IFR Special Reports

IFR India 2011

India has all the right ingredients. Yet, instead of producing a delightful dish to tempt even the most sceptical of emerging markets investors, its recipe is in danger of leaving a rather bad taste.

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Stories in Special Report

For all its promises to address the perennial problems of inadequate infrastructure and bureaucratic red tape, the Indian Government is failing to convince its population that it is open for business.

Show me the money!

Growing competition between international banks is being complicated by the rise of India’s domestic firms, especially in the equity markets, where local brokers are becoming increasingly powerful. How are market participants looking to stand out?

Waiting for a boost

A lukewarm response to recent initial public offerings suggests the boom days of 2010 are long gone. So, what will help bring life back into this market?

Blight of being tight

Fee levels in the G3 bond markets have touched new lows amidst intense competition among banks to win mandates from price-sensitive Indian borrowers. This compression seems set to continue with more Indian issuers expected to tap the G3 markets going forward.

Corporate calling

Capital market reforms, especially the introduction of credit derivatives, have raised hopes that India’s rupee bond market will finally live up to its potential – but there is a long way to go.

Not so fast

Mega power projects are the mainstay of India’s domestic credit markets, but lenders are showing a new reluctance to book deals in light of mounting concentration risks.

Still strong

Bankers are confident that upcoming India M&A financings will be strongly supported, despite recent global market volatility.

Signs of life?

Foreign investors remain highly sceptical of Indian convertible bonds after a number of 2006–07 deals ran into trouble. Yet, faced with huge redemptions in the coming 12 months, Indian issuers may be forced to reconsider issuing equity-linked instruments.

It’s not just cricket

The success of the IPL has clearly put India’s cricket and the entrepreneurial spirit of its people on the world map. It is only a matter of time before most of the arguably loss-making cricket franchises take root in the capital markets with equity listings, as in Manchester United’s seeking a Hong Kong float.

Hoping for resurgence

Regulations continue to restrict the Indian securitisation market and it suffers from a lack of depth, but bankers remain optimistic, pitching it as a stable asset class and a viable investment option amid volatile markets.

Special Report

Special Report

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