Banks will be careful while making big-ticket acquisitions as they are weighed down by bad loans and other regulatory issues, says Raja Lahiri, Partner of Grant Thornton.
According to the assurance, tax and advisory firm Grant Thornton, PE investments witnessed a significant improvement both in terms of value (47 percent) as well as volume (37 percent) in July-September quarter.
Raja Lahiri, partner, Grant Thornton, says the market has seen inbound deals as well as strong domestic deals in the past 9 months.
Sector wise, among mergers and acquisitions, Raja Lahiri believes hospitality tops the chart as there were two big deals including Aman Resorts buying Silverlink Holdings and Thomas Cook buying Sterling Holidays in February.
Overall the domestic merger and acquisition (M&A) activity in January has been tepid except Bharti Airtel‘s acquisition of Loop Mobile today.
In terms of number of deals, overall M&As have come down, but excluding internal restructuring there has been growth in M&As.
Indian companies signed as many as 360 private equity deals totaling USD 8.9 billion in the January-October period of this year, registering an increase of 33 percent over the corresponding period a year ago.
Excluding internal mergers and restructuring deals, the M&A deal value so far this year increased by 32% compared to the same period a year ago, according to global assurance, tax and advisory firm, Grant Thornton.
Going forward Raja Lahiri of Grant Thornton does not see an upswing in the deal momentum. However, larger funds will continue to put bets on Indian growth story, he adds
Grant Thornton's Raja Lahiri elaborates on their report on Indian mergers and acquisitions market. Inbound activity took a beating on the back of the economic slowdown, he says.
According to Grant Thornton's report, the total value of deals made in August this year increased by 247 percent, compared to August 2012. Raja Lahiri believes IT sector is likely to see more large deals on the back of rupee volatility.
According to Raja Lahiri, overall deal momentum in July is showing signs of slowdown in terms of volumes but there are some large deals that got struck this month.
The first quarter of this year saw tepid activity on Deal Street. However, activity managed to pick up in the second quarter. One key deal that stood out during the first six months of this year was the USD 2.5 billion Apollo Tyres-Cooper transaction, says Raja Lahiri, partner, Grant Thornton.
The rupee weakening is a great time for some of the larger players looking at deals in India, says Raja Lahiri, partner - transaction advisory services, Grant Thornton.
Raja Lahiri, partner - transaction advisory services at Grant Thornton discussed the monthly state of the m&a in the country.
Raja Lahiri, partner - Transaction Advisory Services, Grant Thornton, says that this year the M&A activity has increased in value terms. As far as outbound is concerned, people are looking at Europe. But the overall M&A picture and private equity (PE) deals are down.
Despite a slow month in terms of mergers and acquisition (M&A) activity, Raja Lahiri, partner, Grant Thornton is not losing his optimistic streak. Lahiri is bullish on seeing activity in the days to come.
In an interview to CNBC-TV18, Raja Lahiri, partner, Grant Thornton India says that despite the slow start to the Deal Street in January, he is hopeful of M&A being clocked in the days to come.
The market has seen a significant momentum this month especially on the Year on Year basis. The market has rallied about four percent in the last month and FII inflows too have been good.
India saw a total of 90 mergers and acquisitions in the month of October. Raja Lahiri, Partner, Transaction Advisory Svc, Grant Thornton India, Bangalore believes October was a good month for deal activity. “We saw deal value of around USD 3 billion, divided into M&A of USD 2.4 billion and private equity of USD 0.6 billion,†he says.
The third quarter of the year has turned out to be a weak quarter as far as the number and size of M&A deals are concerned.
We has seen an uptick in M&A deal volumes in the first half, but valuations are less compared to corresponding periods of 2011 and 2010.
Raja Lahiri, partner, transaction advisory services, Grant Thornton India, spoke to CNBC-TV18 about the findings of the monthly report on the M&A deals in April
In an interview to CNBC-TV18, Raja Lahiri, partner - Transaction Advisory, Grant Thornton says, Vodafone tax issue is a cause of concern as far as larger future transactions are concerned.