PE/VC investments rise to 1.7% of GDP in 2019
Credai, the apex body of private real estate developers in the country, on Thurssday announced the ninth edition of Hyderabad Property Show from January 31 to February 2 in the city.
The three-day property show will bring together realtors, building material manufacturers, consultants, and financial institutions from across the city to exhibit the advances in the real estate sector under a single umbrella. The show is expected to have a turnout of over 50,000 visitors this year.
Speaking on the occassion, Mr P. Rama Krishna Rao, president of Credai Hyderabad, said, “The real estate sector in Hyderabad is on an upswing. The recent report of City Momentum Index released by JLL Global further reinforces the buoyancy in the realestate sector of Hyderabad.”
Pumping in $48 billion into the Indian market, private equity and venture capital (PE/VC) funds made a new high in 2019. The investments were equivalent to
1.7 per cent of the country’s GDP.
From the previous high of $37.4 billion in 2018, PE/VC funds have made an impressive growth of 28 per cent to touch a new high in 2019—$48 billion across 1037 deals, as per the IVCA-EY monthly roundup.
“2019 was third consecutive record-breaking year for PE/VC investments in India. At $48 billion, PE/VC investments equated to approximately 1.7 per cent of the GDP, which is similar to the Chinese benchmark in 2018. Private capital investments in India have grown at a CAGR of almost 44 per cent over the past three years and this asset class now appears to have come of age in India,” said Vivek Soni, partner and national leader-private equity services, EY.
Among the largest deals
New Delhi, Jan. 23: The telecom department has decided to not take any coercive action against the telecom operators who did not pay AGR dues by the deadline that ended on Thursday, official sources said.
Bharti Airtel and Vodafone have told the Department of Telecom that they would not pay their total adjusted gross revenue dues of Rs 88,624 crore by January 23 and would comply with the outcome of modification petition filed before the Supreme Court, which is listed for hearing next week, the source said.
But Reliance Jio paid Rs 195 crore to the DoT to clear AGR dues accounted till January 31, 2020.
Official sources said the Director of Licensing Finance Policy (LFP) Wing has issued directions that concerned departments should not take any coercive action against the licensees in case they fail to comply with the apex court order, until further orders.
The direction was issued following approval of of the year were Brookfield’s buyouts of Reliance Jio’s tower arm for $3.7 billion and Reliance Industries’ EastWest pipeline for $1.9 billion. Brookfield-Reliance Jio’s tower deal was also the largest ever in the Indian PE/VC industry.
“The fact that the PE investment tally of 2019 outdid the previous high of 2018 despite uncertainties on the economic, political and global trade fronts is very encouraging,” said Arun Natarajan, founder of Venture Intelligence.
Infrastructure was the top sector in terms of funding. The sector received $14.5 billion— more than 200 per cent growth over $4.5 billion in
Member, (Finance), who heads all departments within the DoT that deal in matters related to revenue.
Oil minister Dharmendra Pradhan, meanwhile, said the DoT seeking nearly Rs 3 lakh crore in dues from non-telecom PSUs, such as GAIL India, Oil India Ltd and PowerGrid, was a result of "communication gap" as these firms do not owe any such amount. The DoT has sought Rs 1.72 lakh crore from GAIL, Rs 48,000 crore from OIL, Rs 40,000 crore from PowerGrid and raised similar demands from other PSUs.
“We are in discussion with the telecom ministry. We had given them our reply,” Pradhan said.
2018. Infrastructure accounted for 30 per cent of the total deal value. PE/VC investment activity in the financial services sector has recorded healthy growth. At $9.1 billion, PE/VC investments in the financial services sector were up by 20 per cent over the previous year.
Calendar year 2019 also saw heightened activity in buyouts. For the first time, buyouts emerged as the primary PE/VC deal type, overtaking growth capital deals and accounting for 34 per cent of all PE/VC investments by value.
While investments grew, exits saw a declining trend. The past year recorded 156 PE/VC exits worth $11.5 billion—a decline of 58 per cent from
$27 billion in 2018. PE/VC exits in 2018 included the country’s largest ever PE/VC exit through the
$16 billion WalmartFlipkart deal. If this deal is excluded, PE/VC exits in
2019 have increased by 4 per cent.
“Going forward...we expect investment growth to slow down to about 15-20 per cent in 2020,” said Soni.
New Delhi, Jan. 23: Mondelez India Foods Private Limited, manufacturer of Cadbury chocolates, has paid over Rs 400 crore to settle a tax dispute involving an alleged phantom unit in India, officials said on Thursday.
The Directorate General of Central Excise Intelligence (DGCEI) had in 2011 initiated a probe against the company for allegedly misusing "areabased exemption" for a new unit in Baddi in Himachal Pradesh to avail of excise duty benefits, even before it came into existence, they said.
The DGCEI is now known as the Directorate General of Goods and Services Tax Intelligence (DGGSTI).
The "area-based exemption" for new units of firms in Himachal Pradesh provides full exemption from excise duties for production of specific goods for 10 years, if the unit was established before March
2010.
The officials said a demand of about Rs 580 crore was raised against Mondelez, erstwhile Cadbury India Limited, following the probe.
The firm has paid Rs
439 crore under the Centre's 'Sabka Vishwas' Legacy Dispute Resolution Scheme to settle the amount of tax and penalty, they said.
When contacted, a Mondelez India spokesperson said: "We continue to believe that the decision to claim an excise tax benefit in respect of our plant in Baddi was valid."
However, the matter relates back to 2010, and it could take several more years to be resolved through the legal process, the spokesperson said in a statement.
"The Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, introduced by the government in 2019, was an opportunity to settle a potentially protracted litigation.
"Like other tax payers, Mondelez India chose to take advantage of the amnesty, and we settled several legacy disputes including the Baddi matter," it said.
During probe, DGCEI found that Mondelez had claimed excise duty exemption for its new unit in Sandoli village for a period before it came into existence.