Category — Banking & Financial Services

U.S.’s Ebix Acquires Majority Stake in India’s ItzCash

Atlanta, GA-based Ebix Inc., a maker of software for the insurance and financial services industry, acquired a majority stake in Indian payments services firm ItzCash for approximately $124 million. ItzCash’s earlier investors, Matrix Partners, Intel Capital and Lightspeed Venture Partners, exited the company for returns between 3X – 5X, leaving Essel Group with a 20% stake.

Founded in 2006, ItzCash, started with digital payments, and expanded into remittances, financial services, corporate solutions, point of sale (PoS) terminals and payment gateway. The company processes 600,000 transactions per day. In 2016-17, it processed payments worth $1.6 billion through its network, reports the Livemint.

ItzCash Logo

“With the youngest tech-savvy society, the largest middle class, a 1.3 billion population, a country committed to going digital and a growth rate of 7% plus, India is an emerging economic superpower today. We are big believers in the power of exchanges and thus have been keen to take an early position in India in terms of powering financial and insurance exchanges,” said Robin Raina, chairman and chief executive of Ebix.

May 25, 2017   No Comments

India Abolishes Foreign Investment Advisory Body

India’s Federal Government approved dismantling the 25-year old Foreign Investment Promotion Board,  in order to streamline  the flow of foreign capital into the country.
By abolishing the Foreign Investment Promotion Board India’s minister for finance, Arun Jaitley, removed a layer of decision-making for foreign direct investment approvals in 11 sectors that needed prior government approval. FDI proposals can now be cleared by the ministries and departments concerned in these sectors. In sectors where the government has security concerns, the proposals will additionally be vetted by the Home Ministry.
According to the strategic partnership policy, the four sub-sectors now open to the private sector will create a pool of six Indian firms that will be accorded special status. They will seek to make submarines for the Navy, a single-engine fighter for the air force, and helicopters and armored vehicles for the army. Once the pool is created, the companies will be given the opportunity to bid for defense production orders, expected to be worth over $20 billion. reports the Economic Times.

The Department of Industrial Policy and Promotion will notify the standard operating procedure for processing applications in the next 60 days.

 Return on Investment

May 24, 2017   No Comments

India’s Motherson Sumi Expands Internationally

Noida, India-based auto component maker Motherson Sumi Systems consolidated net profit stood at $108.81 million in the quarter ending March 31, 2017, a better-than-expected 20 percent growth. Motherson Sumi’s net sales outside India rose over 14 percent to 94.76 billion rupees (GB Please convert to USD)

CFO of Motherson Sumi Systems, G. N. Gauba told Press Trust of India, “We have earmarked $300 million capex for the current fiscal. The investment will mainly go into the upcoming nine manufacturing plants across the world.”  The company will set up three plants in India, three in Hungary, one each at South Korea, Mexico and the United States, he added.
Auto parts from Motherson Sumi Systems
Currently, the company operates over 180 facilities across the globe catering to various automobile OEMs including Mercedes- Benz, Audi, Toyota, Ford and Suzuki, reports the Economic Times. It has set a target of achieving a turnover of  $18 billion by 2020 through global expansion.

May 22, 2017   No Comments

KKR Invests $50 Million in India’s Walchand Nagar Industries

New York City-based private equity firm KKR & Co., will invest $50 million (Rs 300 crore) in Mumbai-based Walchand Nagar Industries, one of India’s oldest business groups.
KKR has so far deployed around $4 billion in structured financing to business groups in India over the past seven years, and has invested approximately $2.5 billion in 12 private equity transactions since 2006. The company’s India strategy has been predominantly into partnership deals and it has developed a niche structured-credit platform, in India.
KKR Logo

The deal will help Walchand retire some of its bank loans, besides providing capital to drive growth. The funds will also be used for expansion of its defense business, reports the Economic TimesWalchand Nagar Industries has a strong presence in India’s defense, aerospace, and nuclear industries, and, according to its website, it works closely with India’s Defense Research and Development Organization, and Space Research Organization.

May 22, 2017   No Comments

India’s Benchmark Index Sets Record

The S&P BSE Sensex climbed to record levels on strong corporate earnings and gains in Asian markets:  the index rose 0.6 percent to close above 30,000 for the first time; while the NSE Nifty 50 Index, advanced 0.5 percent.

BSE Sensex chart

Seven out of the nine Nifty-listed companies have either met or exceeded their earnings expectations for the January-March quarter, according to data compiled by Bloomberg. Out of the 13 sector indices compiled by BSE Ltd., fast-moving consumer goods surged the most, rising to its highest level since at least 2005. ITC Ltd., was the top performer on the Sensex, rising to a record high.

“Strong company results show that the market has broken away from the shackles of demonetization,” Jitendra Panda, managing director at Peerless Securities Ltd., in Kolkata said. “This milestone for the Sensex was long-awaited and with companies displaying momentum in the numbers, we expect better days ahead,” he added.

May 18, 2017   No Comments