Private equity buyout deals in technology set for record high

Source: LiveMint.com, Nov 16, 2018

Mumbai: Private equity (PE) funds are set to make more buyout investments in the technology sector in 2018 than any other previous year, according to a report from global alternative assets data tracker Preqin. As of November, there have been 1,079 buyout-backed technology deals announced globally, worth $71 billion, approaching the record of 1,096 set in 2017.

The number of deals has steadily risen each year since 2009, although the value of these deals peaked at $177 billion in 2015, driven by the $67 billion merger of computing and storage firm Dell with EMC.

Technology-focused private equity is a major industry, with funds holding more than half a trillion dollars in assets under management at the end of March 2018, the report said, adding that the sector has almost doubled in size in the last five years. Read the rest of this entry »

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Bigbasket eyes $200 mn investment in fresh funding in next few months

Source: Business Standard, Nov 16, 2018

Mumbai: After successfully raising $300 million from Alibaba Group earlier this year, online grocery store Bigbasket now aims to raise up to $200 million over the next few months, a top company official said.

The Bengaluru-based company aims to raise funds from both the existing as well as new investors and the funds will be used for marketing, to build infrastructure and to develop technology.

“We will probably look at a further investment of close to $150-200 million in the next few months. We already had some early talks with investors,” Bigbasket co- founder and chief executive Hari Menon told PTI here.

Menon said the fund will be used largely for marketing, and to develop infrastructure and technology. The company normally spends Rs 1.5 billion annually on marketing. Read the rest of this entry »

October trade deficit widens to $ 17.13 billion despite decline in gold imports

Source: The Economic Times, Nov 15, 2018

NEW DELHI: India’s exports rose by 17.86 per cent to USD 26.98 billion in October mainly due to the low base effect even as trade deficit widened to USD 17.13 billion, according to the commerce ministry data.

The exports on monthly basis were down compared to USD 27.95 billion in September.

Imports during October also rose by 17.62 per cent to USD 44.11 billion, leading to widening of trade deficit to USD 17.13 billion. Read the rest of this entry »

How Vodafone Idea’s $3.5 bn fundraising will impact telecom in India

Source: LiveMint.com, Nov 15, 2018

Vodafone Idea Ltd is down but not out. Its financial results are a mess. The recently merged company reported a pro forma Ebitda of ₹977 crore for the September quarter, at margins of just 8.1%. At the time Vodafone India Ltd and Idea Cellular Ltd announced their merger, margins were far more healthy at 26.5% and profits were more than five times higher than current levels. Bharti Airtel Ltd had also reported Ebitda margins of about 21% for its India wireless business last quarter. Ebitda stands for earnings before interest, tax, depreciation and amortization.

Vodafone Idea will be quick to point out that this great divide with Airtel’s margins will get bridged after accounting for synergy benefits. But note that even after these savings kick in, profit will be merely enough to meet interest costs. Read the rest of this entry »

Organised retail firmly on a roll in Bharat

Source: The Hindu Business Line, Nov 14, 2018

Mumbai: People in smaller towns are increasingly shopping at organised retail stores such as supermarkets and hypermarkets.

According to market research firm Nielsen, smaller towns and villages are fuelling the growth of FMCG sales on the back of growing income, increased use of plastic money, and the rise of regional FMCG players. Read the rest of this entry »

India to attract investments worth $80 bn in renewable energy: Report

Source: Business Standard, Nov 14, 2018

Bhubaneswar: India’s renewable energy space is turning out to be an attractive domain for foreign investors. In total, this sector has drawn $6.84 billion FDI from April 2000 to June 2018.

More than $42 billion has been invested in the country’s renewable energy sector since 2014, said a report by Indian Brand Equity Foundation (IBEF), after interpreting figures from the Ministry of New & Renewable Energy (MNRE) and Central Electricity Authority (CEA). Over the next four years, the renewable energy sector is projected to attract investments pegged at $80 billion.

Competition in green energy domain has heated up especially in the solar power segment with tenders in tariffs hitting record low of Rs 2.44 per unit in December 2017. The large integrated players are in a better position with higher returns compared to the smaller contractors. Read the rest of this entry »

WPI surges to four month high of 5.28% in October on dearer fuel

Source: The Economic Times, Nov 14, 2018

Higher inflation in manufactured products and fuel made India’s wholesale price inflation (WPI) surge to 5.28% in October from 5.13% in September, data released by the commerce and industry ministry on Wednesday showed.

WPI was 3.68% in October last year.

Inflation in fuel and power rose 18.44% from 16.65% in September and that in manufactured products 4.49% in October from 4.22% in the trailing month.

“The rate of inflation based on WPI Food Index consisting of ‘food articles’ from primary articles group and ‘food product’ from manufactured products group decreased from 0.14% in September, 2018 to -0.64% in October, 2018,” the ministry said in an official release.

Inflation in cereals, wheat and potato increased 6.24%, 9.49% and 93.65%, respectively while the growth of inflation in paddy slowed to 4.08% in October.

Data released on Monday showed a decline in India’s retail inflation to 3.31% in October from 3.7% in September

In the wholesale basket, the pace of decline in inflation slowed for pulses but rose in onions and, eggs and meat.