India Inc saves Rs 6,500 cr in M&A
Indian firms concluded 70 deals, spending $14 bn and saved $1.66 bn because of over 10% rupee appreciation, AEP study said. Achieving financial well-being
By PTI |
NEW DELHI: India Inc, which has been on an acquisition spree of late, is estimated to have saved a whopping Rs 6,500 crore in buying out overseas firms in the last six months as the rupee strengthened against the dollar, industry body Assocham said in a study.
Indian firms concluded 70 merger and acquisition deals between April and September, spending $14 billion and would have saved as much as Rs 6,500 crore ($1.66 billion) because of over 10 per cent rupee appreciation against the greenback, an Assocham Eco Pulse (AEP) study said.
"While homegrown IT companies are struggling to cope with the rupee pressure, the currency appreciation has given an advantage in terms of prospects for inorganic growth worldwide," it said.
The IT sector, which dominated the overseas M&A activity in the second quarter with deals worth 1.56 billion dollars, would have saved Rs 795 crore in first half of this fiscal.
In tandem with the continuous decline in dollar value, the US remained the most favourite hunting ground for Indian companies in both the first as well as second quarter.
While overall overseas buyouts of India Inc fell 64 per cent in the second quarter, valuation of deals with US firms remained the same at $2.9 billion for both quarters.
On the other hand, buyouts by Indian companies in Europe witnessed a sharp decline of 88 per cent in the second quarter as compared to the first quarter this fiscal. The Indian currency has risen about four per cent against the euro since March this year.
Indian firms concluded 70 merger and acquisition deals between April and September, spending $14 billion and would have saved as much as Rs 6,500 crore ($1.66 billion) because of over 10 per cent rupee appreciation against the greenback, an Assocham Eco Pulse (AEP) study said.
"While homegrown IT companies are struggling to cope with the rupee pressure, the currency appreciation has given an advantage in terms of prospects for inorganic growth worldwide," it said.
The IT sector, which dominated the overseas M&A activity in the second quarter with deals worth 1.56 billion dollars, would have saved Rs 795 crore in first half of this fiscal.
In tandem with the continuous decline in dollar value, the US remained the most favourite hunting ground for Indian companies in both the first as well as second quarter.
While overall overseas buyouts of India Inc fell 64 per cent in the second quarter, valuation of deals with US firms remained the same at $2.9 billion for both quarters.
ADVERTISEMENT
On the other hand, buyouts by Indian companies in Europe witnessed a sharp decline of 88 per cent in the second quarter as compared to the first quarter this fiscal. The Indian currency has risen about four per cent against the euro since March this year.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
