Odisha News, Odisha Latest news, Odisha Daily - OrissaPOST
  • Home
  • State
  • Metro
  • National
  • International
  • Business
  • Opinion
  • Feature
  • Timeout
  • Entertainment
  • Sports
  • Sci-Tech
  • Others
    • COVID-19
    • Today’s Pic
  • Home
  • State
  • Metro
  • National
  • International
  • Business
  • Opinion
  • Feature
  • Timeout
  • Entertainment
  • Sports
  • Sci-Tech
  • Others
    • COVID-19
    • Today’s Pic
No Result
View All Result
OrissaPOST - Odisha Latest news, English Daily -
No Result
View All Result

Brighter days ahead for Indian equity markets in 2021 as bulls take charge

PTI
Updated: December 31st, 2020, 07:30 IST
in Business
0
sensex

Pic courtesy- Wikimedia/Commons

Share on FacebookShare on TwitterShare on WhatsAppShare on Linkedin

Mumbai:  Record equity divestment by the Reliance Group in its telecom and retail businesses garnering around USD 23 billion revved up the deal street in 2020, which otherwise would have gone down as one of the dullest on record, and dealmakers are seeing sunnier days in 2021 given the large scope for consolidation in a slew of sectors ravaged by the pandemic.

With Jio Platforms alone garnering over USD 16 billion (Rs 1,18,318 crore) by selling 25.24 per cent stake and Reliance Retail notching up USD 6.4 billion (Rs 47,265 crore)  by divesting around 9 per cent shareholding, the deal street signed off with USD 85 billion in the deal kitty across 1,270 transactions. This is higher by about 10 per cent over 2019. What is significant is that over a third of the total deal value came from Reliance transactions, say investment bankers.

While Jio attracted FDI/PE (Private Equity) dollars worth over USD 16 billion in investments led by Facebook, Reliance Retail fetched over USD 6.4 billion in forex funds during the year. All other FDIs (Foreign Direct Investments) put together totalled only USD 3.2 billion, according to a PwC India tabulation.

Pharma, technology and Internet sectors saw maximum M&As (Mergers & Acquisitions) during the year, as per Citi India.

“Overall, M&As over USD 85 billion were announced in 2020, led by Reliance, which raised growth capital for Jio and Reliance Retail from several global companies and sovereign wealth funds,” Ravi Kapoor, Head of Corporate and Investment Banking at Citi India told PTI.

Ajay Arora, Partner and National Leader of Investment Banking at EY India said H1 of this year saw a major decline in M&As but H2 witnessed a strong bounce back when deals rose nearly 40 per cent over the first six months.

“I expect this strong momentum to continue in 2021, primarily driven by the significant appetite of PEs for buyouts and an uptick in inbound deals due to the revival in interest from global players. Sectors like technology, e-commerce, including consumer tech, health tech and edtech in particular, and renewables and life sciences will see majority of M&As in 2021,” Arora told PTI.

Kapoor said India is a strong long-term growth story. “Abundant liquidity, a strong appetite from sponsors and potential consolidation themes are likely to drive M&As in 2021, and multinationals seek to expand their supply chains to better absorb shocks going forward,” he added.

Mahesh Singhi, Founder of mid-market i-bank Singhi Advisors, is also quite bullish about next year.

“We expect speciality chemicals, pharma, chemicals, building materials, medical devices, auto components and consumables space, apart from distress M&As happening in 2021,” he told PTI.

Sanjeev Krishan, Partner and Leader of Deals at PwC India, said M&As accounted for over 50 per cent of USD 80 billion in 2020 while PE inflows kept pace with last year at USD 38.2 billion.

Excluding the big-ticket deals by Jio, H1 saw a deep slowdown with investors putting their plans on hold and shifting focus towards cash conservation, Kirshan said.

He also noted the narrative changed when Jio announced a string of deals from April through July snapping up over USD 16 billion, including USD 5.7 billion from Facebook alone.

The only domestic deal worth writing about was Reliance Retail buying the retail, wholesale, logistics and warehousing businesses of Future Group for USD 3.3 billion.

Another trend was consolidation driving M&As, accounting for nearly 50 per cent of value and given the volatility and uncertainty of the current times, this is expected to a continuing trend, Krishan said.

Over three quarters, USD 13.4 billion was invested in Jio alone with the Facebook deal of USD 5.7 billion being the largest one. This was followed by USD 4.5 billion investment by Google for 7.7 per cent in Jio.

Expectations exceeded on the PE front as USD 38.2 billion came in 2020, amounting to nearly the same level of activity in 2019.

