American private equity firms, banks and hedge funds, once a substantial resource for Hollywood films, have seen their coffers dry up over the past two years.
Of the amount, the home-grown private equity player founded by Renuka Ramnath plans to deploy $8 billion in various companies as part of its blueprint for growth.
Although West Asian investors have been active in India for long using private banks such as UBS, Credit Suisse and Morgan Stanley that invested across emerging markets, post-9/11, the US has been falling out of favour as investors count the risk that assets in the country could be targeted over security concerns.
Warehousing and logistics segment has been among the most resilient asset classes in the pandemic.
Strength in the dollar against some other currencies overseas weighed on the rupee but a higher opening in the domestic equities cushioned the impact
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TPG was one of the first global private equity firms to enter Asia, opening a Shanghai office in 1994.
Mortgage finance remains a structural growth opportunity in India with a policy focus on affordable housing, housing shortages, low mortgage penetration, and rising incomes as drivers. Affordable Housing Finance Companies (AHFCs) serve the mass market, low-income segments, which is the least-serviced category, and to operate in this segment, the mortgage provider needs good assessment skills. AHFCs and HFCs have also been increasing exposure in other mortgage segments (loan against property, developer loans among others).
Investment banking sources say the three Patni brothers have now agreed on the sale process, along with private equity player General Atlantic.
Foreign portfolio investors' (FPIs') shareholding in NSE-listed companies fell 51 basis points sequentially to 17.68 per cent in the quarter ended March 31, 2024, according to data compiled by PRIME Database. This is the lowest FPI shareholding since December 2012. From the recent peak of 21.21 per cent at the end of December 2020, FPI shareholding is down 353 basis points.
'If the majority falls short of expectations, it may prompt initial adjustments in investor sentiment.'
Life Insurance Corporation of India (LIC) reported weak growth through H1FY24 but it witnessed a boost in embedded value (EV) due to equity-market performance. But concerns regarding its stock include loss of market share as it is outpaced by private sector rivals, sticky operating expenses (reduced slightly year-on-year but up in Q2FY24 versus Q1FY24), and high sensitivity of embedded value to equity volatility. Traders may also factor in the likelihood of another stake sale by the Government of India.
According to experts in the private equity space in the country, top PE professionals, who draw huge eight-digit salaries at the top levels, have suffered a cut back in their remuneration. Another expert, who tracks the private equity space, said salaries of senior PE professionals had definitely taken a hit due to the fall in deal flows as the bonuses given to them are based on deals and exits from an investment.
'Valuations of midcaps and smallcaps have reached very high levels, and hence to that extent leave little margin of safety.'
Affordable housing, the most neglected segment of the real estate sector, is now attracting large-scale investments from developers as well as private equity funds.
Blackstone Group, a global private equity player, is set to increase its focus on India. After setting the ball rolling on its corporate private equity and recently starting off its real estate opportunity focus, the company during the past week has set up Blackstone Altius Advisors, an event-driven strategy focusing on opportunities in the Asia Pacific region. Event-driven strategies are those where PEs fund merger and acquisitions or bankruptcies scenario.
Difficult fund raising conditions slowed the pace of private equity (PE) investments in the country by 64 per cent to a four-year low of $3.8 billion in 2009.
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The airline, which posted an annual loss of Rs 191 crore (Rs 1.91 billion) for the past financial year, has been looking to raise funds for months.
'In India, the GenAI startup ecosystem is unfolding with remarkable speed, signalling a new era of technological advancement and investment opportunities.'
Forget Starbucks coming into India. Witness the expansion of Caf Coffee Day, which is set to mushroom across the country.
Public sector banks (PSBs) have delivered significant outperformance over the past three years and the sector has been re-rated. Given the growth and profitability expectations of an 18 per cent return on equity (RoE) over FY24-26, there is still a case for buying at the current levels. While the net interest margins or NIMs may remain range-bound or have a downward bias, there's optimism about possibly better opex ratios and lower non-performing assets (NPAs), plus scope for further credit cost reduction, and healthy treasury performances as interest rates trend down.
This period of strong growth not only offers opportunities but also calls for strategic considerations to ensure sustainable development and equitable prosperity in the years to come, suggests Sujan Hajra.
