A category II AIF has acquired a 1.5-acre plot in Fintech City, Nadambakkam, Chennai. The acquisition was completed through a bid cum e-auction process conducted by the Tamil Nadu Industrial Development Corporation (TIDCO).

The plot is planned to be developed into a four lakh sq ft Grade A office building within the next three years. In June 2024, the fund concluded its fundraising with a corpus of around ?550 crore. Over the last seven years, the fund has raised ?6,000 crore across its PMS and AIF businesses, while the development partner has acquired, developed, and operated hundreds of properties totaling millions of sq ft, with a combined value of over $128 billion.

The National Company Law Tribunal (NCLT) has approved a resolution plan proposed by a property developer’s affiliate to acquire a real estate development firm. The resolution plan involves paying around ?273 crore to financial, operational, and other creditors. The company undergoing acquisition was admitted into the corporate insolvency resolution process (CIRP) in December 2021 with claims amounting to over ?748 crore.

The NCLT has also mandated that the scheme of arrangement and amalgamation between the two companies be filed separately for formal approval. Although elements of this scheme are incorporated into the resolution plan, it must undergo distinct procedural scrutiny.

The ruling includes provisions for the transfer of records and documents to the acquiring company and the continuation of the monitoring committee. The committee will oversee the resolution process to ensure compliance and a smooth transition during the takeover period.

This decision by the NCLT addresses the immediate financial distress faced by the target company and sets a precedent for corporate restructuring under the Insolvency and Bankruptcy Code (IBC). By approving the resolution plan, the tribunal emphasises the importance of regulatory adherence and structured resolution processes in managing corporate insolvency.

A cement company on Friday reported a consolidated net profit of ?58.47 crore in the June 2024 quarter, despite a 26% decline in sales volume as capacity utilisation was severely affected by a liquidity crunch. The company sold its grinding unit in Maharashtra in April and included a gain of ?240.68 crore from the sale as an exceptional item in the quarterly profit.

Before exceptional items and tax, the company recorded a loss of ?147.97 crore in the quarter under review. Revenue from operations fell 28.53% to ?1,026.76 crore during the period, compared to ?1,436.74 crore in the same quarter last year.

Operating margins shrank due to low volumes, despite reduced fuel costs. Cement and clinker volume for the quarter was 19.61 lakh tonnes, down from 26.66 lakh tonnes in the same quarter of the previous year, a drop of more than 26%. Total income for the June quarter was down 27.81% to ?1,042.27 crore. Shares of the company settled 0.34% lower at ?366.90 apiece on the BSE.

A real estate developer has acquired 9.03 acres of land in Coimbatore through a combination of share purchases and direct land acquisitions for Rs 370.17 crore.

The developer completed the acquisition of 100% equity share capital of multiple land-owning entities in Coimbatore. These entities collectively hold 7.08 acres, and the developer additionally acquired 1.95 acres directly from individuals, bringing the total to 9.03 acres.

Following the transaction, the ownership structure of the developer stands at 67.1% and 32.9% for the two main investors. The acquired land is expected to be used for the company’s retail development expansion in Tamil Nadu.

The government on Tuesday proposed significant relief for individuals who bought houses before July 23, 2024, allowing them to choose between two tax rates for long-term capital gains (LTCG) tax.

The Budget 2024-25 had initially proposed reducing the LTCG rate from 20% to 12.5% but removed indexation benefits, which allow taxpayers to adjust gains for inflation. The new option comes into effect from July 23, 2024, enabling taxpayers to compute taxes under the more beneficial regime without being worse off due to the change in law.

Tax experts had previously noted that the proposed Budget changes could increase the LTCG tax burden, but the amendments now address concerns around taxation of inflationary gains for immovable property acquired before the law change.

Two companies have formed a joint venture platform to develop industrial and logistics parks in India, starting with a 70-acre project in Chennai.

The joint venture aims to acquire and develop about 1.5 million square metres of greenfield and brownfield sites in key markets across the country over the coming years. It is positioned to become a leading industrial and logistics real estate solutions provider for both global and local corporations.

One partner holds a majority stake, while the other has a significant minority stake in the venture. The platform has been established with an experienced management team, led by a Chief Executive Officer.

The business has already completed its first acquisition: a 70-acre industrial land parcel in Chennai to develop an integrated industrial and logistics park with institutional-grade buildings.