Reliance was once again a large contributor to PE deals. After Facebook, a consortium of PEs like TPG, KKR, General Atlantic and Silver Lake along with sovereign wealth funds pumped in USD 9.8 billion into Jio. This accounted for 66 per cent of the growth-stage PE investments this year and driving it to an all-time high of USD 15 billion.

Similarly, Reliance Retail got USD 6.4 billion, resulting in a spike in late-stage PE investments and making 2020 a record year for this type of investment as well.

The year saw 17 billion-dollar deals, against 9 in 2019.

Telecom sector replaced tech with USD 11.2 billion worth of deals, while retail attracted USD 6.5 billion and both the sectors saw higher inflows, thanks to Reliance. Technology sector attracted over USD 6 billion led by online aggregators, and pharma segment got USD 2.5 billion.

PE exits reached an all-time low in the last five years and continue to remain a challenge amidst volatility. The year saw 136 exits worth USD 4.2 billion.

Meanwhile, forex debt markets remained lukewarm in 2020 but for equity capital market which was the best-ever with 119 per cent growth over 2019 at Rs 1.84 lakh crore. This was due to a clutch of instruments like IPOs (Initial Public Offers), FPOs (Follow on Public Offers), OFS (Offer for Sale), REITS/InVITs and domestic bonds, according the data collated by Primedatabase.

InVITs and REITs are Infrastructure Investment Trusts and Real Estate Investment Trusts, respectively.

Despite the pandemic, fund raising through public equity markets touched an all-time high of Rs 1,77,468 crore — 116 per cent over Rs 82,241 crore recorded in 2019, Prime Database’s Pranav Haldea said. The previous highest was Rs 1,60,032 crore in 2017.

Strong retail participation in IPOs, huge listing gains and highest-ever QIPs (Qualified Institutional Placements) and InVITs/ReITs were the key highlights of 2020, he noted.

The dollar-awashed forex markets pushed India Inc to raise USD 40 billion in equity and debt capital in the year, the highest ever capital raised by India Inc in any year.

Equity capital was driven by record FPI (Foreign Portfolio Investment) inflows of around USD 26 billion since May, the highest for a six-month period over the last decade and November alone saw FPIs pumping in USD 12.2 billion into equities.

However, forex bond markets weren’t a great story to write home about with only USD 13.3 billion but domestic bond markets were robust crossing Rs 7.5 lakh crore.

“We expect 2021 to be a strong year in terms of capital raising as the market is turbocharged by the super-stimulus while pandemic vaccines will help the economy nurse itself back and corporate health is on the repair, creating a strong environment for a robust capital raising environment especially  by new-age players like tech/Internet and renewables emerging as lead issuers,” Kapoor concluded.

PTI

Tags: BSEequity marketsJioNSEReliance
ShareTweetSendShare
Suggest A Correction

Enter your email to get our daily news in your inbox.

Related Posts

FPI exodus continues; pull out Rs 46,000 crore from Indian equities in Jun so far

June 26, 2022
Pic- PTI

Inflation sparks global wave of protests for higher pay, aid

June 26, 2022
Representational image

Bitcoin heading to zero, China warns investors

June 26, 2022
Jobs

Bitcoin trading platform Bitpanda lays off 250 employees

June 25, 2022
Pic - NE Today

Oil India Ltd completes beta demo of hydrogen-powered bus developed under its startup programme

June 25, 2022
Web3

Firms must learn first how Web3.0 will impact operations, profit: Report

June 25, 2022

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

OrissaPOST epaper Sunday POST OrissaPOST epaper

Click Here: Plastic Free Odisha

Plastic Free Odisha

Hinjili Police

Hinjili Police support plastic free Odisha. Do you? *Visit our website orissapost.com. Like,Share,Subscribe,Recommend our Facebook Page Orissapost(@OrissaPOST.Here.Now) *Post your Photos/Selfie ...

October 2, 2018
Plastic Free Odisha

D.A.V Public School-Kalinga Nagar

D.A.V Public School Students, support Plastic free Odisha. Do you? *Visit our website orissapost.com. Like,Share,Subscribe,Recommend our Facebook Page Orissapost(@OrissaPOST.Here.Now) *Post ...

August 30, 2018
Plastic Free Odisha

Students of Tulasipur Saraswati Sishu Vidya Mandir, Cuttack

Students of Tulasipur Saraswati Sishu Vidya Mandir, Cuttack call for a Plastic Free Odisha. Do you support the movement? *Visit our ...

