In recent news, several prominent companies across various sectors have made significant strides in their respective industries. This article will provide an overview of top stocks and developments related to Maruti Suzuki, Bank of Baroda, Delta Corp, ITC, Adani Enterprises, Larsen & Toubro (L&T), Happiest Minds, Dish TV, Multi Commodity Exchange (MCX), and Kalpataru Projects International.
Maruti Suzuki/M&M/Tata Motors: New SUV Definition for Taxation Clarity
Experts in the automotive industry have welcomed the tweak in the definition of sport utility vehicles (SUVs) for attracting additional cess over and above the Goods and Services Tax (GST) rate. The new definition, decided by the GST Council, includes specific parameters such as length, engine capacity, and ground clearance. This revision will provide more clarity on the taxation structure for utility vehicles, ensuring a precise entry point and leaving little room for interpretation. The revised definition aims to streamline the taxation process and address any ambiguity related to ground clearance.
Bank of Baroda: Denial of Allegations Regarding Mobile Banking App
Bank of Baroda, India’s second-largest state-owned lender, has refuted allegations made by Al Jazeera concerning the unauthorized use of phone numbers to inflate registrations on its mobile banking app, Bob World. The bank categorically denied that its officials linked bank accounts to unrelated mobile numbers for the purpose of achieving onboarding targets. The bank has initiated a discreet inquiry into the matter and has requested recommendations on the withdrawal of any mobile numbers found to be involved.
Delta Corp/Nazara Tech: Uniform GST Rate on Online Gaming, Horse Racing, and Casinos
The GST Council has levied a uniform 28% GST rate on online gaming, horse racing, and casinos, applicable to the full value of the bets. After extensive consultations, the council recommended amendments to the law, specifying the 28% tax rate for these categories based on their full face value. This move aims to simplify taxation and bring uniformity to the tax structure across the online gaming, horse racing, and casino sectors.
ITC: Reappointment of Sanjiv Puri as Chairman and Managing Director
ITC Ltd’s board has recommended the reappointment of Sanjiv Puri as Chairman and Managing Director for an additional five-year term, effective from July 22, 2024. The resolution for Puri’s reappointment will be proposed during the company’s 112th annual general meeting in August. This decision reflects the board’s confidence in Puri’s leadership and strategic vision for the company.
Adani Enterprises: Successful Allotment of Non-Convertible Debentures
Adani Enterprises announced that it has raised ₹1,250 crore through the allotment of non-convertible debentures (NCDs). This fundraise was completed on a private placement basis. The company issued 125,000 secured, unrated, unlisted, redeemable NCDs with a face value of ₹1,00,000/- each. The successful allotment of NCDs will further strengthen Adani Enterprises’ financial position and support its growth plans.
L&T: Master Shipyard Repair Agreement with the US Navy
Larsen & Toubro (L&T) has signed the Master Shipyard Repair Agreement (MSRA) with the US Navy, enhancing the partnership between the two countries in the defense sector. L&T’s Kattupalli Shipyard, located near Chennai, has been undertaking voyage repairs of Military Sealift Command vessels. The shipyard’s qualification for the MSRA follows an extensive assessment by the US Navy and the Military Sealift Command, highlighting the capabilities and quality standards of L&T.
Happiest Minds: Rs 400 Crore Qualified Institutional Placement (QIP)
Happiest Minds Technologies Ltd, an IT services business, has launched a ₹400 crore Qualified Institutional Placement (QIP). The company has also allowed for a ₹100 crore allotment for oversubscription, potentially increasing the total deal size to over ₹500 crore. Axis Capital and ICICI Securities are managing the QIP, which will provide Happiest Minds with additional capital for expansion and investment in its growth initiatives.
Dish TV: Minority Investors Demand Probe into Fund Diversion
A group of minority investors of Dish TV India Ltd has demanded a probe into the alleged diversion of funds by Zee Entertainment Enterprises Ltd (ZEE) from a unit of the satellite TV provider. The investors expressed their disappointment in the two directors’ performance and their failure to ensure strong corporate governance standards. This demand for a probe highlights the importance of transparency and accountability in corporate operations.
MCX/63 Moons Technologies: Migration to TCS Trading and Clearing Platform
MCX, a commodity derivatives exchange backed by Kotak Mahindra Bank, plans to migrate to Tata Consultancy Services’ (TCS) trading and clearing platform. This move is prompted by the significant cost escalation faced by MCX. The migration is expected to occur before the contract with the current tech vendor, 63 Moons Technologies, expires in December. MCX will be required to pay 63 Moons the entire contracted amount of ₹250 crore for the extension of its services.
Kalpataru Projects International: Acquisition of Fasttel Engenharia
Kalpataru Projects International’s subsidiary, Kalpataru Power Do Brasil Participações Ltda. (KPBPL), has completed the acquisition of a 100% equity stake in Fasttel Engenharia S.A., Brazil. In 2021, KPBPL had acquired a 51% stake in Fasttel along with management control. With the recent acquisition of the remaining 49% equity stake, Fasttel has now become a wholly-owned subsidiary of KPBPL. This acquisition strengthens Kalpataru Projects International’s presence in Brazil and further enhances its capabilities in the engineering sector.
