M&A wave to stay buoyant

It’s now confirmed. India’s appetite for global expansion is not a short-term phenomenon and the trend is expected to gather force over the next five years. According to a recent Dun & Bradstreet study, the total number of M&A deals in India in the first five months of 2007 are worth $46.8 billion (Rs 1,87,200 crore) compared to $20.3 billion (Rs 81,200 crore) in the whole of 2006.

Telecom, pharma, healthcare, energy and IT/ITeS are the primary sectors driving this trend. “Worldwide, the comparable figure was at $3.8 trillion (Rs 152 lakh crore). Leading the way were the energy & power, financial services, real estate and media & entertainment industries,” says Manoj Vaish, President & CEO, India, Dun & Bradstreet.

Emphasising the importance of evaluation, Devinjit Singh, Head (Mergers & Acquisitions, India Investment Banking), Citigroup Global Markets India, says: “M&A needs to be more market-driven and buying a stake is no longer a bottom fishing exercise.”