Future Analytics of Investment Banking Companyby Pooja Late so cut
India is now becoming more attractive to both foreign and domestic investors no thanks to the given improving regulatory framework in place. The just past election results was a confirmation that the federal government will do everything within their power to work in the improvement and introduction of new policies focused on the growth of different sectors including real estate. This has great benefit, as it will lead to a huge impact when more investment and foreign businesses come into India and help in improving the confidence that local investors will have in the economy.
Just in the last two years, there have been changes within the private equity investment sector in the sense that investment from within the country has exceeded that from outside the country for some time now. Most notably, is that the total private equity India has seen great inflow domestically in 2016 crossing the peak seen in 2007. The total private equity domestically invested in 2015 was at USD 1,770 mn, it was almost double of that in 2016 at USD 3,410 mn. The corresponding figure in 2007, which was the previous peak, stood at USD 3,300 mn. In comparison to these figures with that of the foreign inflow, which stood at USD 1,540 mn in 2015 and USD 1,850 mn in 2016. The corresponding figure in 2007, which was the previous peak, stood at USD 4,600 mn in 2007.
From the statistics above, one could deduce that equity investment is gradually returning to India and experiencing a consistency in the last three years. A large number of domestic investors have come to the realization of the potentials of the Indian’ real estate business, which was supported by the improvement of both political and economic scenario in India. Besides this, most project finance companies in India have supported most investors in providing the basic infrastructure needed. Local knowledge also contributes to the confident of domestic investors than their foreign counterparts. With many states on the verge of setting up a real estate regulator and REITs coming up, 2017 could very well set a new benchmark as far domestic PE inflows into Indian real estate are concerned
At the least, an investor needs to compare the returns being provided by various investment banks issuing the infrastructure bonds and check out their credit rating. Experts opine that an investor should also keep in mind the latest financial performance of a company before buying its investment instruments. One may also not purchase because of Secured and Unsecured bonds because secured doesn’t mean any kind of guarantee – it simply means that the company has set aside some assets against this bond issue. If anything happens to the company then those assets will be sold to recover the money for the bondholders. That is all it means – it does not mean a guarantee from the company or the government of India that you will be repaid no matter what.
Karim Paul in this post, look at how private equity in India has seen tremendous inflow domestically with rising investors supporting the country. He further highlighted how most project finance companies in India are supporting investors.
Created on Nov 28th 2017 08:09. Viewed 160 times.