The venture’s development footprint also includes ongoing and upcoming residential and industrial projects across several Indian cities and integrated development clusters.

An open offer for shareholders of a major cement company is scheduled to open on September 19 and close on October 3. The mandatory offer follows the acquiring company taking control of more than 55% stake in the Chennai-based cement maker over the past two months.

The company will buy 26% of shares, or up to 8,05,73,273 shares, at ?390 per share. A detailed public statement for the offer has been issued, and the offer price may be revised latest by September 17. The timelines are tentative.

Earlier, the acquiring company had purchased a non-controlling 23% stake from an investor in June, followed by a 32.72% stake from the company’s promoters and associates in July. The 55.49% controlling stake has triggered the open offer as per regulatory requirements.

The company will spend a maximum of ?3,142 crore to acquire 26% of shares through the open offer, which is at a significant premium compared to the earlier stake purchase price of around ?268 per share.

Shareholders holding shares in physical or dematerialized form can tender shares by notifying their stockbrokers during trading hours within the tendering period. A separate acquisition window will be provided by exchanges to facilitate the process.

Shares of the cement company recently closed at ?372.04, up over 2% from the previous close, and have surged nearly 82% since the start of June.

A housing finance company reported a consolidated profit after tax of ?171.74 crore for the April-June 2024 quarter, driven by business growth, stable asset quality, and higher productivity. The company’s PAT was ?142.25 crore in the corresponding quarter last year. For the year ending March 31, 2024, consolidated profits were ?61,189.56 crore.

The consolidated total income during the quarter rose to ?404.62 crore, compared with ?315.37 crore in the same period last year. For the year ending March 31, 2024, consolidated total income stood at ?1,416.84 crore.

Commenting on the performance, the company’s management highlighted a 21% year-on-year increase in net profit, supported by business growth, stable asset quality, and higher productivity.

The company achieved 27% year-on-year growth in Assets Under Management (AUM), supported by the addition of 36 branches over the previous year, both in existing and new states. Management aims to pursue an AUM growth of around 30% in the coming quarters and years.

As of June 30, 2024, the company maintained liquidity of ?907 crore, including undrawn sanctions of ?520 crore from various banks. The company is well-capitalized, with a net worth of over ?3,818 crore.

The Mumbai housing authority on Tuesday issued offer letters to 158 eligible applicants from the master list of old cessed buildings, who were selected through a computerized lottery held on December 28, 2023. The state housing minister, who distributed the letters, also announced a waiver of the NOC fee of ?70,500 for each recipient.

The function was held at the housing authority's headquarters in Bandra East. Applicants must fulfill all conditions, and failure to do so may result in cancellation of allocation without prior notice, terminating their rights on the master list.

The minister noted that, out of 444 flats available in the lottery, 212 applicants were verified as eligible after re-verification of documents. Allotment letters were issued to 158 applicants, who submitted their acceptance letters. Verification of the remaining 53 applicants is ongoing, while 54 others were asked to submit acceptance letters.

The authority plans to conduct a lottery for the sale of 2,000 flats in prime locations across the city in the near future.

A US-based private equity firm is likely to sell up to a 6.4% stake in a housing finance company through an open market transaction on Tuesday.

According to a term sheet, an entity of the private equity firm will sell 1.66 crore shares at a floor price of ?775 per share, aiming to raise approximately ?1,256 crore. The floor price represents a 5% discount to the previous day’s closing price of ?794.90.

The housing finance company’s stock has underperformed this year, with a gain of only 1.2%, compared to a 13% rise in the benchmark index. As of June 30, 2024, the private equity firm held a 32.68% stake in the company.

The leadership of a major cement company has assured employees that it will be business as usual for them despite a change in ownership. Employees were told that the ownership transition will not affect their careers, and that experienced and high-performing workers will continue to be recognized and rewarded.

Staff were reassured that there is no need to feel insecure or threatened, and that the company’s future remains strong. Employees were encouraged to continue working with full dedication, with the message that operations and policies will largely remain the same.

The acquiring cement company announced that it will acquire a 32.72% stake from promoters and associates for ?3,954 crore to expand its presence in the highly competitive Southern cement market. An open offer of ?3,142.35 crore has also been announced to acquire an additional 26% of the company from existing shareholders.

Reflecting on the company’s origins, the leadership noted that the early days of the cement business involved exploration and resource discovery, which laid the foundation for its long-standing operations.