M&A deals set to surge as founders face acute cash squeeze: Axis Capital

The financing squeeze has already taken a toll on the country's economic expansion, which in turn erodes borrowers' capability to repay further

Deal volumes in India are set to surge as embattled founders sell businesses to tide over a cash squeeze, according to Axis Capital Ltd., the investment banking unit of one of India’s largest private-sector lenders.

“As the funding situation erodes, founders are selling businesses to deleverage, or are raising equity to gain an edge over the competitors,” Chirag Negandhi, co-chief executive officer of Axis Capital, said in a recent interview at his office in Mumbai. “On the equity capital market side, most banks and non-bank lenders will have to keep tapping the market as the well-rated ones are finding more opportunities