India Inc’s merger and acquisition activity is expected to continue to gather pace and reach $46.5 billion in 2017, says a report. According to the Global Transactions Forecast issued by Baker McKenzie, India M&A is expected to reach $46.5 billion by way of 944 deals in 2017, boosted by Rosneft's $13 billion takeover of Essar Oil.
“M&A activity is expected to continue to gather pace on the back of Modi Government's continued efforts in removing regulatory hurdles and simplifying laws to further attract foreign investment, until it reaches its cyclical peak of $52.8 billion in 2019,” the report said. Pending the results of the 2019 national elections, there is potential for more ambitious economic reforms.
“The forecast for 2020 is therefore not set in stone and deal trends could move in either direction,” the report added. Meanwhile, Indian IPO market is set to reach the record- breaking value of $6.8 billion this year.
“The Indian IPO market continues to flourish as retail and institutional investors look for productive avenues to invest in a market with a shrinking interest rate, low bond yields, capped gold investments and real estate investments under scrutiny,” it added.