Category Archives: Business

Rise of PIK Structures Masks Borrower Stress and Challenges Private Credit System, New Study Shows

July 21: A substantial liquidity shift is underway in the global private markets as private equity fund managers are increasingly turning to PIK (payment-in-kind) structures to manage cash flows, which in turn is raising challenging questions around transparency and risk management, according to new research* from Ocorian, a leading U.S. and global asset services provider.

The study of private equity fund managers in in the U.S. and across Europe, managing $3.511 trillion, found that almost nine out of 10 (86%) expect PIK prevalence within their private credit exposure to grow over the next two years. Of these, 4% say their use will increase dramatically, and 82% say it will increase slightly. The remaining 14% believe PIK prevalence will remain unchanged.

Search for flexibility in a challenging market

PIK structures allow borrowers to issue additional debt or equity to lenders rather than servicing interest obligations with immediate cash payments. While this provides breathing room for portfolio companies, it simultaneously signals underlying vulnerabilities in corporate balance sheets.

Worryingly, nine in 10 (90%) of those surveyed agree that there is a growing risk of PIK usage masking true borrower distress, with 16% of these strongly agreeing that deferring hard cash obligations makes it difficult to distinguish between proactive capital management and severe liquidity struggles.

Anatoly Sorin, UK Head of Loan Agency and Bond Trustee Services at Ocorian, said: “Our research reveals an overwhelming consensus that PIK structures are on the rise, and private equity fund managers are doing everything they can to support portfolio companies through a prolonged period of higher financing costs. However, this flexibility does come with a warning label.”

As PIK adoption grows, capability gaps emerge 

In addition to this challenge, Ocorian’s study also exposes operational and technological vulnerabilities connected to the growing adoption of PIK structures. As PIK interest compounds, it directly alters preferred return hurdles, the distribution waterfall, and the complex calculation of realised versus unrealised gains – the metric that ultimately dictates performance fees, or ‘carried interest’.

Only 17% of firms surveyed report having robust, automated systems capable of fully accounting for PIK compounding within the waterfall modelling. Just under a third (32%) admit they rely entirely on external providers, such as fund administrators, to handle the structural complexity. Just over a third (39%) acknowledge they can model PIK but require significant manual adjustment, while 10% say this remains a gap in their current capabilities. A further 2% state that PIK is not yet material enough in their current portfolio to warrant a dedicated system.

Anatoly Sorin, UK Head of Loan Agency and Bond Trustee Services at Ocorian, added: “With PIK structures becoming more prevalent, firms’ operational and technological capabilities must keep pace, either in-house or by outsourcing to expert third-party fund administrators with the skills and experience required to ensure that waterfall and carry calculations remain accurate, consistent and transparent.”

Abi Reilly, Partner, Regulatory & Compliance at Ocorian said: “As firms navigate the operational demands of PIK structures, governance and oversight need to remain front of mind. It is important that firms are able to evidence how these structures are monitored, modelled and reported on, particularly where complexity increases and third-party support is involved.”

Government Plans Simplified Export Rules to Support Small Businesses and Boost Trade

New Delhi, July 21: The government is considering easing export-related regulations to support small exporters and help them expand their presence in global markets.

The proposed changes aim to simplify compliance procedures, reduce operational challenges, and make it easier for small businesses to participate in international trade. The move is expected to benefit exporters who often face difficulties navigating complex processes and documentation requirements.

Small and medium-sized exporters play an important role in India’s economy by creating employment opportunities and contributing to the country’s export growth. The proposed reforms are aimed at providing them with a more business-friendly environment and improving their competitiveness.

Officials said the government is focusing on reducing procedural hurdles while ensuring that export systems remain transparent and efficient. Easier rules could encourage more small businesses to explore overseas markets and strengthen India’s position in global trade.

Industry representatives have welcomed steps aimed at improving ease of doing business, saying simplified processes can help smaller exporters save time, reduce costs, and focus on expanding their operations.

The proposed measures are part of the government’s broader efforts to promote exports, support entrepreneurship, and create more opportunities for businesses across sectors.

