Month: February 2021

Major Upcoming IPOs to Watch in 2021

The recent trends have shown that more and more investors are looking at IPOs in order to book a reasonable return in a short span of time.

There is no lack of popular private companies looking to enter the public markets. Key sectors such as e-commerce, fintech and edtech, led by the rise of online penetration, have experienced strong growth. It would be interesting to see the various industries entering the secondary market.

Kalyan Jewellers

Kalyan Jewellers is planning to raise around Rs 1,750 crores through its IPO. The IPO is set to offer a fresh equity issue of 1000 crores. The company has posted operating sales of 10,181 crores, up from 9,814 crores in the last financial year. More details to follow soon.

Bajaj Energy

The company’s IPO size is estimated to be around Rs 5,450 crores, of which Rs 5,150 crores would be a fresh issue. The issue date is yet to be announced. Bajaj power ventures promoter is providing 300 crores of scrips. The Promoters of this company are Shishir Bajaj, Minakshi Bajaj, Kushagra Bajaj and ApoorvaBajaj

Bajaj Energy Limited is one of the largest thermal generating firms in the private sector in Uttar Pradesh.

LIC IPO

In the 2021 Union Budget, finance minister Nirmala Sitharaman confirmed that the IPO of the Life Insurance Corporation of India (LIC) will be completed in 2021.

Minister of State for Finance said that up to 10% of the LIC IPO issue size will be reserved for policyholders. It is reported that the government is aiming to collect funds to the extent of 80,000 crores through this IPO.

Policybazaar IPO

Policybazaar plans to secure nearly $250 million in a $2 billion-plus valuation funding round before an initial public offering in September 2021. With Info Edge being an early investor, Policybazaar was founded in 2008.

With more than 90 percent market share, Policybazaar is the biggest online insurance firm in India.

Zomato IPO

The food delivery startup backed is expected to launch IPO in the first half of 2021. Zomato had also acquired Uber Eats during FY20 to become the business leaders in the delivery industry.

It is speculated that Zomato is looking for an IPO by June this year, valuing the firm on the stock sector at $6-8 billion. The Ant Group once held a 25-26% stake in Zomato.

The Economic Times announced that current investors Tiger Global, Kora Investments, Steadview, Fidelity, Bow Wave, Vy Capital and new sponsor Dragoneer Group will participate in the funding round.

Barbeque Nation IPO

Barbeque Nation will come up with its IPO soon because it has the approval of the SEBI market regulator to increase around Rs 1000 to 1200 crore through an IPO, around Rs 275 crores will be a fresh issue. A pre-IPO placement to amounting to Rs 150 crore could be considered by the firm.

The company is promoted by Sayaji Hotels, Sayaji Housekeeping Services, Kayum Dhanani, Raoof Dhanani and Suchitra Dhanani.

It is funded by CX Partners, the private equity company, which made its first investment in 2013 and again in 2015.

Delhivery IPO

The e-logistics service provider holds more than 20 percent of its sector’s market share and has raised 780 million across its various funding rounds. The company has over 85 fulfillment centers and has delivered 750 million orders to date. The company’s last estimate stood at $1.5 billion and could go public in 2021-2022.

Paytm IPO

Paytm, the leading payments company, founded in 2010 is likely to launch its IPO this year. Softbank, Ant Financials, T Rowe Price and Discovery Capital are the main investors. Ant Financials is the largest investor with a 40% stake in the firm. The business has 150-200 million daily users and it is scheduled to go public soon.

Digital payments are at a significant milestone in India, with mobile payments dependent on UPI is expected to increase to over 60% of CAGR over the next five years.

Ola IPO

Ola, a leading cab service provider plans to list on bourses this year. It is backed by Tiger Global alongside Tencent along with others.

At present, the company reports more than 1 billion rides taken annually and retains the privilege of a 55% market share in Indian markets.

BYJUs IPO

BYJUs, India’s leading education site, soared to prominence during the pandemic. It is backed by Lightspeed and Sequoia and has a $10.8 billion valuation and has 70 million registered users.

Byju’s can go public by listing itself both in India and the US on stock exchanges.

The edtech website, founded in 2011 by teacher-turned-entrepreneur Byju, offers online kindergarten to Class 12 student learning courses, along with entrance exam training for engineering schools, medical colleges, and civil services.

The list of prospective IPOs listed above are subject to significant modification as the information is not yet updated on the exchanges.

