Investors flock to India, deal value up an astounding 270%

mergermarket Forecasts Korea and Russia to Start Entering India

mergermarket, the independent Mergers and Acquisitions (M&A) intelligence service, released its India M&A Q1 2011 round-up. The data reveals a significant increase (270%) in deal value at USD18.3 billion compared to the same quarter last year. Statistics show that 35 out of the 57 transactions announced in the first quarter of 2011 were inbound deals (over 61%), compared to 27.1% for China and 14.3% for Japan, cementing the fact that India is an attractive investment destination to global investors.

Of the top five deals announced in terms of value, all were cross border, four were inbound and one was outbound. Even more significant is the fact that the total worth of inbound Indian deals (USD16.9 billion) reaches unprecedented figures, according to mergermarket data.

“Inbound M&A drove deals in Q1 2011 with India proving itself an attractive investment destination as it lured buyers in the energy, insurance and IT space. Despite the ongoing wave of corporate scandal and political corruption, India will continue to entice suitors on the back of strong fundamentals such as its growing population,” said Anjali Naik, Deputy Editor at mergermarket Asia Pacific.

Morgan Stanley tops the financial advisor league table by value, having advised on USD12.9 billion worth of deals, and Yes Bank came out on top in terms of value, participating in five deals this quarter. The latter represented a giant step up for the India-based lender, having qualified for 36th place last year.

Naik added that, “Buyers from typical markets such as the US, Europe and Japan could be joined by those from Korea and Russia and deals across borders – consumer, financial services, energy, industrial, engineering and chemicals – will continue. Overseas activity in energy, consumer and IT are also expected to grow.”

AZB & Partners continue to lead the legal adviser league tables both by value and deal count, having worked on eleven deals totaling USD9.7bn in Q1 2011.