India's largest lender by market capitalisation, HDFC Bank Ltd, plans to raise up to Rs 50,000 crore ($7.19 billion) by issuing debt securities over the next 12 month. The bank proposes to issue perpetual debt instruments, tier II capital bonds and long-term bonds
The Competition Commission of India has cleared LIC's proposed acquisition of up to 51% stake in debt-laden IDBI Bank. Mergers and acquisitions beyond a certain threshold require the approval of the Competition Commission of India (CCI), which keeps a tab on unfair business practices across sectors. With the deal, the LIC would have access to around 2,000 branches of the bank through which it can sell its products. Last month, the LIC announced an open offer to buy 26% stake from remaining shareholders at a price of Rs 61.73.
The CBI carried out multi-city searches on Saturday at the premises of Bhushan Steel and Power Limited after registering a case of alleged cheating amounting to Rs 2,348 crore against the company. The searches were carried out at multiple locations, including the Delhi-NCR, Chandigarh and Kolkata at the office and residential premises of the company, its directors and promoters and their associates. The directors of the company allegedly diverted huge amount of bank funds using their companies and shell companies. The company also deliberately defaulted in repayment.
Three of the 10 most valued firms together added Rs 40,597 crore in market valuation last week, with TCS emerging as the biggest gainer. The market cap of TCS soared by Rs 19,155.92 crore to Rs 7,69,782.96 crore. TCS, HDFC and Infosys gained for the week ended Friday, while Reliance Industries (RIL), ITC, HUL, HDFC, SBI, ICICI Bank, Kotak Mahindra Bank suffered losses.
In March, foreign portfolio investors had pumped in a net Rs 45,981 crore into the capital markets (both equity and debt). However, for the 2018-19 fiscal, they were net sellers to the tune of Rs 44,500 crore. Overseas investors have pumped in a net sum of Rs 8,634 crore into the Indian capital markets during April 1-5.
Foreign investors, including promoter Vodafone group, are likely to invest around Rs 18,000 crore in the rights issue of Vodafone Idea. The company's Rs 25,000 crore rights issue will open on April 10. Any foreign funding above Rs 5,000 crore requires Cabinet approval. The Cabinet had on February 28 cleared the company's FDI proposal. While Vodafone Group's entire funding will be considered as foreign investment in the rights issue, Aditya Birla Group may also route funds from its foreign entities.
Kishore Biyani's Future Consumer plans to raise Rs 350 crore from existing investors – IFC, Verlinvest and promoters to fund expansion plans. IFC will invest Rs 210 crore while Verlinvest SA, a Belgium-based investment company, will invest Rs 70 crore through preferential allotment of compulsory convertible debentures (CCD). IFC holds about 3% stake and Verlinvest has 7% stake in Future Consumer. Existing promoter group will infuse another Rs 70 crore. The CCDs are convertible into equity shares of the company within 18 months from the date of allotment, at a conversion price Rs 45.02 per equity share.
GST officers have started seeking clarification from companies whose tax payments did not match with the e-way bills generated. Revenue authorities have started to reconcile invoices of e-way bills with the sales shown in sales returns under GSTR-1. The e-way bill system was rolled out on April 1, 2018, for moving goods worth over Rs 50,000 from one state to another. Tax officers have noticed that some transporters are doing multiple trips by generating only a single e-way bill or not reflecting e-way bill invoices while filing sales return.
The Income Tax Department has barred directors as well as those who have invested in unlisted companies from filing income tax return forms Sahaj and Sugam. The move is aimed to clamp down on shell companies and check routing of black money. According to the new tax return forms for AY 2019-20 notified by the I-T Department, the directors in both listed and unlisted companies will be required to file their returns in ITR-2 in which they will have to disclose details of Director Identification Number, Permanent Account Number and equity holding along with the names of the companies.
In an attempt to curb tax evasion, the government has launched a massive crackdown against purchases of goods from Chinese online platforms that were evading customs duty and GST. At present, Indian customs rule allows tax exemptions on gifts sent to relatives from Indians living abroad for up to Rs 5,000. The government has directed the post office and courier companies to check thoroughly shipments from China. Chinese etailers such as Club Factory, AliExpress and Shein were allegedly misusing the rules to take advantage of the exemption.
About six lessors are expected to apply to the Directorate General of Civil Aviation (DGCA) to de-register up to 15 planes that have already been grounded, over the next 10 days. Once de-registered, lessors can take the plane out of the country and lease them to other airlines. Avolon, one of the world's biggest aircraft lessors, on Thursday applied to the DGCA to take two of its planes placed with Jet outside of India, making it the first to pull planes out on a non-consensual basis.
The Income Tax department has notified I-T return forms for individuals and companies for the assessment year 2019-20. ITR-1 is filed by individuals having a total income of up to Rs 50 lakh, having income from salaries, one house property, other sources (like interest), and agricultural income up to Rs 5,000. ITR-2 is filed by Individuals and HUFs not having income from profits and gains of business or profession, while ITR-3 is filed by individuals and HUFs having income from profits and gains of business or profession.
Sugar major Balrampur Chini on Friday announced buyback of more than 84 lakh shares for Rs 148 crore. The buyback will be made at a price of Rs 175 per share. Promoters, who have around 40% stake in the company, would participate in the buyback offer.
Axis Bank has terminated more than 50 mid-level managers in a move to restructure its business and cuts cost under the new CEO Amitabh Chaudhry. The mid-level managers asked to quit were mostly executive vice-presidents and vice-presidents who led various supervisory functions in corporate and retail banking. These roles became redundant after the new CEO reviewed the business, and the lender could not find suitable jobs for them.
Lenders to Jet Airways will invite bids for a stake sale in the cash-strapped airline on Saturday April 6. However, if satisfactory bids are not received, lenders may explore initiating bankruptcy proceedings against Jet Airways. The bids have to be submitted by April 9.