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Sunil Shankar Matkar
December 02, 2023 / 05:28 PM IST
Trailer axle and suspension assembly manufacturing company Kross has filed draft papers with the capital markets regulator to raise Rs 500 crore via an initial public offering.
The IPO is a mix of a fresh issuance of shares worth Rs 250 crore by the company and an offer-for-sale (OFS) of shares worth Rs 250 crore by promoters.
Promoters Sudhir Rai and Anita Rai will be selling shares worth Rs 168 crore and Rs 82 crore respectively in the OFS.
The Jharkhand-based forged and machined components maker may also consider fundraising of Rs 50 crore via pre-IPO placement. If the said pre-IPO placement is undertaken, the fresh issue size will be reduced to the extent of Rs 50 crore.
The firm will make use of net fresh issue proceeds for the purchase of machinery and equipment for Rs 70 crore and working capital requirements of Rs 30 crore. The repaying of debts amounting to Rs 90 crore will also be done by fresh issue proceeds, and the remainder funds will be kept aside for general corporate purposes.
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The Rai-family promoted company which caters to M&HCV and farm equipment segments, has reported healthy financial performance in the past years with the profit rising 154.2 percent on-year to Rs 30.93 crore for the year ended March FY23, driven by strong topline and operating numbers.
Revenue from operations grew by 64.3 percent year-on-year to Rs 488.6 crore during the past financial year. EBITDA (earnings before interest, tax, depreciation and amortisation) during the same period increased sharply by 95 percent to Rs 57.5 crore with a margin expansion of 184 bps at 11.77 percent for the year.
Profit in the first quarter of the current financial year (FY24) stood at Rs 8 crore on revenue of Rs 143.7 crore.
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Kross has long-standing relationships with several leading OEMs (original equipment manufacturers) including Ashok Leyland, and Tata International DLT.
Equirus Capital is appointed as the merchant banker for the issue.
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Reliance Industries Chairman Mukesh Ambani on Saturday expressed confidence about the Indian economy, saying that it will become a $40 trillion economy by 2047, from the current $3.5 trillion, reported PTI.
Ambani said that India, as the world's third-largest energy consumer, will also see its energy needs double by the end of this decade.
"And to fuel this growth, the country will need enormous amounts of energy - clean, green energy that won't choke mother nature for the sake of human progress," he said at the convocation of Pandit Deendayal Energy University (PDEU) in Gujarat's Gandhinagar. "In fact, India's energy requirement is set to double just by the end of this decade."
Ambani said that in the coming 25 years, India will witness an unprecedented explosion of economic growth and that it is a crucible to turn the vision of a clean, green, and sustainable tomorrow into reality.
"As India races to build a robust energy infrastructure to meet its energy goals, it faces three crucial questions: One: How can it ensure that every citizen and every economic activity in India has access to adequate, most affordable energy? Two: How can it rapidly transition from fossil fuel-based energy to Clean and Green Energy? Three: How can it de-risk the expanding needs of its fast-growing economy from a volatile external environment? I call these three questions the Energy Trilemma," he said, according to PTI.
Ambani, the nation's richest man, further added that energy transition has become the most critical factor in ensuring India's transformation into a global leader in green, sustainable and inclusive development.
Expressing confidence in India developing smart and sustainable solutions to address this trilemma, he said this would be possible because extremely talented young minds have vowed to fight the climate crisis.
"They will design breakthrough energy solutions to build not just a strong and Atmanirbhar India, but also a safer and healthier planet," he said. He further urged students to be fearless and never lose confidence in their own abilities and skills.
"Courage is the ship that can safely sail you across the stormiest seas. You will commit mistakes. But let that not worry or deter you. The one who succeeds in life is the one who corrects his mistakes and continues on his mission boldly," he said.
He further added: "I am what I am in life because of India, because of Bharat. Wherever your life takes you, contribute your utmost to the greatness and glory of India. And know that you are truly blessed to be young in today's India... an India that is today marching ahead so confidently that the 21st Century is indeed going to be India's Century."
Goods and Services Tax (GST) collections touched ₹1.68 trillion in November as festive demand lifted sales, but the figure was lower than October’s receipts of ₹1.72 trillion.
The healthy tax revenue collection comes at a time GST-related audits for the initial years of the indirect tax reform are under way at a hectic pace.
Monthly GST collection, which saw a record ₹1.87 trillion in April, has remained robust subsequently, with collections in six out of the eight months up to November remaining above ₹1.6 trillion. Monthly average GST receipts is now at ₹1.66 trillion, a notch above policy makers’ initial estimate of ₹1.65 trillion.
A finance ministry statement said that November GST revenue receipts showed a 15% improvement from the year-ago period, the fastest pace of growth the indirect tax has registered since its inception in 2017.
However, cumulative growth in the April to November period works out to 11.87%, which is closer to the nominal 10.5% economic growth rate projected for this year.
The GST remitted in November by businesses is for their sales in October. Experts explained that after businesses push out inventory ahead of the festive season, wholesale transactions would moderate a bit towards the end of the year. Bulk of the indirect tax collection happens at the wholesale level where margins are higher.
