IBBI to hold roadshow in Singapore this week

KR Srivats New Delhi | Updated on June 02, 2019 Published on June 02, 2019


To showcase opportunities in stressed assets

Encouraged by the good response from foreign investors to its awareness-building efforts on the Indian stressed assets market, insolvency regulator IBBI, in association with FICCI, will hold a roadshow in Singapore this week.

The roadshow — to be held on June 6-7 — follows the one held in Hong Kong in April this year; in New York and Toronto in December last year and London in September last year, official sources said.

In the recently concluded roadshow in Hong Kong, there was strong interest on India and as many as 13 firms/investors participated in meetings. “Before the meeting, they had done research on our bankruptcy regime and tried to seek clarifications. They (foreign investors) are certainly keeping track of what’s happening in India,” sources added.

Many foreign investors look to associate with “somebody” while putting in bids for the Indian stressed assets. This is because they don’t have the capacity to manage the firm, but give the funding to that “somebody”, who bids or they together make a joint bid.

There is no taxation or exchange related issue faced by foreign investors looking to bid for Indian stressed assets as their investments come under the foreign direct investment (FDI) rules.

In India, the huge potential for resolution of stressed assets through the Insolvency and Bankruptcy Code (IBC) has been attracting interest from domestic and global investors.

Within a short span of time, about 2,000 companies, some of whom have very large stressed assets, have been admitted into the corporate insolvency resolution process. About 600 of them have completed the process, either yielding resolution plans or ending up in liquidation.

It is reckoned that greater participation of investors in stressed assets will make the resolution process more competitive and ensure sustainable turnaround of stressed assets. The IBC seeks to unlock the true underlying value of stressed assets and ensure their sustainable turnaround.

Besides, a half-day conference to share the emerging investment opportunities in stressed assets, the roadshow will include meetings with focussed groups of potential investors and professional firms, sources in Insolvency and Bankruptcy Board of India (IBBI) said.

Published on June 02, 2019
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