August 29, 2018
Plastic Free Odisha

Debashish Mohanty-Former Indian Cricketer

Cricketer Debashish Mohanty supports  a Plastic Free Odisha. Do you? *Visit our website orissapost.com. Like,Share,Subscribe,Recommend our Facebook Page Orissapost(@OrissaPOST.Here.Now) *Post ...

August 30, 2018
Plastic Free Odisha

Sports Person Sradhanjali Samantaray

Sports Personality Sradhanjali Samantaray support a *Visit our website orissapost.com. Like,Share,Subscribe,Recommend our Facebook Page Orissapost(@OrissaPOST.Here.Now) *Post your Photos/Selfie (with fingers ...

August 30, 2018
Plastic Free Odisha

Deepak Kumar-Actor

Deepak Kumar support a Plastic Free Odisha. Do you support the movement? *Visit our website orissapost.com. Like,Share,Subscribe,Recommend our Facebook Page ...

August 30, 2018
Plastic Free Odisha

Balibil Nodal School students

Balibil Nodal School students support plastic free Odisha. Do you? *Visit our website orissapost.com. Like,Share,Subscribe,Recommend our Facebook Page Orissapost(@OrissaPOST.Here.Now) *Post ...

October 2, 2018
Plastic Free Odisha

Ratikant Mohapatra,Odissi Dance Director

Ratikant Mohapatra support a plastic free odisha. Do you? *Visit our website orissapost.com. Like,Share,Subscribe,Recommend our Facebook Page Orissapost(@OrissaPOST.Here.Now) *Post your ...

August 30, 2018
Plastic Free Odisha

Gandhi Science Higher Secondary School in Khandagiri, Bhubaneswar

Gandhi Science Higher Secondary School students of Khandagiri, Bhubaneswar support a plastic free Odisha. Do you?   *Visit our website ...

October 2, 2018
Plastic Free Odisha

Cuttack College NCC students

Cuttack College NCC students support a plastic free Odisha. Do you? *Visit our website orissapost.com. Like,Share,Subscribe,Recommend our Facebook Page Orissapost(@OrissaPOST.Here.Now) ...

October 2, 2018
Plastic Free Odisha

Odisha Rajya Rogi Adhikar Mancha & Mangalabagh International Club workers

Odisha Rajya Rogi Adhikar Mancha & Mangalabagh International Club Workers support a plastic free Odisha. Do you? *Visit our website ...

October 2, 2018
Plastic Free Odisha

Valena Valentina-Karate Player

Karate player Valena Valentina calls for a Plastic Free Odisha. Have You Joined the movement? *Visit our website orissapost.com. Like,Share,Subscribe,Recommend ...

August 30, 2018
Plastic Free Odisha

IMT Pharmacy College-Puri

IMT Pharmacy College students call for a Plastic Free Odisha. Have You Joined the movement? *Visit our website orissapost.com. Like,Share,Subscribe,Recommend ...

August 30, 2018
Plastic Free Odisha

Haratiya Bidyaniketan School students

Haratiya Bidyaniketan School students of Alipur, Bari support a plastic free Odisha. Do you? *Visit our website orissapost.com. Like,Share,Subscribe,Recommend our ...

October 2, 2018
Plastic Free Odisha

Anubhav Mohanty, Actor

Anubhav Mohanty supports call for a Plastic Free Odisha. Do you support the movement? *Visit our website www.orissapost.com. Like,Share,Subscribe,Recommend our Facebook ...

August 29, 2018
Plastic Free Odisha

Scoutmaster, Guide Captains, Rovers, and Rangers of Keonjhar

Scoutmaster, Guide Captains, Rovers, and Rangers of Keonjhar support a plastic free Odisha. Do you? *Visit our website orissapost.com. Like,Share,Subscribe,Recommend ...

October 2, 2018
Plastic Free Odisha

Sabyasachi Mishra, Actor

Sabyasachi Mishra calls for a Plastic Free Odisha. Do you support the movement? *Visit our website www.orissapost.com. Like,Share,Subscribe,Recommend our Facebook Page ...

August 29, 2018
Plastic Free Odisha

Govinda Poddar-Odisha Ranji Team Captain

Govinda Poddar, Odisha Ranji Team Captain  calls for a Plastic Free Odisha. Have You Joined the movement? *Visit our website ...

August 30, 2018
Plastic Free Odisha

Archita Sahu, Actress

Archita Sahu support a Plastic Free Odisha. Do you? *Visit our website orissapost.com. Like,Share,Subscribe,Recommend our Facebook Page Orissapost(@OrissaPOST.Here.Now) *Post your ...

