At a time where realty prices have stabilised (read as dropped) considerably in the recent months, there is no denying that this 
has led to positive sentiments in the market about ‘stability’ factor in the sector. Moreover considering a longer time frame, the prices are highly profitable as Susil Dungarwal, Analyst, Real Estate sector asserts, “In the last few years, the land prices have seen an unprecedented raise, which has invited various overaseas and domestic PE firms to venture into such deals...” This being said, the PE giants are however not ‘action sans caution’ with only 2 deals recording more than $100 million in transaction value during March-April, as compared to 4 during the corresponding period last year. “We can see more deals in the small and mid-sized segments, but the PE players are on a watch right now,” adds Pankaj. Even as a disappointed Anubhav Gupta, Analyst, Kiemeng Securities explains reasons for fall in interests in PE deals as, “The slowdown in the economy, the stock market crashing & fall in valuations of the company are the reason why companies are not preferring PE deals currently.”
Then there were two other sectors which earned the ‘docile’ tag during the period discussed earlier. One being the ‘Banking’ sector whose conribution to M&A value dropped from 41% to 7%, and the other being Shipping & Ports, where it fell from 24% to 0%!!!
However over last year, there has been a rise in interest of the Indian nationalised banks in financing M&As. Last year, SBI topped the charts in terms of loan syndication income. However, their limitation was exposed by Gupta as he asserts, “The Indian banks can only finance the small and mid-sized deals but they are still not in a position to finance the multi-billion dollar deals.” However, this limitation will also change with time.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
has led to positive sentiments in the market about ‘stability’ factor in the sector. Moreover considering a longer time frame, the prices are highly profitable as Susil Dungarwal, Analyst, Real Estate sector asserts, “In the last few years, the land prices have seen an unprecedented raise, which has invited various overaseas and domestic PE firms to venture into such deals...” This being said, the PE giants are however not ‘action sans caution’ with only 2 deals recording more than $100 million in transaction value during March-April, as compared to 4 during the corresponding period last year. “We can see more deals in the small and mid-sized segments, but the PE players are on a watch right now,” adds Pankaj. Even as a disappointed Anubhav Gupta, Analyst, Kiemeng Securities explains reasons for fall in interests in PE deals as, “The slowdown in the economy, the stock market crashing & fall in valuations of the company are the reason why companies are not preferring PE deals currently.”Then there were two other sectors which earned the ‘docile’ tag during the period discussed earlier. One being the ‘Banking’ sector whose conribution to M&A value dropped from 41% to 7%, and the other being Shipping & Ports, where it fell from 24% to 0%!!!
However over last year, there has been a rise in interest of the Indian nationalised banks in financing M&As. Last year, SBI topped the charts in terms of loan syndication income. However, their limitation was exposed by Gupta as he asserts, “The Indian banks can only finance the small and mid-sized deals but they are still not in a position to finance the multi-billion dollar deals.” However, this limitation will also change with time.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
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