Investments by private equity and venture capital funds declined by 44 per cent to $3.7 billion in February compared to the same period a year ago, a report said on Monday. The bets by the long-term investors were 13 per cent lower when compared to the investments in the preceding month of January, the report by industry lobby Indian Venture and Alternate Capital Association and consultancy firm EY, said. “…rising global recession concerns, increasing cost of capital and mismatch in valuation expectations between sellers and investors are turning out to be major impediments in the deployment of capital,” EY’s partner Vivek Soni said.
Posts tagged Rediff
‘Foxconn is clearly bullish about India’ (20-03-2023)
Foxconn means serious business in India. Its delegation to India was led by its Chairman Young Liu who met Prime Minister Narendra Modi.
SVB fallout: Fintech, VCs come to the rescue (20-03-2023)
Fintech and venture capital firms such as Recur Club, Razorpay and Trifecta Capital have come to the aid of homegrown start-ups caught in the crossfire of the Silicon Valley Bank fiasco. Alternative funding platform Recur Club said it was allocating $15 million to all Indian founders affected by the crisis. It will not charge any platform fee for the same.
SVB crisis unlikely to affect Indian banks (20-03-2023)
The recent run on the US-based Silicon Valley Bank (SVB) and the subsequent seizure of its assets by the regulators may have sparked a global wave of risk aversion, particularly for start-ups. However, the Indian banking sector is unlikely to be a victim of any contagion effects, said analysts. he bank, which played a big role in financing start-ups and technology players, faced stress after incurring huge losses on its holdings of US bonds, following the most-aggressive monetary tightening cycle by the Federal Reserve in around four decades.
Fund-raises by fintechs slowed by 47% in 2022 (20-03-2023)
Recently, Slice, a payment app, acquired a 5 per cent stake in North East Small Finance (NESF) for $3.42 million – the first such deal by a fintech in a small finance bank. Slice (valued at $1.5 billion, and backed by Tiger Global, Blume Ventures and Axis Bank) will technically get a toehold in a scheduled commercial bank if NESF were to get a licence to morph into one down the line Such a transition is well within the banking regulator’s declared framework. The transaction has to be seen in a larger context.
12+ entities involved in short-selling under Sebi lens (20-03-2023)
More than a dozen entities, both domestic and foreign, had come under the regulatory glare over alleged short-selling before and after the publication of the Hindenburg research report against Adani Group, two people familiar with the development said. The Securities and Exchange Board of India (Sebi), which is examining the rise in stock values of Adani Group in the past few years, is also scrutinising the trade data and trade pattern of these entities allegedly involved in short-selling and made significant profit. Enquiries in the trade pattern of these entities reflected a profit of over Rs 30,000 crore, pre- and post-Hindenburg saga, said one of the two people.
10 Safe Stocks To Bet In Volatile Market (20-03-2023)
10 high dividend paying stocks across sectors that are expected to maintain or even increase their pay-outs in FY23 thanks to faster earnings growth in the last four quarters.
FMEG: Most brokerages positive on cable and wires biz (18-03-2023)
With raw material prices rising sequentially in Q4 FY23, margins of fast moving electrical goods (FMEG) companies could witness pressure as they refrain from hiking prices and demand remains soft. Transition to a new regulatory regime-fans moved to new BEE standards from January 1-poses additional risk for firms. Business depends on volume trends in summer for key sub-segments, which account for a significant chunk of the sector’s overall sales pie.
India’s green targets need deep e-vehicle penetration (18-03-2023)
Unlike many countries in Europe and some key markets like Japan and South Korea, India does not have a vibrant hybrid (petrol and electric) car market in its quest to make a direct transition from ICE to electric.
The worst of inflation is behind us: Das (17-03-2023)
Reserve Bank governor Shaktikanta Das on Friday cautioned banks against any build-up of asset-liability mismatches, saying both are detrimental to financial stability and hinted that the ongoing crisis in the US banking system seems to have emanated from such mismatches. Delivering the annual KP Hormis (Federal Bank founder) commemorative lecture in Kochi this evening, the governor was quick to acknowledge and assure that the domestic financial sector is stable and the worst of inflation is behind us. Amid the continuing volatility in exchange rates, especially due to the excessive appreciation of the US dollar, and its impact on the external debt servicing ability of nations, Das said, “We have nothing to fear as our external debt is manageable and thus appreciation of the greenback does not pose any problem to us.”