Business News Highlights: LIC Gets Rs 84 Crore Income Tax Penalty Notice, Insurer To File Appeal
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The Initial Public Offering (IPO) of Plaza Wires saw strong demand on the second day of subscription. The IPO garnered bids for 26,37,76,020 shares, which is approximately 27.78 times the total offering of 94,96,114 shares, reported PTI. The Retail Individual Investors (RIIs) category was particularly active and subscribed 118.24 times, while non-institutional investors subscribed 53.06 times, and the Qualified Institutional Buyers (QIBs) portion saw a 42 per cent subscription.
The IPO consists of a fresh issue of up to 1,32,00,158 equity shares, with a price range of Rs 51-54 per share. Plaza Wires is engaged in the manufacturing and sale of wires, aluminium cables, electric fans, water heaters, and other fast-moving electrical goods.
The Initial Public Offering (IPO) of Valiant Laboratories saw strong demand on the final day of bidding. The IPO garnered bids for 22,68,13,020 shares, which is nearly 29.75 times the total offering of 76,23,030 shares, reported PTI. The non-institutional investors category was subscribed 73.63 times, while qualified institutional buyers subscribed 20.83 times.
Retail individual investors also showed significant interest, with their portion being subscribed 16.05 times. Valiant Laboratories' IPO comprised a fresh issuance of up to 1.08 crore equity shares with a price range of Rs 133-140 per share.
Titagarh Rail Systems Ltd, (formerly Titagarh Wagons Ltd), has signed a contract worth Rs 857 crore with the Gujarat Metro Rail Corporation. This agreement pertains to the production of 72 standard gauge cars for the first phase of the Surat Metro Rail project, with a total order value of approximately Rs 857 crores. The project's execution is set to commence 76 weeks after contract signing and is expected to be completed within 132 weeks.
The Surat Metro Rail Project encompasses two corridors spanning 40.45 kilometers, featuring 38 stations and an estimated cost of Rs 12,020 crore. Titagarh Rail Systems has embarked on capacity expansion with a capital expenditure of around Rs 650 crore over the next few years, a substantial portion of which has already been invested and is yielding results, according to the company's senior management.
The Reserve Bank of India's core banking solution, e-Kuber, will be operational on March 31, 2024, despite it being a Sunday, the central bank said on Tuesday. Typically, e-Kuber remains non-operational on holidays like Republic Day (January 26), Independence Day (August 15), Gandhi Jayanti (October 2), all second and fourth Saturdays of every month, and Sundays.
The Controller General of Accounts, Government of India, has advised that in order to accurately record all government transactions related to receipts and payments in the fiscal year 2023-24, March 31, 2024, will be designated as a working day for such transactions. Transactions processed through integration with e-Kuber on March 31, 2024, will be included in the financial year 2023-24 for calculating the cash balance of the Government of India, according to an RBI notification issued on Tuesday.
Life Insurance Corporation (LIC) on Tuesday said that it has received an income tax notice with a penalty of Rs 84 crore from the Income Tax Department for the last three assessment years. LIC said it intends to contest this order and has decided to file an appeal. The penalty amounts to Rs 12.61 crore for the assessment year 2012-13, Rs 33.82 crore for 2018-19, and Rs 37.58 crore for the assessment year 2019-20, LIC said in a regulatory filing.
The penalty pertains to violations of sections 271(1)(c) and 270A of the Income Tax Act, 1961, and the notice was issued on September 29, 2023.
Abu Dhabi-based-International Holding Co (IHC) announced on Tuesday that its ownership stake in Adani Enterprises, the flagship company owned by billionaire Gautam Adani, has surpassed 5 per cent. This development comes after the Middle East-based investor decided to divest its stakes in two other companies within the group as part of a portfolio restructuring.
IHC had invested approximately $2 billion in three group companies: Adani Green Energy, Adani Energy Solutions, and Adani Enterprises. Last week, the investor entered into a definitive agreement to sell its stake in Adani Green Energy and Adani Energy Solutions. In both of these companies, IHC held stakes of more than 1 per cent.
The price of gold in New Delhi fell by Rs 650 to reach Rs 57,550 per 10 grams on Tuesday, following weak global trends, reported PTI citing HDFC Securities data. In the previous trading session, the precious metal closed at Rs 58,200 per 10 grams. Meanwhile, silver dropped by Rs 1,800, reaching Rs 71,500 per kilogram.
In the global markets, both gold and silver were trading lower, with gold at $1,825 per ounce and silver at $21.10 per ounce, the report said.
Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, told the news agency that Treasury bond yields have reached multi-decade highs due to the US Federal Reserve's recent communication indicating that interest rates would remain elevated for an extended period.
