Subhash Chandra resigns as Chairman of Zee Entertainment. Bajaj Auto invests in micromobility startup Yulu. Alibaba's secondary listing in Hong Kong raises $11.2bn, becomes 2019's biggest stock offering so far. Direct tax collection drops by 17% Y-o-Y in October.
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Taxation Ain't Heft: Personal income tax and corporate tax collections fell 17% Y-o-Y in October.
The Central Board of Direct Taxes had collected INR61,475cr in October 2018 but this amount fell to INR50,715cr in October 2019. Direct tax collection for the April-October period, meanwhile, rose by 4.7% this year.
Due to the lack of data, it's too early to find out how much of the tax collection drop was on account of the corporate tax cut that the government announced recently. But the declining numbers don't bode well for overall revenue mobilisation, which could suffer and affect Budget 2020-21. BS
You're Hired: As per the payroll data of Employees' State Insurance Corporation (ESIC), around 12.23L new jobs were created in September 2019. In August 2019, that number was 13.38L.
Gross enrollments of new subscribers with the ESIC were 1.49cr during the entire 2018-19 fiscal, the National Statistical Office (NSO) said in a report. More details here.
Stepping Down: Media baron Subhash Chandra has stepped down as the Chairman of Zee Entertainment with immediate effect, in light of the recent changes in shareholding and complying with a rule which mandates that the Chairman of a company's board cannot be related to its Managing Director (MD) and Chief Executive Officer (CEO). Punit Goenka, the present MD & CEO of Zee Entertainment Enterprises, is the son of Subhash Chandra.
He will however, remain an non-executive director.
Last week, Subhash Chandra-led Essel group had reported that it was planning to sell 16.5% stake in Zee Entertainment to financial investors in order to repay loan obligations to certain lenders of the group, following which Essel Group's stake in Zee Entertainment will be reduced to 5%. Business Today
In Other News: Hospitality platform OYO Hotels and Homes has reported a rise in net loss to INR2,384.69cr for the fiscal ended March 2019 vs INR360.43 in the previous year on the back of increased operating and employee benefit expenses.
Operating expenses jumped more than 390% to INR6,131.66cr, while employee benefit expenses rose nearly six-fold to INR1538.85cr. ToI
Yulu Because You Only Live Once: Two-wheeler manufacturing major in India, Bajaj Auto has invested $8mn in Bengaluru-based micromobility platform Yulu.
As part of the deal, Bajaj will co-design and manufacture electric two-wheelers for Yulu. Bajaj will also consider facilitating the vehicle finance needs of Yulu for a large scale deployment of its micromobility electric vehicles.
With the funding, Yulu plans to increase its fleet size to 100K electric two-wheelers by Dec 2020. At present, it has a fleet of 3000 EVs and 8500 scooters. Though the company has not taken off bicycles from the roads, it has stopped buying them as it now plans to focus on EVs. Inc42
...Come Again Another Day: Telecom operators in India are likely to defer the roll-out of 5G services at least five years on the back of exorbitant base prices, insufficient spectrum and unavailability of newer bands.
Priced at INR492cr for 1 MHz, most operators said it was not a viable proposition given the debt and international prices. Moreover, the quantum of 5G spectrum being offered in India was insufficient since the industry was seeking 100MHz per operator. ET Telecom News
Search and Not Find: India's search for exploitable shale reserves was commissioned in 2013 when the Oil Ministry permitted Oil and Natural Gas Corp. (ONGC) and Oil India to explore shale in three phases of three years each. This search has now reached a dead end.
ONGC has decided to wind up its exploration programme ahead of schedule as the results haven't been encouraging. It also told the government to reassess India's shale potential by a competent international agency.
India's shale aspirations were fueled by the shale revolution in the US, which enabled America to surpass Saudi Arabia to become the world's largest oil producer.
“The US has Permian shale while India has much younger, tertiary shale. The US shale rocks are brittle and so easier to hydro-frack while those in India are elastic with more clay content, resulting in little yield from fracking,” said an ONGC executive. “The general assessment after drilling wells and data analysis was that it may not be a productive idea to sink more capital into shale projects.” ET Oil & Gas
Electric City: The age of electric vehicles is upon us, we often hear and read. But that's easier said or written than done. There are many roadblocks to deal with before the world can transition from oil to electricity. A deep-dive into the challenges can be read here.
King (Hong) Kong: Aibaba's secondary listing has emerged as the biggest stock offering so far this year. Its Hong Kong-listed shares rose nearly 7% in their market debut, and the company managed to raise c. $11.2bn (though this could rise to $13bn).
Alibaba's IPO is 2019's largest yet, but could be dwarfed by Saudi Aramco's listing, which is expected in the coming weeks and which could top the $25bn record for largest IPO set by Alibaba in 2014 when it listed in New York. WSJ
The secondary listing of the world's largest e-commerce company in Hong Kong bears special significance. For starters' the decision to list elsewhere was important for Alibaba given the increasing distrust between Washington and Beijing. In case the US government takes action against Chinese companies listed in the country, having one foot close to home will be beneficial to Alibaba. In addition to this, a successful listing in Hong Kong showcases business confidence in the city, which has been roiled in anti-Beijing protests since April. Forbes
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