring for one of the world’s largest banks, but also signal a tipping point in how AI is transforming employment across global finance.


Jamie Young

Jamie Young

Jamie is Senior Reporter at Business Matters, bringing over a decade of experience in UK SME business reporting.
Jamie holds a degree in Business Administration and regularly participates in industry conferences and workshops.

When not reporting on the latest business developments, Jamie is passionate about mentoring up-and-coming journalists and entrepreneurs to inspire the next generation of business leaders.

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Nineteen-year-old Mexican man dies in ICE custody, agency says

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Nineteen-year-old Mexican man dies in ICE custody, agency says


Nineteen-year-old Mexican man dies in ICE custody, agency says

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Gold prices steady, head for deep weekly loss as Iran war dents rate cut bets

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Sweden’s Candela Raises Capital to Scale Its Electric Ferries Ahead of Potential IPO

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Sweden’s Candela Raises Capital to Scale Its Electric Ferries Ahead of Potential IPO

STOCKHOLM—A Swedish company is defying a downturn in green-technology funding by raising new capital as investors bet that its electric ferries can make a splash with public transport operators and commuters.

Stockholm-based Candela started out developing hydrofoiling electric leisure boats, but is now applying the technology and lessons learned from its speed boats to ferries.

Copyright ©2026 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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Here's How Markets Are Reacting After Hotter-Than-Expected PPI

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Caitlin McCabe hedcut

Here's How Markets Are Reacting After Hotter-Than-Expected PPI

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HDFC Bank’s shares take steepest single-day fall in 21 months

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HDFC Bank's shares take steepest single-day fall in 21 months
Mumbai: HDFC Bank, which accounts for nearly an eighth of the Nifty by weighting, slumped more than 5% at close Thursday in the stock’s steepest single-day drop in 21 months after non-executive chairman Atanu Chakraborty abruptly resigned, citing “practices… not in congruence with my personal values and ethics.”

Analysts said the exit, coupled with uncertainty surrounding the term renewal of the incumbent CEO, may keep the stock under pressure in near term despite mouthwatering valuations. CEO Sashidhar Jagdishan’s second term ends in October.

Screenshot 2026-03-20 060651Agencies

The stock ended 5.3% lower at ₹798.2, its weakest close since August 2024, erasing ₹69,026 crore in market value. It had fallen to ₹770 apiece at the start of the day. The Nifty 50 fell 3.3% to 23,002.15. HDFC Bank has the strongest influence on the index movement with an 11.83% weight.

Brokerage Macquarie said the stock may continue to underperform in the near term.

“While fundamentals remain strong with good ROA, at this point in time governance concerns will weigh down heavily on the stock,” the brokerage wrote. “Investors would want more comfort from the board. Also now the uncertainty surrounding Sashi’s reappointment will weigh down on the stock.”

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Macquarie has an ‘Outperform’ rating on the stock with a target price of ₹1,200.
Brokerage Bernstein noted that while the stock is already trading at or below Covid-era valuation levels, recovery from governance-related concerns will be neither quick nor easy. “Investors will likely wait to ensure that this doesn’t trigger any investigations from regulators that could take longer to conclude,” Bernstein said. The firm has a target price of ₹1,150. Technically, the stock may see some relief after sharp sell-off. HDFC Bank has dropped 24% over the past four months and has breached key support zones at ₹860 and ₹840.

“Momentum indicators are now in oversold territory, suggesting a potential pullback,” said Rohan Shah, technical analyst at Asit C Mehta Investment Intermediates. “But failure to sustain above ₹840 could renew selling pressure, with downside risk towards ₹750-730 over the coming weeks.”

He added that weakness in the broader Bank Nifty and the overall market could add to the drag.

At current valuations of about 1.7 times FY27 price-to-book, the stock offers an attractive entry point, said Sunny Agrawal, Head of Fundamental Research at SBI Securities. who has a target price of ₹1,100.

“The management clarified on Thursday that the resignation was solely due to personal relationship issues between chairman (non executive) and leadership team and does not impact the bank’s business performance or underlying values and ethics,” he said. “With RBI reaffirming the bank’s fundamentals and Keki Mistry returning to the board, we believe investor confidence should stabilise.”

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Encube Ethicals stake sale on hold, IPO likely by 2027

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Encube Ethicals stake sale on hold, IPO likely by 2027
Mumbai: Encube Ethicals has paused plans to sell a majority stake due to a valuation mismatch, said people familiar with the matter. Instead, the company is exploring the possibility of an initial public offering (IPO) by 2027, they said.

Global private equity firms including Warburg Pincus, EQT, and Partners Group had shown interest in acquiring the business at $1.5-1.6 billion (₹13,980-14,912 crore) valuation. However, this fell short of the $2 billion valuation sought by the promoters and existing investor Quadria Capital, said the people cited above.

“As the promoters plan an IPO in the next 12-18 months, Quadria Capital is likely to stay invested and partially exit through the public offering,” one of the persons said.

Promoter Mehul Shah and his family currently hold around 84.2% in the company, while Quadria owns 14.9%, with the remainder held by other investors and the ESOP pool. Quadria had acquired the stake in 2021 at a valuation of $800 million.

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Encube Ethicals Stake Sale on Hold, IPO Likely by 2027Agencies

Bidders’ valuation of $1.5-1.7 b failed to match the $2b sought by promoters, investors

A consortium led by Warburg Pincus and Abu Dhabi sovereign wealth fund Mubadala Investment Company had emerged as the frontrunner to buy up to a 74% stake in the company, ET reported last month.


Quadria had appointed JPMorgan to run the sale process.
Encube is a generics-focused pharmaceutical contract manufacturer known for brands such as Soframycin. Founded in 1998, Encube specialises in topical formulations and has built a strong portfolio spanning creams, gels, and ointments catering to dermatology and reproductive healthcare. In 2021, the company entered the consumer healthcare space by acquiring brands such as Soframycin, Sofradex, Sofracort, and Soframycin-Tulle from Sanofi for India and Sri Lanka in a deal worth around ₹125 crore.

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