GoodReturns.in

Tax benefits for senior citizens

• For senior citizens, an income of up to Rs 3 lakh can be sought for tax deductions. Therefore, if investments are properly managed investments up to Rs 5 lakh can be considered as tax-free income for them.
• Under sections 80C and 80D, senior citizens can also claim tax deductions. Seniors can earn deductions of Rs 1.5 lakh under Section 80C on instruments such as National Savings Certificate, insurance, tax-saver fixed deposits (FDs) and so on. Apart from that, elderly people also generally enjoy a higher fixed deposit interest rate of up to 50 basis points.
• Senior citizens can also seek an exemption of up to Rs 50,000, under section 80TTB, on the interest income from savings or fixed deposits maintained with a bank, post office etc.
• On purchase of health insurance premium senior citizens can also seek tax deductions. As a senior citizen, you can seek an exemption on your health insurance premium of up to Rs 50,000. You can use a deduction of up to Rs 50,000 on your medical costs if you don’t have a health insurance plan. In particular, senior citizens can seek an exemption of up to Rs 1 lakh under section 80DDB on payment for the medical treatment of specified diseases.
• A regular exemption of Rs 50,000 can also be received on their salary or pension income by elderly people. In case a senior citizen does not have any business or professional income, they are therefore not eligible for paying any tax in advance.
• Senior citizens can also avoid from Tax Deduction at Source (TDS) by submitting Form 15H, as the tax determined on individual gross income is zero or below the deduction cap after all exemptions have availed.

The best tax saving investment options for regular income

There are different holdings that deliver a monthly income on a regular basis. For senior citizens and pensioners, below are some of the best investment vehicles:

Recurring Deposits/Fixed Deposits

One of the most famous types of investments made by retired individuals is fixed deposits (FD) and recurring deposits (RD). Banks also provide a relatively higher rate for seniors on FDs and RDs. An interest income of up to Rs.50,000 for senior citizens during a fiscal year is fully tax-free under Section 80TTB of the IT Act. If you invest in post office FDs and RDs, the same tax deductions as bank deposits are applicable. When it comes to regular income senior citizens can also start investing in the Post Office Monthly Income Scheme.

Senior Citizen Savings Scheme (SCSS)

SCSS is an outstanding investment choice for senior citizens pursuing long-term saving schemes that provide additional advantages in terms of safety. Not only is the interest rate paid on this scheme significantly higher than that of the standard savings and fixed deposit accounts, but under Section 80C of the IT Act, 1961, you are now liable for tax benefits of up to Rs.1.5 lakh.

Public Provident Fund

Only on behalf of his or her name, one can open a PPF account, and no joint account alternative exists. PPF deals with a tenure of 15 years, and for a block of 5 years can be extended further. In order to keep the account active senior citizens must deposit a minimum amount of Rs 500 per year which can go up to a limit of Rs. 1.5 Lakh in a single fiscal year. Deposits made under this scheme are tax-exempted under section 80C of the Income Tax Act. Even the interest received is absolutely tax-free.

National Pension System

Individuals between 18 and 65 years of age can invest in the National Pension System. Taxpayers are liable for deductions of up to Rs.1.50 lakh on contributions made towards NPS under Section 80C. Likewise, individuals are also liable for additional benefits under Section 80CCD, up to Rs.50,000. Based on the individual’s preference, the contribution rendered in the NPS scheme can be allocated into equity bonds or debt bonds, or both.

Note: To know more about post office tax saving schemes click here.

How senior citizens should make their retirement planning?

With the living standards and the cost of medical treatment rising, bringing a retirement plan into effect as quickly as possible is essential. Individuals make a really significant flaw because of multiple opportunities for withdrawals from long-term investment strategies such as NPS, EPF or PPF, and this influences financial goals. Only in emergency circumstances must investors practice these strategies. This practice of long-term dedication will help the corpus to flourish. In the event of a transfer of your current job location, rather than withdrawing the capital, the individual must transfer the EPF account to the new employer, as this mechanism is free from tax, and market-risks as well as generate higher returns. It is important to have a decent health care plan that protects your retirement age. And after retirement, generate a diversified portfolio by investing in the Senior Citizens’ Savings Scheme, PM Vaya Vandana Yojana, PPF and bank FDs.

Invest in debt assets or bank FDs, where the yields will be considerably higher when it comes to savings accounts. Hence, by heading for long term secure investments that would generate an ample yield to be used only for retirement, an investor must make smart retirement or financial planning. And the peaceful sound here is that, if pension income and interest income are their only source of annual income, it has been decided to exempt senior citizens from filing income tax returns by the finance minister on the recent Budget 2021 update. In order to push banks to deduct tax against senior citizens above 75 years of age who have a pension and interest income from the bank, Section 194P was newly introduced.

