Impact Of Foreign Acquisitions On 7 Indian Companies' Stocks

By SiliconIndia   |   Monday, 30 September 2013, 12:23 Hrs   |    1 Comments
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Bangalore: The Indian business has witnessed a surge of mergers and acquisitions in past couple of years. Indian companies were seen acquiring high-profile foreign assets, sometimes by taking huge debts to pay for the acquisition. However, things did not turn out as expected for some Indian companies and were unable to make much profit out of its acquired foreign arm due to economic crisis in 2008. Few overseas subsidiaries soon turned into liabilities for the local companies and bowed them down while some other Indian acquirers reaped huge benefits, reports Sanket Dhanorkar of The Economic Times.



Read on to know the list of Indian companies that acquired expensive foreign assets and the latter’s impact on the parent company’s stocks -



1. Suzlon Energy



German company REPower Systems’ acquisition by Indian wind energy giant Suzlon was nearly a disaster.  The acquisition took place in 2009 and was worth $1.3 billion. The continuous cash flow problems forced restructuring of the Indian company and costs nearly 10,000 crore. In 2012-13, the German subsidiary recorded a surprising 33 percent growth in revenue and is believed to contribute in shaping Suzlon’s growth in the future.



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