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Grant Thornton India on India M&A deals

July 7, 2011
October 8, 2006
Shopping abroad

Then: Tucked away among the details of accounting firm Grant Thornton's report on deal activity in India in the first half of 2006 - India witnessed deals worth $14.3 billion, or Rs 67,210 crore, of which $10.8 billion, or Rs 50,760 crore, were outright mergers or acquisitions and the rest, private equity investments - is the story of India Inc.'s growing appetite for foreign companies. In number terms, that appetite translates into 85 deals, or $4 billion, or Rs 18,800 crore (resulting in an average deal size of around $47 million, or Rs 220.9 crore). Apart from the fact that acquisitions have been made by Indian companies from diverse sectors, the average deal size is up. In 2005, Indian firms spent $4.3 billion, or Rs 19,350 crore then) on acquiring 136 foreign companies, an average deal size of $32 million, or Rs 150.4 crore. If recent deals are any indication, deal sizes are set to increase further. "Today, for Indian companies, it is about dreaming big globally," says Jitender Balakrishnan, Deputy MD, IDBI Bank. Companies in sectors such as pharmaceuticals, telecom, energy, IT and ITeS are at the centre of this outbound M&A activity.

Now: In 2010, India witnessed a total of 971 deals valued at $62.2 billion, with M&A accounting for $49.8 billion and 622 deals, according to data from Grant Thornton India.

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