Category — Real Estate

India’s Stock Exchange Regulator Eases Rules for Foreign Investors

To ease rules for foreign investors and safeguard their interest, the Securities and Exchange Board of India announced reforms which include approval for trading of both stocks and commodities on a single exchange, and capping of cross-holdings in rating agencies as well as in mutual funds.

For foreign portfolio investors, the Board relaxed entry norms by expanding the eligible jurisdictions for registration by including all countries that have diplomatic ties with India; the regulator will also rationalize criteria and simplify the broad-based requirements for such investors.

A signborard with 'investment' written on it

The proposed norms will impact global rating agencies such as  S&P, Moody’s, and Fitch which have significant holdings in Indian rating agencies apart from their direct presence.

 

January 8, 2018   No Comments

2017 Brings over $30 Billion Overseas Funds to India Stock Market

The overall net inflow of foreign  investor funds has made 2017 the best period in three years for India’s capital markets — both equity and debt — with combined net inflows of over $30 billion. Banking, housing finance, and the auto industry sectors have seen consistent foreign portfolio inflows. The higher inflow in 2017 can be attributed to the expectation of a rise in domestic economic growth, experts said.

Economy chart

As the year draws to a close, the Indian stock market seems to have regained its status as one of the most favored destinations for foreign portfolio investors, reports Business Today. However, market analysts believe that foreign portfolio flows may not continue in 2018 with the withdrawal of liquidity and rate hikes in developed economies picking up. Additionally, the inflation cycle is likely to turn following an increase in commodity prices and a recovery in consumption demand.

Dinesh Rohira, founder and chief executive at 5nance.com said that business sentiment among companies has improved because of India’s ‘ease of doing business’.  The government’s commitment in speeding up development and economic reforms before going for elections in 2019 bodes well for foreign investors’ confidence, he added. The government’s decision to recapitalize state-owned banks is also expected to enhance lending and propel economic growth.

December 22, 2017   No Comments

Walmart Ups the Ante in India

 Arkansas-headquartered Walmart is planning a threefold increase in the pace of opening stores by 2020 in India. It plans to open 50 new stores by 2022 to take the total store count to 70.

“We are opening five to seven stores next year. Eventually, we want to open 15 a year, which should happen from 2020,” president and chief executive Krish Iyer said. The firm spends around $12 million per store for an average size of 55,000 square feet, and it has signed up for 19 sites so far.  Iyer added that Walmart considered India as a priority market in terms of providing resources to build capacities, back-end infrastructure, and implementing technology.

Walmart inaugurated one of its first global fulfilment centers or ‘dark store’ in India, in an effort to speed up operations in the country. The 45,000 square feet center at Bhiwandi near Mumbai will cater to the business needs of resellers, mom-and-pop grocery stores, offices and institutions through online orders mostly stock packaged consumer products and home supplies.

Walmart best price store in India

Walmart’s  Best Price store in India

 

November 2, 2017   No Comments

WeWork Expands to India

Miguel McKelvey, co-founder and chief creative officer of the $20 billion New York-based collaborative workspace startup WeWork, discussed his business in India with Forbes’ India staff Anshul Dhamija.

McKelvey said that in India WeWork had entered into a partnership with the Embassy Group. They launched operations in the beginning of this year and had close to 350,000 square feet of shared workspaces in Bangalore and Mumbai. “India’s probably the biggest market for us,” says McKelvey.

The concept of sharing a workspace with diverse set of professionals and enterprises is new in India and is catching on. WeWork gives access to discounted health care services, payment processing for their companies, IT support, education and training, to all its members.

When asked to comment on what opportunities India offers, McKelvey said: When we first came here, or thought about coming here, it certainly felt a bit overwhelming because it’s such a huge place and the culture is so diverse, varying from city to city and state to state. So having a partner is essential in understanding the local culture and also gives us credibility in the market. India’s probably the biggest market for us. While we are super excited to be in Japan, Australia and Europe, we are talking about hundreds of millions of people here in India. I think this is a place that, in the upcoming years, will play a major part in the way the world economy develops. For us to be here now is an incredible opportunity.

Inside an Office

October 29, 2017   No Comments

India Sees Record Private Investment in Q3 2017

A report by Ernst & Young says that private equity/venture capital investments in India touched a record high of $8.7 billion in the  July-September quarter, a sharp increase over last year’s $3.1 billion for the same period.

E-commerce recorded $2.6 billion across 18 deals primarily driven by Softbank‘s $2.5 billion investment in Flipkart. Real estate recorded $2.3 billion across 13 deals, and financial services announced deals worth $1.4 billion across 25 transactions for the quarter, reports the Times of India.

India is clearly maturing as a private equity market with bigger and complex deals becoming more common. Greater numbers of large deals and buyouts support this thesis and it is clearly visible in the third quarter 2017 investment numbers,” Vivek Soni, partner and leader for PE Advisory, EY said.

Magazine with Investment Report written on itThe quarter also saw record exits for PE players. Exits recorded a year-on-year rise of 128 percent in value terms at $4.7 billion across 65 deals, driven by exits via IPOs, open market, and secondary sale, noted the report.

October 10, 2017   No Comments