Stocks to Monitor: Infosys, India Cements, HDFC Bank, HAL, BOI, IOCL, Zomato

Equity markets will resume trading on Monday, April 1 after an extended weekend. Investors will be keeping an eye on stock-specific developments and global cues. At 7:25 AM, Gift Nifty futures were up 41 points to the 22,529 level.

Infosys: The Indian IT firm Infosys is set to receive a tax refund of Rs 6,329 crore from the income tax department. However, the company is simultaneously facing a significant tax liability of Rs 2,763 crore as per the assessment orders, which are based on various provisions of the Income Tax Act of 1961. The refunds, which are inclusive of accumulated interest, are related to assessment years from 2007-08 to 2018-19. In an exchange filing, Infosys stated that it is currently assessing the impact of these orders on the financial statements for the quarter and year ending March 31, 2024.

India Cements: The promoters of the company have been consistently using their shares as collateral to raise money through debt. This trend has continued as India Cements attempts to deal with its working capital deficits. The promoters, led by Managing Director N. Srinivasan, had pledged 45.5 percent of their shares by the end of December 2023, a significant increase from 16.8 percent at the end of September 2022. The latest information on share pledges is yet to be updated on the stock exchanges. EWS Finance and Investment, which holds a 28.42 percent stake in the company, with three-quarters of it belonging to the promoter, announced on March 15 that the promoter had raised additional funds by creating new pledges. However, the exact amount of the new share pledges or the funds raised could not be independently verified by Mint.

HDFC Bank: A private sector bank is looking to sell its entire stake in HDFC Education and Development Services using the Swiss challenge method. It is currently identifying a potential buyer. According to a regulatory filing made on March 30, the bank has entered into a binding term sheet with a potential buyer which serves as the initial bid. The bank will invite counterproposals from other interested parties to finalize the stake sale.

Hindustan Aeronautics: A public sector defense firm has recently signed an agreement worth Rs 1,173.42 crore with Cochin Shipyard in Kochi. The agreement is to provide six LM2500 gas turbines, along with GT auxiliaries, spare parts, and tools for the Indian Navy's Next Generation Missile Vessel (NGMV) Project.

Bank of India: The Bank of India recently announced that it has received a demand notice from the Assessment Unit of the Income Tax Department for Rs 1,128 crore. The notice pertains to the assessment year 2016-17 and is related to certain disallowances under section 156 of the Income Tax Act, 1961. The bank has declared that it will appeal against the order with the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC).

Indian Oil Corporation: Indian Oil Corporation Limited (IOCL) has recently announced its plans to establish a joint venture with Panasonic Energy of Japan for the production of cylindrical lithium-ion cells in India. On January 21, the companies signed a non-binding document called "heads of agreement", which outlines the key points of the tentative sale, partnership, or other agreement. Later, they signed a binding term sheet to establish a framework for their joint venture. As per the filing, the companies plan to finalize the specifics of their partnership by this summer.

Zomato: On March 31, an online food delivery platform announced that it had received a demand order for GST amounting to Rs 23.26 crore from the tax authorities in Karnataka for the fiscal year 2018-19. The order was received on March 30, and it relates to the excess availment of input tax credit along with the associated interest and penalty. This information was disclosed by the company in an exchange filing. Following the audit of GST returns and accounts by the Assistant Commissioner of Commercial Taxes (Audit), Karnataka, the company received an order for the fiscal year 2018-19.

Canara Bank: Canara Bank, a public sector bank, plans to sell 13 percent of its equity shares through an initial public offering (IPO) of its mutual fund subsidiary, Canara Robeco Asset Management Company (CRAMC). The bank has filed an exchange announcement stating that it has approved the process to dilute its stake. However, the proposed IPO is still pending approval from the Reserve Bank of India and the Department of Financial Services under the Ministry of Finance, Government of India. In December of last year, Canara Bank had given an in-principle nod to initiate the process of listing its mutual fund subsidiary through an initial share sale.

Tata Consultancy Services: TCS, a software company, is currently facing accusations of hiring biases at its US branch. According to a report by the Wall Street Journal, a group of disgruntled American employees claim that they were dismissed to make way for Indian workers on H-1B visas. The report further states that 22 ex-TCS employees, who are Caucasians, Asian-Americans, and Hispanic Americans aged between 40 and 60s and hold master's degrees in business administration or other advanced qualifications, have lodged complaints with the Equal Employment Opportunity Commission since December 2023.

Macrotech Developers: The company has recently disclosed its intention to purchase 50 percent of Siddhivinayak Realties Pvt. Ltd.'s paid-up equity capital through a share purchase agreement, as per the exchange filing. The acquisition cost, including securities and instruments, amounts to Rs 250 crore, which will be transferred through banking channels. Siddhivinayak Realties, a real estate development firm, has the rights to various lands, including the development of a free sale portion of an SRA project in Mumbai. The deal is expected to be finalized within a week.

Zee Entertainment Enterprises: The company has recently announced a major overhaul of its technology and innovation center. The revamp includes a 50 percent reduction in expenses and a restructuring of the team based on recommendations from a new management oversight panel. These actions align with the strategy of Punit Goenka, the Managing Director and CEO, to optimize resources and establish a cost-efficient structure that will foster growth. According to the company, this was announced on Friday. Following guidance from Zee's board during the monthly management mentorship program, Goenka has reduced the structure of the technology center by approximately 50 percent and refined its work scope.

Yes Bank: The bank recently received a sum of Rs 366 crore from a single trust in the Security Receipts Portfolio, which is related to the sale of the NPA portfolio to J.C. Flower Asset Reconstruction on December 17, 2022. On the other hand, the National Faceless Assessment Unit of the Income-tax Department has issued a reassessment order, demanding an additional amount of Rs 112.81 crore for tax liabilities (including interest) on various income-tax disallowances.

EIH: On March 28th, EIH, a hospitality company, announced that its board has given approval for the construction of a luxurious Oberoi resort at Cavelossim beach in South Goa. The announcement was made during a board meeting and later shared through a stock exchange filing. The resort, which shall be called "The Oberoi, Goa", will be erected on a 52-acre land owned by the company. It will feature 90 rooms and suites spread across its vast property. The project, estimated to cost Rs 421 crore, is expected to be operational by October 1st, 2027. The funds required for this venture will be obtained through internal accruals as well as debt.