Business News

The shares of Indegene will list on the exchanges on Monday and the unlisted market trends indicate robust listing gains for allotted investors.The company's shares are trading with a GMP of Rs 290 in the grey market, and considering the upper price band of Rs 490, the stock is expected to list with a premium of over 60%.Ahead of the issue opening, the company raised nearly Rs 549 crore from anchor investors.Some of the marquee investors who participated in the anchor round include Capital Group, Fidelity Investments, Loomis Sayles and Company, Jupiter Asset Management, Abu Dhabi Investment Authority, SBI Mutual Fund, and ICICI Prudential Mutual Fund, among others.The IPO comprised fresh equity issue worth up to Rs 750 crore and an offer for sale (OFS) of up to 2.93 crore equity shares by existing investors.Under the OFS, Manish Gupta, Rajesh Bhaskaran Nair, Anita Nair, Carlyle, Brighton Park Capital, and Nadathur Family Office, among others, offloaded shares.The funds raised through the fresh issue would be used to pay debt, fund capital expenditure requirements, payment of deferred consideration for one of its past acquisitions, fund inorganic growth, and general corporate purposes.Analysts believe Indegene IPO gave investors a unique opportunity to invest in a leading provider of digital-led commercialisation services tailored for the life sciences industryFounded in 1998, Indegene offers solutions that help enable biopharmaceutical, emerging biotech, and medical devices companies to develop products, launch them in the market, and drive sales throughout their life cycle.The company combines over two decades of healthcare domain expertise and our technology platforms to provide solutions that assist life science companies in clinical trials, support their regulatory and safety operations, aid in the launch of their products in the market, and drive sales and marketing through the life cycle of their products.For the period ended December 2023, the company clocked revenue from operations of Rs 1,969 crore and posted a profit after tax of Rs 241 crore.Kotak Mahindra Capital, Citigroup Global Markets India, J P Morgan India, Nomura Financial Advisory and Securities (India) are the book-running lead managers to the issue.(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)

The Indian market recouped losses to close in the black. The S&P BSE Sensex rose over 260 points, while the Nifty50 reclaimed 22,000.Sectorally, buying was seen in telecom, metal, oil & gas, power, and utilities, while selling was seen in banks, realty, and IT stocks.Stocks in focus include names like Hindustan Zinc, which was up more than 15% to hit a fresh record high, while Escorts Kubota rose over 3% on Friday.We have collated a list of three stocks that either hit fresh 52-week highs, or all-time highs or saw a volume or a price breakout.We spoke to an analyst on how one should look at these stocks the next trading day entirely from an educational point of view: Analyst: Kunal Kamble, Sr Technical Analyst at Bonanza PortfolioHindustan Zinc: AvoidOn August 31, 2015, Hindustan Zinc took the support of 200 and 50-EMA (placed at 127) and rallied up to 340, but then corrected towards the 200-EMA (placed at 157), making a higher low.It rallied again towards the previous level of 340 and retracement was seen towards the 50-day EMA placed at 245 forming an Ascending Triangle pattern with a shortfall, indicating a breakout on the upside.A breakout was witnessed on March 28, 2024, and the stock since then has rallied towards 530 levels – a move expected to extend towards 560 levels.However, at the current market price, it is better to avoid a fresh entry and any throwback to the 400 level would be an opportunity to enter. 110051792Escorts: Buy On DipsEscort is running its 3rd wave and 5th wave, targeting towards 3721 level and extended moves can be expected towards 40,000 levels.The price has taken support at 50 EMA and moved upward, which will be a strong support in the coming months.A dip towards the 2,800 level would be an opportunity to enter long in the security. 110051769(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of The Economic Times)

NEW DELHI: Large public sector companies have spent a little over Rs 50,200 crore towards capital expenditure in April FY25 alone, which is 6.46 per cent of their full fiscal target of Rs 7.77 lakh crore, an official said. The pace albeit is slower than Rs 54,177 crore capex spent in April FY24, about 7.3 per cent of the full year budget target of Rs 7.42 lakh crore. "The capex spending will pick up going forward. Also, the numbers for April are still provisional and will go up in the revised final numbers," the official told PTI. The capital expenditure during the first month of 2024-25 fiscal was driven by railways, road, and oil and gas sectors. The Indian Railways and sector PSUs spent Rs 26,641 crore in April, followed by National Highways Authority of India (NHAI) at Rs 6,645 crore. Among oil and gas sector PSUs, ONGC incurred capex of Rs 2,318 crore, Indian Oil Corporation (IOC) Rs 2,423 crore in the first month of the current financial year. Hindustan Petroleum Corp Ltd and Bharat Petroleum Corp Ltd spent Rs 1,155 crore and Rs 417 crore, respectively in April. Power sector PSU NTPC spent Rs 2,083 crore. The finance ministry tracks capital expenditure of public sector undertakings (PSUs) that have an annual investment target of over Rs 100 crore. The Interim Budget for 2024-25 set a cumulative capital expenditure target of Rs 9.01 lakh crore for all public sector undertakings. Of this, Rs 7.77 lakh crore worth capex is to be spent by PSUs with over Rs 100 crore of annual capital expenditure target. In 2023-24, large PSUs spent Rs 8.05 lakh crore towards capex, exceeding the budget target of Rs 7.42 lakh crore.