August 30, 2018
Plastic Free Odisha

Samanta Singhara Nodal High School students

Samanta Singhara Nodal High School students of Balia, Jajpur support plastic free Odisha. Do you? *Visit our website orissapost.com. Like,Share,Subscribe,Recommend ...

October 2, 2018
Plastic Free Odisha

BJB Autonomous College-Bhubaneswar

BJB Autonomous college students support a Plastic Free Odisha. Do you? *Visit our website orissapost.com. Like,Share,Subscribe,Recommend our Facebook Page Orissapost(@OrissaPOST.Here.Now) ...

August 30, 2018
Plastic Free Odisha

Korei college students

Korei college students support plastic free Odisha. Do you? *Visit our website orissapost.com. Like,Share,Subscribe,Recommend our Facebook Page Orissapost(@OrissaPOST.Here.Now) *Post your ...

October 2, 2018
Plastic Free Odisha

Hockey Player Dilip Tirkey

Hockey Player Dilip Tirkey supports a Plastic Free Odisha. Do you? *Visit our website orissapost.com. Like,Share,Subscribe,Recommend our Facebook Page Orissapost(@OrissaPOST.Here.Now) ...

August 30, 2018
Plastic Free Odisha

Bhubaneswar Bar Association Lawyer Liberty Trust

Bhubaneswar Bar Association Lawyer Liberty Trust supports plastic free Odisha. Do you? *Visit our website orissapost.com. Like,Share,Subscribe,Recommend our Facebook Page ...

October 2, 2018
Plastic Free Odisha

Actor Sritam Das

Actor Sritam Das supports a plastic free Odisha. Do you? *Visit our website orissapost.com. Like,Share,Subscribe,Recommend our Facebook Page Orissapost(@OrissaPOST.Here.Now) *Post ...

October 2, 2018
Plastic Free Odisha

Darsheel Safary, Actor

Darsheel Safary calls for a Plastic Free Odisha. Do you support the movement? *Visit our website www.orissapost.com. Like,Share,Subscribe,Recommend our Facebook Page ...

August 29, 2018
Plastic Free Odisha

Elina Samantray, Actress

Elina Samantray calls for a Plastic Free Odisha. Do you support the movement? *Visit our website www.orissapost.com. Like,Share,Subscribe,Recommend our Facebook Page ...

August 29, 2018
Plastic Free Odisha

Sri Aurobindo School students & teachers

Sri Aurobindo School students & teachers of Sambalpur support plastic free Odisha. Do you? *Visit our website orissapost.com. Like,Share,Subscribe,Recommend our ...

October 2, 2018
Plastic Free Odisha

Nayagarh Girls’ High School

Nayagarh Girls’ High School students support a plastic free Odisha. Do you? *Visit our website orissapost.com. Like,Share,Subscribe,Recommend our Facebook Page ...

October 2, 2018
Plastic Free Odisha

Olympian Dutee Chand

Olympian Dutee Chand calls for a Plastic Free Odisha. Have You Joined the movement? *Visit our website orissapost.com. Like,Share,Subscribe,Recommend our ...

August 30, 2018

Archives

Editorial

Executive Overreach

June 26, 2022

One of our Supreme Court judges made an important if startling point when giving a lecture abroad. A legal website...

Read more

Shortage of Officers

June 25, 2022

The Uttarakhand government has been struggling to work with only 76 IAS officers in the state, even though it has...

Read more

Disarm All Nukes

June 23, 2022

Austria and New Zealand may be far apart geographically, but we are connected by shared values and principles. Particularly relevant...

Read more

Fractured France

Picture Credit: 
The Arab Weekly
June 22, 2022

French politics is thrown into turmoil after President Emmanuel Macron lost control of the National Assembly in legislative elections in which...

Read more
  • Home
  • State
  • Metro
  • National
  • International
  • Business
  • Opinion
  • Feature
  • Sports
  • Sci-Tech
  • About Us
  • Advertise
  • Contact Us
  • Career
Developed By Ratna Technology

© 2020 All rights Reserved by OrissaPOST

  • Home
  • Metro
  • State
  • National
  • International
  • IPL
  • Sports
  • Business
  • Entertainment
  • Feature
  • Opinion
  • Sci-Tech
  • COVID-19
  • Today’s Pic
  • About Us
  • Contact Us
  • Career
  • Facebook
  • Twitter

© 2020 All rights Reserved by OrissaPOST