Insights
Our take on developments in Economics, Stock Markets, Primary Market, Fund Raising, Debt, Private Equity and M&A deal Making.
CAAA Capital Market Update September 2021
Domestic economic activity has started normalizing with the receding second wave of Covid-19 and the phased reopening of economy.
PE: Software startup Postman raises $225 million
Postman, a Saas Startup, has raised $225 million in a funding round led by Insight Partners (existing investor) at a valuation of US $5.6 Billion.
M&A: Adani Group to acquire MBCPNL portfolio From Sadbhav Infrastructure
Adani Road Transport Limited (‘ARTL’), a wholly-owned subsidiary of Adani Enterprises Limited, has signed a definitive agreement with Sadbhav Infrastructure Project Limited (‘SIPL’) for acquisition of Maharashtra Border Check Post Network Limited (‘MBCPNL’).
Stock Markets Update August 2021
BSE Sensex went up by 9.44% to close at 57,552 in August 2021. Nifty 50 closed at 17,132 higher by 8.69% from 15,763 in July closing. Sharp gains were on account of economic recovery, low interest rate environment and strong earnings of corporates in Q1 FY22 with especially strong show by Large caps.
Economic Update September 2021
India’s Gross Domestic Product (GDP) grew by 20.1% in the first quarter of 2021-22, compared to the 24.4% contraction recorded in the same quarter a year ago.
Capital Market Update September 2021
Domestic economic activity has started normalizing with the receding of the second wave of Covid-19 and the phased reopening of the economy as GDP grows 20% YoY in Q1 FY21. Indian equity markets have remained bullish in the month of August
CAAA Capital Market Update August 2021
Core Industries posted modest growth in June with the tapering of the Covid-19 wave. GST numbers of
July are also robust. However, inflation has remained above benchmark for consecutive second month. Stock markets stayed bullish and Realty sector saw a 10-year high in the month of July 2021.
Capital Market Update August 2021
Core Industries posted modest growth in June with the tapering of the Covid-19 wave. GST numbers of July are also robust. However, inflation has remained above benchmark for consecutive second month. Stock markets stayed bullish and Realty sector saw a 10-year high in the month of July 2021.
Key M&A and Private Equity deals include Japanese Sumitomo Mitsui Bank’s acquisition of majority stake in Fullerton India Credit Company, marking entry in Indian financial industry and Walmart backed Flipkart raising $3.6 billion in funding as competition intensifies in the Indian online retail market.
Economic Update August 2021
Eight core Industries rose 1.1% in June 2021 with ease of localised mobility restrictions. India’s gross GST revenue increased to Rs.1,16,393 crore in July 2021.
Stock Markets Update July 2021
BSE Sensex went up by 0.20% to close at 52,587 in July 2021. Controversial IPO of Zomato came and was very successful.
M&A: Japanese SMBC Bank to buy majority stake in Fullerton
Japanese Bank Sumitomo Mitsui will acquire a 74.9% stake in Fullerton India Credit Company Limited and eventually aquire 100% stake of FICC.
PE: Flipkart raises US $3.6 bn in funding
The Flipkart Group, India’s homegrown consumer internet ecosystem, announced that it has raised US $3.6 billion in funding. The investment values the Group at US $37.6 billion post-money.
CAAA Capital Market Update July 2021
Our published article in CAA Journal. Business activity has started rebounding after the 2nd Covid wave and markets are bullish. There is a note on 30 years of economic reforms of India led by Narasimha Rao and Manmohan Singh.
Capital Market Update July 2021
Government has come up with 2nd relief package of Rs. 6.29 Crore for sectors hit by 2nd Covid wave. Package includes Rs. 23,200 crore to strengthen health infrastructure. Allocation to credit guarantee scheme has been increased to Rs. 4.5 lakh Crore from Rs. 3 lakh Crore.
Stock Markets Update June 2021
BSE Sensex went up by 1.74% to close at 52,843 in June 2021. Nifty 50 closed at 15,722 higher by 0.89% from 15,583 in May closing.
Economic Update July 2021
Nomura India Business Resumption Index a tracker of economic activity increased for sixth consecutive week to 91.3 for the week ending on July 4th from 86.3 showing that the business activity is rebounding very quickly after the second Covid wave.
PE: KKR buys stake in Vini Cosmetics
KKR, a global investment firm, and Vini Cosmetics, a branded personal care and beauty products company in India, announced that Company’s Founder Group – led by Darshan Patel, Chairman & Joint-Managing Director, and Dipam Patel, Joint-Managing Director – and Sequoia Capital will sell a majority stake in the Company to KKR for approximately US$625 million (INR 46 billion).
