In this episode of the State of Economy Podcast, businessline’s Janaki Krishnan speaks with Bhavesh Shah , Managing Director, and Head - Investment Banking of Equirus Group. In this episode , Shah breaks down the complexities of the economic landscape with real-world insights and thought-provoking discussions. 

The episode starts with discussing pressing economic issues—from private equity’s role in India’s growth, to the shifting dynamics of mergers and acquisitions in a fluctuating market. Shah talks about how large firms and smaller startups navigate challenges in securing funding, the impact of global events on business, and what trends are likely to define the coming years.  

Shah addresses the challenges faced by both larger and smaller private equity firms. He discusses how large firms like Blackstone are successfully raising funds, while smaller entities are facing difficulties due to a competitive market environment. Despite these challenges, Shah points out that younger professionals in the industry are still optimistic and entrepreneurial, pushing forward with fresh perspectives. 

On the topic of valuations, Shah suggests that the growth of public markets may be spilling over into the private market, leading to inflated valuations that could make some deals harder to close. This situation is contributing to a more cautious approach to private equity investments, as firms reassess the potential returns and risks of certain deals. 

Looking ahead, Shah predicts that sectors such as consumer goods, pharmaceuticals, and healthcare will continue to attract private equity interest, particularly as India’s middle class grows and demands more products and services. However, he also cautions that competition in these sectors will intensify, and firms will need to strategically navigate these challenges to achieve long-term success. 

The episode also touches on the outlook for M&A deals, where he expresses optimism that activity will pick up in the coming year, despite the current slow pace. He believes that strategic planning and long-term vision will be key for firms involved in M&A transactions, and that new opportunities will arise in the near future. 

 (Host: Janaki KrishnanProducers : Rowan Barnett , Prethicshaa Gurumoorthy )

About the State of the Economy podcast

India’s economy has been hailed as a bright spot amid the general gloom that seems to have enveloped the rest of the world. But several sectors continue to stutter even as others seem set to fire on all cylinders.

Published on December 18, 2024