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 Maheshwari. Bias for strategic investors over financial investors would be one of the things Mr. Maheshwari would like to change in the IBC.
Shyam Maheshwari SSG 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 consequences when the company goes into debt. Salaries are not paid and the income tax department is after the company and this cannot be underestimated. The process is improving and the creditor rights are recognized.
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. 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 is very much required.
It’s a market of patience according to Mr. Shyam Maheshwari. Locally you have to have people with experience who can work through. Shyam Maheshwari thinks the lack of experience, cost of doing business and the right infrastructure is some of the constraints. As an investor, one has 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. 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.
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