Data recap: EPF rates, L&T buyback, GDP estimate
Plain Facts publishes a compilation of data-based insights, complete with easy-to-read charts, to help you delve deeper into the stories reported by Mint in the week gone by. Earlier in the week, major announcements by Larsen & Toubro (L&T) and ITC led to movements in the stock markets. The government approved a hike in the interest rate on employees' provident fund (EPF) to 8.15% for 2022-23.
Meanwhile, the International Monetary Fund (IMF) raised India’s GDP growth forecast to 6.1% for 2023-24. For the first time in its eight-decade-long history, L&T announced plans to buy back shares worth up to ₹10,000 crore from its public shareholders. The construction and engineering conglomerate may offer to buy back a 2.4% stake, or 33.33 million shares, through a book-building process, Mint reported.
Shareholders who are willing to participate in the buyback will receive up to ₹3,000 per share, or approximately 13% premium to the current market price. The ministry of finance has approved the Central Board of Trustees’ recommendation to raise the interest rate on EPF to 8.15% for 2022-23 from 8.1% in the preceding year. The Employees' Provident Fund Organization (EPFO) has already instructed its field offices to credit the revised interest rate.
The recommendations entail distributing over ₹90,000 crore to members’ accounts on a total principal amount of around ₹11 trillion during 2022-23. 6.1%: That is the projected economic growth for India in 2023-24, the IMF said on Tuesday, revising the figure upwards from 5.9% given in April. The increase in the projection is due to strong domestic investment, the international body said.
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