Tax benefits for senior citizens

• For senior citizens, an income of up to Rs 3 lakh can be sought for tax deductions. Therefore, if investments are properly managed investments up to Rs 5 lakh can be considered as tax-free income for them.
• Under sections 80C and 80D, senior citizens can also claim tax deductions. Seniors can earn deductions of Rs 1.5 lakh under Section 80C on instruments such as National Savings Certificate, insurance, tax-saver fixed deposits (FDs) and so on. Apart from that, elderly people also generally enjoy a higher fixed deposit interest rate of up to 50 basis points.
• Senior citizens can also seek an exemption of up to Rs 50,000, under section 80TTB, on the interest income from savings or fixed deposits maintained with a bank, post office etc.
• On purchase of health insurance premium senior citizens can also seek tax deductions. As a senior citizen, you can seek an exemption on your health insurance premium of up to Rs 50,000. You can use a deduction of up to Rs 50,000 on your medical costs if you don’t have a health insurance plan. In particular, senior citizens can seek an exemption of up to Rs 1 lakh under section 80DDB on payment for the medical treatment of specified diseases.
• A regular exemption of Rs 50,000 can also be received on their salary or pension income by elderly people. In case a senior citizen does not have any business or professional income, they are therefore not eligible for paying any tax in advance.
• Senior citizens can also avoid from Tax Deduction at Source (TDS) by submitting Form 15H, as the tax determined on individual gross income is zero or below the deduction cap after all exemptions have availed.

The best tax saving investment options for regular income

There are different holdings that deliver a monthly income on a regular basis. For senior citizens and pensioners, below are some of the best investment vehicles:

Recurring Deposits/Fixed Deposits

One of the most famous types of investments made by retired individuals is fixed deposits (FD) and recurring deposits (RD). Banks also provide a relatively higher rate for seniors on FDs and RDs. An interest income of up to Rs.50,000 for senior citizens during a fiscal year is fully tax-free under Section 80TTB of the IT Act. If you invest in post office FDs and RDs, the same tax deductions as bank deposits are applicable. When it comes to regular income senior citizens can also start investing in the Post Office Monthly Income Scheme.

Senior Citizen Savings Scheme (SCSS)

SCSS is an outstanding investment choice for senior citizens pursuing long-term saving schemes that provide additional advantages in terms of safety. Not only is the interest rate paid on this scheme significantly higher than that of the standard savings and fixed deposit accounts, but under Section 80C of the IT Act, 1961, you are now liable for tax benefits of up to Rs.1.5 lakh.

Public Provident Fund

Only on behalf of his or her name, one can open a PPF account, and no joint account alternative exists. PPF deals with a tenure of 15 years, and for a block of 5 years can be extended further. In order to keep the account active senior citizens must deposit a minimum amount of Rs 500 per year which can go up to a limit of Rs. 1.5 Lakh in a single fiscal year. Deposits made under this scheme are tax-exempted under section 80C of the Income Tax Act. Even the interest received is absolutely tax-free.

National Pension System

Individuals between 18 and 65 years of age can invest in the National Pension System. Taxpayers are liable for deductions of up to Rs.1.50 lakh on contributions made towards NPS under Section 80C. Likewise, individuals are also liable for additional benefits under Section 80CCD, up to Rs.50,000. Based on the individual’s preference, the contribution rendered in the NPS scheme can be allocated into equity bonds or debt bonds, or both.

Note: To know more about post office tax saving schemes click here.

How senior citizens should make their retirement planning?

With the living standards and the cost of medical treatment rising, bringing a retirement plan into effect as quickly as possible is essential. Individuals make a really significant flaw because of multiple opportunities for withdrawals from long-term investment strategies such as NPS, EPF or PPF, and this influences financial goals. Only in emergency circumstances must investors practice these strategies. This practice of long-term dedication will help the corpus to flourish. In the event of a transfer of your current job location, rather than withdrawing the capital, the individual must transfer the EPF account to the new employer, as this mechanism is free from tax, and market-risks as well as generate higher returns. It is important to have a decent health care plan that protects your retirement age. And after retirement, generate a diversified portfolio by investing in the Senior Citizens’ Savings Scheme, PM Vaya Vandana Yojana, PPF and bank FDs.

Invest in debt assets or bank FDs, where the yields will be considerably higher when it comes to savings accounts. Hence, by heading for long term secure investments that would generate an ample yield to be used only for retirement, an investor must make smart retirement or financial planning. And the peaceful sound here is that, if pension income and interest income are their only source of annual income, it has been decided to exempt senior citizens from filing income tax returns by the finance minister on the recent Budget 2021 update. In order to push banks to deduct tax against senior citizens above 75 years of age who have a pension and interest income from the bank, Section 194P was newly introduced.