How Modi can grab India’s geopolitical “moment” 3 Apr 2023 India has a big opportunity not least because the US wants to build up the country as a counter to China. The prime minister can make the most of the chance if he moves closer to the West, addresses alleged human rights issues and is more open to trade, says Hugo Dixon.
India maps a viable next chapter for CoCos 21 Mar 2023 Local issuance of contingent capital froze after Yes Bank wrote down $1 bln in 2020, without wiping out shareholders - similar to Credit Suisse’s rinse. Fast forward: owners of the stuff are still fighting the move, but this niche of the bond market has come back stronger too.
Walmart gets early credit in India to offer credit 20 Mar 2023 The US retailer’s payments app, PhonePe, is raising funds at a $12 bln valuation, or 25 times forecast sales, sixfold rival Paytm's multiple. A dominant market share is a factor, but the premium rests on expectations that PhonePe will secure a coveted lending license.
India socialises some very easy ESG wins 15 Mar 2023 SBI’s recent $1 bln social loan, following a similar deal by HDFC, made the pair the world’s top issuers of such credit. They bolster the case for breaking up the responsible investing initialism. India’s next trick is appealing to a growing pool of fussier capital.
Make-in-India dials up a tycoon premium 6 Mar 2023 Foxconn is leading a charge by foreigners to team up with local giants including Tata and Vedanta. Such partners can help cut red tape and tap subsidies, freeing up incoming manufacturers to focus on boosting production quality. For now, it is a win-win for those scaling up fast.
Adani contrarian is a win for Hindenburg, too 3 Mar 2023 GQG’s $1.9 bln investment is a fillip for the tycoon. But shares of his firms are close to the short-seller’s target. And a court has ordered India’s securities watchdog to probe its allegations. Even if cleared, Adani may struggle to secure the backing of mainstream financiers.
India bond market backstop is nice window-dressing 1 Mar 2023 The Adani mess may have jolted New Delhi to accelerate a $4 bln fund to help avert runs on corporate debt-holding mutual funds. The size could grow but it ignores the broader illiquidity problem. Fixing that means upgrading market infrastructure and letting more foreign money in.
Airtel would be a complex saviour for Paytm 28 Feb 2023 Any investment from telecoms magnate Sunil Bharti Mittal would be a timely sign of confidence in the loss-making fintech darling as its big Chinese investors exit. Tycoons and banks are not happy bedfellows in India Inc, but deal talk at least shifts the debate to Paytm’s value.
Vedanta will test limits of Adani contagion risk 16 Feb 2023 Investors are wary of possible funding shortfalls at Anil Agarwal’s convoluted commodities empire. He’s trying to reassure on refinancing plans for $8 bln of net debt as his peer’s problems infect Vedanta bonds. The mess will push weak edges of India Inc towards private lenders.
MSCI’s Adani cut signals fat tail risks for India 10 Feb 2023 The global index provider cut its determined free floats of four Adani firms, undermining the efforts of local officials to downplay concerns about the group’s governance. Though India can manage the fallout at home, foreign scrutiny represents a lingering threat.
TotalEnergies’ India squall hits at a tricky time 8 Feb 2023 France’s $154 bln group has put a hydrogen project with Gautam Adani on hold as he battles short-seller allegations. Total’s Indian exposure is bearable. But it highlights green execution risk just as investors question companies trying to combine renewables and fossil fuels.
Gautam Adani’s woes were in banks’ plain sight 8 Feb 2023 Barclays, Standard Chartered, Deutsche Bank and others helped the Indian tycoon supersize his empire. A $110 bln share rout exposes their willingness to ignore warnings and take a narrow view of risk on lucrative relationships. As Adani struggles, the questions will get louder.
Paytm is stuck in dealmaking catch-22 6 Feb 2023 A banking licence would help the $4 bln Indian fintech generate earnings and boost its flailing share price. Regulators might only grant it once Ant and Alibaba offload their combined 28% stake. Yet the Chinese firms are unlikely to sell entirely until the stock improves.
Gautam Adani’s crisis will hit India hard 2 Feb 2023 The Indian magnate’s sprawling empire has lost over $100 bln of market value after a short-seller made accusations of fraud. In this Viewsroom podcast, Breakingviews columnists explain why the situation will narrow Adani’s financing options, limiting his infrastructure ambitions.
India signs up banks for a pre-election campaign 2 Feb 2023 New Delhi is topping up a loan backstop scheme for small firms. The plan will drive $24 bln of funds to a bruised set of borrowers that are also a key voting bloc in polls next year. The plan may cause banks some pain, and it risks entrenching structural economic snarls.
Adani’s share sale U-turn spares only some blushes 2 Feb 2023 It nixed a $2.4 bln offer after a near-30% fall in Adani Enterprises’ stock. But big funds, including from Abu Dhabi, still face hard questions for participating. Ditto the banking advisers. The dead deal shows support for Gautam Adani has limits, and the controversy will run on.
Gautam Adani’s next hurdles may be harder to clear 1 Feb 2023 Friendly investors and rich families pulled the Indian tycoon’s $2.4 bln share sale over the line. The feat will be hard to repeat. Adani group faces refinancing pain, more scrutiny from auditors and possible pressure from domestic regulators. It all acts as a brake on growth.
Adani re-ups India’s emerging market risk 31 Jan 2023 Strong economic growth and a booming population have put the country on investors’ radars. How authorities handle the $65 bln selloff in Gautam Adani’s empire will show the market’s maturity. In the meantime, it’s a reminder of the dangers of passively tracking stock indexes.
Adani’s financing safety-net rests on Indian banks 30 Jan 2023 Gautam Adani looks locked out of capital markets after a short-seller attack wiped $48 bln off the market value of his companies and caused bonds to tumble. Indian lenders have capacity to step in. What they do next will reveal the extent of state support for the tycoon.
Adani’s buy now, pay later fundraise could sting 26 Jan 2023 The world’s third-richest man Gautam Adani won anchor investor backing for a $2.4 bln share sale by his flagship company, including from Abu Dhabi’s wealth fund. Yet an Adani group selloff resulting from a short attack means terms that were meant to reward buyers could hurt them.