Overview
The stock markets are at a three-year low. The US and European markets have been in a turmoil, and the global economy is feared to moving into a recession. There is a liquidity crunch so much so that even banks are borrowing at exorbitant rates. Companies are looking at cutting costs. Some have begun downsizing. The policymakers world over are on an action drive. There have been concerted moves from central banks of all major countries to cut interest rates. The governments have come up with bailouts of billions of dollars to save their financial institutions. In short, the economy has got everyone down in the dumps.
It's not. It's just that you need to respond to the changing market realities appropriately. Prime Minister Manmohan Singh has already said the government would spend on infrastructure to step up the economic growth. Remember, what Golden Quadrilateral roads project did to the Indian economy five years ago.
Reserve Bank of India has already cut cash reserve ratio and Repo rates to infuse liquidity into the market. It has taken steps to make the market attractive to the foreign institutional investors. Some of the FDI policies are under review to welcome foreign capital.
Fund raising in the current environment has gotten only tough, but not impossible. The deals may have come down, but they are indeed happening. There are funds still sitting with cash and looking for deals in this downmarket.
So it's not the time for inaction, but action. It's not the end of the road, but just a sharp turn which you need to navigate carefully.
VCCircle is organising its third investment forum in Hyderabad with the theme "Investing In A Perfect Storm", which will discuss all this and much more. The event will see more than 15 speakers sharing their views on the current environment and on the way out of the crisis.
Find out what the brightest minds in Indian private equity and business have to say about deal making in a downturn. How long will the slowdown last? Does that mean a slowdown in deals? Is enough capital available for India Inc? How do companies raise capital to roll out their products or expand their businesses so they are ready to take advantage of an upturn? What are the innovative financing and deal making models available in the current environment?
The Hyderabad forum will be attended by managing directors of leading private equity funds, venture capital investors/PE professionals/Entrepreneurs/late stage, growth capital & large companies/investment bankers & advisers/corporate professionals/policy makers/firms seeking capital.