Slow investing climate in next two quarters: Zia Mody

Zia Mody | The corporate lawyer a founder of AZB & Partners, where she is managing partner. She has a master's degree from Harvard Business School and is qualified to pratice law in New York. (Photo: Facebook)

The slowdown in deal street is a combination of various evolving dynamics, including liquidity squeeze and market volatility. The market wonders what does the second half of the year look like for mergers and acquisitions, transactions, and fundraising.

In a recent interview with CNBC TV-18, one of India's top corporate lawyers, Zia Mody shares her views on fundraising, cement space, private equity, and more. Excerpts from the interview:

How do you see the second half of the year for mergers and acquisitions, transactions, and fundraising? 

Yes, there has been some slowdown. The large private equity (PE) boys and girls have raised a huge amount of dry powder, they have to invest it. But they will invest it more cautiously.

I see the next two quarters being a much slower investing climate compared to what it was earlier.

Do you see uncertainty and cautious approach leading to dampening of sentiment in India Inc?

We will see more projects like the HDFC-HDFC Bank merger because the RBI would like to drive this sort of process for more regulatory certainty.

Indian promoters will still be interested in strategic sales with the right asset for a decent value.

Why do you think of cement space?

It is a space that must grow if we as a country bet on infra. This sector will remain active, the smaller players will get out at a good premium. The large players want to consolidate. This is a good story for this sector.

Do you think leveraged buyouts would be definitely constrained in an interest rate hardening scenario?

It will not count too much in the way of high important strategic enemies. It will definitely impact private equity.

What about a private equity mindset?

Private equity investors are not falling out of love with India. They have made great returns on some of their previous investments.