Piramal Enterprises Ltd, led by billionaire Ajay Piramal on Tuesday (23rd August 2016) announced it is launching a US$1 billion distressed asset investment platform in association with private equity fund Bain Capital Credit.
This platform is intended look at restructuring cases in all sectors other than real estate. Within these, its preference will be to invest in businesses that require restructuring as well as have fundamentally strong growth prospects linked to infrastructure and consumption, the statement read.
The statement will also read that Shantanu Nalavadi, an experienced investing professional with 25 years of experience in India and currently the managing partner of Piramal Capital, will lead this strategic partnership from front.
While international stressed asset funds are trying to locate the right kind of stressed assets in India to invest in, domestic funds are expected to perform better due to their familiarity with the country and its processes.
Last month, State Bank of India (SBI) declared that it is launching a Rs.7,000 crore stressed asset fund with Brookfield Asset Management Inc. According to the structure announced by SBI, it will put up 5 per cent of the capital and the Canadian partner will bring in the rest.
Earlier in the month of, ICICI Bank Ltd and Apollo India Credit Opportunity Management LLC announced that they are planning to collaborate to apply for an asset reconstruction company (ARC) licence. Eventually, the collaboration will also look at investing in stressed assets, though ICICI Bank did not reveal the amount it plans to invest.
Meanwhile Piramal Enterprises share price closed at Rs 1,847.10, down by 6.20 per cent. Piramal Enterprises is Dynamic Levels recommended Multibagger stock.
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