The final framework is expected to be shaped after consultations with stakeholders and relevant authorities.

Explore Finland: The Best Day Trips from Helsinki

July 21: Helsinki is more than Finland’s vibrant capital, it’s the ideal gateway to experiencing the country’s diverse landscapes, heritage and culture. For Indian travellers flying directly to Helsinki with Finnair, Finland’s efficient rail and public transport network provides seamless access to destinations beyond the capital, from medieval towns and pristine national parks to emerging cultural hubs, all within a few hours. These easy day trips offer an opportunity to experience a different side of Finland while making the most of a Helsinki itinerary. 

Porvoo: Finland’s Most Charming Medieval Town

[Credit: Finnair]

 Located just over an hour from Helsinki, Porvoo is one of Finland’s oldest towns and among its best-preserved medieval destinations. The picturesque Old Porvoo is characterised by cobbled streets, colourful wooden houses and the iconic red riverside warehouses that have become symbols of the city. Highlights include the historic Porvoo Cathedral, independent boutiques, art galleries and local cafés, where visitors can sample the traditional Runeberg Torte, one of Finland’s most celebrated pastries.

Nuuksio National Park: Escape into Finnish Nature

[Credit: Visit Finland]

 Less than 90 minutes from Helsinki, Nuuksio National Park offers visitors an introduction to Finland’s celebrated natural landscapes. Home to peaceful lakes, dense forests and well-marked hiking trails, the park provides opportunities to experience the country’s rich biodiversity and outdoor lifestyle. The Finnish Nature Centre Haltia further enriches the visit with interactive exhibitions, guided experiences and a restaurant showcasing locally inspired cuisine.

Lahti: Finland’s Emerging Cultural Hub

 [Credit: Finnair]

 Just over an hour by train from Helsinki, Lahti has established itself as one of Finland’s leading cultural destinations. The city is home to Malva – Museum of Visual Arts, housed within the historic Malski brewery complex, alongside the architecturally acclaimed Sibelius Hall, which overlooks the shores of Lake Vesijärvi. During summer, Lahti Harbour becomes a lively waterfront destination, with cafés, restaurants and outdoor terraces creating a vibrant atmosphere that reflects the city’s contemporary character.

 Discover More with Finnair

 From the medieval charm of Porvoo and the pristine landscapes of Nuuksio National Park to Lahti’s thriving cultural scene, these destinations showcase the diversity of experiences available just beyond Helsinki. With Finnair’s direct flights from Delhi to Helsinki and seamless onward rail and public transport connections, travellers can easily extend their journey and discover more of Finland beyond the capital.

Turmeric Prices Climb in Erode as Supply Concerns Push Rates Higher

July 21: Turmeric prices have witnessed a significant increase in Erode, Tamil Nadu, with rates approaching ₹20,000 per quintal as concerns over drought conditions and limited supply continue to impact the market.

Traders and farmers said reduced availability of turmeric stocks, along with uncertainty over future production, has contributed to the recent rise in prices. The supply pressure has strengthened demand for available stocks, leading to higher market rates.

Erode, one of India’s major turmeric trading centres, has been experiencing increased activity as buyers look to secure supplies amid concerns over crop availability. The price movement has drawn attention from farmers and traders across the region.

Farmers are hopeful that the rise in prices will help improve their earnings after facing challenges related to weather conditions and cultivation costs. However, market participants are closely watching the upcoming crop outlook and weather patterns to assess future price trends.

Traders said that while higher prices may benefit growers, sustained increases could also affect buyers and industries that depend on turmeric as a key raw material.

The turmeric market is expected to remain closely linked to supply conditions, rainfall patterns, and demand trends in the coming weeks as stakeholders monitor developments.

Siddha Sky Begins Possession Handover for Three Sixty Homebuyers at Wadala

Mumbai, 21 July: Siddha Group & Sejal Group have received the Occupation Certificate (OC) for Phase 1 of Siddha Sky, their flagship residential project in Wadala, Mumbai, and will begin handing over homes to customers. This project is being developed in partnership with StarOm Group.

