Bajaj Finservs subsidiary gets GST notice worth Rs 1,010 crore; stock declines over 2%
At around 11:26 a.m., shares of the Pune-based non-banking financial company (NBFC), Bajaj Finserv, traded 1.62 per cent lower at Rs 1535.15 apiece.
Bajaj Finserv shares slipped over 2 per cent to touch the day's low of Rs 1,525 apiece in the morning trade. The stock saw a downtrend after the company's unlisted subsidiary, Bajaj Allianz General Insurance Company Limited, received a show cause notice from the Directorate General of Goods and Services Tax (GST) Intelligence of Rs 1,010 crore.
"Bajaj Allianz General Insurance Company Limited (“BAGIC”), an unlisted material subsidiary of the Company, has received a Show Cause Cum Demand Notice from the Directorate General of GST Intelligence, Pune Zonal Unit, under Section 73(1) of the Central Goods and Services Tax Act, 2017 (“the Act”), on 29 September 2023 alleging a tax demand of Rs. 1010,05,80,540/-," the regulatory filing read.
At around 11:26 a.m., shares of the Pune-based non-banking financial company (NBFC) traded 1.62 per cent lower at Rs 1535.15 apiece. The scrip snapped the two-day winning streak, and the market capitalisation of the company stood at Rs 2,44,995.28 crore.
Analysts' views
"If the stock breaches the Rs 1,480 level, it will be negative for the short term. Thus, investors should wait to add the stock to their portfolio for the long term," said Vishvesh Chauhan, CEO and founder, Richie.
Bajaj Finserv Q1 results
Bajaj Finserv Ltd reported a 48.3 per cent year-on-year (YoY) rise in consolidated net profit for the quarter ended June 2023 to Rs 1,942.63 crore from Rs 1,309.38 crore logged in the same quarter last year.
Its revenue from operations rose nearly 46.5 per cent YoY to Rs 23,279.98 crore from Rs 15,888.26 crore last year.
Its subsidiary Bajaj Finance recorded its highest-ever quarterly increase in customer franchise of 3.84 million and the highest-ever new loans booked of 9.94 million in the June quarter.
Bajaj Finserv share price: Past performance
In 2023, so far, the stock has declined 1 per cent against Nifty's rise of over 6 per cent.
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