/ -- Sharik Currimbhoy led Goldstein, Roth & Co. (GSR) has made plans to deploy Rs. 10,000 crores ($1.4billion) into the distressed equity and debt markets in India. The company, earlier knows as Element Capital prior to the merger, advised in marquee transactions like Xander Inc's purchase of the PayPal and eBay campus from Appaswamy Real Estate- the largest pre-leased commercial transaction in India that year.
Goldstein, Roth & Co. has relationships with various international investors and is focused on bridge financing for promoters wanting to sell assets and needing the proceeds advanced to them; buying NPA loans from banks, funding one-time settlements with banks for promoters and refinancing loan against shares. The firm is sector agnostic but its current attention is on the infrastructure and real estate markets, because the loans to these sectors are comparatively larger in value than others.
Along with the above, the company also has a keen interest in the massive bad loan books of public sector undertaking banks, owing to potential opportunities in bridging the cultural gap between PSU banks and foreign investors, by facilitating quick transactions. Goldstein, Roth & Co. is also in the process of raising a domestic distressed asset co-investment fund of Rs. 720cr and is in talks with various private banks to tap their HNI networks for this initiative.
Commenting on the opportunities in the Indian distressed assets market, Sharik Currimbhoy, Managing Director of Goldstein, Roth and Co. said,"We are in a place in the credit cycle where the credit window has been closed for an extended period. This provides a unique opportunity to us as a liquidity provider, to access good projects with good governance and inappropriate capital structures to capitalize on. With banks wanting to rid themselves of bad loans and clean house, we have a window of opportunity to make the most of the haircuts that the banks take and bring projects that weren't previously feasible back to health. Being a quick and nimble liquidity provider in an illiquid environment puts us in an enviable position."
Mr. Currimbhoy is the grandson and scion of Shahnaz Husain who built one of India's most successful cosmetic brands. He also came into prominence after pledging $12.12m to his alma mater, Columbia University, at 12:12:12pm on December 12, 2012 and making a bid for the Phenoix Mill's owner Mumbai Shangri-La Hotel (Now the St. Regis) for $160m.
About Goldstein, Roth & Co.
Goldstein, Roth & Co. is an investment bank focused on deploying international capital in India. Through its acquisition of Element Capital India Pvt. Ltd, the company provides equity and debt funding from international sources of capital to Indian companies.
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