The USD 150+ bn stressed asset market in India presents a large opportunity for investors with multiple routes to participate, through the Indian Insolvency and Bankruptcy Code as well as with out-of-court alternatives. With Indian lenders facing capital constraints and increased scrutiny by the Reserve Bank of India (“RBI”) on asset quality, there is a strong need for capital inflows from outside India. The entry of global capital in this space can strengthen the process based on best practices observed in more developed stressed asset markets. USD 7 bn has been raised so far across seven major investment firms.

The market is still evolving with a rapidly changing legal and policy landscape, including regular IBC amendments, the RBI’s June 7 circular, new jurisprudence, etc., that aim to address key concerns faced by different stakeholders, including investors. As a global thought leader in the turnaround and restructuring of stressed assets, Alvarez & Marsal has always been at the forefront in assisting stressed borrowers, creditors and policy makers. The objective of this report is to provide a view on the stressed asset market from an investor’s perspective. This report is the outcome of multiple discussions with various stressed asset investors and extensive secondary research. The report outlines the size of stressed asset market potential in India, sector attractiveness, key investor concerns and the way forward in order to make this a win-win situation for all stakeholders.

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