Great Indian promoter sale: Strategic deals with foreign players on rise

According to VCC Edge data, the average deal size in the last two years has doubled to an average of $22.5 million

Faced with severe financial stress and banks no longer able to bank-roll them owing to the stiff new NPA guidelines, a growing number of Indian promoters are either diluting their stakes in their companies or simply cashing out. 

Welcome to the great Indian promoter sale. According to the Bloomberg data, last year foreign strategic buyers (companies and PE funds) put in over $23.45 billion in buying out controlling stakes in Indian companies. It was a record year for mergers and acquisitions in the country. In fact, in the last three years (2016, 2017 and 2018) they put in $52.6 billion