Deal Street eyes busier new year after Rs 2 tn M&As in 2012
"India Inc is on the prowl again on the international markets and we believe that 2013 will see stronger outbound deal activity and continued activity in all other segments," Grant Thornton Partner, India Leadership Team Harish H V said.
"In 2013, Indian Inc, lead by conglomerates like Tatas, Mahindras, Hindujas, Aditya Birla will continue to seek overseas acquisitions while domestic demand will be propelled by India's customer-driven economy, especially in sectors such as energy, consumer, TMT and FIG," a deal-tracking firm merger market's Asia Pacific Deputy Editor Anjali Piramal said.
The recent governmet reforms in FDI in retail, aviation and broadcasting as well as the positive policies around review of Tax amendments (deferral of GAAR etc) is clearly paving the way to restore investor confidence and bring back deal momentum.
Explaining the decline in deal momentum in 2012, Avendus Capital Executive Director Preet Mohan Singh said, "With paucity of equity capital and high cost debt, fewer Indian corporate ventured overseas to buy businesses.
"Moreover the business plans of companies operating in the developed markets were themselves shaky making it riskier for Indian corporate to do overseas acquisitions," Singh said.
Experts are of the opinion that the creation of the positive business and deal making sentiment need to continue in 2013 as well which would bring International Investors back to the India story, which still is one of the fastest growing economies globally.
"In the past few months, Indian markets have moved up with a few large issuances coming to market. While
Be the first to comment.