M&A: PharmEasy to acquire majority stake in Thyrocare
Thyrocare Technologies Limited has agreed to sell approximately 66.14% of its equity share capital equivalent to 3,49,72,999 equity shares to Docon Technologies Private Limited, a 100% subsidiary of PharmEasy’s parent API Holdings Ltd at cash consideration of 4546.49 crore.
CAAA Capital Market Update April 2021
Indian Economy’s recovery pace moderated in April on account of 2nd Covid 19 wave with record infections. Markets remained stable in this month but two IPOs were listed at discount.
CAAA Capital Market Update March 2021
The new year has begun on a positive note with vaccination drives in major economies as well as in India. The covid 19 incidence is seen receding and strong economic recovery was seen.
Capital Market Update June 2021
IIP numbers of April demonstrate that Indian Economy has remained resilient to Covid-19 2nd wave. At the same time the stock markets have remained bullish in the month of May.
Key Deals include New Mountain Capital backed Aceto acquiring Finar, Adani Green Energy acquiring SB Energyand Pine Labs raising equity funding.
Economic Update June 2021
Covid 2nd wave hit India in late March and April. Impact of the same was seen on the Economy as well due to measures to curb Covid infections and state level restrictions
Stock Markets Update May 2021
The markets are shooting up as the sentiment was boosted by the steady fall in covid cases and expectations of easing of lockdown
PE: Pine Labs has raised $285 million
Pine Labs, a merchant commerce platform, announced that is has completed a new round of financing by raising $285 million. Company was valued at $3 billion as per various reports.
M&A: Adani Green Energy acquires SB Energy’s 5 GW renewable power portfolio
Adani Green Energy Limited (AGEL) signed share purchase agreements for the acquisition of 100% interest in SB Energy Holdings Limited (SBEHL) from SoftBank Group (80%) and Bharti Group (20%).
M&A: Aceto acquires majority stake in Finar Limited
• Aceto global, provider of specialty materials for life sciences and advanced technology end markets, announced the acquisition of a majority stake in Ahmedabad based Finar Limited.
Capital Market Update May 2021
Indian Economy’s recovery pace moderated in April on account of 2nd Covid-19 wave with record infections. Markets remained stable in this month but two IPOs were listed at discount.
M&A: Piramal Pharma Ltd. To Acquire Hemmo Pharmaceuticals
Piramal Pharma Limited to acquire a 100% stake in Hemmo Pharmaceuticals Pvt. Ltd. for an upfront consideration of Rs.775 crores and earn-outs linked to achievement of milestones.
PE: ChrysCapital invests in Corona Remedies, Creador exits
Creador sold its stake in Ahmedabad based Corona Remedies to PE fund ChrysCapital. ChrysCapital paid Rs.6.7 billion ($90 million) for a 30% stake, of which 20% came from Creador and 10% from the promoter group.
M&A: BYJU’S to acquire Aakash Institute
BYJU’S has announced to acquire Aakash Educational Services Limited (AESL) through a strategic merger in a nearly $1 Billion deal. Aakash founders JC Chaudhry and Aakash Chaudhry will continue to lead AESL’s growth and expansion. Aakash founders along with investor Blackstone will become shareholders in BYJU’S.
Capital Markets Update – Q4 FY20-21
Capital Market quarterly update published in the ACAE, Kolkata Journal – Association of Corporate Advisors & Executives in April 2021.
Economic Update May 2021
Department of Economic affair has stated that that the rapid resurgence in Covid-19 cases, especially in India, has moderated the momentum of economic recovery.
Capital Market Update April 2021
Economic activity in India has moved above pre-pandemic levels in spite of vulnerability to risks from the spread of new mutations of the Coronavirus.
Capital Market Update March 2021
Union budget was presented and was well received and Secondary markets touched all-time high in February 2021. IPOs of Indigo Paints Limited and Nureca Limited came in the month of February 2021 and were listed at high premiums.
Deals include Merger & Acquisition deal of Mawana Sugars to sell unit to Bodal Chemicals and
Private Equity deal of Advent International to acquire controlling stake in ZCL Chemicals Limited.
Capital Market Update February 2021
The New year 2021 has begun on a strong positive note with vaccination drives in major economies as well as in India. The COVID-19 incidence is seen receding and in terms of nominal GDP.
Capital Market Update January 2021
The optimism around vaccines has led to gains in stock markets. Economic activity index (EAI) estimates real GDP growth of Q3: 2020-21 at 0.1 per cent. IPOs of Mrs. Bectors Food Specialities Limited and Burger King India Limited came in the month of December 2020 and were listed at high premiums.
Capital Market Update December 2020
The stock markets have registered strong gains of over 10% in November due to hopes of quick vaccine, economic revival and abundant liquidity.