"We plan to raise $10 million through private equity and venture capitalist and will be investing the same in expanding our operations to new geographies like West Asia and new regions in Asia," Total IT Solutions Managing Director Rajiv Mishra told PTI.
With high credit growth and healthy asset quality, listed commercial banks are expected to report steady growth in earnings during the fourth quarter ended March 2024 (Q4 FY24). Profits are expected to grow at 9.6 per cent year-on-year (Y-o-Y) and net interest income (NII) by 8.7 per cent in Q4 FY24, according to Bloomberg analysts' estimates. According to Motilal Oswal Securities, while bank credit growth has been robust, deposit growth has also gathered pace.
While the Tatas are looking for PE deals of about $50 million or less, the A V Birla Group is eyeing deals worth not more than $25 million. Tata Capital is banking on its ability to source deals by exploiting the existing Tata ecosystem of suppliers and customers. The Birla group, which has committed 40 per cent of the $250-million corpus it planned to raise for its PE fund, is looking to leverage its strength to source and evaluate deals.
Amidst global private equity investment firms making a beeline for India and the growing dominance of PE players in the M&A deals executed by India Inc, US-based banking giant Bank of America has pulled curtains on its private equity division in Mumb
IT and ITeS companies accounted for $28.1 billion of the total investment pie during the first nine months of 2021.
The logistics segment is becoming a hot favourite of private equity, of late.
The Indian economy has witnessed the creation of 28 unicorns, or startups valued over $1 billion, this year on the back of a series of reforms unleashed by the government, Finance Minister Nirmala Sitharaman said. Addressing a virtual conference organised by the Indian Private Equity and Venture Capital Association (IVCA), the minister said the Indian economy has witnessed a spur of unprecedented growth in the form of startups in the last two decades. The Department for Promotion of Industry and Internal Trade (DPIIT) has recognised more than 56,630 startups across districts throughout India, IVCA said in a statement quoting the finance minister.
Reworks proposal submitted to Foreign Investment Promotion Board.
'This trend will continue as long as the bull run continues.'
For over a decade, HDFC Bank consistently outperformed industry growth rates in both deposits and advances, maintaining impeccable asset quality. Amid a landscape where other banks struggled with soaring non-performing assets (NPAs), HDFC Bank thrived, eventually surpassing ICICI Bank to become the largest private sector lender in India. Its net interest margin (NIM) remained stable in the range of 4.1-4.4 per cent.
Growing business opportunities fuelled by a robust economy and an increasing number of private equity investors are prompting investment bankers to quit their jobs and turn entrepreneurs.
HealthCare Global, an oncology care hospital chain, has received a funding of $20 million from PremjiInvest, a private equity fund sponsored by Azim Premji. With this funding, PremjiInvest has bought a "significant minority stake" in HCG. This is the third round of funding the hospital has received after it initially received Rs 50 crore from IDFC Private Equity and the second funding of Rs 10 crore from Evolvence.
Private equity mergers and acquisition volumes targeted towards India have grown to $ 2.1 billion through 52 deals in 2008 so far, compared to $ 893 million in the year-ago period, making India the most targeted nation for such agreements in Asia. Buyouts by private equity investors this year account for 15 per cent of the total M&A deals in the country. This has increased 4 per cent from the same period last year. PE investments constitute 8% of the total global M&A volume.
Standard Chartered Private Equity Fund on Tuesday said it was carrying out due diligence for evaluating the stake before arriving at investment decision.\n\n
'If I had to highlight one area that will do well, it is the financial assets -- that is the private sector banks, insurance and mutual funds.'
Sources close to the development said the agreement between one of the private equity partners and the Patni brothers, who jointly hold 29 per cent stake, is expected to be signed next month.
Indian sweet, snack, and restaurant chain group Bikanervala, with revenues of over Rs 3,000 crore, is working towards an initial public offering (IPO) for its food company in the next three years. Before that, it could also bring in private equity (PE) investors. The low-profile Aggarwal family-owned group company, Bikanervala Foods (which also sells under the brand name Bikano), operates in the snack business.
