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India ranks 2nd in IPOs, 4th in M&As
BG Shirsat in Mumbai
 
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September 11, 2007 07:40 IST

India ranks second in capital market inflows and fourth in merger and acquisition deals in Asia Pacific (including Japan), as deals worth $65.033 billion were reported in the first eight months of calendar 2007.

The data compiled by Thomson Financial revealed that 121 Indian firms mobilised $23.96 billion, while there were 697 M&A deals worth $41.069 billion.

The strong inflows saw India's share in capital markets in Asia Pacific region increase to 17.3 per cent from 9.7 per cent in calendar 2006.

With Indian firms making overseas acquisitions and placing shares to private equities, its shares in merger and acquisition deals have increased to 10.3 per cent from 7.9 per cent in calendar 2006.

The Indian firms have heightened activities in equity market and mergers and acquisitions mart in the last four years.

The equity markets snapshot shows that 56 firms mobilised 9.27 billion in 2004, 14.39 billion in 2005, $16.1 billion in 2006 and 23.96 billion in the first eight months of the current calendar year.

On the M&A platform, the total cross boarder deals registered $4.3 billion in 2004, $12.58 billion in 2005, $34.72 billion in 2006 and $54.48 billion in the eight months of 2007.

The acquisition value of the Indian firms by overseas buyers showed a quantum jump from $3.16 billion in 2004, $8.39 billion in 2005, $10.38 billion in 2006 to $34.50 billion in 2007. The overseas acquisitions by India firms slowed down to 19.98 billion in 2007 compared with $24.32 billion in 2006.

The data compiled by Thomson Financial show that the flow of funds in capital markets and mergers and acquisitions deals in the Asia Pacific region aggregated to $535.64 billion in 2007, up by 51.6 per cent compared with $353.33 billion during the same time last year.

China ranked first in equity capital markets with mobilization of $47.78 billion, while Australia ranks first in mergers and acquisitions with deals size of 101.96 billion.

The data from Thomson Financial show that Vietnam (+686.5 per cent), Malaysia (+590.6 per cent), Indonesia (+371.8 per cent), Philippines (+361.2 per cent) and New Zealand (+270.8 per cent) were ahead of India (+136.8 per cent) in terms of growth in equity capital offerings. Japan (-62.6 per cent) and South Korea (-35.7 per cent) have registered a decline in fund mobilization through equity offerings.

Australia ranks number one in M&A activities with deal size of $101.96 billion, followed by Japan at $80.331 billion, China, $41.77 billion, India $41.07 billion and South Korea $32.45 billion.

China ranks at number one in the equity markets with mobilization of 47.78 billion, followed by India $23.96 billion, Hong Kong $18.22 billion, Australia 12.98 billion and South Korea $6.69 billion.

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