Foreign Funds Spy Hidden Bounties in Indian Distressed Assets

• Main Author: Knowledge@SMU
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2007
• Subjects: Accounting; Business; Finance and Financial Management
• Online Access: https://ink.library.smu.edu.sg/ksmu/54; https://ink.library.smu.edu.sg/cgi/viewcontent.cgi?article=1053&context=ksmu
• Institution: Singapore Management University

Foreign funds are garnering a sizable presence in India's nascent market for distressed assets, which is currently estimated between $45 billion and $55 billion. India's economic boom offers pockets of opportunity for investors to buy underperforming assets such as cement and sugar plants, revive them with fresh capital or liquidate them to profit handsomely. A big driver for this growing market is the government's move to purge the financial system of sick assets accumulated over decades, but obstacles include the absence of a developed corporate debt market, limits on foreign investments and procedural bottlenecks. India Knowledge@Wharton spoke to key participants in the distressed assets market and faculty experts from Wharton, the Stern School of Business and London Business School to gain insights into the road ahead for investors.