Dealmakers Eye Poll Boost for $30 Billion M&As in 2014

NEW DELHI: The most awaited event in India, the Lok Sabha elections 2014 would bring in many possibilities for the Indian business. Everything remains on the Election results and if only it results in a stable government at the centre. The Indian mergers and acquisitions market will probably see increased momentum post elections. If there is clarity on Central government formation, there will be rise in inbound deals, which have been pushed back for many months now in view of the elections.

The deal street in India remained moderate during the first two months of the year with only 170 deals worth $4.2 billion as cross-border activity remained tepid, as per Grant Thornton data.

There is a strong sense in the market that the situation would improve post general elections provided the new government's economic policies encourage foreign direct investment (FDI) and make doing business in India easier. Sanjeev Krishnan, Leader-PE & Transaction Services-PwC India said if there is a stable government (BJP or any other), economic reforms would be back on the Government's agenda. Then India would be looked at much more positively by both strategic and PE investors. "In terms of numbers, at the minimum, I expect overall deal values in India to exceed $30 billion this year and Private Equity investments to exceed $12.5 billion in 2014-15."

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