The first phase comprises Tower 1A – named Capella, part of a larger development of five 39-storey towers. A total of 360 apartments are being handed over to homeowners following the receipt of the Occupation Certificate.

The apartments include 1, 2 and 3 BHK configurations, with a majority of buyers in this phase being end-users, reflecting steady demand from homebuyers in Central Mumbai. Wadala is emerging as a growing residential market, supported by infrastructure upgrades such as metro connectivity and improved road access, including the Eastern Freeway, and is in proximity to key business districts.

Launched in November 2021, Siddha Sky is a lifestyle-focused development with many innovative and first time in Mumbai features, like the Rooftop Skywalk connecting all five towers, Drone Delivery services, a first-of-its-kind offering in Mumbai, designed to provide residents with elevated recreational and community spaces.

“For homebuyers, possession is the real milestone. This handover marks the culmination of a long journey shaped by countless hours and hands with dedicated effort. It’s a transition from construction to community living. More than just homes, these spaces open doors to infinite possibilities.

And as residents move in, it marks the beginning of a new chapter together. This development has been envisioned to offer more than just housing, as it brings together design, connectivity and lifestyle in a rapidly evolving micro-market like Wadala. The introduction of features such as the Rooftop Skywalk, a first in Mumbai, is part of our effort to reimagine how residents engage with shared spaces in high-rise living”, said Mr Samyak Jain, Director, Siddha Group.

Siddha Sky is designed as a lifestyle-led residential development where residents will have access to a curated suite of amenities including a 22,000 sq ft residents’ club, home in the forest, sanctuary pavilion, celestial lobby, etc., along with retail conveniences within the development.

The handover of Phase 1 reflects continued momentum in project execution, with the remaining phases expected to be delivered in line with construction progress.

India’s legacy wellness brand, Cura, introduces preventive healthcare solutions for modern health needs

Precious Metals Shine as Investors Seek Safety Amid Global Uncertainty

July 21: Gold and silver prices continued their upward movement as investors turned towards precious metals amid rising concerns over geopolitical tensions in the Middle East and uncertainty in global markets.

The increase in demand reflects a cautious approach among investors who are looking for stable assets during periods of economic and political uncertainty. Gold, widely regarded as a traditional safe-haven investment, has seen renewed interest as market participants seek to protect their wealth from potential risks.

Silver prices also recorded gains, supported by strong investor interest and steady industrial demand. The metal’s growing use in sectors such as renewable energy, electronics, and manufacturing has continued to support its long-term appeal.

Market analysts said that global developments, currency movements, inflation concerns, and expectations around monetary policies are influencing precious metal prices. In times of uncertainty, investors often increase their exposure to gold and silver as these assets are considered relatively resilient during market fluctuations.

Experts believe that the future direction of precious metal prices will depend on how geopolitical situations evolve, along with key economic data and decisions by major central banks worldwide.

The latest rise in gold and silver prices highlights the continued role of precious metals as a trusted investment choice, offering stability and confidence to investors navigating an uncertain global environment.

TVS Credit registers growth of 31 percent in disbursement and 15 percent in PAT; reports PAT of Rs. 208 crores for Q1 FY2026–27

Bengaluru, 21st July: TVS Credit Services Limited, part of TVS VENU and one of India’s leading NBFCs, announced its financial results for the first quarter ended 30 June 2026. The Company registered a 31% growth in disbursements in Q1 FY27 compared to Q1 FY26. TVS Credit reported a Total Income of Rs. 1,918 crores for Q1 FY27, a growth of 13% from Q1 FY26, and a Profit after Tax of Rs. 208 crores for Q1 FY27, a growth of 15% compared to the same period last year. 

Q1 FY27 Highlights:

• AUM stood at Rs. 32,053 crores as on 30^th June 26, a 19% growth compared to 30^th June 25.
• Total Income for Q1 FY27 was Rs. 1,918 crores, a 13% growth compared to Q1 FY26.
• Profit after Tax was Rs. 208 crores for Q1 FY27, a 15% growth compared to Q1 FY26. 

