Impact on Private Equity Funding From Demonetization to the GST Tax

From demonetization to the GST tax regime, our Indian economy has seen a lot in the previous 5 years! Consequently, the large institutional investors from around the glove have not started considering this new found economy as a wonderful pasture for the private equity. Any of the small investors in our country can join this bandwagon of these large investors, and mint money in this market that is brimming with opportunities.

United States in 1920 & India in 2020

India’s real estate sector almost collapsed after demonetization! Most firms dealing with private equity declared this economy as a cash-starving industry! Indeed it is! There is definitely no denial to the fact that black market deals were happening in the unorganized real estate sector in the country. Maybe, this was the very reason for serious private equity related firms not been keen on this particular sector. However, the budget came as a respite when the RBI said about bringing down the ROIs; so now the ball is in the court of the banks for them to translate this into some serious business. In 1920, USA economists had also supported such type of a move where the Government was told to bring forth massive infrastructure-based project(s) there. In India’s current development, institutional private equity players are displaying a keen interest again in this real estate sector. 

Let Resurgent Be Your Private Equity Partner

At Resurgent India, the experts constantly watch the moves of these big sharks, and as per that, formulate some of the scenarios, which can facilitate the clients’ interests in this market that is ready to take a great leap.

Everything you need to know about Merchant Banking in India:

Merchant banking, unlike your conventional (retail and commercial) banking, mostly deals with international trade focusing majorly on foreign currency and dealing with global, multinational corporations. For instance, they don’t offer banking services such as different accounts (savings, current, fixed, recurring) and other products that are generally focused on individual consumers and deal with organizational customers such as large financial institutions or organizations which focuses on international trade and commerce.

Merchant banking encompasses all the topics under the international financing and underwriting. Real estate deals, trade financing, foreign currencies & investments, international, multinational, mergers, acquisitions, buyouts, issuing letters of international credits, international fund transfer, international trading, providing consultation on global trading technologies, loan syndications, and other such international transactions are few classic examples which gives you an idea what these merchant banks do. Some of the most popular merchant banks that you may have heard of are Goldman Sachs, J P Morgan Chase, Citibank Group, etc.

In India however, merchant banking began in 1967 when the Reserve Bank permitted Grindlays Bank. They started consulting the then entrepreneurs and other large financial institution on management, planning, production, investment, and other economic issues. The success of Grindlays spawned many international and domestic players such as Citibank Group, State Bank of India, ICICI, Bank of India, Bank of Baroda, Canara Bank, Punjab National Bank, UCO Bank, to name a few noteworthy banks. Most of these banks also cater to individual customers under a separate business unit.

Now, if you are a merchant banking institution or any other financial body, we at Resurgent India have designed and developed automated, specific, AI back tools which can make most of your activities simple, quick, effective, and efficient. Our strong industry knowledge and deep experience make us an ideal partner to you in your journey towards fulfilling not just your short-term goals, but longer term goals too.