Capital Market Update November 2020
Indian Economy performed above market expectations in Q3 at GDP growth rate of 0.1%. Optimism in markets have also continued in light of Covid vaccines. IPOs of Mrs. Bectors Food Specialities Limited and Burger King India Limited came in the month of December and were listed at high premiums.
PE: Zomato raises fresh equity and prepares for IPO
Zomato has raised funds in a investment round at the valuation of $3.9 billion and is also in process of closing a secondary transaction. It has plans to go public in near future.
Stock Markets Update December 2020
BSE Sensex went up by 8.46% in December 2020. Markets gained due to expectation of quick arrival of Covid-19 vaccines, slowing of Covid-19 infections, abundant liquidity, expectation of economic rebound in Q3 and fund inflows from FPIs.
Economic Update November 2020
Indian Economy is pulling out of Covid-19’s impact and recovering at a pace that beats most predictions as per RBI Report.
IPO: Gland Pharma IPO subscribed 2.05 times
Hyderabad based Gland Pharma Ltd. is an injectable-focused company. The issue price of the it’s IPO was kept Rs. 1490 to Rs. 1500 per share at P/E of around 30.
IPO: Equitas Small Finance Bank IPO listed at discount
Equitas Small Finance Bank is a small finance bank founded in 2007. The Bank’s IPO was at issue price of Rs.33 at P/E ratio of around 13.5.
Stock Markets Update November 2020
BSE Sensex went up by 11.45% in November 2020. Expectation of quick arrival of Covid-19 vaccines, slowing of Covid19 infections, abundant liquidity, economic revival and hopes of end to Covid-19 pandemic are the key reasons for strong performance of market in November 2020.
PE: Reliance Retail raises funds by diluting 10%
Reliance Retail Ventures Limited completes fund raise Rs. 47,265 Crore for 10.09% stake in the company.
PE: Biocon Biologics raises Rs.1125 Crore from Goldman Sachs
Biocon Ltd. announced that the Board of its subsidiary Biocon Biologics Ltd has approved a Rs.1,125 Crore fund raise from Goldman Sachs. Goldman Sachs will be issued Optionally Convertible Debentures at a post money equity valuation of USD 3.94 Billion.
M&A: Manipal Hospitals to acquire Columbia Asia Hospitals in India
Manipal Health Enterprises Pvt. Ltd. will acquire the Indian assets of Columbia Asia Hospital Group for around Rs.1800 Crore.
M&A: Merger of Lakshmi Vilas Bank with DBS
Short case study of Lakshmi Vilas Bank (LVB) as RBI merges it with DBS Bank. LVB faced increasing NPAs after its focus changed from retail book to corporate book. As LVB’s fund raising and M&A attempts failed, the bank was merged to protect depositors.
M&A and PE Key Deals November 2020
Read about the PE deal of Razorpay raising funds to enter unicorn club. Also read about M&A deal of Infosys acquiring Blue Acorn as well as Flipkart buying stake in Aditya Birla.
M&A and PE Key Deals October 2020
Read about the education startups Byju’s and Unacademy raising funds and M&A deal of Reliance Retail acquiring business from Future Group
Growth of Indian Capital Markets – ACAE Journal
I was invited by the ACAE Kolkata to write about changing dynamics of Indian Capital Markets. The article is about brief understanding of Indian capital markets, recent developments and the way forward.
Capital Market Update October 2020
Happy Diwali everyone. In this update read about expectations of revival of the Indian economy and green shoots, fund raising by education startups Byju’s & Unacademy and Reliance Retail’s acquisitions.
Capital Market Update September 2020
Read about fund raising by private banks through QIP, contraction in GDP, continued gains of stock markets and open offer of ABB power after indirect acquisition by Hitachi in the capital market update of September.
Secondary Market Update Sep 2020
Read about fund raising by private banks through QIP, contraction in GDP and continued gains of stock markets in the secondary market update.
M&A and PE Key deals Sept 2020
Read on about a short M&A case study on open offer of ABB power, Reliance Retail acquiring stake in Netmeds and Inventia healthcare raising money from InvAscent PE Fund in M&A and PE update for Sept 2020.
Capital Market Update August 2020
Read on about continued gains of stock market, rally in IT stocks, all time high Gold prices and improving investors sentiments in our capital market update. Also read about Google’s investment in RIL JIO, fund raising by Flipkart and KKR’s acquisition of J. B. Chemicals.
Capital Market Update July 2020
Read on about recent stock market rally and liquidity impact, post covid economic recovery and rational of RIL JIO and FB deal in our capital market update published in CA Association Journal.
Primary & Secondary Market Update Aug 2020
Read on about continued gains of stock market, rally in IT stocks, all time high Gold prices and improving investors sentiments in our capital market update published monthly in CA Association Journal.
