Business News at 05:30 pm on 5th June, 2024

Let’s begin…Prime Minister Narendra Modi on Wednesday met President Droupadi Murmu and tendered his resignation along with the Council of Ministers, the Rashtrapati Bhavan said. President Murmu has accepted his resignation and requested him to continue till the new government assumes office. Modi is likely to take oath for a third consecutive term on June 8. This is the first time since Jawaharlal Nehru that a prime minister will be returning to power for a third consecutive term. On June 4, when results for the 2024 Lok Sabha elections were declared, the BJP-led NDA comfortably exceeded the majority threshold of 272 in the 543-member Lok Sabha. The BJP secured 240 seats, falling short of the magic number for the first time since 2014.

Next up, Kotak Mahindra Bank on Wednesday announced that the RBI has approved Zurich Insurance Company’s proposed acquisition of 70% stake in Kotak Mahindra General Insurance Company for a total consideration of approximately Rs 5,560 crore. Kotak Mahindra General Insurance Company is a 100 per cent subsidiary of Kotak Mahindra Bank. Earlier in February, the Bank had announced that Zurich Insurance would acquire a 70 per cent stake in the insurance company for Rs 5,560 crore in a single tranche. In November 2023, Zurich Insurance had said it would first acquire a 51 per cent stake through a combination of fresh growth capital and share purchase, and an additional 19 per cent stake later on.

Moving on, UltraTech Cement Limited has conserved 105 million cubic metres of water in FY24 making it five times water positive in line with its stated ambition. The 105 million cubic metres of water conserved includes the water it has reused, recycled, harvested and recharged both within its unit premises and through community interventions. This is an increase of over 20 million cubic metres of water conserved in FY23. Through its watershed management approaches and community-driven initiatives, UltraTech focuses not just on water conservation, but also on enriching lives and livelihoods. Additionally, UltraTech has also set up Zero Liquid Discharge plants at several of its manufacturing Units to enable the reuse of 100 per cent treated water within the Units.

In other news, In a bid to enhance the connectivity between Canada and India, Air Canada on June 4 announced new flight services as part of its winter schedule, including a non-stop flight from Toronto to Mumbai and a seasonal flight from Calgary to Delhi via London Heathrow. This expansion increases Air Canada’s operations to 25 weekly flights to and from India. For the winter season, Air Canada will offer 25 weekly flights between Canada and India, providing a total of 7,400 seats per week. This includes up to 11 weekly flights from Toronto to Delhi and Mumbai, daily flights from Montreal to Delhi, and daily flights to Delhi from Western Canada via London Heathrow.

Moving on, Maruti Suzuki India Limited commences a pilot Biogas plant at its Manesar facility in the fiscal year 2024-25, harnessing the untapped potential of in-house food waste and Napier grass as resources at its plant. The initiative aligns with the Ministry of New and Renewable Energy’s ‘Waste to Energy’ program, reflecting Maruti Suzuki’s commitment to sustainable practices and innovative waste management solutions. In FY24, the company invested Rs 120.8 crore towards commissioning renewable energy initiatives like solar power and biogas. It has further pledged to increase the investment approximately fourfold to Rs 450 crore spread over three years starting FY25. This will significantly boost MSIL’s environmental sustainability initiatives.

In another development, Renowned online travel agency ixigo will open its IPO on June 10. The company will raise Rs 740.10 crore from investors at a price band of Rs 88 to 93 per equity share. The company will collect money by offering 79.6 million shares of the company, out of which a large 66.7 million share will be offloaded by promoters and other selling shareholders amounting to Rs 620.10 crore. The issue will close on June 12. The company is expected to finalise the allotment of shares by June 13 and list on June 18, scheduled tentatively. A retail investor needs to apply for a minimum of one lot, which contains 161 shares aggregating to Rs 14,973.

Lastly, The benchmark equity indices ended Monday’s trading session in the positive territory. The NSE Nifty 50 gained 735.87 points or 3.36% to settle at 22,620.35, while the BSE Sensex jumped 2303.19 points or 3.10% to 74,382.24. The broader indices ended in positive territory, with gain led by Large-cap and Midcap stocks. Bank Nifty index ended higher by 147.85 points or 4.53% to settle at 49,054.60. Auto and Metal stocks outperformed among the other sectoral indices while Realty and IT stocks shine. Angel One Ltd shares jumped 7% on Wednesday, June 5, reaching an intraday high of ₹2,406.75 per piece on the BSE after the stockbroking firm reported its business updates for May 2024.