The fourth quarter results season is coming to a fag-end, and analysts said despite earnings largely meeting expectations, there is a noticeable moderation in the overall earnings landscape.Some notable companies that will announce their earnings this week include Varun Beverages, Zomato, Airtel, Siemens, Power Finance Corp, Mahindra and Mahindra, HAL, and JSW Steel, among others. Overall, around 501 companies are set to release their quarterly numbers this week.Here's what's on the Q4 earnings table next weekMay 13Varun Beverages, Zomato, Jindal Steel, Tube Investments, Aditya Birla Cipla, UPL, Sanofi India, Chalet Hotels, Karur Vysya, Inox India, KPI Green, Electrosteel Castings, Bombay Bumrah, CE Info Systems, Cera Sanitaryware, Ethos, Aarti Pharmalabs, Alembic, Yasho Industries, Nelcast among others will announce their earnings on tomorrow.May 14Bharti Airtel, Siemens, Shree Cements, Colgate-Palmolive, Oberoi Realty, Patanjali Foods, Bharti Hexacom, AIA Engineering, Apar Industries, Apollo Tyres, Radico Khaitan, Devyani International, BASF India, Shyam Metalics, PVR Inox, Zydus Wellness, Bajaj Electrical, and others will release their fourth-quarter results on Tuesday, May 14.May 15Power Finance Corp, Canara Bank, Mankind Pharma, Jindal Stainless, Rail Vikas Nigam, Dixon Technologies, Honeywell Automation, LIC Housing Finance, NLC India, Hatsun Agro Products, Tirdent, Jyothy Labs, NCC, Titagarh Rail Systems, Asahi India Glass, Clean Science and Tech, among others, will announce earnings for the quarter ended March 2024.May 16Mahindra and Mahindra, HAL, GAIL, Solar Industries, Info Edge, Container Corp, Biocon, Data Infrastructure Trust, Motherson Sumi Wiring, Endurance Technologies, Ratnamani Metals, Crompton Greaves, Triveni Turbine, among others, will declare quarterly results on Thursday.May 17JSW Steel, Zydus Lifesciences, NHPC, Astral, Global Health, GlaxoSmithKline Pharma, Godrej Health, Pfizer, Sobha, Poly Medicure, Amber Enterprises, Zee Enterprises, Shipping Corp, Kirloskar Ferrous Industries, Rashtriya Chemicals, Varroc Engineering, Nava, among others, will announce results for March quarter.May 18Ujjivan SFB, Dodla Dairy, Tide Water, IFGL Water, Vimta Labs, IRISI Business Services, Vikrant Global Capital Prithvi Exchange, and BDH Industries will declare Q4 results on Saturday.

