Future Analytics of Investment Banking Company
by Pooja Late so cutIndia 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.
Author’s Bio
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.
Sponsor Ads
Created on Nov 28th 2017 07:09. Viewed 527 times.