'As long as there is govt stability, PEs will invest'

However, just to look at a snapshot of what happened in April 2015 as compared to April 2014, April 2015 saw a total deal value of about USD 3.2 billion across about 150 deals. In the M&A space the deal volumes went up by about 21 percent but the deal values went down slightly.

As far as cross border is concerned, the volumes have remained flat but the deal values have gone down significantly.

On the other side, private equity (PE) has seen some good activity with about USD 2 billion in terms of deal values across 90 deals. This is a significant surge from April 2014 where deal volumes have gone up 70 percent.

The month also saw a couple of QIPs that were valued at about USD 145 million and about five IPOs contributing USD 118 million which demonstrates the return of public confidence and is an important barometer for growth.

Q: Can you break up sectorally how the action was in terms of IPO and in terms of pure M&A merger and acquisition activity in April?

A: On IPO or the QIP front there wasn’t really much activity in terms of deal volumes. As far as M&A is concerned, since last few months pharma, IT and ITeS dominated the sector spread in M&A contributing more than 65 percent in deal values. We saw the return of a key sector which was manufacturing in the M&A space which contributed about 19 percent or more in the deal values.

As far as private equity space is concerned it had a similar sector spread but financial services together with manufacturing contributed over 25 percent in deal values.

Q: One highlight is that manufacturing has come back but infra and power still needs capital and we haven’t seen any major deals coming in. What is your sense in terms of the outlook and the type of conversation is happening judging by the numbers in April, how does it look like and of course private equity interest for the month in terms of these specific risk averse sectors, has it picked up?

A: Power and infrastructure are key sectors. We need to see some hardcore government investment and participation there and with the government’s announcement of Rs 1,000 crore power plants in the country there is a thrust on that investment. Maybe a quarter or so away but we will soon see private investment also coming into these sector as the confidence in the government’s support both financial and otherwise returns on the ground.

Going forward, markets have been choppy mainly because of the FII profit booking. That in turn has been because there have been delayed reform on the ground as well as the listed company results have been below market estimates. The government will need to keep pushing things on the ground to demonstrate data points which come about with growth and potential but at the same time all the macro level indicators are positive. There are certain key reforms that are in the process of being implemented. So, hopefully with all these things coming we are in for some exciting times.

As far as private equity is concerned as long as there is momentum, as long as there is government stability, as long are there are reforms on the play, private equities will keep on investing.