Morning Buzz: 123 percent jump in production of electric three-wheelers as demand soars; Bain Capital plans to buy Adani Capital and Adani Housing, and more
Tamil Nadu and West Bengal saw the fastest month-on-month increase in vehicle sales; Bain is immediately making available a liquidity line of Rs410 crore
Factory floor of Piaggio Vehicles Pvt. Ltd in Pune, India. Image: Mexy Xavier
Banks get eight months to deduct TCS on foreign credit card spends
The government has given banks six to eight months to put in place a mechanism to deduct tax collected at source for foreign transactions on a credit card. A senior government official clarified that the rule has not been mothballed and that banks have simply been given more time to put in place a reporting mechanism. One option being considered is a self-declaration that customers can do, as banks don’t have systems in place to distinguish between personal and business transactions.(Business Standard)
Production of electric three-wheelers doubles on rising demand
The rapid adoption of electric three-wheelers has led to a 123 percent jump in production in the first half of this calendar year. The number of vehicles stood at 16,552—up from 7,552. The increase in manufacturing, which was due to a spike in demand, saw Mahindra Last Mile Mobility sell 36,816 electric vehicles in FY23. Tamil Nadu and West Bengal saw the fastest month-on-month increase in sales.(BusinessLine)
RIL transfers Rs15,500 crore to Jio Financial Services
Reliance Industries (RIL) has transferred Rs15,500 crore of cash and liquid investments to Jio Financial Services. Post the transfer, Jio Financial Services will have a liquid asset base of Rs20,700 crore. This gives Jio Financial Services the potential to leverage its balance sheet and takes RIL’s net debt post the demerger to Rs319,000 crore—up from Rs263,000 crore.(Financial Express)
Bain to buy Adani Capital for Rs1,500 crore
Bain Capital has announced plans to buy Adani Capital and its subsidiary Adani Housing. The deal is valued at Rs1,500 crore and will give Gautam Adani the bandwidth to focus on his investments in the infrastructure space. Gaurav Gupta, who joined the company in 2016 and owns 10 percent of the company, will stay on as CEO. Bain is immediately making available a liquidity line of Rs410 crore to Adani Capital.(Economic Times, Business Standard, Mint, BusinessLine)
