India turns bank privatisation dithering into win 10 Oct 2022 New Delhi mulled ceding control of IDBI in 2016 when the lender was beset by bad loans. After a painful process, it’s healthier and its market value has tripled to $5.6 bln. And official foot-dragging means it can now sell a 60% stake to buyout firms from a position of strength.
India rating-agency shutdown boosts debt cleanup 7 Oct 2022 Companies that assess creditworthiness often run afoul of watchdogs, but are rarely forced to close. Banning Brickwork Ratings after years of poor performance marks a fresh charge in the country’s war against bad debt. It’ll help upgrade the $500 bln corporate bond market, too.
Blackstone converts Indian property to safe haven 6 Oct 2022 A $500 mln shopping mall listing would lay another cornerstone in the U.S. titan’s push to build a local market for REITs. Their decent returns and scarcity value in India can put a good roof over long-term investors’ heads. That’s all the more enticing given global volatility.
India’s bond inclusion will be overdue and timely 26 Sep 2022 The sovereign debt of the world’s fifth-largest economy may be added to JPMorgan’s emerging market index, offsetting Russia’s exclusion. It’s a step towards prising open a $1 trln market, and a feather in India’s cap. But there are reasons it took so long.
India’s fintech fest is a vibrant coming-out party 23 Sep 2022 Crashing valuations did not dampen spirits at a Mumbai confab this week drawing 7,000 daily visitors. Officials celebrated startups, their global potential, and offered a checklist for not running afoul of evolving regulation. Questions on profitability will be for another day.
Mukesh Ambani pulls off one shade of overseas M&A 19 Sep 2022 The boss of $212 bln Reliance has so far failed in his hot pursuit of big flashy targets, the types of deals that tripped up his tycoon rivals a decade ago. Ambani’s quiet penchant for buying foreign technology to further his domestic clean energy goals looks much smarter anyway.
Adani’s Fitch debt spat is good news all round 8 Sep 2022 The U.S. group’s CreditSights unit rankled the $255 bln opaque Indian behemoth last month by calling it “deeply overleveraged”. But it got Adani’s executives talking more, and investors now have two clearer views of the company to weigh up. That’s a transparently good outcome.
Singapore deal offers template for offloading coal 6 Sep 2022 Banks’ aversion to fossil fuels makes it hard for companies to sell dirty assets. So Temasek-backed Sembcorp is financing its own $1.5 bln Indian disposal with an interest rate that falls if emissions do and guaranteeing loans. It’s a more responsible way to get the job done.
Gloves come off in India’s digital content wars 5 Sep 2022 Disney bid $3 bln for ICC cricket rights then sub-licensed part of the package to rival Zee, raising the stakes for the latter to clear competition concern over its planned merger with Sony India. The surprise pincer move puts Mukesh Ambani’s Reliance on the backfoot.
India’s Reliance is too richly dressed to impress 30 Aug 2022 The $220 bln energy-to-retail conglomerate’s annual meeting was missing its usual wow factor. The cool market reaction underscores a new risk for boss Mukesh Ambani: shareholders are expecting a near perfect delivery on the company’s ambitious transformation plans.
IT spending slowdown will program Indian shakeout 29 Aug 2022 Global corporate giants will start investing selectively on tech services as the economy slows. But providers across the industry from Infosys and Wipro are struggling to retain staff and to increase charges for more advanced work. Pandemic-induced valuations are ripe to topple.
Gautam Adani’s tycoon rivalry spills into the news 24 Aug 2022 The Indian infrastructure tycoon has grabbed a 29% stake in $300 mln NDTV, a move to match the influence Mukesh Ambani enjoys thanks to his Reliance group’s TV channels, watched by half the country. The broadcaster may be a trophy asset but there are decent returns to be made.
Strong market an apt tribute to India’s Big Bull 15 Aug 2022 Billionaire investor Rakesh Jhunjhunwala, who has died aged 62, led the way for first-time buyers. This horde is now propping up Indian stocks at rich valuations, muting the impact of foreign selling amid U.S. rate hikes. If the enthusiasm holds, it will mark a coming of age.
Wine IPO is a very rich toast to affluent India 12 Aug 2022 The country’s largest producer Sula has plenty to cheer but more competition from Australia and sluggish growth are some reasons not to pop the cork at 86 times earnings. With a growing crowd of massively overpriced stocks targeting India’s wealthy, investors can be picky.
Gautam Adani takes new tycoon risk to next level 9 Aug 2022 The world’s fourth-richest man is using the $220 bln empire he founded to amass critical energy and infrastructure assets. Financial profligacy broke many of his Indian rivals. Politics, complexity and opacity are bigger concerns for a billionaire starting to get too big to fail.
India M&A veto plans will shake world’s dealmakers 5 Aug 2022 New Delhi is set to give its antitrust enforcer a bigger say on overseas deals. It may have missed the boat in stymieing tie-ups among Big Tech, which have a huge user-base in the country. If India, like China, uses those powers for industrial aims, it will have a chilling effect.
India’s war on foreign tech risks misfiring 4 Aug 2022 New Delhi is raiding offices of Chinese smartphone makers, banning Singaporean and Korean games, and nudging U.S. firms to integrate their e-commerce platforms. The crackdowns and cajoling underscore official efforts to reshape India’s growing tech sector. A lot could go wrong.
Cerberus, J.C. Flowers put Indian bad debt on map 29 Jul 2022 The two investment firms are vying for $6 bln of soured client loans Yes Bank is selling, the country’s largest-ever such deal. The winner will bag a leading role in Indian debt workouts just as more lenders consider embracing market solutions. That deserves a premium fight.
Edtech giant faces hard slog on its M&A field trip 19 Jul 2022 Byju’s, India’s most valuable startup, is eyeing U.S. higher-learning specialist 2U in the latest period of both firms’ deal frenzy. It’s betting education technology can be outsourced to its home country. If wrong, Byju’s will be an M&A version of a Dr. Frankenstein experiment.
Reliance dresses Gap in more optimistic India garb 7 Jul 2022 A franchise deal with the underperforming U.S apparel outfit is boss Mukesh Ambani’s latest bid to expand his shopping empire. It’s a low-margin business: Gap lost money for an earlier partner. India’s retail king has the scale and supply chains to stitch together better returns.