Invesco Oppenheimer, the largest shareholder in the broadcast company, wanted Goenka, MD and CEO, out of the board to improve the company’s corporate governance. Goenka instead has managed to clinch a deal with Sony that will not only allow him to stay for another five years, but also raise his family’s stake to 20 per cent from 4 per cent currently.
For Invesco, not getting Goenka out of the board will be worth accepting given that its pressure has finally forced the company’s board to do what it was supposed to do two years ago. Getting a strategic investor like Sony in will unlock value, which should eventually make all stakeholders involved happy as reflected in the stock’s 30.5 per cent bounce.
Realty stocks are the place to be
Evergrande may be in crisis, but Indian real estate companies are far from one. Godrej Properties’ announcement that it sold units worth Rs 575 crore on the first day of the opening of Phase 2 of its Godrej Woods in Noida sparked solid buying in realty stocks.
While Godrej Properties’ shares soared 13 per cent, those of DLF jumped 11.5 per cent. Overall, the Nifty Realty index spiked 8.5 per cent in one of the best days of returns for the index this year. The Indian real estate sector hasn’t had this feel good vibe since the heydays of 2007, and dare we say it might just be the best place to be in this market.
Metal stocks breathe easy
The metals pack can breathe easy as it looks China has decided to intervene so that Evergrande does not become a grand mess for the global economy. Fears of the real estate developers collapse and its second order effects on the Chinese economy had investors roiled this week as the Nifty Metal index sank 7 per cent on Monday.