Former President Donald Trump used a dubious accounting maneuver to claim improper tax breaks from his troubled Chicago tower, according to an IRS inquiry uncovered by The New York Times and ProPublica. Losing a yearslong audit battle over the claim could mean a tax bill of more than $100 million. The 92-story, glass-sheathed skyscraper along the Chicago River is the tallest and, at least for now, the last major construction project by Trump. Through a combination of cost overruns and the bad luck of opening in the teeth of the Great Recession, it was also a vast money loser. But when Trump sought to reap tax benefits from his losses, the IRS has argued, he went too far and, in effect, wrote off the same losses twice. The first write-off came on Trump's tax return for 2008. With sales lagging far behind projections, he claimed that his investment in the condo-hotel tower met the tax code definition of "worthless," because his debt on the project meant he would never see a profit. That move resulted in Trump's reporting losses as high as $651 million for the year, the Times and ProPublica found. There is no indication that the IRS challenged that initial claim, although that lack of scrutiny surprised tax experts consulted for this article. But in 2010, Trump and his tax advisers sought to extract further benefits from the Chicago project, executing a maneuver that would draw years of inquiry from the IRS. First, he shifted the company that owned the tower into a new partnership. Because he controlled both companies, it was like moving coins from one pocket to another. Then he used the shift as justification to declare $168 million in additional losses over the next decade. The issues around Trump's case were novel enough that, during his presidency, the IRS undertook a high-level legal review before pursuing it. The Times and ProPublica, in consultation with tax experts, calculated that the revision sought by the IRS would create a new tax bill of more than $100 million, plus interest and potential penalties. Trump's tax records have been a matter of intense speculation since the 2016 presidential campaign, when he defied decades of precedent and refused to release his returns, citing a long-running audit. A first, partial revelation of the substance of the audit came in 2020, when the Times reported that the IRS was disputing a $72.9 million tax refund that Trump had claimed starting in 2010. That refund, which appeared to be based on Trump's reporting of vast losses from his long-failing casinos, equaled every dollar of federal income tax he had paid during his first flush of television riches, from 2005 through 2008, plus interest. The reporting by the Times and ProPublica about the Chicago tower reveals a second component of Trump's quarrel with the IRS. This account was pieced together from a collection of public documents, including filings from the New York attorney general's suit against Trump in 2022, a passing reference to the audit in a congressional report that same year and an obscure 2019 IRS memorandum that explored the legitimacy of the accounting maneuver. The memorandum did not identify Trump, but the documents, along with tax records previously obtained by the Times and additional reporting, indicated that the former president was the focus of the inquiry.It is unclear how the audit battle has progressed since December 2022, when it was mentioned in the congressional report. Audits often drag on for years, and taxpayers have a right to appeal the IRS' conclusions. The case would typically become public only if Trump chose to challenge a ruling in court.In response to questions for this article, Trump's son Eric, executive vice president of the Trump Organization, said: "This matter was settled years ago, only to be brought back to life once my father ran for office. We are confident in our position, which is supported by opinion letters from various tax experts, including the former general counsel of the IRS." An IRS spokesperson said federal law prohibited the agency from discussing private taxpayer information.The outcome of Trump's dispute could set a precedent for wealthy people seeking tax benefits from the laws governing partnerships. Those laws are notoriously complex, riddled with uncertainty and under constant assault by lawyers pushing boundaries for their clients. The IRS has inadvertently further invited aggressive positions by rarely auditing partnership tax returns. The audit represents yet another potential financial threat -- albeit a more distant one -- for Trump. In recent months, he has been ordered to pay $83.3 million in a defamation case and an additional $454 million in a civil fraud case brought by New York Attorney General Letitia James. Trump has appealed both judgments. (He is also in the midst of a criminal trial in Manhattan, where he is accused of covering up a hush-money payment to a porn actor in the weeks before the 2016 election.)Beyond the two episodes under audit, reporting by the Times in recent years has found that, across his business career, Trump, the Republicans' presumptive 2024 presidential nominee, has often used what experts described as highly aggressive -- and at times, legally suspect -- accounting maneuvers to avoid paying taxes. To the six tax experts consulted for this article, Trump's Chicago accounting maneuvers appeared to be questionable and unlikely to withstand scrutiny. "I think he ripped off the tax system," said Walter Schwidetzky, a law professor at the University of Baltimore and an expert on partnership taxation.From '$1.2 Billion' to 'Worthless' Trump struck a deal in 2001 to acquire land and a building that was then home to the Chicago Sun-Times newspaper. Two years later, after publicly toying with the idea of