News: India not overvalued, says KPMG
(TV18 22/03/2006) Mumbai - 2005 was a good year for mergers and acquisitions and this trend is likely to continue. With private equity houses flush with funds and corporates increasingly focussing on consolidation, India will be a sought after destination.
Oliver Tant of KPMG says, "The Indian economy is increasingly moving to take center stage in world economic matters and M&A activity in India has been 50% higher in 2005. I see that level increasing in the next 12 months".
In 2005, India recorded 343 mergers and acquisitions worth USD 18.2 billlion. Of this, USD 16.2 billion was through acquisitions, and the balance via private equity investment. The first two months of 2006, have seen M&A deals worth USD 3.5 billion and 32 private equity deals worth over USD 400 million. And this will only increase as private equity investors don't think the Indian market is overvalued.
"I get the sense that the Indian market will be an increased area of focus going forward. I don't think most private equity think the market is overvalued. I think they still have an enormous degree of interest because they see opportunity," says Tant.
Internationally, energy, natural resources and particularly infrastructure in BRICs economies are likely to see global money flowing in. In India, it is the fast growing service sector- particularly financial services, which will see the most activity. There will be a demand for people, who can provide transaction services, commercial market assessment and benchmarking, post integration.
Oliver Tant of KPMG says, "The Indian economy is increasingly moving to take center stage in world economic matters and M&A activity in India has been 50% higher in 2005. I see that level increasing in the next 12 months".
In 2005, India recorded 343 mergers and acquisitions worth USD 18.2 billlion. Of this, USD 16.2 billion was through acquisitions, and the balance via private equity investment. The first two months of 2006, have seen M&A deals worth USD 3.5 billion and 32 private equity deals worth over USD 400 million. And this will only increase as private equity investors don't think the Indian market is overvalued.
"I get the sense that the Indian market will be an increased area of focus going forward. I don't think most private equity think the market is overvalued. I think they still have an enormous degree of interest because they see opportunity," says Tant.
Internationally, energy, natural resources and particularly infrastructure in BRICs economies are likely to see global money flowing in. In India, it is the fast growing service sector- particularly financial services, which will see the most activity. There will be a demand for people, who can provide transaction services, commercial market assessment and benchmarking, post integration.
posted by InCar Group Press Room at 22:27
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