Investors look at several factors such as a firm’s growth story, its competitive advantage and price of equity Indian companies with solid business models and investment plans would have access to equity capital despite the current volatility in the stock markets, said Ravi Kapoor, head, banking, capital markets and advisory, Citi India.
With covid-19 severely impacting economies worldwide, most companies have found their balance sheets stretched as cash flows dried up.
Significant erosion in stock prices, as well as a risk-averse banking sector have made it difficult for companies to raise capital.
Kapoor said, however, that investors, flush with liquidity, are willing to bet on companies if they meet the right parameters. “Investors are