News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Mergers and Acquisitions »
 India to see M&A deals worth $52 bn in 2019
 Mergers and acquisitions: India M&A deals seen at $52.1 billion in 2019
 Cash crunch to force more mergers and acquisitions in India, Axis says
 CCI Introduces "Green Channel" Clearance for Mergers & Acquisitions(M&A)
 Deals of the day-Mergers and acquisitions October 17, 2019
 Mergers and Acquisitions in India at lifetime high in 2018; Walmart-Flipkart deal largest in a decade
 Gun Jumping In Mergers And Acquisitions
 Share of carve-outs in M&A deals rises as firms hive non-core assets
 Global headwinds cause steep fall in Mergers & Acquisitions activity in August
 India witnesses M&A activity worth $310 billion between 2015-2019
 Competition Commission puts in place green channel route for M&A approvals

Indias booming stock market has a downside: Its making M&As expensive, says BNP Paribas
June, 09th 2017

India’s booming stock market has a downside -- it is making mergers and acquisitions expensive as valuations stay elevated, according to BNP Paribas SA.

India’s booming stock market has a downside — it is making mergers and acquisitions expensive as valuations stay elevated, according to BNP Paribas SA. The S&P BSE Sensex and NSE Nifty 50 gauges have posted records this year, making local shares more expensive than a benchmark of developing markets. The indexes are valued at about 23 times reported profits, versus a multiple of 15.5 for the MSCI Emerging Markets Index. “The positive market scenario in India makes it challenging for private equity and M&A transactions as valuation expectations have gone up,” said Ganeshan Murugaiyan, head of BNP Paribas’s investment banking in the country. Indian companies completed deals worth $32.5 billion since Jan. 1, compared with $83.5 billion in 2016, which was the highest in at least 12 years, data compiled by Bloomberg show. A buoyant market for initial and secondary offerings will help counter what is likely to be a slow year for M&A transactions, said Murugaiyan.

Share sales from “consumer-led stories such as financial services, consumer goods and retailing will see good demand as they are a proxy for the expanding economy,” Murugaiyan said. Companies saddled with debt in the power and infrastructure sectors will “face a challenge as investors are not comfortable” with the businesses, he said. Companies raised 276 billion rupees ($4.3 billion) via initial public offerings on the S&P BSE Sensex. in the year ended March, the highest since 2010, data from the exchange show. The bourse is betting that the start of a unified sales tax from July 1 may prompt smaller companies to sell shares to the public as they become more tax-compliant and transparent.

Domestic and foreign funds have this year poured a combined $12 billion into India’s stock market amid optimism Prime Minister Narendra Modi will deliver on his agenda to make it easier to do business in Asia’s third-largest economy. The Sensex is up 18 percent this year, the region’s best performer after South Korea’s Kospi index. “Fund flows have been good and it is more of a momentum buying than value buying in Indian equities,” Murugaiyan said.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2019 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Outsourcing Company Offshore Software Outsourcing Software Outsourcing Company India Offshore Outsourcing Company India Software BPO Software Business Process Outsourcing Software Outsourcing India Offsho

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions