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The M&A activity in the Indian legal market has seen an upsurge this quarter, as compared to the first quarter of last year.
According to a study done by MergerMarket, Indian deals were valued at $17.9 billion this quarter, almost twice as much as the 2016 Q1 value of $9.2 billion. Moreover, India’s M&A market share in the Asia Pacific (excluding Japan) region is the highest it has been in four years, at 13.2%.
The Telecom sector, more specifically, the Vodafone-IDEA merger, played a big role in achieving this number. Another significant deal was Kohlberg Kravis Roberts & Co’s (KKR) US$ 948m investment in Bharti Infratel Limited for a of 10.3% stake.
The Energy, Mining and Utilities sector was the second biggest M&A sector, generating $1.5 billion. This was helped by Oil and Natural Gas Corporation Limited’s $995 million for 80% stake of KG-OSN-2001/03 from Gujarat State Petroleum Corporation Limited.
The Renewable Energy sector accounted for $419 million this quarter. The government’s eagerness to back sustainable energy has attracted a fair amount of investment.
However, the value generated by inbound M&A deals was 28.2% lesser than that of last year’s first quarter. The change in the United States government’s policies may have something to do with this. The total investment from US during Q1 2017 was down to 6 deals worth $407 million, a pullback of more than one-third from Q1 2016’s 9 deals worth $653 million.
The domestic activity has increased by 181% since last quarter, perhaps as a sign of the Make in India movement. The Industrials & Chemicals sector in particular, has attracted the interest of overseas investors.
During this quarter, the third highest ever Private Equity buyout was recorded, with $2 billion across 19 deals.
As reported earlier, thanks largely to the Vodafone-IDEA merger, AZB & Partners and Shardul Amarchand Mangaldas topped the M&A league tables.