homemarket NewsBig Deal | Why PE firm Advent International is cautiously optimistic on India in 2024
Big Deal | Why PE firm Advent International is cautiously optimistic on India in 2024
The global private equity fund is expected to actively explore and pursue investment opportunities in the country in 2024
Global private equity firm Advent International is eyeing robust growth and investment opportunities in India, according to Shweta Jalan, Advent's Managing Partner and India Head. Jalan shared insights during the Wharton India Economic Forum, shedding light on the firm's optimistic stance for the next 12 months for the country.
In a statement, Jalan acknowledged the challenges India faced in the past five years, citing economic fluctuations, the impact of COVID-19, the introduction of the Goods and Services Tax (GST), and demonetisation. However, she is confident that these hurdles are now in the rearview mirror.
"Looks like all that is behind us. We have a good, stable policy framework, a very stable political environment – even though it is an election year, unlikely that there will be major surprises there. Inflation is more stable, the US is looking better, I would say we are cautiously optimistic about the next 12 months in India. We think growth will come back," Jalan asserted.
The Managing Partner highlighted the stability of India's policy framework and political landscape as significant factors contributing to Advent's positive outlook. Despite the upcoming elections, she expressed confidence that there would be no major surprises, creating a favorable environment for investors.
Jalan also emphasised the improved stability in inflation and the positive economic indicators in the United States as additional factors bolstering Advent's optimism. According to her, these factors collectively contribute to a cautiously optimistic outlook for India in the coming year.
Big Deal also delves into the far-reaching implications of a consultation paper floated by the Securities and Exchange Board of India (SEBI). The paper focuses on potential new norms that could be proposed by SEBI regarding the disclosure norms by listed companies, specifically addressing clarifications and verifications of market rumors. The ramifications of these proposed changes extend to critical aspects such as mergers and acquisitions (M&A) deals, insider trading, and the price discovery process for capital market transactions.
JN Gupta, former executive director at SEBI said, "The price discovery should be sound. The idea is to conduct a systemic analysis to ensure that asymmetry of information is minimized as much as possible."
Gupta highlighted the challenging nature of the issue and stressed the importance of engaging with the public and stakeholders to gather diverse perspectives on potential solutions.
The consultation paper emerges from an industry-standard forum that has recommended various changes aimed at striking a balance -- one that does not adversely impact companies while safeguarding the interests of investors. The primary objective is to implement measures that maintain market integrity and foster fair practices in disclosures.
For more, watch the accompanying video
(Edited by : Shweta Mungre)
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