India's M&A landscape to see positive trends, says EY

The value of M&As involving Indian companies, climbed to $ 22.6 billion in last fiscal and the deal-making landscape is expected to positive trends in the coming months, says consultancy EY.

A stable government as well as the new companies law, that provides for a more transparent environment for carrying out deals, are also anticipated to positively impact merger and acquisition activities, EY said in a report.

According to the report, Indian M&A market registered an aggregate disclosed deal value of $ 22.6 billion in FY 14. The amount is 12% higher than $ 20.1 billion registered in the previous fiscal.

"The number of M&A transactions involving Indian companies was relatively muted in FY 14, which stood at 674, down by 20% against 843 deals seen in FY 13," it said.

There were as many as 293 cross-border transactions with an aggregate disclosed deal value of $ 17.8 billion.

"India's deal landscape is expected to be positively influenced by a stable government, boosting confidence among domestic as well as global participants, who are now pinning hopes on the government's focus to improve infrastructure and revive economic growth.

"This will act a major driver for the country's M&A activity in the coming year," the report said.

Further, the new Companies Act provides for a smoother and more transparent environment for conducting M&A deals.

Noting that last fiscal year was an encouraging year for the global business environment, EY's Amit Khandelwal said a similar sentiment was witnessed across the Indian M&A market.

"The country continues to be a major attraction for global players, as evinced by their continuing interest in the country's growth story.

"We remain optimistic about the M&A outlook as it continues to stabilise over the next year," Khandelwal, who is National Director and Partner, Transaction Advisory Services, at EY said.