constructing the world's tallest building there, he unveiled plans for a more modest tower, with 486 residences and 339 "hotel condominiums" that buyers could use for short stays and allow Trump's company to rent out. He initially estimated that construction would last until 2007 and cost $650 million. Trump placed the project at the center of the first season of "The Apprentice" in 2004, offering the winner a top job there under his tutelage. "It'll be a mind-boggling job to manage," Trump said during the season finale. "When it's finished in 2007, the Trump International Hotel and Tower, Chicago, could have a value of $1.2 billion and will raise the standards of architectural excellence throughout the world." As his cost estimates increased, Trump arranged to borrow as much as $770 million for the project -- $640 million from Deutsche Bank and $130 million from Fortress Investment Group, a hedge fund and private equity company. He personally guaranteed $40 million of the Deutsche loan. Both Deutsche and Fortress then sold off pieces of the loans to other institutions, spreading the risk and potential gain. Trump planned to sell enough of the 825 units to pay off his loans when they came due in May 2008. But when that date came, he had sold only 133. At that point, he projected that construction would not be completed until mid-2009, at a revised cost of $859 million. He asked his lenders for a six-month extension. A briefing document prepared for the lenders, obtained by the Times and ProPublica, said Trump would contribute $89 million of his own money, $25 million more than his initial plan. The lenders agreed. But sales did not pick up that summer, with the nation plunged into the financial crisis that would become the Great Recession. When Trump asked for another extension in September, his lenders refused. Two months later, Trump defaulted on his loans and sued his lenders, characterizing the financial crisis as the kind of catastrophe, like a flood or hurricane, covered by the "force majeure" clause of his loan agreement with Deutsche Bank. That, he said, entitled him to an indefinite delay in repaying his loans. Trump went so far as to blame the bank and its peers for "creating the current financial crisis." He demanded $3 billion in damages. At the time, Trump had paid down his loans with $99 million in sales but still needed more money to complete construction. At some point that year, he concluded that his investment in the tower was worthless, at least as the term is defined in partnership tax law. Trump's worthlessness claim meant only that his stake in 401 Mezz Venture, the limited liability company that held the tower, was without value because he expected that sales would never produce enough cash to pay off the mortgages, let alone turn a profit. When he filed his 2008 tax return, he declared business losses of $697 million. Tax records do not fully show which businesses generated that figure. But working with tax experts, the Times and ProPublica calculated that the Chicago worthlessness deduction could have been as high as $651 million, the value of Trump's stake in the partnership -- about $94 million he had invested and the $557 million loan balance reported on his tax returns that year. When business owners report losses greater than their income in any given year, they can retain the leftover negative amount as a credit to reduce their taxable income in future years. As it turned out, that tax-reducing power would be of increasing value to Trump. While many of his businesses continued to lose money, income from "The Apprentice" and licensing and endorsement agreements poured in: $33.3 million in 2009, $44.6 million in 2010 and $51.3 million in 2011. Trump's advisers girded for a potential audit of the worthlessness deduction from the moment they claimed it, according to the filings from the New York attorney general's lawsuit. Starting in 2009, Trump's team excluded the Chicago tower from the frothy annual "statements of financial condition" that Trump used to boast of his wealth, out of concern that assigning value to the building would conflict with its declared worthlessness, according to the attorney general's filing. (Those omissions came even as Trump fraudulently inflated his net worth to qualify for low-interest loans, according to the ruling in the attorney general's lawsuit.) Trump had good reason to fear an audit of the deduction, according to the tax experts consulted for this article. They believe that Trump's tax advisers pushed beyond what was defensible.The worthlessness deduction serves as a way for a taxpayer to benefit from an expected total loss on an investment long before the final results are known. It occupies a fuzzy and counterintuitive slice of tax law. Three decades ago, a federal appeals court ruled that the judgment of a company's worthlessness could be based in part on the opinion of its owner. After taking the deduction, the owner can keep the "worthless" company and its assets. Subsequent court decisions have only partly clarified the rules. Absent prescribed parameters, tax lawyers have been left to handicap the chances that a worthlessness deduction will withstand an IRS challenge.There are several categories, with a declining likelihood of success, of money that taxpayers can claim to have lost. The tax experts consulted for this article universally assigned the highest level of certainty to cash spent to acquire an asset. The roughly $94 million that Trump's tax returns show he invested in Chicago fell into this category. Some gave a lower, although still probable, chance of a taxpayer prevailing in declaring a loss based on loans that a lender agreed to forgive. That's because forgiven debt generally must be declared as income, which can offset