INSUBCONTINENT EXCLUSIVE:
By Andy MukherjeeInterest rates could surge, exchange rates may collapse, the sun might stop shining brightly.
Every conceivable danger an
investor needs to be aware of in an initial public offering is discussed in the August prospectus of Sterling and Wilson Solar, among the
has bungled its cash-flow forecasts, triggering a $200-billion-plus bad loan problem
The stress in the banking system has filtered into the balance sheets of shadow financiers who provide the lifeblood of financing to the
Their own funding under strain, these lenders have started mistrusting borrowers that not long ago were ranked among the bluest of
investors must have thought, as they wrote their IPO subscription checks
Pallonji Mistry, the 90-year-old patriarch of the group, now run by son Shapoor, is worth more than $20 billion, according to Bloomberg data
The privately held construction unit garners $1.75 billion in annual operating income, according to a rating agency estimate
amount, citing "significant and rapid deterioration in the credit markets." Shares in Sterling and Wilson Solar, a profitable business with
a global order book, tanked
But as the fight rolled on, Tata Group amended its charter and became a private limited firm
flexibility.
Then came the sudden collapse in September 2018 of highly rated infrastructure financier IL-FS Group
assets by rolling over short-term loans
That it has gone so badly may affect the next attempt to slim down
A possible sale of Eureka Forbes, a water purifier business, could unravel if investors fear getting shortchanged again
If Eureka Forbes does seek outside money, bankers must highlight that risk, rather than speculate about a future in which the sun stops
shining or water runs out
The present is dystopian enough.
(This column does not necessarily reflect the opinion of economictimes.com, Bloomberg LP and its owners)