The ministry also said that revenue from domestic transactions and import of services rose 20% in November from a year ago.
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After settlement of taxes for inter-state sales, the Centre collected ₹68,297 crore and states collected ₹69,783 crore.
The healthy GST revenue in November was anticipated given that the generation of e-way bills needed for shipping goods within and across states had crossed the 100-million mark in October.
GST revenue receipts and e-way bills are taken as barometers for household consumption, the biggest growth driver for the economy, since these give an early indication of the trend.
Cooling consumer price inflation could help offset the impact of high interest rates in coming months in boosting consumption, while lowering input costs for businesses. In the September quarter of the current fiscal, household consumption has seen a 3% rise to ₹23.7 trillion, data released on Thursday by the statistics ministry showed.
Experts said that besides the festive demand, the emphasis on compliance, focussed recovery measures undertaken by the authorities, and the revamp of the tax regime for online gaming sector are also significant contributors to healthy GST revenue receipts.
“One expects that this buoyancy in tax collections will continue in the second half as well, with a large number of GST notices being issued to the assessees, and adjudication and recovery processes already underway," said Manish Mishra, partner and head of practice, indirect tax, at law firm JSA Advocates & Solicitors.
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Updated: 01 Dec 2023, 11:53 PM IST
Mumbai: The Reserve Bank of India on Friday signed an agreement with the Bank of England (BoE) on exchange of information for settlement of bond trades through Clearing Corporation of India Ltd (CCIL).
Under the new memorandum of understanding (MoU), the BoE will assess and recognize CCIL as a counterparty to clear and settle bonds and overnight indexed swap trades done by England-based banks and investors.
CCIL is the RBI-supervised central counterparty which hosts the trading platform for Indian government bonds and overnight indexed swaps.
The agreement states that “It is the mutual understanding of the RBI and the BoE that the cooperation arrangements specified under this MoU recognise the primacy of the RBI and its mandate in the supervision of Covered CCPs; they are also based on mutual respect for each jurisdiction’s current regulatory regime and each authority’s supervisory practices." CCP is short for clearing counterparty
In October 2022, the European Securities and Markets Authority (ESMA) had derecognized six Indian clearing houses, including the CCIL, after RBI refused to permit the overseas body the rights of inspection and audit over the domestic clearing house.
However, in June this year, the UK Treasury accorded equivalence to central counterparties authorized by RBI, the first such decision after Brexit. Subsequently, CCIL had filed a fresh application to BoE for recognition as a third-country central counterparty with effect from 31 January this year.
"Today’s agreement with Bank of England could set precedent for the ESMA-RBI standoff. UK had engaged in negotiations with the RBI before enacting a law on this matter. This MOU could set a backdrop for the negotiation between RBI and ESMA as they explore changes to the existing law," said a person aware of the matter.
UK-based banks like Standard Chartered Bank, Barclays and HSBC, with a significant presence in Indian bond and derivative markets, handle transactions worth billions of dollars. These banks are also custodians of foreign investment flows into India. Lack of access to the CCIL would severely curtail such trade.
Earlier this year, the French financial market regulator had also granted an 18-month extension to French banks after these lenders raised concerns over the termination of their membership towards the Indian CCPs following the ESMA order.
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Updated: 01 Dec 2023, 10:10 PM IST
New Delhi: Independent directors of Raymond Ltd on Friday said they were committed to protecting the interests of shareholders and employees amid a dispute between chairman and managing director Gautam Singhania and his wife Nawaz Modi.
They also announced the appointment of Berjis Desai, a senior independent legal counsel with no links to the promoters or the company, to advise on the developments.
In a filing with the exchanges, the independent directors said they would ensure that “the matrimonial disputes between the two promoter directors do not in any manner affect the capacity of the chairman & managing director to manage the affairs and business of the company".
This response follows concerns raised by proxy advisory firm Institutional Investor Advisory Services India Ltd (IiAS) amid the public spat between Singhania and his wife.
In an open letter to the independent directors, the proxy firm requested them to assuage the concerns of the investors and other stakeholders, probe the allegations against the promoters, and protect the company.
The independent directors clarified that “neither legal requirements nor corporate governance standards mandate them to investigate such matrimonial disputes".
Last month, Singhania had announced his separation from his partner of 32 years, Nawaz , a board member as well, through social media posts.
Subsequently, Nawaz demanded 75% of his $1.4 billion net worth for herself and her daughters as a settlement. She also alleged that Gautam has been using company funds for personal benefits.
Singhania, in an email to the board and staff, had ascertained that it is business as usual at Raymond. "Even in these difficult times for me, I assure you that at Raymond, it is business as usual. I am steadfast in creating and delivering value to all our shareholders and ensuring the interests of our employees, customers, and other stakeholders," he added.
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Updated: 01 Dec 2023, 09:07 PM IST
Finance Minister Nirmala Sitharaman The 2024 Interim budget is based on the robust framework of “Viksit Bharat by 2047.” Driving this gr...
