Corporate Announcement

The Central Board of Direct Taxes on Tuesday said the new service tax of 14 per cent would be applicable from June 1. The notification comes after the passage of the finance Bill earlier this month. The Budget had announced an increase in service tax from 12.36 per cent to 14 per cent for 2015-16. It had also announced widening of the definition of service tax.

The government has proposed exempting interest earned on gold deposits from income tax, wealth tax or capital gains tax. It is examining the option of allowing banks to use gold deposited under the monetisation scheme announced in the Budget as a part of their cash reserve and statutory liquidity.

The finance ministry's department of disinvestment has a pipeline of PSUs in which it plans to sell stake this financial year, as well as the next two. Government sources have told Business Standard the Cabinet Committee on Economic Affairs (CCEA), led by Prime Minister Narendra Modi, has already granted approval for stake sale worth about Rs 500 Bn (at current prices) in about 20 companies.

In a bid to attract more foreign investment, the government is looking at doing away with the mandatory approval of the Reserve Bank of India (RBI), which is currently needed after an investment proposal has been approved by the Foreign Investment Promotion Board (FIPB).

The Ajay Bijli-controlled PVR Cinemas is set to acquire DT Cinemas, the wholly-owned subsidiary of DLF which owns theatre screens in and around Delhi. The negotiation is in advanced stages and is likely to value the company at about Rs 5 Bn.

Tata Motors, India's largest automaker, on Tuesday commercially launched the GenX Nano in what was the product's first mega overhaul since its launch in 2009. The model is priced at Rs 2.1 lakh (ex-showroom, Mumbai), about twice the price of the first-generation model.

Anil Ambani-owned Reliance Communications is holding talks on a possible takeover of Sistema Shyam Teleservices (SSTL) in an all-stock deal. That could give the Russian-owned telco's shareholders a stake of less than 10 per cent in the merged entity to start with.

Six foreign and domestic cement companies, along with a private equity firm, have expressed interest in buying the assets that Lafarge SA is divesting in India before it closes its merger with Holcim Ltd. The bids were in excess of Rs.40 bn. 

Glenmark Pharmaceuticals has raised Rs 9.45Bn by issuing over 10 mn shares to Aranda Investments, an indirect subsidiary of Temasek Holdings. The preferential issue committee of the board of the company allotted over 1.08 crore equity shares of the face value of Re 1 each at a price of Rs 875 per equity share to Aranda Investments (Mauritius) Pte Ltd, on preferential basis, Glenmark Pharma said in a filing to BSE.

Chennai Vendors’ Association has alleged Mosmetrostroy, the Russian joint venture partner of Gammon India in the metro rail project for the city, has defaulted on payment of about Rs.29 Cr.

 

NMDC Ltd has drawn up a growth plan to attain production of 100 million tonnes per annum by 2022 from the present production level of 30 million tonnes per annum, more than tripling its output. 

Public sector banks are lining up equity offerings including qualified institutional placement (QIP) issues for the current financial year in a bid to boost their capital adequacy for the Basel-III norms. Central Bank of India wants to raise Rs.2,800 Cr while Dena Bank is planning to raise Rs 500 Cr.

 

Rane Group is planning to invest Rs.220 Cr to expand capacity in the current financial year.

 

Wheels India is planning to invest around Rs 70 Cr in 2015-16 towards capital expenditure. 

Reliance Industries has raised $200 million through a fresh bond issuance in the hottest bond market in Asia, Taiwan. RIL, which raised the debt having a tenure of 20 years, is the first Indian company to do so.

 

Zuari Group has acquired an additional 36.56% stake in Mangalore Chemicals and Fertilizers and has become a majority shareholder in the Vijay Mallya-led UB Group firm.

 

ONGC seeks environ nod for Rs 53,000 cr Krishna-Godavari basin infra.