Warburg Pincus Case Study

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American global private equity firm Warburg Pincus, with offices in the United States, Europe, Brazil, China and India. Since 1966 it has been a private equity investor. With approximately $35 billion in assets under management they also invests in a range of sectors including consumer, industrial and services, energy, financial services, health care, technology, media and telecommunication and real estate. With more than 125 companies diversified by stage, sector and geography Warburg Pincus is a growth investor. They had raised 13 private equity funds which have invested more than $45 billion in over 675 companies in more than 35 countries. Avaya, Bharti Tele-Ventures, Harbour Networks, NeuStar, PayScale and Telcordia are some of the companies…show more content…
Kishore Biyani to sell FCH out of all the businesses that Future Group had was basically due to:- • The hugest loan existed by FCH of approximately INR 46.35 billion, so the best decision was to remove FCH from the consolidated Balance Sheet of the Future Group. • Future Group had a number of non-core businesses, out of which FCH stood out as one of the prime investments. Thus this was considered as an exit that was best for the Future Group. • It was understood that the deleveraging of the debt was basically for the strengthening of the Balance Sheet of PRIL. This was so that PRIL could form a strategic alliance with the foreign retailers. Benefits of Warburg Pincus in Acquiring FCH The best option for Warburg Pincus was to acquire a NBFC like FCH instead of setting up its own NBFC in India. Obvious as it is, it is better to acquire an existing NBFC rather than setting up a new NBFC. It has its own advantages but they are not limited to 1. No requirement of obtaining a fresh certificate of registration from the Reserve Bank 2. There will be a huge save in time in the term of setting up the new NBFC as the registration time is usually about 6-12…show more content…
Gains earned on the transfer of shares and other listed securities held for a period of 12 months or less are termed as short-term capital gains and those held for more than 12 months are termed as long-term capital gains. However, since the Sale Shares were transferred off the floor of stock exchange, the Sellers would be taxed at the rate of 10% for long-term gains, and at the rate of 30% in case of short-term gains, depending on the individual tax position of the Sellers. Long term capital gains arising from transfer of such shares shall be subject to tax at the rate of 10%. Short term capital gains arising thereof shall be subject to tax at the rate of 30% (excluding currently applicable surcharge and education
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