Dhanpal Jhaveri – cnbctv 18

February 9, 2021February 9, 2021

Looking at taking 1-2 portfolio companies public in 2021: Everstone Group

Dhanpal Jhaveri, VC of Everstone Group on Tuesday said that they are looking at taking 1-2 portfolio companies public in 2021.

“As far as capital markets are concerned, we will look to at the right time come out with IPOs of companies that we believe would be ready to come into the market and then build a life as a listed company. We are still developing a lot of our portfolio companies, but sometime in 2021 we would look to potentially taking one or two companies public,” he said in an interview to CNBC-TV18.

According to Jhaveri, the opportunity in Indian QSR is very significant. He also said that though COVID-19 impacted consumption including Burger King, it has been able to come out of the crises in good shape.

“COVID had a big impact on the entire retail industry including the QSR business. Burger King was no different. We, however, were able to very quickly pivot our business, build a digital strategy, build a delivery strategy, and that has helped us come out of this crisis in a pretty good shape,” he said.

He said that the IPO allowed Burger King to raise growth money for more outlets. The plan is to take the business to 700 restaurants, he added.

“What most investors are looking at is the long term prospects of this business. We do have a plan to take this business in the next few years to 700 restaurants and that is something that the IPO allowed us to raise the growth capital required to get to those targets,” he said.

Jhaveri said that Indostar is one of the best-capitalised NBFCs and retailisation has helped the company in a big way.

“Indostar started primarily doing corporate lending, but as we built the franchise, over the last 4 years we have been rapidly retailing the assets of the business. So, if you look at just before the IPO, 80 percent of our balance sheet in terms of assets was corporate assets. However, today, close to 75 percent of balance sheet is retail assets. This realisation in my view is something that has helped the company tide over possibly one of the biggest challenges the NBFC sector went through in the last three years. Indostar has been to ride through that, build a retail franchise and today in my view is one of the best-capitalized NBFCs poised to grow as we look forward to the economy coming back strongly,” he said.

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January 28, 2021January 28, 2021

Budget 2021: Experts decode EY India’s wish list

Union Budget 2021 is just three days away and experts and think tanks are ready with their wish lists and expectations from finance minister Nirmala Sitharaman. The focus is on the measures the finance minister could unveil to spur growth and boost revenues in these challenging times.

EY India in collaboration with CNBC-TV18 has compiled a list of possible measures the government could undertake.

According to the report, the government might continue its disinvestment push and curtail its expenditure like reducing subsidies in the upcoming Budget.

The EY analysis also outlines government’s priority areas that are likely to be reiterated in the Budget. These include Make In India, job creation, demand stimulation and higher spending on infrastructure.

On taxation, EY says the finance minister might consider higher taxation for profitable multinational enterprises, taxes for the digital economy and specific cesses to raise additional revenues.

Some of the taxation measures that the government could take to spur demand and investment include extending the concessional corporate tax rate of 15 percent to service sector like tourism which generates higher jobs. It could also remove the Rs 2 lakh cap on interest deduction on housing loans and provide LTA exemption on annual basis, rather than twice in 4 years.

To discuss more on corporate India’s Budget wish list, Shereen Bhan spoke to S Sridhar, Managing Director of Pfizer India; Dhanpal Jhaveri, Vice Chairman of Everstone Group and CEO of EverSource Capital; and Sudhir Kapadia, National Tax Leader at EY India.

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April 21, 2020

Burger King IPO paused owing to market conditions, says Dhanpal Jhaveri of Everstone

The Burger King IPO has been put on hold due to the current market conditions, said Dhanpal Jhaveri, vice-chairman of Everstone Capital, adding there was still strong demand for the same.

“On Burger King, we had filed and we continue to be engaged. I would say there is a pause as far as the IPO is concerned but there is very high demand from high quality investors. As the economy comes back and the market opens up, clearly we will be looking to take it public,” said Jhaveri.

Everstone Group has assets under management (AUM) worth $5 billion in India and Southeast Asia.

Exit options for the PE industry are far and few currently, especially at these valuations. Jhaveri said that the current crisis has put a pause on the entire credit industry and a lot more needs to be done by the government.

On RBI’s announcements to ease the pain for NBFCs, Jhaveri says it is unlikely that the companies in real need of funds will get help even in LTRO-2.0.

Jhaveri views realty sector to be in pain overall except the warehouse and logistics space and seeks government intervention to save the sector.

Everstone has about 50 million square feet of developed or under construction realty projects mostly in logistics and industrial parks with foreign partners like GIP & CPPIB.

However, Jhaveri said “every adversity also presents opportunities and there are pockets where the PE industry is keeping a watch to make investments”.

Plan to close the Brookfield transaction within next 3-4 months, says Dhanpal Jhaveri of Indostar

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Summary

Brookfield will be investing over Rs 1,200 crores in Everstone’s NBFC company Indostar Capital Finance. Brookfield will also be the co-promoters in the company.

Speaking in detail about the contours of the deal Dhanpal Jhaveri, chairman, Indostar said, “We are delighted to have Brookfield coming in as a partner along with us at Everstone, to basically build Indostar to its next stage of growth.”

With regards to timeline, he said, “We have now signed the deal on Friday night and the plan is that over the next 2-3 months is to get all regulatory approvals which is kind of par for the course under these kind of investments and once the approvals are brought we would look to complete a preferential allotment, where we are bringing in Rs 1,225 crore of equity and compulsory convertible preference capital.” This means as a Brookfield also has to do an open offer, which would typically kick off post the regulatory approvals and complete I would say in the next 3-4 months, he added.

When asked if there was any asset risk concern because of which provisioning was required for which the company may look at fund raising, he said, “What the Brookfield investment offers us in my view is two things – one is fundamentally perception capital. A large institution and a very globally reputable institution like Brookfield committing to invest capital in a business like Indostar means that they have done significant amount of diligence and are very comfortable not only with what the business is today but very comfortable with what the growth opportunity for the business is today. What we see is a very credible, high quality, long term partner and which is what I believe is a right thing for an institution like Indostar.”

Giving the rationale for substantial dilution at the current juncture, he said, “First of all Everstone is not selling a single share that is very important to know. The credit business essentially drives only on one thing, which is raw material which is capital both in the form of credit and equity and then creating value basically is in the hands of talent which is the people, which are there in the business. What we have in a partner like Brookfield is one very clearly additional capital which comes in to drive growth but more importantly they are supporting and endorsing the existing management team and talent and the leadership of Indostar, which is going to drive and create value over the next 3-5 years.”

He further added, “We are buying more which means we are not diluting and we are continuing to be extremely positive over the next 3-5 years in terms of where we believe this business will be able to take itself forward as compared to where we see the market opportunity.”

According to him, credit in India is still an under penetrated asset class and one has to look beyond cycles and one has to be able to invest through cycles. “This is probably the best time in my view to when headwinds are there for the industry and economy as a whole to be investing in credit as an asset class.

“So, fundamentally, what we have done is with the capital base in place, we would go close to about Rs 4,200 crore of equity base at any reasonable size of leverage say 4-6 times of leverage. We think we can at least grow our book between 2-3 times from where it is today in the next 3-5 years. That offers ample growth and ample opportunity to create value in the business as it is today,” he added.

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