M&A and PE Key Deals August 2020
Key Merger & Acquisitions and Private Equity deals of August 2020 including that of Google investment in RIL JIO, fund raising by Flipkart and KKR’s acquisition of J. B. Chemicals and subsequent open offer.
Valuation Compliance in Indian Law
Summary of requirement of valuation certificate from Registered Valuer, MB or CA under Companies Act Income Tax Act, SEBI Regulations and FEMA regulations.
Impact of Coronavirus on Capital markets and Economy
With a third of world under lockdown, the Coronavirus pandemic has now started to affect economy. We examine its impact on capital market activities like IPO, PE, M&A and global and Indian stock markets. IMF along with other think tanks expect that world may see recessionary trends in 2020, we go thru their assessment and steps taken by governments to stabilize economies.
Capital Markets Update February 2020
Our monthly take on Funds mobilization, capital markets, debt funding and economy. This update discusses the first advance estimates (FAE) released by the National Statistical Office (NSO) that placed India’s real gross domestic product (GDP) growth for 2019-20 at 5.0 per cent.
Capital Markets Update January 2020
Our monthly take on Capital markets, debt funding, private equity, Merger & Acquisitions and economy. This update discusses slowdown of India’s GDP growth in light of IL&FS crisis and subdued global economy.
Capital Markets Update December 2019
Our monthly take on Capital markets, debt funding, private equity, Merger & Acquisitions and economy. This update discusses economic updates of last month and signs of recovery in Indian Economy.
Capital Markets Update November 2019
Our monthly take on Capital markets, debt funding, private equity, Merger & Acquisitions and economy. Article discusses Repo rate cut by RBI’s monetary policy committee and its impact on economy.
Capital Market Update October 2019
Our monthly take on Capital markets, debt funding, private equity, Merger & Acquisitions and Economy. This update was published by Chartered Accountant Association Journal. It discusses Corporate Tax cuts and impact on investments.
Hostile takeovers and case of L&T Infotech and Mindtree
L&T Infotech takeover of Mindtree Ltd. can be considered one of the first hostile takeover in Indian History. This post discusses the case study and theory of hostile takeovers. We will also discuss different strategies to defend against hostile takeover.
Capital Markets Update July 2019
In wake of IL&FS and banking sector crisis the Indian economy is slowing down its pace primarily due to liquidity crunch. The estimated growth rate of economy has also been revised to 7% from 7.2% in April by RBI. The Indian economy has grown by 6.8 per cent in...
Fund Raising Strategies for Companies
Article discusses various sources of funds available to companies and strategies to increase the value of business by optimising the capital structure. The article was published by C.A. Association Journal and was referenced in the index of useful articles by The Chartered Accountant, Journal of ICAI.
Case Study Short Term Bank Loan ₹60 Crore
Summary An EPC company won a big project for installations of renewable power plant to be completed in 6 months’ time. Company had to raise funds immediately for successful completion but was constrained by weak financials. Our advisory helped the company raise...
Capital Market Update October 2021
Indian economy is recovering well with positive industrial data, record agricultural output and ease in CPI inflation. RBI has continued with the low interest rates; however it has started the process of normalizing by reducing the excess liquidity from the system. Indian stock markets have remained bullish and Sensex hit the 60,000 mark for time to reach a lifetime high in September.
PE: Smytten raises $6 million in funding led by Fireside Ventures
Smytten, online platform for consumer product discovery and trials, has raised $6 million in Series A funding led by Fireside Ventures.
PE: Chrys capital, True North buy minority stake in Quest Global
Transaction: Quest Global, a product engineering and lifecycle services company, announced that Chrys Capital, True North Managers LLP, and other institutional investors have purchased minority stake in the company for approximately US $150 million. Quest Global:...
M&A: Sony Pictures Networks India to merge with Zee Entertainment Enterprises Ltd.
Sony Pictures Networks India (SPNI) and Zee Entertainment Enterprises Ltd. (ZEEL) announced that they have entered into an exclusive, non-binding term sheet to combine both companies’ linear networks, digital assets, production operations and program libraries.
Stock Markets Update September 2021
BSE Sensex went up by 2.74% to close at 59,126 in September 2021. Nifty 50 closed at 17,618 higher by 2.84% from 17,132 in August closing. Sensex hit the 60,000 mark for time on 24th September 2021 and reached its lifetime high of 60,244.65. The reasons for bullishness are good economic recovery post 2nd Covid-19 wave, positive global cues, strong inflows by FIIs, surplus liquidity in the system, low interest rates and good results by corporates.
Economic Update October 2021
Core inflation which has eased to 5.3% in August is also expected to soften in coming months with ease of food prices. However, some pressure will remain due to crude oil prices, which have touched a new 52-week high on the MCX in September.