India In Sight #03
India In Sight #03
Weekly updates on Indian private markets
We are Ambassador Capital Partners, an investment firm with a focus on private credit and private equity. Deeply embedded in the private markets ecosystem, ACP works with large global institutions to provide creative capital solutions for companies and asset managers.
In the spirit of making Indian private markets more accessible and transparent to global LPs and GPs, we have launched ‘India In Sight’ – consolidating and curating relevant information and insights from Indian private markets including trends, key deals, fundraises, KPIs and top tier research.
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Key Deals
Private Equity
ChrysCapital invested $100 million in Lenskart, an omni-channel eyewear retailer. Lenskart has raised c.$850 million within the past year for its global expansion plans. (June 15, 2023)
Amp Energy India, an energy transition platform, raised c.$250 million from SMBC Bank of Japan, Intermediate Capital Group and AIIB (Asian Infrastructure Investment Bank). The funds will be used for the growth of the business. (June 12, 2023)
Credit
Some key domestic bond issuances announced this week included NaBFID, a state-backed infrastructure financier, that raised c.$1.2 billion via unsecured NCDs at c.7.5% coupon for a 10 year tenure to subsidize its lending rates; NABARD, the national bank for agri and rural development, that raised $600 million via AAA rated bonds at c.7.5% coupon with a c.3.5 year tenure; and Punjab & Sind Bank, a state-backed bank, whose Board approved a c.$90 million fundraise via additional Tier-I bonds in multiple tranches.
Adani Group, a leading Indian conglomerate, is looking to refinance its c.$3.8bn loan facility to convert the same into a longer duration loan; Reliance, another Indian conglomerate, is looking to raise c.$2bn in ECB funding to be used for business expansion including capex and refinancing; SBI, India’s largest public sector bank, will begin its c.$1.2bn additional Tier-1 bond issuance; Airtel, a telecom player, is looking to raise $1bn in offshore bonds to refinance high cost debt, strengthen its balance sheet and for its 5G capex requirements; NHPC, India’s largest hydropower company, is targeting to raise $600m from Japanese banks via 10-year tenure yen denominated bonds to fund its expansion into solar power.
Key Funds and Fundraises
Quadria Capital, the Singapore and India based healthcare focused PE firm, is looking to raise $1 billion for its third fund and has received a $35 million commitment from Proparco, the private lending arm of France’s state development agency. (June 13, 2023)
Market Insights and Research
Global Foreign institutional investors have shown growing interest in India, driven by improved economic, political and geopolitical outlooks, as well as India's ability to undertake structural reforms. 50+ FIIs have expressed their confidence in India, resulting in equity flows recovering to $9.5 billion since March 2023. Read more.
6,500 high net-worth individuals (HNIs) are expected to leave India in 2023 as per Henley Private Wealth Migration Report 2023. Taxes and complex remittance rules are major reasons behind the diaspora. Read more.
ICYMI
Zurich Insurance Group, a Swiss insurance company, is looking to acquire a 51% stake in Kotak General Insurance, the insurance company owned by Uday Kotak which is valued at c.$800 million.
Vodafone Idea, an Indian telecom major, plans to raise c.$1.7 billion through equity infusion, including c.$250 million from existing promoters, to revive its business.
IndiGo, India’s largest airline, reached a 61.4% market share in the domestic civil aviation market during May. This is the second time the airline has crossed 60% mark. Its market share in July 2020 was at 60.4%.
India and UAE target $100 billion non-oil trade by 2030; set up councils to facilitate FTA implementation.
Key Indicators
WPI inflation declined by 3.48% in May to hit a 7 year low on the back of a high base effect and easing prices of global commodity, food, fuel, primarily articles and manufactured items. This is the second consecutive month of WPI in the negative territory of the deflationary zone. The retail inflation fell to 4.25% in May, hitting a 2-year low, driven by softening prices of food and fuel items. Both WPI and CPI data were in line with RBI’s rate pause stance. Domestic passenger vehicle sales rose by 13.5% YoY while the two wheeler sales grew by 17.4% YoY in May. Total vehicle sales rose by 18.0% YoY across categories in May and the trend is expected to continue, supported by the prevalent economic environment. India’s trade deficit widened to c$22.1 billion as the exports and imports fell by 10.3% and 6.6% respectively in May. Exports declined for the fourth month in a row due to global demand slowdown. The wider trade gap highlights the post pandemic effects and challenges due to higher borrowing costs that could further weigh on investor sentiment and the local currency. The industrial output grew by 4.2% YoY to 140.2 in April 2023 vs. a five month low of 1.7% in March 2023. The uptick was majorly driven by manufacturing sector and infra goods however the decline in consumer durables output indicated a weakness in discretionary spending.
Weekly Market Update (w/c June 12, 2023)
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