Lotte Chemical Titan Holding Bhd shares fell to their lowest level since April 2020 on Thursday, with investors reacting to widening quarterly losses and an uncertain future. The company’s stock dropped by as much as 4.5 sen, or nearly 5%, to 91.5 sen , giving it a market capitalisation of RM2.13 billion . The petrochemical company faces challenges as product spreads remain under pressure due to a global supply glut , primarily from new capacity expansions in China . Analysts at TA Securities noted that Lotte Chemical is likely to stay in the red “over the next few quarters” and maintained a 'sell' rating on the stock. The company has reported quarterly losses since 2QFY2022 and is expected to continue to report losses through this year. Analysts estimate that Lotte Chemical may not return to profitability for another two years , according to Bloomberg consensus data. A significant challenge for Lotte Chemical is the squeeze in spreads between naphtha costs and polymer sel
Arohan Financial Services Ltd, a microfinance institution focused on providing loans to underserved women, is postponing its initial public offering (IPO) after Indian regulators ordered a group of shadow lenders to halt new loans. The Reserve Bank of India (RBI) took action earlier this month, citing concerns over high interest rates and non-compliance with rules related to borrower assessments.
Arohan, based in Kolkata, had planned to file for an IPO to raise US$200 million (RM872 million) but has now delayed those plans following the RBI’s directive. The shadow bank offers loans to groups of three to five women at 24.25% interest rates, with loan amounts ranging from 25,000 rupees (US$297) to 100,000 rupees, over a period of 24-30 months.
The RBI found that Arohan and three other shadow lenders—Asirvad Micro Finance Ltd, DMI Finance Pvt Ltd, and Navi Finserv Ltd—violated rules related to household income assessments and borrowers' ability to repay. Navi Finserv, backed by Flipkart co-founder Sachin Bansal, also canceled a proposed one billion rupee bond sale following the RBI’s order.
Arohan’s investors include Teachers Insurance and Annuity Association of America and Danish asset manager Maj Invest. The company had considered an IPO in the past but postponed it amid similar regulatory and market challenges. Arohan reported a net profit of US$37 million for the financial year ending March.
The RBI's crackdown comes amid increasing scrutiny of shadow banking and microfinance institutions, as these lenders often target financially vulnerable populations with high interest rates.
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