Tag: Big Deal

Big Deal | A deep dive into development finance institutions

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

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In this recent episode of Big Deal, CNBC-TV18’s Nisha Poddar had an insightful conversation with Neha Grover, South Asia Head—PE Funds at The International Finance Corporation (IFC) and Srini Nagarajan, MD & Head of Asia of British Internal Investment. They shed light on the significant role of Development Finance Institutions (DFIs) in India and their focus on impactful investments.

DFIs are large global institutions that play a vital role in financing projects with the potential to make a positive impact.

Nagarajan emphasised that while India is now a recognised destination for investment globally, there’s still a need for DFIs to act as catalysts. They stimulate private capital to invest in projects that may seem risky for commercial investors at present.

Nagarajan highlighted two key aspects of DFI operations in India. Firstly, they aim to mobilise funds where there’s a scarcity of private finance. Secondly, they operate within a sophisticated framework that prioritises factors like productivity, sustainability, and inclusion.

He added, “One thing very critical is we are very sensitive to crowding out private capital, we invest where there isn’t a ready supply of private finance to bring about a positive economic and environmental change.”

Grover added to this perspective by emphasising the role of DFIs in fostering the country’s ecosystem across various sectors and timelines. They aim to support businesses, contribute to job creation, and promote climate initiatives.

Grover emphasised that besides capital, DFIs provide expertise and international benchmarks, instilling confidence in private investors to participate.

Both experts agreed that DFIs need to constantly reassess their strategies to ensure they remain additive to private capital and inclusive in their approach. They must be willing to take greater risks to achieve their developmental impact goals effectively.

Watch this video for more

Also Read | British International Investment eyes underserved, innovative lending firms for impact investing

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Expect a ‘blockbuster IPO from Swiggy’ says investor Niren Shah of Norwest Venture Partners

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

Listen to the Article (6 Minutes)

Norwest Venture Partners’ Niren Shah who invested in online food delivery platform Swiggy at an early stage expects a blockbuster initial public offering (IPO) from Swiggy. Shah spoke to CNBC-TV18’s Big Deal on Swiggy and other portfolio company IPOs.

Niren Shah, MD & India Head at Norwest Venture Partners said, “The company (Swiggy) has scaled very nicely over time. They were pioneers 2014 in the food delivery business. They were pioneers of the sort of grocery called Swiggy Instamart in 2020. It’s been an exceptional relationship for us with a company like Swiggy. It is an anticipated IPO, and it’s a household name. I am waiting for this blockbuster to come out.”

Discussing Norwest Venture Partners’ investment strategy, Shah mentioned their recent raising of a $3 billion fund, called Fund 17. The focus of this fund, according to Shah, is on growth equity and late-stage venture investments

Talking about India, Shah said, “We have raised a $3 billion fund recently Fund 17, and part of our strategy right now is to focus much more on growth equity and late-stage venture. We typically invest approximately $250 to $300 million every year, which we plan to continue for a while.”

Read Here | Swiggy receives shareholders’ green signal for a $1.2 billion IPO

The aim is to support the growth of promising companies, helping them to reach the IPO stage within approximately five years.

He added, “Our entire focus is to build great companies, which can go IPO in India, in about five years or so. That’s the kind of the focus and it is across sectors, it’s multi-stage, it’s multi-asset. We’ll do some venture capital and we will do a lot of growth equity as well.”

Shah explained that Norwest Venture Partners will invest significant amounts, ranging from $20 to $100 million, in various companies across different sectors.

For the entire discussion, watch the accompanying video

Also Read | Here’s what the Swiggy CEO has to say about IPO plans

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Big Deal: Bain Capital anticipates substantial investments in India’s private equity sector

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

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In a CNBC-TV18 special, Big Deal, David Gross, Co-Managing Partner at Bain Capital, and Pavninder Singh, Partner at Bain Capital, talk about the investment strategy in India and how the investor climate is looking like this particular year.

Gross expressed optimism about the current macroeconomic landscape, describing it as ‘exciting and turbulent times’. Gross emphasised the abundance of activity, remarking, “It is surely better than expected.”

Also Read | Deal street in FY25: Experts analyse the key trends in India’s financial landscape

Singh echoed Gross’s sentiment, particularly emphasising the potential within India’s private equity sector. Singh remarked that these are “very exciting times for private equities in India”, indicating a favourable environment for investment.

Highlighting the firm’s recent activities, Singh revealed that Bain Capital has allocated over $2 billion in investments over the past 18 months. Looking ahead, he projected a significant increase in investment aspirations, stating, “As we look ahead, the next three to five years, $7-10 billion is sort of a range that we aspire to invest.” Singh mentioned this ambition as indicative of the growing opportunities and acceleration within the investment landscape.

Also Read | India’s digital sector faces legal turmoil, experts insights on new competition laws

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Deal street in FY25: Experts analyse the key trends in India’s financial landscape

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

Listen to the Article (6 Minutes)

As we step into a fresh financial year, it’s imperative to reflect on the significant transformations that have unfolded on the deal street in the preceding year. Understanding these shifts is crucial to navigating the intricate landscape of mergers and acquisitions (M&A), investments, initial public offerings (IPOs), and fundraising activities in the upcoming fiscal period.