Real estate company DLF is poised to commence the construction of a new shopping mall in Gurugram, covering a vast 25 lakh square feet, in the current quarter said Vice Chairman and MD (Rental Business), Sriram Khattar in an interview with PTI. This expansion project is estimated to cost around Rs 1,700 crore and is in response to the rising demand for high-quality real estate space from retailers, the report said.
Currently, DLF boasts a retail footprint of approximately 42 lakh square feet, spread across nine properties, including malls and shopping centers, primarily in the Delhi-NCR region. Out of this, about 3.4 lakh square feet belong to DLF Ltd, while the remainder falls under the purview of DLF Cyber City Developers Ltd (DCCDL), a joint venture between DLF and the Singapore sovereign wealth fund GIC.
Khattar emphasised that the retail sector has shown a significant resurgence following the COVID-19 pandemic, with robust growth in foot traffic and sales in shopping malls.
JSW Infrastructure made a remarkable market debut, closing with a premium of over 32 per cent compared to its issue price of Rs 119. The stock debuted at Rs 143, marking a 20.16 per cent increase from the issue price on the BSE. It ultimately surged by 32.18 per cent to settle at Rs 157.30.
Similarly, on the NSE, it opened at Rs 143 and closed at Rs 157.30 per share, marking a 32.18 per cent increase. The company achieved a market valuation of Rs 33,033.02 crore.
Indian Oil Corporation (IOC) has set up plans to invest over Rs 2,600 crore in setting up several greenfield units and expanding its facilities across the northeast over the next few years, a senior company official said. The board of the oil marketing company has already approved several new projects, while some are in the process of getting the approval, with the leading energy firm in talks with the local governments in Meghalaya, Mizoram, and Manipur to finalise land parcels for the greenfield units.
IOC Executive Director (Indian Oil-AOD) Ganesan Ramesh told PTI, "Northeast is one of the most important regions for Indian Oil and much focus is given here by the top management. We have planned to augment our operations by enhancing refining as well as petroleum, oil and lubricant (POL) storage capacities."
Blue Dart Express Limited announced a hike in shipment prices on Tuesday, stating that the average hike will be 9.6 per cent in comparison to the current prices, based on the shipping profile. The new prices will be effective from January 1.
The rupee fell 15 paise to close at 83.21 (provisional) against the US dollar on Tuesday as weak domestic markets and a strong American currency weighed on investor sentiments. The domestic unit opened at 83.21 against the greenback on Tuesday and traded in the range of 83.23 to 83.17. It settled at 83.21 against the American currency, registering a fall of 15 paise from it's previous close on Friday.
The two key equity benchmarks, Sensex and Nifty, on Tuesday closed in the negative zone amid a gloomy global sentiment. The S&P BSE Sensex fell 316 points to settle at 65,512. On the other hand, the NSE Nifty50 closed at 19,529, down 110 points. The domestic indices were off their respective intraday lows of 65,345 and 19,480.
On the 30-share Sensex platform, Maruti, NTPC, Tata Motors, Sun Pharma, ICICI Bank, HDFC Bank emerged losers. On the flip side, Bajaj Finance, L&T, Titan, Bajaj Finserv, SBI, UltraCemco were among the gainers.
State-owned Power Finance Corporation (PFC) announced on Tuesday that it has allocated Rs 15,000 crore loans towards various projects and also ventured into funding airport projects. The company in a regulatory filing said, "As part of its diversification strategy and funding for infrastructure projects, PFC sanctioned its maiden financing for a greenfield airport project in Andhra Pradesh."
State-owned miner NMDC Ltd on Tuesday reported an increase in it’s iron ore production by 9.8 per cent at 3 million tonnes (MT) in September, up from 2.73 MT in the same period last year. The company in it’s regulatory filing noted that it’s sales also increased to 3.11 MT, against 2.91 MT on a year-on-year (YoY) basis.
State-run power company NTPC on Tuesday reported an 83 per cent increase in coal production in the April-September period of the current fiscal year, compared to the same period a year earlier. The power giant stated in it’s statement that it reached coal production of 16.05 million metric tonnes (MMT) during the first half of the current fiscal year (H1FY24), up from 8.76 MMT in the same period a year earlier.
India’s unemployment rate dropped to a record low of 7.09 per cent in September driven by the boost in economic activities in the festive season. The data, released by the Centre for Monitoring Indian Economy, noted that the unemployment rate in September dipped to a 12-month low. Urban unemployment levels also reported a sharp dip from 10.09 per cent in August to 8.94 per cent in September this year. The improved numbers indicated increased hiring at the field level to cater to the demand as Diwali nears. The data further noted that the rural unemployment rate also dipped to a record 12-month low of 6.20 per cent in September. This decline was credited to the surplus rainfall received in September.
