Tender released for TIDEL park constructions in Madurai

TIDEL Park Limited has released a tender for the construction of an IT park at Mattuthavani in Madurai on Wednesday. According to the tender, the project will include a ground floor, 12 additional floors and a terrace, along with civil construction, interior finishing work, and other allied development tasks. The deadline for the online submission of tender documents is September 7, 2024. In a significant development for the proposed TIDEL park in Madurai, the Madurai Corporation Council passed a resolution on June 28 to lease 5.6 acres of land to TIDEL Park Ltd for a period of 45 years. The lease facilitates the construction of the Rs 600crore TIDEL park, which was announced by the state government in the 2022 budget. The district administration and the Madurai Corporation have jointly set the land price at Rs 89 crore. According to the lease agreement, 50% of this amount will be paid as lease rent over a 45-year period. The TIDEL park project announced by chief minister M K Stalin aims at transforming Madurai into a technology hub. The project is expected to generate 10,000 jobs, significantly boosting the local economy. MP Su Venkatesan expressed his gratitude on X on Wednesday. He thanked the state government and Stalin for their efforts in establishing the TIDEL park in Madurai.
 

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The Phoenix Mills acquries 9.03 acres land in Coimbatore for rs 370.17 crore

Astrea Real Estate Developers (Astrea), a subsidiary of The Phoenix Mills (PML) has acquired 9.03 acres land in Coimbatore through a mix of share purchases and direct land acquisitions for Rs 370.17 crore. PML holds 67.1% equity stake in Astrea.  This mall will be our second retail development in Tamil Nadu, following the success of our first development in Chennai, namely Phoenix MarketCity and Palladium Chennai." In the regulatory filing, the company informed that Astrea has completed the acquisition of 100% equity share capital of Dhanalakshmi Engineering (DEPL), Pulankinar Investment and Finance (PIFPL), Coimbatore Sameera Investments (CSIPL), Shanthi Chandran Enterprises (SCEPL), Shanthi Chandran Investments Coimbatore (SCICPL) and Sheela Traders (STPL). Accordingly, these entities have become wholly-owned subsidiaries of Astrea and stepdown subsidiaries of the company with effect from August 07, 2024.  The entities are land owning companies and collectively hold 7.08 acres of land in Coimbatore. Astrea has acquired the said land of 7.08 acres and has also directly acquired 1.95 acres of land from certain individuals. Thus, Astrea has in aggregate acquired 9.03 acre land parcel. Subsequent to the completion of the investment, PML and Reco hold 67.10% and 32.90% respectively in the paid up equity share capital of Astrea.
 

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Government gives option to calculate LTCG tax on propeties pay lower tax

The government on Tuesday proposed significant relief for individuals who bought houses before July 23, 2024, by giving them the option to choose between two tax rates for long-term capital gains (LTCG) tax. The Budget 2024-25 had proposed to lower the LTCG from 20 per cent to 12.5 per cent but removed the indexation benefits. The new rates have come into effect from July 23, 2024. The indexation benefit allowed taxpayers to compute gains arising out of the sale of capital assets after adjusting for inflation. Tax experts had said that the proposed changes in the Budget would raise the LTCG tax burden. As per the amendments to Finance Bill, 2024, circulated to the Lok Sabha members on Tuesday, individuals or HuF who bought house before July 23, 2024, can compute his/her taxes under the new scheme Taxpayers can choose the more beneficial regime and should not be worse off because of change in law. Concerns around taxation of inflationary gains in respect of immovable property acquired prior to a change in the law have been addressed," Puri added.
 

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Mahindra Lifespace, Actis form Joint venture to build industrial and Logistics park in Chennai

Realty firm Mahindra Lifespace Developers Ltd and Actis have formed a joint venture platform 'Ample Parks' for the development of industrial and logistics parks and will build their first 70-acre project in Chennai. Actis, a leading global investor in sustainable infrastructure, and Mahindra Lifespace have formally launched a joint venture Ample Parks, an indian industrial and logistics real estate developer and operator, according to a company statement. The joint venture (JV) Ample Parks aims to acquire and develop about 1.5 million square metres of greenfield and brownfield sites in key markets across India over the next few years. The JV aims to establish itself as a leading industrial and logistics real estate solutions provider to global and local corporations. Actis holds a majority stake in the joint venture, with Mahindra Lifespaces owning a significant minority stake. The platform has been set up with a highly experienced management team, with Chief Executive Officer Akash Rastogi appointed to lead the company. The business has completed its first acquisition, a prime 70-acre  industrial land parcel within Mahindra World City, Chennai, to develop an integrated industrial and logistics park with institutional-grade buildings, the statement said. Mahindra Lifespace's development footprint spans 37.95 million square feet of completed, ongoing and forthcoming residential projects across seven Indian cities. It has over 5,000-acre of ongoing and forthcoming rojects under development/management at its integrated developments/industrial clusters across four locations.
 

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UltraTech's open offer for India Cements shares to open on September 19

UltraTech Cement’s open offer for shareholders of India Cements is likely to open on September 19, and close on October 3. The mandatory open offer by UltraTech follows the company acquiring more than 55% stake in the Chennai-based cement-maker in the last two months. UltraTech will buy 26% in India Cements, or up to 8,05,73,273 shares of UltraTech will buy 26% in India Cements, or up to 8,05,73,273 shares of the company at Rs 390 a piece. The detailed public statement for the offer was issued on Friday, and UltraTech can increase the offer price for shares of India Cements latest by September 17, details from an advertisement by UltraTech showed. These timelines are tentative, the company said. The country’s largest producer of cement had acquired a non-controlling near-23% financial stake in India Cements from investor Radhakishan Damani in June, following it up with the stake buy of another 32.72% stake from the company’s promoters and its associates in July. UltraTech’s 55.49% stake has, consequently, triggered an open offer as per regulations of the Securities and Exchange Board of India. The company will spend a maximum of Rs 3,142 crore for acquiring 26% through the pen offer. This is at a significant premium to the stake it bought from Radhakishan Damani at around Rs 268 a piece. Shareholders holding shares, either in the physical or dematerialized format, can tender shares by intimating their stockbrokers within trading hours for the secondary market within the tendering period. A separate acquisition window will be provided by the exchanges to facilitate placing these orders. On Friday, shares of India Cements closed at Rs 372.04 on the NSE, up more than 2% from the previous close. The shares have surged nearly 82% since the start of June.

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Aptus Value Housing Finances reports consolidated profits of rs 171.74 crore on Q1 FY25

Housing finance company Aptus Value has said that it earned a consolidated profit after tax of rs 171.74 crore for the April-June 2024 quarter, on the back of businees growth, stable assest 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 the consolidated profits were at Rs 61,189.56 crore. The consolidated total income during the quarter under review surged to Rs 404.62 crore, compared to Rs 315.37 crore in the same period last year. For the year ending March 31, 2024 the consolidated total income was at Rs 1,416.84 crore.Commenting on the financial performance, Aptus Value Housing Finance India Ltd Managing Director P Balaji said, "I am pleased to report a solid performance for the first quarter of FY25. The company posted a 21 per cent year-on-year increase in net profit at Rs 172 crore in the first quarter of FY25 supported by business growth, stable asset quality and continued focus on higher productivity." "We sustained consistent growth and achieved an AUM (Assets Under Management) growth of 27 per cent year-on-year supported by branch addition of 36 over June 2023 both in existing and new states. We are confident to pursue an AUM growth of about 30 per cent in the coming quarters/years," he said in a statement. He said that as of June 30, 2024, the company has maintained liquidity of Rs 907 crore, including undrawn sanctions of Rs 520 crore from various banks, which is sufficient. The company is well capitalised with a net worth of over Rs 3,818 crore. 

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Mumbai Mhada gives offers letters to 158 residents of cassed buildings waives NOC fee

Mhada's Mumbai board on Tuesday granted offer letters to 158 eligible applicants from the master list of old cessed buildings who had won through a computerised lottery held on Dec 28, 2023. State housing and OBC welfare minister Atul Save, who distributed the letters, announced the waiver of the NOC fee of Rs 70,500 for each of them. The function was held at the housing agency's headquarters in Bandra East. Mhada said applicants must fulfill the conditions mentioned in the cancellation of the allocation without prior notice, and their rights on the master list will be terminated. Minister Save said, "To ensure the allocation of flats to the 265 eligible tenants/ residents from the master list of old cess buildings, the Board conducted its first computerised lottery on Dec 28, 2023. There were 444 flats available for this lottery. Following requests for re-verification of the documents of winners, Mhada re-verified and found 212 out of the 265 applicants eligible. Allotment letters were issued to 158 of them, and they submitted acceptance letters. Document verification of the remaining 53 is in progress. And the rest of the 54 were asked to submit acceptance letters." Mhada's Mumbai Board will soon conduct a lottery for the sale of 2,000 flats in prime locations of the city.
 

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Carlyle to sell upto 6.5percent stake in PNB Housing Finance for rs 1256 crore in July 30

US-based private equity firm Carlyle is likely to sell upto a 6.4% stake in PNB Housing Finance through an open market transaction on Tuesday. According to a term sheet issued by IIFL Securities, Quality Investment Holdings, an entity of Carlyle, will sell 1.66 crore shares at a floor price of Rs 775 apiece, aiming to raise Rs 1,256 crore. The floor price represents a 5% discount to Monday’s closing price of Rs 794.90.  PNB Housing stock has grossly underperformed so far this year, with just a 1.2% gain compared to a 13% rise in the benchmark Sensex. As of June 30, 2024, Carlyle held a 32.68% stake in the housing finance company.
 

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No Need for anybody in India Cements to feel insecure : MD to Staff

India Cements Vice Chairmen and MD N Srinivasan has assured employees that it would be business as usual for them for them despite the change of ownership to UltraTech. Allaying fears to the employees, he said, "The change to UltraTech from India Cements does not mean a change in your career. Because I have been personally assured, I just spoke to the Chairman of the Aditya Birla Group (Kumar Mangalam Birla) and he said that he will follow the same policy that we have followed so far and there will be space for everybody and good workers will be rewarded". "No need for anybody in India Cements to feel insecure or threatened. The future is as solid as when I was head of the plant. You constitute the core of the cement business. You must work with full vigour, and that everything will be the same as before. The future is good," he added. Aditya Birla Group flagship company UltraTech Cement on Sunday said it will acquire a 32.72 per cent stake in India Cements from promoters and their associates for Rs 3,954 crore to expand its footprint in the highly competitive and fast-growing Southern cement market. UltraTech has also announced a Rs 3,142.35 crore open offer to acquire another 26 per cent of India Cements Ltd from its shareholders. Recalling how the founder of India Cements SNN Sankaralinga Iyer and his late father T S Narayanaswami stumbled upon a limestone after which the house of Iyer became the office of India Cements also, Srinivasan said the early part of cement was into exploration and in finding places. 
 

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Chennai Development body to introduce deemed NOCs for highrise buildings

People may be able to begin constructing an apartment sonner than before as CMDA is set to introduce deemed NOCs for highrise buildings (HRB), particularly those above five floors or 18 metres tall. CMDA, which introduced online plan permission in May 2022, on average approves 70 plans every month and more than 70 highrise buildings every year. The numbers were 35 and 60 prior to 2022, say CMDA officials. But issuing approvals took at least 45 days, especially because of the process of getting NOCs from stakeholder departments. CMDA officials say there are 21 departments, including state and Union govt agencies, involved in issuing NOCs to highrise and non-highrise buildings and layouts and sub-division approval in the Chennai Metropolitan Area. Most departments are integrated with cmdaonlineppa.tn.gov.in, but developers of highrise buildings only need approval from Tamil Nadu Fire and Rescue Services, Airports Authority of India (if it is 30.5 metres high or above 10 floors), CMRL (if building is within metro alignment), and WRD (if it’s near water bodies). S Sridharan,vice-president, Credai National, South, said that if implemented this will be a major breakthrough in the housing and construction industry. “Home buyers will also benefit as delivery will be quicker. The speedy approval process will attract large investments from other states to TN.” 
 

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IT Department clarifies acquisition cost of real estate bought before 2001 for LTCG calculations

The cost of acquisition of real estate properties purchased before 2001 will be the fair market value (FMV, not exceeding the stamp duty value) as of April 1, 2001, or the actual cost of the land or building for the purpose of calculation of long-term capital gains (LTCG) tax, the I-T department has said. The indexation benefit allowed taxpayers to compute gains arising out of sale of capital assets after adjusting inflation. For properties purchased before 2001, fair market valuation (not exceeding the stamp duty value) can be used as a base to determine the indexed price. The indexed price will then be reduced from the sale price for calculating LTCG that will be taxed at 20 per cent. In a post on X, the I-T department said an issue has been raised as to what would be the cost of acquisition as on April 1, 2001, for properties purchased prior to 2001. For properties (land or building or both) purchased prior to April 1, 2001, the cost of acquisition as on 1.4.2001 shall be the cost of acquisition of the asset to the assessee; or the fair market value (not exceeding the stamp duty value, wherever available) of such asset as on April 1, 2001.The LTCG in such cases is Rs 63.7 lakh (Rs 1 crore minus Rs 36.3 lakh). At a tax rate of 20 per cent, the LTCG tax for such properties would be Rs 12.74 lakh.
 

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The Ramco Cements net profit down 51 percent to rs 36.57 crore in Q1 FY 25

The Ramco Cements Ltd on Thursday reported a 50.82 per cent decline in its consolidated net profit to Rs 36.57 crore in June 2024 quarter due to a fall in cement prices and weak demand amid the Lok Sabha polls. The company posted a net profit of rs. 74.36 crore during the April-June  quarter of the previous fiscal, The Ramco Cements said in a  regulatory filing. Its revenue from operations fell 6.81 per cent to Rs 2,093.55 crore during the quarter under review against Rs 2,246.66 crore a year ago. Its total expenses in the June quarter were Rs 2,054.11 crore, down 4.3 per cent. In the first quarter of FY25, the company has incurred Rs 281 crore In the first quarter of FY25, the company has incurred Rs 281 crore is estimated to be at Rs 1,200 crore, including maintenance capex, it said. The net debt of the company is Rs 4,975 crore as of June 30, 2024. Shares of The Ramco Cements Ltd settled 1.48 per cent lower at Rs 800.20 apiece on the BSE.

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