Citi anticipates that M&A in India would grow significantly this year, with funding flowing from all around the world

Citi anticipates that M&A in India would grow significantly this year, with funding flowing from all around the world

Citi anticipates that M&A in India would grow significantly this year, with funding flowing from all around the world

In an interview with Bloomberg News in Mumbai, Rahul Saraf, head of Citi's investment banking in India, said that investments would include anything from collaborations to outright acquisitions to greenfield projects.

According to the senior executive of Citigroup Inc. in India, merger and acquisition activity is expected to rise this year as a variety of firms draw funding from sovereign wealth funds, the Middle East, and other sources.

In an interview with Bloomberg News in Mumbai, Rahul Saraf, head of Citi's investment banking in India, said that investments would include anything from collaborations to outright acquisitions to greenfield projects. According to him, there will probably be more mergers and acquisitions in the fields of manufacturing, insurance, information technology, and industry, along with some consolidation among shadow banks.

As financial sponsors, pension funds, as well as sovereign wealth funds from the US, Canada, and Singapore seek to acquire controlling holdings in Indian infrastructure businesses, real estate, and green energy to propel the nation's economic development, the number of deals in these sectors is increasing. The previous eight years have seen annual increases in the benchmark Sensex, which has contributed to the bullishness of the stock market.

Saraf said, "India is entering a different class." "We will prosper regardless of China's performance. We will keep expanding and drawing in investment."

Saraf believes that if private equity, sovereign, and pension funds that are currently in India have a deeper understanding of the country's circumstances, there may be an aggressive second wave of purchase.

Among them, Temasek Holdings Pte, a Singaporean company, said in an interview in July that it intends to hire more people and spend up to $10 billion over the course of three years in an attempt to position the nation as a major economic engine. I stated. According to a Thursday story by Bloomberg News, Bain Capital plans to grow its staff and spend $7 billion in India over the course of the next three to five years.

"We're seeing medium-sized companies mushrooming in each and every part of the country, selling for $500 million, $800 million — some of them that I haven't heard of in my life," Saraf said. "There is enough and plenty for everyone because there are so many companies, businesses, and opportunities in the tail."

The Middle East corridor seems to be active as well; according to a November Bloomberg story, the UAE is contemplating spending as much as $50 billion in India. Sovereign wealth funds like ADQ, Mubadala Investment Company, and Abu Dhabi Investment Authority are a few possible investments.

Saraf said, "Middle Eastern funds will look to India to buy digital, industrial, and infrastructure assets." "What would more money will come towards India than before."

After obtaining a 12% stake from the India transactions announced last year, Saraf claimed that Citi should get a sizable portion of the fee pool, calling it "great" for "a bank in a 25-bank market."