India In Sight #17
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
IFC and Sunteck Realty, a domestic real estate developer, to jointly invest c.$900 million in an affordable housing project in Mumbai, that includes development of 12,000 housing units across 4-6 green housing projects. (September 22, 2023)
Kotak Data Centre Fund, managed by Kotak Alternate Asset Managers, invested c.$75 million in Sify Infinit Spaces, a subsidiary of Sify Technologies, an IT and cloud services company. Kotak had previously invested c.$125 million in Sify Technologies in 2021. (September 22, 2023)
Asia Healthcare Holdings, the healthcare platform of TPG, to acquire majority stake in Asian Institute of Nephrology and Urology, a urology and nephrology care focused hospital chain, for c.$72 million through a mix of primary and secondary infusion. (September 20, 2023)
Credit
Aditya Birla Fashion Retail, a leading fashion and apparel retailer, secured c.$90 million in debt from IFC to fund its acquisition of TCNS clothing, a fashion brand. (September 20, 2023)
ICICI and Canara Bank to raise c.$500 million and c.$625 million respectively through 10 year infrastructure bonds; Vedanta to raise c.$300 million via NCDs through private placement; Muthoot Finance to raise c.$90 million through issue of AA+ rated NCDs at c.9%; Godrej Properties raised c.$145 million via c.8.5% NCDs on private placement basis; Shree Cement looking to raise c.$90 million through issuance of NCDs.
KEY FUNDS AND FUNDRAISES
Antler India, a pre-seed stage VC firm, looking to make the final close for its c.$75 million maiden fund this quarter (raised c.$60 million till date). (September 22, 2023)
Incubate Fund Asia, the Indian arm of a Japan-based VC firm, closed its third fund with $50 million target corpus and will invest in pre-seed and seed-stage startups in India and Southeast Asia. (September 21, 2023)
Creaegis, a domestic mid-market PE firm, marked the final close of its maiden fund at c.$425 million. (September 21, 2023)
Stakeboat Capital, a domestic mid-market PE firm, marked the final close of its second fund at c.$125 million and will majorly focus on healthcare, value-added industrials and B2B services sector. (September 18, 2023)
MARKET INSIGHTS & RESEARCH
Articles
As per Goldman Sachs, India’s inclusion to JPMorgan’s key emerging market index could spur inflows worth $40 billion to the country’s bonds markets over the next 18 months driven by the country’s attractiveness from a yield and low volatility perspective. This inclusion is also expected to widen the investor base, potentially lead to the appreciation of the rupee and bring down borrowing costs for the government. Read more.
The Indian pharma market is expected to grow to a $50 billion+ industry by 2030, at a CAGR of ~25%, driven by robust domestic and global demand, as well as favorable government initiatives. Can India become the next medical devices and pharma giant? Read more.
As per the latest RBI monthly bulletin, the Indian economy is gaining strength led by domestic private consumption and fixed investment with strong public sector capital expenditure. The outlook for the global economy remains ambivalent, driven by a dichotomy in macroeconomic conditions across regions. Read more.
Reports
As per IVCA EY Monthly PE VC Roundup August 2023 report, investments in India reached $5.2 billion through 67 deals in August (up 18% vs July; and 127% yoy), while exits reached $4.3 billion across 37 deals. Read more.
SEBI to provide flexibility in the framework for large corporates for meeting their incremental financing needs through issuance of debt securities. A higher monetary threshold has been specified for defining large corporates, thereby reducing the number of entities. Read more for other details or check the consultation paper here.
BCG and India Insurtech Association report provides insights into the Indian insurtech landscape and focuses on the theme of "Driving towards Insurance for All”. The report explores five key themes: awareness, product offering and affordability, strengthened distribution, enhanced customer experience and trends.
This podcast by Brookings Institution provides a big-picture perspective of the India-China relationship by Global India, and talks about Indian perceptions and strategy towards China, views on India-China competition, the potential for cooperation or crisis, and what it means for India’s partners. Listen to the podcast or read the transcript.
The State of Working India 2023 report by Azim Premji University takes a detailed look at the job and employment landscape in India and makes extensive use of regression analysis to offer more precise estimates of the impacts of structural change on employment conditions and outcome gaps.
KEY INDICATORS
Banks' credit exposure to NBFCs rose by 24% yoy to $172 billion in July, pushing up their overall share to 9.3% during the month. The month also saw lower borrowings from international markets due to the prevailing elevated global interest rates following tightening of monetary policies by global central banks.
As per SBI research, there is a shift in financial savings from households towards physical assets like housing, driven by a low interest rate regime in the pandemic and recovery in the real estate sector and the increase in property prices.
In the last 2 years, 55% of retail credit has gone to housing, education and vehicles. Read more.
Below is a quick snapshot of the services sector performance from the RBI bulletin.
ICYMI
TotalEnergies to invest $300 million in a joint venture with Adani Green Energy for renewable energy project.
Government to push for increased local sourcing of IT components, worth $20 billion over the next four years.
SIDBI to partner with the Digital Lenders Association of India to support the country's fintech sector. The agreement aims to develop standard protocols for digital lending partnerships, including alliances between banks and Lending Service Providers.
DP World, a Dubai-based logistics company, to invest c.$75 million to expand its free trade zone in India. The company is looking to collaborate with major electronics and tech companies to export and import from its facilities as these companies seek to enhance their manufacturing presence in India.
WEEKLY MARKET UPDATE (w/c September 18, 2023)
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