Top 10 biz headlines: RCap's $5-bn debt, Oyo to raise $1 bn, and more

From Oyo eyeing fresh funds to Reliance Capital getting a downgrade from CARE Ratings, here are the top 10 business headlines for Monday

Corporation tax rate cut may not benefit auto buyers, say analysts

Buyers of automobiles are unlikely to benefit from the reduction in corporation tax, even though the move is expected to bring some relief to auto companies bruised by a prolonged slowdown. And with its calls for a cut in the goods and services tax (GST) rates on autos rejected, companies will have to find their own ways to tide over the sales slump and re-kindle demand. Read More

Tata Realty, Actis look to raise $1 billion for commercial properties

United Kingdom-based private equity firm Actis and Tata Realty and Infrastructure (TRIL), a subsidiary of Tata Sons, are looking to raise $1 billion for their commercial properties under their platform. Read More

Room for more: Oyo to raise another $1 bn as it adds stars to its hotels

Oyo is eyeing $750 million to $1 billion in fresh funds in its parent company Oravel Stays over the next few months, according to sources close to the development. The SoftBank Group might lead the funding round, which will push Oyo’s valuation to $13.5-15 billion. Read More

MCA defends IBC amendments, sticks to strict deadlines in Supreme Court

The Ministry of Corporate Affairs (MCA) has defended all the amendments made to the Insolvency and Bankruptcy Code (IBC) in a submission made to the Supreme Court (SC). One of the most contentious issues is related to 330-day deadline set for resolution of insolvency applications, including the time taken for litigation, which has been challenged by operational creditors. Read More

Tax windfall: India Inc to increase capex spending, retire high-cost loans

With a surprise tax windfall in its kitty, Corporate India is redrawing its capital allocation strategy, plans to retire high-cost bank loans and, in a few cases, even giving the green signal to capacity expansion projects. Read More

RCap's $5-bn debt at risk on default rating, revives India's credit scare

Reliance Capital Ltd.’s downgrade to default grade at Care Ratings Ltd. places the debt of embattled tycoon Anil Ambani’s conglomerate at risk, reigniting India’s credit scare. Read More

Govt speeds up divestment plans on upbeat sentiment after tax cut

Government officials had been privately grumbling that the subdued market sentiment was an added hindrance to the divestment plans for 2019-20. Now with the market looking up after Finance Minister Nirmala Sitharaman announced a reduction in corporate tax rates, the Department of Investment and Public Asset Management (Dipam) is lining up a glut of initial public offerings (IPOs) and offer for sales, Business Standard has learnt. Read More

Corpus of Rs 69,000 Cr to Incentivise Urban Bodies for Clean Air Mooted

The 15th Finance Commission is learnt to be working on a plan to set up Rs 69,000 crore corpus to incentivise urban local bodies and link central funding to measurable improvement in air quality and solid waste management, reports Economic Times. The levels of particulate matter (PM) 10, air quality of a city and how it handles its solid waste may soon determine the kind of funding it receives.

Mid- & Small-sized Cement Cos to Gain More from Tax Cut than Larger Peers

At a time when demand in India’s cement industry has become more ephemeral than elusive, the change in corporate tax rate should provide some relief to investors, Economic Times reported. A sift through the tax rate of cement companies as of FY19 shows that mid-andsmall-sized firms will benefit more than large-sized ones due to an effective tax rate of 25.7% after surcharge and cess.

MAT breather to give a leg-up to bankruptcy resolution and M&As

Mergers and acquisitions as well as resolution of corporate bankruptcy are set to get a leg-up with the minimum alternative tax (MAT) exemption that the government announced on Friday as part of corporate tax reform, experts told Livemint. The Taxation Laws (Amendment) Ordinance, 2019 promulgated last week exempted companies opting for the lower corporate tax rate of 22% and new manufacturing companies eligible for a 15% tax rate from payment of MAT.