Vijay Mallya-owned Kingfisher Airlines, which plans to raise $400 million from private equity investors, may have to settle for structured finance such as sale and leaseback or securitisation of receivables, say private equity experts in Mumbai.
Matthew M Smith, managing director, Abbott Capital, says that Indian general partners (GPs) are more willing to talk portfolios, both good and bad, in the initial meetings.
Global private equity majors - Standard Chartered Private Equity and London-headquartered 3i - are understood to have shown keen interest to invest in the litigation-prone Rs 4,000 crore (Rs 40 billion) Bangalore-Mysore expressway being developed by Nandi Infrastructure Corridor Enterprise Limited (NICE).
Indian start-ups are disrupting the world and women-based entrepreneurship is one of the vehicles for realising a more equal society, Niti Aayog CEO Amitabh Kant said on Monday. Addressing an event organised by FICCI Ladies Organisation (FLO), Kant further said India at present has more than 61,000 start-ups and 81 unicorns. "Indian start-ups are disrupting the world especially in new emerging areas of health, nutrition and agriculture," he said.
The government and Life Insurance Corporation's (LIC's) strategic stake sale in IDBI Bank is expected to move to the second stage by the first quarter of FY24, said two people in the know. They added that considering the progress of the ongoing deal, financial bids are expected to come in by June this year. The proposed IDBI Bank stake sale is divided into two sequential stages.
The Centre on Tuesday asked the UPSC to withdraw the latest advertisement for lateral entry in bureaucracy, amid a row over reservation in the advertised posts.
Its first and only investment in India out of its Asia-dedicated fund has gone bad.
With 7 per cent economic growth, India is not creating enough jobs as reflected by the number of applicants for vacant posts in some states, Reserve Bank's former governor Raghuram Rajan said and suggested the government needs to focus on promoting labour-intensive industries to generate employment. Rajan further said some Indians, especially those at upper level, are comfortable and have high incomes, but consumption growth from the lower half of the country has still not recovered to pre-pandemic level.
'We are in a position to start due diligence and private data room access shortly.'
'While Indian markets are indeed not inexpensive, the valuations of largecap stocks are still a considerable distance from being overstretched.'
The Competition Commission of India has approved the acquisition of 31.27 per cent of additional stake in Religare Enterprises by four entities of Dabur India promoter Burman family, enabling them to become majority owners in the financial services firm. The fair trade regulator allowed the four entities to acquire Religare's 5.27 per cent through stock market purchase and another 26 per cent through an open offer.
The froth in the small and midcap (SMID) space is limited to a few pockets, but regulatory scrutiny could lead to sustained volatility, observe India's top-drawer wealth managers. They add that they have been advising clients to reduce their exposure to smallcaps. Anand Rathi Wealth, which manages investor wealth through mutual funds (MFs), reports that its exposure to smallcap stocks, both through MFs and directly, has decreased by nearly 7 percentage points in the past few months, now standing at 23 per cent.
According to reports, private-equity firms such as Silver Lake Partners are considering bidding for Yahoo.
A Rs 525-crore contingency provision during the July-September period led to a 19 per cent fall in IndusInd Bank's share price on Friday (October 25). Contingency provisions are generally made when a lender expects more bad loans in the coming quarters. Shares of the bank on Tuesday (October 29) declined 1.53 per cent to settle at Rs 1,038.2 apiece on the BSE.
"There is an enormous amount of interest in investing in India," Mehra said at ICICI Bank's office in Dubai. "We could be doing at least another 10 deals over the next year".
'Last year, India exported more software than Saudi Arabia exported oil.' 'Last year India got $83 billion of private equity.' '50 percent of India's FDI has come in the last five years.'
Three-four funds have recently collected money from Indian HNIs, with an average ticket size of anywhere between Rs. 50 lakh to Rs. 1 crore.
Adani group is on track to surpass a combined Ebitda (earnings before interest, taxes, depreciation, and amortisation) of Rs 1 trillion in the ongoing financial year (FY25) as it prepares for a $2 billion (over Rs 16,700 crore) share sale by its flagship entity Adani Enterprises next month, according to a source close to the matter.
Kingfisher Airlines' plans to raise $400 million are on track and private equity players have showed keen interest in investing in the airline, its chairman Vijay Mallya said on Friday after the annual general meeting in Bangalore.
