Top headlines: Economy grows at fastest pace, Tata Sons amends AoA and more

India's economy probably achieved its fastest annual expansion in a year in the April-June quarter, economists said. The shareholders of Tata Sons cleared a significant amendment to the articles of association (AoA) related to leadership at the annual general meeting (AGM). Read more on these in our top headlines.

India's economy probably grew at its fastest pace in a year in June qtr

India's economy probably achieved its fastest annual expansion in a year in the April-June quarter, economists said, expecting the pace to sharply slow this quarter and in the next two as higher interest rates hit economic activity. Gross domestic product (GDP) in the three months to June 30 was probably 15.2% higher than a year earlier, a Reuters poll showed this week. January-March GDP was up 4.1% on a year before. Read more

Tata Sons amends articles of association at AGM to split top roles

The shareholders of Tata Sons cleared a significant amendment to the articles of association (AoA) related to leadership at the annual general meeting (AGM). With this, Tata Sons and Tata Trusts, which own 66 per cent of the group, must have separate chairmen. Ratan Tata, who chairs the Tata Trusts, also held the position of Tata Sons chairman till 2012. The subsequent Tata Sons chairmen—Cyrus Mistry and N Chandrasekaran—have not chaired Tata Trusts, but there was no provision for a legal separation of the two positions. Read more

State of the Indian economy: Unequal, uneven distribution of wealth

Thomas Piketty’s seminal work Capital in the Twenty-First Century bared the growing inequality in Europe and the United States since the 18th century. He argued that when the rate of return on capital outstrips economic growth, it results in unequal distribution of wealth. The coronavirus pandemic made unequal wealth distribution worse, leading to a debate on K-shape recovery. An analysis of data shows that the per capita income (net state domestic product per person) of the top five Indian states was 3.3 times higher than the bottom five in 2021-22. The gap has increased in the last decade. In 2012-13, the ratio of per capita income of top and bottom five states was 3.1. States were exhibiting a K-shape trend before the pandemic. Read more

Amid lukewarm response IndusInd, Torrent, Oaktree bid for Reliance Cap

Four companies — IndusInd, Torrent, Oaktree Capital Management, and B-Right Realestate — have made financial bids for RCap as an entire company, with all bids around Rs 4,000 crore. Piramal Enterprises, Zurich Insurance, and Advent International have placed bids for Reliance General Insurance, while there were no takers for the life insurance arm, informed banking sources. Read more

Adani Green's key debt ratio is set to improve, says Nomura Holdings

A key credit metric of Adani Green Energy Ltd. that ballooned as the firm’s billionaire-owner took on more debt will show a pull back in leverage, according to Nomura Holdings Inc. The Abu Dhabi-based International Holding Co. has injected $500 million into Gautam Adani’s green company, which will help stabilize its debt-to-capital ratio in the low 60% range from 95.3% at the end of March, said Eric Liu, credit desk analyst at Nomura Holdings in Hong Kong. Read more