Shyam Maheshwari at the Mint Stressed Assets Investment Summit discusses the risks and rewards associated with investing in stressed assets and what they are making of the opportunity. Shyam Maheshwari talks about two things he wishes to change in the IBC. Challenges are opportunities for him. Firstly, one has to be in the game. Our fund is a long duration fund with no leverage. The second aspect is that doing business is not easy, explains Shyam. Things that he would like to change in IBC would be the bias for strategic investors over financial investors. It’s very clear how the committee of creditors think today. Asking Rs500 crore for an initial deposit is not possible. One has to think that time is valuable and money is valuable. And he thinks this would happen over some time. He is cognizant that every asset is not for him. It’s difficult to assess the liabilities
Shyam Maheshwari is optimistic because the process in front of his eyes has changed positively. The whole part of foreign portfolio investments (FPI) to invest in debt instruments is good. This has created a level playing field for foreign and domestic funds and much more is required to solve the problem of the mammoth size that we face. Many things have ramifications when the company goes into debt. Salaries are not paid; the income tax department is after your life and this cannot be underestimated. The process is improving, creditor rights are recognized. The attitude is changing and this NCLT process is a level playing field in itself.
Shyam Maheshwari also tells that one has to be very transparent in the process. The continuity and the ability of the process is the key. The timeline is good. Fairness is very important and this has to be proven in India because the outside perception about India is that it takes a long time to complete the whole process despite the right law. Speed, fairness and a good transparent process have to come in.
It’s a market of patience according to Mr Shyam. Locally you have to have people with experience who can work through. So, Shyam Maheshwari thinks the lack of experience set and cost of doing business, right infrastructure is some of the constraints. As a fund, we have to evaluate these things. India, no doubt, is a great place to invest in as a foreign investor.
From his point of view, we have an organization that provides credit and can also do equity. As financial investors, we have the capability of building the business and exits in this space to take care of themselves. One should run the company the way it should be run; therefore, business excellence of the companies that we are involved in is the key.