JSW Infrastructure shares debuted in the stock market on Tuesday with a 20 per cent premium over the issue price. The stock started trading at Rs 143 per share in both the Bombay Stock Exchange and the National Stock Exchange, registering a premium over the issue price of Rs 119. The company's IPO closed last week on Wednesday and was subscribed 37.37 times.
India's manufacturing Purchasing Managers' Index (PMI) for September, compiled by S&P Global, dipped to 57.5, down from 58.6 in August. The country's factory activity expanded at the slowest pace in five months in September, but remained solid, with robust demand driving business confidence to it's highest level, the survey by the financial analytics company revealed.
The rupee fell 17 paise to 83.23 against the US dollar in early trade on Tuesday as investors remained cautious over a strong dollar and sustained foreign fund outflows. Forex traders noted that a weak trend in domestic equities also weighed on market sentiments. The domestic unit closed at 83.05 against the greenback on Friday.
The two key equity benchmarks, Sensex and Nifty, on Tuesday declined sharply in morning trade, tracking weakness in Asian markets. At 9.40 am, the BSE Sensex dropped 405 points to 65,422. On the other hand, the NSE Nifty50 was trading at 19,506, down 132 points.
On the 30-share Sensex platform, Maruti, JSW Steel, Tata Motors, SBI, Reliance, Tata Steel, ITC emerged losers. On the flip side, Asian Paints, HUL, UltraCemco, M&M, Axis Bank, Wipro were among early gainers. Among specific stocks, Eicher Motors sank 4 per cent as its September sales came 4 per cent lower on a monthly basis.
Bajaj Auto Ltd reported a decrease of 1 per cent in it’s total sales in September on a year-on-year (YoY) basis. The company in a regulatory filing noted that it sold 3,92,558 units last month compared to 3,94,747 units sold in the same period a year earlier. The automaker reported a fall of 6 per cent in it’s two-wheeler sales for September, which stood at 3,27,712 units, down from 3,48,355 units sold in the corresponding month a year earlier. However, the company reported a 40 per cent increase in it’s total commercial vehicle sales for last month at 64,846 units, up from 46,392 units sold in September last year.
Background
Business News Highlights: Hello and welcome to ABP Live's Business LIVE blog. Please follow this space for all the breaking news and latest updates from the Stock Market, economy, and the corporate world.
The domestic markets observed a holiday on the occasion of Gandhi Jayanti on Monday. The two key equity benchmarks, Sensex and Nifty, on Friday, closed higher following a fall in crude oil prices globally. The S&P BSE Sensex soared 320 points to end at 65,828. On the other hand, the NSE Nifty50 quoted 19,638, up 115 points. The domestic indices surged to 66,152 and 19,726 during intraday trading. On the 30-share Sensex platform, NTPC became the lead gainer, up 3.30 per cent. Tata Motors, Sun Pharma, Tata Steel, SBI, UltraCemco were among the other gainers. On the downside, HCL, PowerGrid, TechM, Infosys, Titan, Nestle emerged losers.
Meanwhile, the rupee appreciated 14 paise to settle at 83.05 (provisional) against the US dollar on Friday, boosted by a firm trend in equity markets and a sharp correction in the greenback against major rivals overseas. However, selling pressure from foreign equity investors and rising crude oil prices in international markets weighed on the domestic unit, forex traders said. The rupee opened strong at 83.13 against the US dollar and moved in the range of 83.03 to 83.13 against the greenback. It finally settled at 83.05 (provisional), registering a gain of 14 paise from its previous close. On Thursday, the rupee settled 3 paise higher at 83.19.
Here are some important factors that can impact the market on October 3.
India is scheduled to release it’s manufacturing PMI data for September on Tuesday, and experts believe that this will fall from 58.6 (a month ago). Additionally, the services PMI data for September is set to be announced on Thursday.
Further, investors will keenly observe the Reserve Bank of India’s bi-monthly Monetary Policy Committee (MPC) meeting from October 4-6 this week. Experts believe the banking regulator will maintain the status quo on policy rates for the fourth consecutive time, as retail inflation remains high and the US Federal Reserve has given a hawkish stance for the extended period.
Globally, the US will announce it’s JOLTs job openings and quit data on Tuesday, followed by it’s global services and manufacturing PMI data along with other economic indicators through the week. The Eurozone is scheduled to release it’s HCOB services and composite PMI data on Wednesday. Japan will also announce it’s bank services and composite PMI numbers for September along with other macro data in the week.
JSW Infrastructure is set to make it’s debut in the markets on Tuesday after it’s IPO last week received subscriptions more than 37 times.
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