One of the notable trends observed in the past year is the facilitation of easy exits for investors through large block deals. This development has instilled a sense of confidence among private equity investors and is expected to influence deal dynamics in the foreseeable future.

Speaking to CNBC-TV18, Debasish Purohit of Bank of America identifies several mega trends sweeping through India Inc. These include a substantial infrastructural capital expenditure (capex) drive, propelled by an impending energy transition. This trajectory is expected to witness significant investments in roads, airports, and sustainable infrastructure projects, fostering asset creation and investment opportunities.

Additionally, the formalisation of the economy from unorganised to organised sectors emerges as a key trend, benefitting consumers through better price discovery and enhancing efficiency for manufacturers.

The digital revolution and financial inclusion initiatives further contribute to easier access to financial services and improved credit decisioning processes.

Read Here | After weak 2023, Grant Thornton Bharat says deal street will be busy in 2024

Additionally, Purohit added that the most important trend is the pivotal shift India is undergoing from a largely services-led economy into a manufacturing base. So these are multi-decadal trends, which are here to stay and will drive the bulk of deal activities.

Vivek Gupta of Deloitte underscored the evolving significance of India’s domestic consumption market, which is attracting increasing attention from corporates and private equity investors.

Geopolitical stability, particularly the potential return of the incumbent government, is poised to catalyse intense decision-making processes, influencing deal-making activities in the foreseeable future.

Watch this video for more.

Also Read | Will 2024 continue to see block deals and IPO frenzy? Experts weigh in

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Experts decode the dynamics of the media and entertainment industry

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

Listen to the Article (6 Minutes)

The media and entertainment sector has emerged as a focal point for mergers and acquisitions (M&A) in recent times, undergoing a significant digital transformation.

Speaking to CNBC-TV18, Nitin Chandalia, MD & Partner of BCG highlighted the sector’s potential for growth and the influx of new players. Market consolidation, he noted, is a natural progression in this dynamic landscape.

He said, “Media overall as a space, media and entertainment is a space where we believe is going to be an exciting space with a lot of growth opportunities, opportunities for new players to come in and so on and market consolidation is a part of it.”

Chandalia noted that while consolidation brings together various players, India’s market remains fragmented.

“There are different regions, there are different kinds of genres, you have to look at Hindi, English GEC, Hindi GEC, regional, sports, movies, all of these separately. As advertisers look at allocating the ad dollars, there is a target for these different segments, and therein lies the opportunity for a spectrum of players for somebody like Sun it continues to be a relevant and significant opportunity going ahead.”

Read Here | Indian media and entertainment sector to reach Rs 1.6 lakh crore revenue in FY24

SL Narayanan, Group CFO of Sun Group, shared insights into their strategic approach to content acquisition. He emphasised the importance of viewing content as individual profit and loss (P&L) entities, where financial viability is paramount.

Narayanan explained that while certain content may hold value at a particular price point, excessive spending can be detrimental. Sun Group has been cautious in its content acquisition strategies, avoiding significant investments in web exclusives. Despite this approach, the company has maintained its market position and strengthened its presence.

Watch this video for more.

Also Read | From movies to online gaming: FICCI-EY report decodes media sector’s evolving trends

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Advent International plans to invest $5-10 billion in India in next 5 years

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

Listen to the Article (6 Minutes)

Advent International, a foreign private equity firm, has announced its intention to increase its investments in India over the next five years. Speaking to CNBC-TV18, James Brocklebank, Co-Head of Europe at Advent International, said, “For the next five years, we would like to commit something like $5 to $10 billion here in India. So a very significant growth, but that reflects the prospects that we see in this market.”

Brocklebank emphasised the attractiveness of the Indian market, citing factors such as a stable government, consistent GDP growth, and impressive digitisation initiatives like the Aadhar card program.

He expressed excitement about the opportunities present in India, particularly in the private equity sector, which has seen substantial growth with approximately $12 billion invested annually, with many companies exceeding $500 million in value.

Read Here | Global PE major EQT looks to invest $5 billion in India in the next 3-4 years

David Mussafer, Chairman and Managing Partner at Advent International, highlighted the improving global economic conditions, which are creating more favourable investment opportunities. Despite the challenges posed by the COVID-19 pandemic, Advent International remains optimistic about the potential for new investments and exits in India.

Advent International has already invested close to $6 billion in India and manages assets worth over $90 billion globally. With its increased commitment to the Indian market, the firm aims to capitalise on emerging opportunities and contribute to the country’s economic growth.

Talking about their areas of interest, Shweta Jalan, Head of India & Co-Head of Asia at Advent International, shed light on the specific sectors the firm is targeting. Jalan identified healthcare, financial services, consumer goods, technology services, and manufacturing as the primary sectors of interest for Advent International.

Watch the video for more

Also Read | Big Deal | Why PE firm Advent International is cautiously optimistic on India in 2024

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow