Author: Legal Parivar

Here’s a quick look at stocks likely to be in focus in today’s trade: Larsen & Toubro: The Bombay High Court has nullified a GST demand of ₹2,237 crore against Larsen & Toubro. The dispute involved a service tax related to a former subsidiary, for which taxes had already been paid after the demerger. L&T had filed a writ petition in the Bombay High Court, resulting in the cancellation of this demand, as per the company’s exchange filing. Tata Group Companies: S&P Global Ratings upgraded various Tata Group companies on August 20, citing improved support from the group’s parent. Tata…

An analysis conducted by the Association of Registered Investment Advisors (ARIA) on complaints and orders issued by the Securities and Exchange Board of India (SEBI) has highlighted the risks associated with providing trading calls and participating in stock market trading. The majority of complaints filed against financial advisors—both registered with SEBI and unregistered—along with enforcement orders issued by SEBI, are primarily related to trading calls offered by these entities. In a press release, ARIA emphasized the need for targeted action against unregistered entities and called for a distinct approach for Registered Investment Advisors (RIAs) who do not provide trading calls.…

To streamline the process and make rights issues more market-friendly, the Securities and Exchange Board of India (SEBI) has proposed several changes, including eliminating the requirement to file a draft document for rights issues. SEBI is also considering allowing companies to conduct rights issues without involving a merchant banker and offering more flexibility in the allotment process for select investors. In a consultation paper released on August 20 titled ‘Faster Rights Issue With Flexibility of Allotment to Selective Investors,’ SEBI proposed removing the need for a Draft Letter of Offer (DLoF) submission to the regulator. The paper aims to make…

The initial public offering (IPO) of Interarch Building Products received a robust response from investors on August 20, the second day of bidding, with 5.08 crore equity shares being subscribed—10.84 times the offer size of 46.91 lakh equity shares. The New Delhi-based company aims to raise Rs 600.29 crore through its maiden public issue, which includes a fresh issuance of Rs 200 crore worth of shares and an offer-for-sale of 44.47 lakh shares valued at Rs 400.29 crore. The issue, which closes on August 21, is priced between Rs 850 and Rs 900 per share. Non-institutional investors, primarily high-net-worth individuals,…

On August 20, Larsen & Toubro announced that the Bombay High Court has overturned a Rs 2,237-crore GST demand against the company. The company had filed a writ petition with the Bombay High Court challenging a show cause notice issued by the Principal Commissioner of GST and Service Tax, Mumbai. The notice was related to a service tax demand of Rs 2,237 crore concerning transactions handled by an erstwhile subsidiary after the company’s demerger, for which the tax had already been paid.

The government’s flagship social security scheme saw an addition of 1.93 million new members in June 2023, marking a 7.9 percent increase from the previous year, according to data from the Employees’ Provident Fund Organisation (EPFO). During this period, the EPFO recorded 1.03 million new employees, reflecting a 4 percent increase over the previous month and a 1 percent rise compared to the previous year. The data highlights a notable trend: the 18-25 age group represented a significant 59.14 percent of the new members added in June 2024. This aligns with the ongoing trend of youth, particularly first-time job seekers,…

Information technology (IT) services company Cyient announced on Tuesday, August 20, that its board has approved the sale of a 14.5 percent stake in its subsidiary, Cyient DLM Ltd, through a block deal. The company plans to finalize the stake sale on August 21, 2024. In a regulatory filing, Cyient stated, “The Board of Directors of the company, at its meeting held today, August 20, 2024 (Tuesday), has considered and approved the sale of up to 1.14 crore equity shares, representing approximately 14.5 percent of the total outstanding equity shareholding of its subsidiary, Cyient DLM Ltd, by way of a…

General Motors (GM), the American automotive giant, is laying off 1,000 employees from its software and service units globally, according to a Reuters report on Monday, August 20. “As we build GM’s future, we must simplify for speed and excellence, make bold choices, and prioritize the investments that will have the greatest impact,” the automaker said in an official statement, as cited in the report. Nearly 600 of the affected employees are based at GM’s tech campus near Detroit, Michigan, representing almost half of the job cuts in the US. The layoffs were not driven by cost-cutting measures but were…

Shares of Saraswati Saree Depot closed with a premium of over 31 percent on August 20, compared to the issue price of Rs 160. The stock debuted on the BSE at Rs 200, reflecting a 25 percent increase from the issue price, and later surged 31.21 percent to reach the upper circuit limit of Rs 209.95. On the NSE, the shares were listed at Rs 194, a 21.25 percent rise, and ended the day at Rs 203.70, marking a 27.31 percent gain. The company’s market valuation stood at Rs 831.40 crore. The initial public offering (IPO) of Saraswati Saree Depot,…

IPO-bound digital payments firm MobiKwik reported a 62 percent rise in operating revenue, reaching Rs 875 crore for the fiscal year ending March 2024. In a notable turnaround, the company achieved a profit after tax (PAT) of Rs 14.08 crore, a significant improvement from the Rs 83.08 crore loss recorded the previous year. Despite this, total expenses increased by 36.4 percent to Rs 876 crore, up from Rs 642 crore in FY23, driven by higher costs related to employee benefits, legal fees, advertising, and other overheads. Co-founder and CFO Upasana Taku attributed the company’s growth to an expanding user base…