Electoral bonds are financial instruments used to donate funds to political parties in India. These bonds can be purchased by any Indian citizens or entities incorporated or established in India. These bonds aim to facilitate transparent political funding while maintaining donor anonymity.
The only political parties registered under Section 29A of the Representation of the People Act, 1951, and securing at least one percent of the votes polled in the last General Election are eligible to receive electoral bonds.
Furthermore, the State Bank of India is authorized to issue and encash these bonds through specific branches. Electoral bonds are available in denominations of Rs 1,000 and could be acquired during specific periods stipulated by the government. Political parties could redeem these bonds through their designated accounts within a prescribed timeframe.
In FY24, the political parties have bagged Rs. 16,518 crores through Electoral Bonds which have now been shut down by the apex court. Of this, the Bharatiya Janata Party (BJP) cornered Rs. 6,566 crores.
Here are the listed large-cap companies that have invested in these Electoral bonds of more than 100 crores:
Torrent Power Ltd
With a market capitalization of Rs. 56,758 crores, the shares of the integrated power utility company started Friday’s trading session on a lower note at Rs. 1,127.25 compared to its previous close of Rs. 1,143.95. During the trading session, the shares hit a high of Rs. 1,185, gaining around 2 percent and closed the day at Rs. 1,155 apiece.
Torrent Power Ltd is a leading integrated power utility company in India with a presence across the generation, transmission and distribution of power have bought Rs. 107 crores of electoral bonds during the span of 5 years.
Coming onto the company’s financial statement, the revenue decreased by 9 percent from Rs. 6,961 crores during the September quarter to Rs. 6,366 crores in the December quarter. In addition, the net profits declined by 31 percent from Rs. 543 crores to Rs. 374 crores during the same timeframe.
Jindal Steel and Power Ltd
With a market capitalization of Rs. 78,190 crores, the shares of the sponge iron and mild steel manufacturing company started Friday’s trading session on a lower note at Rs. 780 compared to its previous close of Rs. 781.60. During the trading session, the shares hit a low of Rs. 760.90, making a loss of around 2 percent and closed the day at Rs. 767 apiece.
Jindal Steel & Power Ltd, one of India’s leading steel producers with a significant presence in sectors like mining and power generation have bought Rs. 123 crores of electoral bonds during the span of 5 years.
Coming onto the company’s financial statements, the revenue decreased by 5 percent from Rs. 12,250 crores in the September quarter to Rs. 11,701 crores during the December quarter. On a contrasting note, the net profits zoomed by 29 percent from Rs. 1,390 crores to Rs. 1,928 crores during the same period.
Bharti Airtel Ltd
With a market capitalization of Rs. 7,17,425 crores, the shares of the telecom company started Friday’s trading session on a lower note at Rs. 1,190 compared to its previous close of Rs. 1,194.60. During the trading session, the shares hit a of Rs. 1,222.80, gaining around 3 percent, also recorded as the company’s fresh 52-week high and closed the day at Rs. 1220 apiece.
Bharti Airtel Ltd is one of the world’s leading providers of telecommunication services with a presence in 18 countries. Furthermore, according to reports, Sunil Mittal’s three companies together purchased a total of Rs. 246 crore worth of Electoral bonds.
Coming onto the company’s financial statements, the revenue increased marginally by 2.3 percent from Rs. 37,044 crores in the September quarter to Rs. 37,900 crores during the December quarter. In addition, the net profits zoomed by 37 percent from Rs. 2,093 crores to Rs. 2,876 crores during the same period.
Vedanta Ltd
With a market capitalization of Rs. 98,171 crores, the shares of the diversified natural resource company started Friday’s trading session on a flatter note at Rs. 260.15. During the trading session, the shares hit a high of Rs. 266, gaining around 2 percent and closed the day at Rs. 265 apiece.
Vedanta Limited, an industrial conglomerate founded by Anil Agarwal, diversified across various sectors such as mining, technology, and power, ranked fourth in donations, acquiring bonds totalling Rs. 400 crore over five years.
Coming onto the company’s latest financial statements, the revenue decreased by 8 percent from Rs. 38,945 crores during the September quarter to Rs. 35,541 crores in the December quarter. On the other hand, the net profits showcased a transition from a net loss of Rs. 915 crores to a net profit of Rs. 2,868 crores during the same period.
Written By Vaibhav Patil
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