In Q1 FY27, TVS Credit reported sustained growth in disbursements, supported by improved consumption demand and traction across key retail financing segments. Consumer durables financing growth was driven by higher discretionary spending and premiumisation, increased reach and penetration. The two-wheeler category witnessed strong demand, due to steady semi-urban and rural participation, and marriage season buying along with increase in electric vehicles growth. 

During the quarter, TVS Credit continued to enhance its capabilities in AI, data & analytics, and technology to drive better risk assessment, customer experience, and operational efficiency. The company further expanded its presence across semi-urban and rural India, increasing its network to nearly 62,000 touchpoints across the country. 

In Q1 FY27, the Company disbursed loans to over 14 lakh new customers, bringing its total customer base to nearly 2.6 crore. 

India’s Real Estate Market Attracts Dollar 1.9 Billion Institutional Investment in April-June Quarter

July 21: India’s real estate sector continued to attract strong investor interest, with institutional investments reaching $1.9 billion during the April-June quarter, reflecting growing confidence in the country’s property market and its long-term growth prospects.

The investment momentum highlights the strength and resilience of the sector, supported by rising demand for quality housing, commercial spaces, infrastructure development, and emerging real estate opportunities across major cities.

Industry experts believe the steady inflow of institutional capital signals increased trust in India’s real estate ecosystem. Investors are increasingly looking at the sector as a long-term growth opportunity, driven by urbanisation, expanding business activity, and the growing need for modern infrastructure.

The rise in institutional participation has also been supported by improved transparency, regulatory reforms, and a more organised real estate environment. These developments have encouraged both domestic and international investors to explore opportunities across residential, office, logistics, and other real estate segments.

The continued investment flow is expected to support the sector’s expansion while contributing to economic growth, job creation, and infrastructure development. As India’s cities continue to grow, the real estate industry remains a key driver of the country’s economic progress.

The latest investment figures underline the positive outlook for Indian real estate and demonstrate sustained investor confidence in the sector’s future potential.

Indian Equity Markets Open Flat Amid Middle East Tensions, Softer Crude Prices

July 21: Indian equity markets began Tuesday’s trading session on a subdued note, with benchmark indices opening largely flat as investors weighed persistent geopolitical tensions in the Middle East against the positive impact of declining crude oil prices. The cautious start reflected a balanced market sentiment, with participants closely tracking global developments while assessing their potential implications for economic growth, inflation, and corporate earnings.

Market activity remained range-bound during the opening hours, as buying interest in select sectors was offset by profit-booking in others. Investors largely refrained from taking aggressive positions, preferring to await greater clarity on the evolving geopolitical landscape and its possible impact on international financial markets.

The recent moderation in crude oil prices offered a measure of support to domestic equities. As one of the world’s largest importers of crude oil, India typically benefits from lower energy prices, which help reduce import costs, ease inflationary pressures, improve the current account balance, and create a more favourable environment for economic growth. Softer oil prices also provide relief to sectors that are heavily dependent on fuel and transportation costs, contributing to improved business sentiment.

Despite this positive development, concerns surrounding the Middle East continued to influence investor behaviour. Ongoing uncertainty in the region has heightened caution across global financial markets, with investors remaining attentive to any developments that could disrupt energy supplies, affect commodity prices, or increase market volatility. Such geopolitical risks often encourage investors to adopt a defensive investment strategy until greater stability emerges.

Domestic investors also remained focused on broader macroeconomic indicators, including inflation trends, corporate earnings, foreign institutional investment flows, and expectations surrounding monetary policy. These factors are expected to play a significant role in shaping market direction in the coming weeks alongside international developments.

Analysts believe that while short-term market movements may remain influenced by global events, India’s underlying economic fundamentals continue to provide resilience. Strong domestic consumption, sustained infrastructure spending, healthy corporate balance sheets, and ongoing policy reforms are expected to support long-term growth prospects.

Going forward, market participants are likely to monitor geopolitical developments, movements in global crude oil prices, and key economic data releases for further cues. Until greater certainty emerges, Indian equity markets may continue to witness cautious trading, with investors maintaining a balanced approach while navigating an evolving global environment.