Stretched valuations and slowdown in DII flows are some of the reasons why Goldman Sachs cut its India rating to 'market-weight'
Standard Chartered Mutual Fund on Wednesday launched a close-ended Enterprise Equity Fund that\nwould invest 10 per cent of its corpus in public offerings.
Meanwhile, 117 Pan-Asian private equity players - with India as focus -- aim to raise funds worth $59 billion, says UK-based Preqin, an alternative assets research and consultancy group. On a global platform, he said, majority of investors remain positive towards private equity. Aditya Birla Private Equity is an example.
This marks the second billion-dollar investment by Silver Lake in a Reliance subsidiary after the $1.35 billion investment in Jio Platforms.
Banks have issued Rs 7.78 trillion worth of CDs in the current calendar year until August 2024, compared to Rs 4.9 trillion in the same period of 2023, registering a 59 per cent growth
'We are going to need more technical people in government.' 'You can't expect a generalist to understand the complicated world of financial engineering.' 'I regret to say that most of our politicians have no competence to deal with these things. Nor is there a willingness to learn.'
Nearly 9 out of 10 ultra-high-net-worth individuals in India saw an increase in wealth during in 2022, and the super rich expect their wealth to grow further this year, according to a Knight Frank survey. In its latest 'The Wealth Report: Outlook 2023', real estate consultant Knight Frank has revealed the findings of the global survey. Among Indian respondents, the consultant said 88 per cent saw a rise in UHNWI's (ultra-high-net-worth individuals) wealth in 2022.
According to data compiled by deal space research firm VCCEdge, private equity firms invested $7.97 billion in India during the 12 months ending December 2010, compared to $4.06 billion during the previous year.
Bhargava along with Harsha Raghavan, the former India head of Candover Investments, have formed Steer Capital.
According to 'India PE Report 2010', released by global consultancy Bain & Company, there is renewed confidence among the leading PE investors about the Indian market.
Blackstone on Monday said funds managed by the private equity firm will acquire a majority stake in IT firm Mphasis Ltd, triggering an open offer for acquisition of up to 26 per cent stake for about Rs 8,262 crore. A wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA), UC Investments (Office of the Chief Investment Officer of The Regents, University of California) and others will co-invest along with Blackstone, a statement said. Based on the open offer subscription, the blended purchase price will vary between Rs 1,452 to Rs 1,497 per share (12-16 per cent premium to 12-month average price and 3-6 per cent discount to 6-month average price) and the purchase consideration will vary between Rs 15,200 crore to Rs 21,000 crore (approximately$2-2.8 billion), the statement said.
On the volume side, the number of M&A and PE deals was 110 in July, 15 per cent lower from 130 in July 2018.
According to a report by international research firm Preqin, 623 private equity funds worldwide raised an aggregate $49.9 billion in the January-March quarter of the 2011 calender year, 72 per cent higher than year-ago period when 470 deals valued at $29 billion were completed.
Stock markets and entrepreneurism are linked and private equity is about taking the start-up to the IPO stage.
India emerged as one of private equity investors' favourite investment destinations in April, with the volume of transactions rising three-fold to $840 million in comparison to the same month last year, according to a study.
Reliance Retail Ventures Ltd (RRVL) is discussing a three-pronged plan that includes an additional divestment of $250-300 million this year, apart from what it has diluted in favour of the Qatar Investment Authority (QIA) and US-based private equity fund KKR recently.
'China is struggling to get out of its property bubble.' 'Japan took 35 years to walk out of its equity bubble.' 'Bubbles can be difficult to forecast.'
Private equity investments as well as merger and acquisition (M&A) transactions in the country have witnessed consistent growth so far this year, as deals worth over $52 billion have been announced in this space.
To expand its services in the five-player private direct-to-home market, Reliance Big TV Ltd, the promoter of Big TV DTH services of the Reliance ADA Group, plans to sell up to 49 per cent to foreign private equity companies and global DTH players.
Private equity firms invested about USD 3.7 billion across 133 deals during the first quarter of 2018 as compared to USD 7.3 billion by way of 200 transactions a year ago.
In February, 22 PE deals were announced, against 23 deals in the same month last year.
