India's share in M&A deals in Asia spurts to 15%
SBI Capital Markets in its report said Australia has the biggest share of M&A activity in Asia region and accounts for 28 per cent of the total deals.
By PTI |
MUMBAI: India's share in the total merger and acquisition deals in Asia has gone up from 6 per cent in 2005 to 15 per cent in 2006, SBI Capital Markets said on Wednesday.
The leading investment bank, in a presentation made to the media, said Australia has the biggest share of M&A activity in Asia region and accounts for 28 per cent of the total deals. While India is the second largest contributor to the M&A deals with 15 per cent.
SBI Capital Markets Managing Director and Chief Executive Officer R Sridharan said, "Indian M&A market is poised for buoyant growth on the back of better regulatory environment, robust performance of Indian corporates and overall positive micro-economic indicators."
He said the value of M&A deals in the first half of 2007 at $50 billion has already crossed the total value of deals in the whole of 2006.
He said SBI Capital now derives about 20 per cent of its revenues from M&A's against much smaller number a few years ago. Incidentally, the company has become a member of M&A International, the world's leading M&A alliance for middle sized deals. The alliance is helpful in case of cross-border deals, he said.
SBI Capital president A P Verma said the overseas acquisition by Indian companies could get a boost with the Reserve Bank raising the limit for making investment overseas from 300 per cent of net worth to 400 per cent yesterday.
A company with $15 million net worth, which was earlier allowed to invest $45 million overseas, now can invest $60 million. He said RBI is still prescribing ceiling on overseas investment to ensure companies do not over leverage while making a foray in foreign countries.
The leading investment bank, in a presentation made to the media, said Australia has the biggest share of M&A activity in Asia region and accounts for 28 per cent of the total deals. While India is the second largest contributor to the M&A deals with 15 per cent.
SBI Capital Markets Managing Director and Chief Executive Officer R Sridharan said, "Indian M&A market is poised for buoyant growth on the back of better regulatory environment, robust performance of Indian corporates and overall positive micro-economic indicators."
He said the value of M&A deals in the first half of 2007 at $50 billion has already crossed the total value of deals in the whole of 2006.
He said SBI Capital now derives about 20 per cent of its revenues from M&A's against much smaller number a few years ago. Incidentally, the company has become a member of M&A International, the world's leading M&A alliance for middle sized deals. The alliance is helpful in case of cross-border deals, he said.
SBI Capital president A P Verma said the overseas acquisition by Indian companies could get a boost with the Reserve Bank raising the limit for making investment overseas from 300 per cent of net worth to 400 per cent yesterday.
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A company with $15 million net worth, which was earlier allowed to invest $45 million overseas, now can invest $60 million. He said RBI is still prescribing ceiling on overseas investment to ensure companies do not over leverage while making a foray in foreign countries.
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