|LegalEra Private Equity Forum 2012 - Staying Resilient Through Change|
LegalEra Private Equity Forum 2012
The April gathering at the two-day conference held on April 26th and 27th, 2012 at Four Seasons Hotel in Mumbai, discussed about the trends and opportunities in private equity market as well as legal aspects revolving around the PE investments in the form of debates and analysis. The mission of this forum was to bring together some of India Inc’s finest minds, open new channels of dialogue and generates valuable ideas about trends & opportunities that accessible in the Private Equity market in a changing economy.
LegalEra Private Equity Forum 2012 organised by LegalEra, India’s first Legal & Corporate Awareness Magazine published by Legal Media Group focuses mainly on significant laws and legal issues concerning Private Equity investments in India.
On the theme of Staying Resilient through Change the LegalEra Private Equity Forum 2012 started with the welcome remarks of Ms Aakriti Raizada, Founder Editor & CEO LegalEra, Legal Media Group, that aims to set a new benchmark by bringing together some of India’s brightest minds in the industry to discuss key issues on the role of private equity against the backdrop of an ever changing and ever growing India economy.
With the keynote speech of Satya Bansal, CEO for Barclays Wealth on Global economic outlook including overview on investments in the next 12 months and its impact on India. He talked invariably about the investments in the global market and the factors that are affecting it. Mr. Bansal made the start of the forum more interesting by debating on have and have not’s of PE and India as a growth market in positive sense. Sharing his views about various economies about the BRIC countries he invoke a very positive aspect of wealth management.
LegalEra Private Equity Forum focused on the resilience of the Indian economy against the ever-changing economic scenario. The conference was moving smoothly discussing the role of Private Equity with respect to the high level of IPOs, acquisition and restructuring activities and future of capital markets in India.
Day one (26th April 2012) included five sessions in which first session involved discussions about political and regulatory, global and economic conditions affecting PE in India with top corporate people like Sandeep Aneja, as Moderator and Sanjeet Malik, Bala Deshpande, H. Jayesh and Mrinal Chandran as a Panel Members. The second session was based on best Private Equity deals with speaker Sandip Bhagat and Panel Members Ajay Vaidya, Roopchand Betala, Arun Natarajan and Dhanpal Jhaveri.
Session third focused on foreign private equity firms -it’s assess in India and emerging markets for entry strategies and sectors with Alok Gupta as a Speaker and Bharat Bakhshi, Muneesh Chawla, SM Sundaram and Pranay Bhatia as its Panel Members. Fourth Session was all about sourcing and securing deals in competitive market and panelist included Rakesh Sony as a Moderator and Rajesh Dalal, Abhinav Sinha, Raj Shroff and Raghuveer Mendu as the Panel Members.
The most amazing and interactive was fifth session which was an exclusive interview with Rakesh Jhunjhunwala, Founder of Rare Enterprises moderated by Anish Trivedi.
Mr Jhunjhunwala, the most well known equity investor of India who is an easy going, friendly and RISK loving person interacted about investing opportunities available in India and managing risk is the only way to enjoy business and gain profit. “I have decided to trim my portfolio. Suppose, I have investments in 20 companies, I want to retain only seven," he quoted at the Legal Era Private Equity Forum, 2012.
He also said his mind has tilting more towards investing in listed companies, as exiting PE investments is a ‘big headache’ and Investing in the unlisted space was quite time-consuming. Jhunjhunwala said it’s a good time to invest in companies, as the market is depressed and it’s difficult for promoters to raise capital from listing. The famed investor said he regrets having missed a number of good investing opportunities. “It will be written on my grave that Jhunjhunwala, who was said to be a smart investor, never bought TCS, Wipro or Infosys in his life," he quipped. “I think the law and what the government intends to do are right but the methodology is not clear. Second, I don’t know how far the government is correct in imposing the laws retrospectively," Mr. Jhunjhunwala said.
The 52-year-old investor said, “I disinvested one deal in April and I am working on two-three deals, which I will liquidate soon." Jhunjhunwala, however, did not specific whether he referred to his portfolio of both listed and unlisted companies. He also said he wants to limit his risk appetite and wants to do deals only in the range of Rs 25-100 crore.
The forum led the viable platform for all the audience by making it informative and also providing networking opportunities with leading organisations, decision-makers from legal and corporate world, and PE firms over lunch and tea breaks. Thus day one ended with closing remarks and cocktail reception.
On the Second day (27th April 2012) of Legal Era-Private Equity Forum, delegates and speakers passionately attended the conference making it interactive and informative by sharing ideas. The second day sessions were actually the continuity of the pervious day sessions.
The sixth sessions was discussions about regulations and outlook of Investments perspective in 2012 which highlighted on exist strategies, southeast Asian PE investment regulatory frameworks, steps to venture an investment in India etc. This session became interactive with Siddharath Shah as a Speaker and Sandeep Aneja, Rajeev Uberoi, Nishith Desai and Tushar as its Panel Members. This session had amazing speakers and had a impactful discussion on GAAR. Quoting in this session Nishith Desai, Founder & Managing Director of India’s one of the best Tax law Firm Corruption in India has reached such heights that we have become arrogant about it. It also mentioned that GAAR if comes into effect will impact on foreign investments in India and the foreign investor will not look at India as an investment destination.
Seventh session was about family offices and wealth manager’s perspectives on private and direct equity investing. The topics discussed in the session were attitude to risk, investment allocation and value fluctuations – perspective from family offices, deal related fees, interests and commitments and more. This session became debatable while interacting with Jayanta Banerjee as a Speaker and Richa Karpe, Sunil Shah, Pranav Khanna, Sammer Mehta and Narayan Shroff as its Panel Members.
After a Tea break followed an enlightening session by Alpana Parida of DY Works which was presentation on importance of valuation and role of branding and was elaborated by case studies of Dabur, ABD, Samana, Kansai Nerolac etc.
Followed by a case study presentation on the legal issues and challenges faced by PE and the Indian laws perspective by B. Gopalkrishnan of Axis Bank, who discussed the put & call options, regulatory scenario of India with a case study on Shubkam Case.
The last session of the day was session ninth emphasized on Anti Corruption, Compliance, Fraud and Risk Management Involved while investing and the panel discussion on the topics like anti corruption legislation in India, government initiatives, effective compliance programme and fraud and risk management involved while investing with Girish Gokhale as the Moderator and Jasmeet Wadehra, Sumit Makhija and Hemant Kumar as its panel members. The entire panel gave highly structured presentations on different topics and examples of various scams like 2G, Siemens, Satyam, Adarsh and Bofors. The sessions became highly debatable and interactive with audience on the floor.
The LegalEra Private Equity Forum was concluded with closing remarks. The entire two days conference gave a learning and invaluable experience to all the participants.