India In Sight #10
India In Sight #10
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
Equity
[Expected] KKR to acquire Cliantha Research, the clinical research organization owned by the promoters of Zydus Lifesciences for c.$200 million. (August 4, 2023)
[Expected] OTPP to invest c.$100 million investment in Xpressbees, an ecommerce logistics startup, at c.$1.4 billion valuation. (August 4, 2023)
[Expected] GIC to invest c.$300 million in Sterlite Power, a power company backed by Vedanta Group, which is considering an internal restructuring initiative to unlock value. Twin Star, a company promoted by Anil Agarwal, is planning to sell off 4.3% stake in Vedanta, a mining conglomerate, to raise c.$500 million for debt repayment. (August 4, 2023)
Temasek to invest c.$145 million in Mahindra & Mahindra’s four-wheeler EV unit, at c.$9.8 billion valuation. (August 3, 2023)
KKR to acquire a majority stake in Leap India, a logistics solutions company providing a pallet pooling platform. (August 2, 2023)
[Expected] Blackstone to acquire c.72% stake in Care Hospitals, a hospital chain, from TPG, for over c.$700 million. TPG will own c.24% stake. (August 1, 2023)
[Exit] Prosus, sold the global payments business of PayU, a digital payment solution company, for $610 million in an all-cash transaction. (August 1, 2023)
Credit
Sanghi Industries, the company being acquired by Adani-owned Ambuja Cements, is buying out c.$65 million worth of bonds from Kotak Special Situations Fund, raised last year at c.17%. (August 5, 2023)
Brookfield, to raise c.$95 million in debt from IFC, to fund the development of solar power projects in Rajasthan. (August 2, 2023)
SBI completed the issuance of its c.$1.2 billion infra bonds at c.8% coupon; Bank of Maharashtra to raise c.$125 million through tier-2 AA+ bonds; Adani Group to raise c.$1.8 billion through domestic bonds to meet its capex requirement.
KEY FUNDS AND FUNDRAISES
Elev8 Venture Partners, a growth stage VC fund, marked the first close of its maiden fund at $67 million. (August 4, 2023)
Pi Ventures, an early-stage deep tech VC fund, closed its second fund with a total commitment of c.$85 million. (August 3, 2023)
AP Moller Capital, a European infra PE firm, is closing its $1.5 billion investment focused on emerging markets. c.$750 million will be invested across South and Southeast Asia. (August 3, 2023)
Kotak Group, to combine its alternate fund management and investment advisory businesses into Kotak Alternate Asset Managers, with $18 billion of assets under management and advisory. (August 3, 2023)
MARKET INSIGHTS & RESEARCH
c.3 million new Demat accounts were opened in July, with two depositories, CDSL and NSDL. The total count has also hit a fresh high of c.12 million. Read more
Insolvency and Bankruptcy Code (IBC) was born in a credit crisis, but it needs to be nourished during better times so that when the global credit cycle turns and the country is faced with mounting debts, the institutional and legal capacity is strong to deal with the crisis. How can IBC be improved. Read more.
The investment and production in the government’s production-linked incentive scheme (PLI) will start meaningfully from the current year as per SBI Research, highlighting that the scheme is on track with the government receiving investment commitments of 60% of the capex target. Read more.
Global funds like Cerberus, Ares SSG, Varde, and Davidson Kempner are raising their bets in the Indian market. Read more
ICYMI
International Battery Company, a global prismatic cells company, has committed $1 billion in India to build a lithium-ion cell factory.
The government imposed import restrictions on laptops, tablets, and certain computers with immediate effect from Nov 1, 2023 for security reasons and the need to promote domestic manufacturing.
Reliance Retail, could be valued at c.$112 billion, as per the latest Bernstein report on Reliance. Jio Platforms, the company’s telecom arm, was valued at $77 billion and the renewable energy business at $17 billion. Read more.
KEY INDICATORS
India’s services PMI rose to 62.3 in July from June's 58.5, driving the overall composite PMI to a 13-year high of 61.9. The core sector growth accelerated to 8.2% in June, the fastest in five months, as capex push by the government supported expansion in cement, steel and energy sectors; Auto sales to dealers rose by 3.1% YoY in July.
The Central government has raised more than 37% of its FY24 target of gross market borrowing through dated securities in the first four months. It has mobilized gross and net borrowing amount of c.$72 billion and c.$52 billion, respectively. The overall debt stood at c.$2 trillion or 57.1% of the GDP at the end of March 2023. down from 61.5% of GDP in 2020-21.
FPIs inflows touched c.$5.6 billion on a net basis in July, marking the highest monthly FPI inflows since August 2022.
WEEKLY MARKET UPDATE (w/c July 31, 2023)
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