that portion of the worthlessness deduction in the same year. A large portion of Trump's worthlessness deduction fell in this category, although he did not begin reporting forgiven debt income until two years later, a delay that would have further reduced his chances of prevailing in an audit.The tax experts gave the weakest chance of surviving a challenge for a worthlessness deduction based on borrowed money for which the outcome was not clear. It reflects a doubly irrational claim -- that the taxpayer deserves a tax benefit for losing someone else's money even before the money has been lost, and that those anticipated future losses can be used to offset real income from other sources. Most of the debt included in Trump's worthlessness deduction was based on that risky position. Including that debt in the deduction was "just not right," said Monte Jackel, a veteran of the IRS and major accounting firms who often publishes analyses of partnership tax issues. A Second Bite at the Apple Trump continued to sell units at the Chicago tower, but still below his costs. Had he done nothing, his 2008 worthlessness deduction would have prevented him from claiming that shortfall as losses again. But in 2010, his lawyers attempted an end-run by merging the entity through which he owned the Chicago tower into another partnership, DJT Holdings LLC. In the following years, they piled other businesses, including several of his golf courses, into DJT Holdings. Those changes had no apparent business purpose. But Trump's tax advisers took the position that pooling the Chicago tower's finances with other businesses entitled him to declare even more tax-reducing losses from his Chicago investment. His financial problems there continued. More than 100 of the hotel condominiums never sold. Sales of all units totaled only $727 million, far below Trump's budgeted costs of $859 million. And about 70,000 square feet of retail space remained vacant because it had been designed without access to foot or vehicle traffic. From 2011 through 2020, Trump reported $168 million in additional losses from the project.Those additional write-offs helped Trump avoid tax liability for his continuing entertainment riches, as well as his unpaid debt from the tower. Starting in 2010, his lenders agreed to forgive about $270 million of those debts. But he was able to delay declaring most of that income until 2014 and spread it out over five years of tax returns, thanks to a provision in the Obama administration's stimulus bill responding to the Great Recession. In 2018, Trump reported positive income for the first time in 11 years. But his income tax bill still amounted to only $1.9 million, even as he reported a $25 million gain from the sale of his late father's assets.It's unclear when the IRS began to question the 2010 merger transaction, but the conflict escalated during Trump's presidency. The IRS explained its position in a technical advice memorandum, released in 2019, that identified Trump only as "A." Such memos, reserved for cases where the law is unclear, are rare and involve extensive review by senior IRS lawyers. The agency produced only two other such memos that year. The memos are required to be publicly released with the taxpayer's information removed, and this one was more heavily redacted than usual. Some partnership specialists wrote papers exploring its meaning and importance to other taxpayers, but none identified taxpayer "A" as the then-sitting president of the United States. The Times and ProPublica matched the facts of the memo to information from Trump's tax returns and elsewhere. The 20-page document is dense with footnotes, calculations and references to various statutes, but the core of the IRS' position is that Trump's 2010 merger violated a law meant to prevent double dipping on tax-reducing losses. If done properly, the merger would have accounted for the fact that Trump had already written off the full cost of the tower's construction with his worthlessness deduction. In the IRS memo, Trump's lawyers vigorously disagreed with the agency's conclusions, saying he had followed the law.If the IRS prevails, Trump's tax returns would look very different, especially those from 2011 to 2017. During those years, he reported $184 million in income from "The Apprentice" and agreements to license his name, along with $219 million from canceled debts. But he paid only $643,431 in income taxes thanks to huge losses on his businesses, including the Chicago tower. The revisions sought by the IRS would require amending his tax returns to remove $146 million in losses and add as much as $218 million in income from condominium sales. That shift of up to $364 million could swing those years out of the red and well into positive territory, creating a tax bill that could easily exceed $100 million.The only public sign of the Chicago audit came in December 2022, when a congressional Joint Committee on Taxation report on IRS efforts to audit Trump made an unexplained reference to the section of tax law at issue in the Chicago case. It confirmed that the audit was still underway and could affect Trump's tax returns from several years. That the IRS did not initiate an audit of the 2008 worthlessness deduction puzzled the experts in partnership taxation. Many assumed the understaffed IRS simply had not realized what Trump had done until the deadline to investigate it had passed. "I think the government recognized that they screwed up," and then audited the merger transaction to make up for it, Jackel said. The agency's difficulty in keeping up with Trump's maneuvers, experts said, showed that this gray area of tax law was too easy to exploit. "Congress needs to radically change the rules for the worthlessness deduction," Schwidetzky said.