The contraction in M&A activity in India contrasts sharply with the upbeat global picture, much of it led by a reviving US economy.
Post-elections, the pace is expected to be greater for inbound deals, which have been largely pushed back for many months now for want of better clarity on the policy stance of new government, experts said.
From a longer term perspective an improvement in economic environment is necessary for a rise in inbound deals.
According to the Grant Thornton International Business Report, a quarterly survey of more than 3,000 businesses in 44 countries, India is one of the top 10 countries that plan to increase hirings.
The data was drawn from interviews with 3,500 senior executives across industry sectors and was conducted between November and December 2013.
While 83 per cent of respondents do not expect major changes in the corporate taxation rates, they expect increase on the limits of tax savings investments especially linked to housing loan and principal repayments, the survey says.
Grant Thornton's international business report claims India Inc to be most optimistic about economy.
Corporate India's deal activity in the period between January till March this year was better than last year.
According to the International Business Report by global consultancy firm Grant Thornton International, Vietnam tops the employment growth index 2008 with a 14 per cent rise in employment by privately held businesses, followed by India and China at 12 per cent each. With double digit growth, Vietnam, India, mainland China and Armenia (11 per cent) top the employment growth table.
Amid domestic firms' growing appetite for merger and acquisitions and a robust economic expansion, India has surprisingly lost its place as the world's second largest home to 'super growth' companies to a relatively unknown Armenia.
Financial creditors shall submit their claims with proof by electronic means only, resolution professional Ashish Chhawchharia of Grant Thornton said in a public notice.
Increasing migration to cities and urbanisation along with interest from buyers to invest in real estate market, will continue to be the prime demand drivers, according to assurance, tax and advisory firm Grant Thornton.
India Inc's deal making saw a sharp decline in 2009 with just $24 billion worth of mergers and acquisitions and private equity deals taking place, but 2010 is likely to be a year of "opportunity," according to a report by a consultancy firm.
In July, 43 M&A deals were announced with a total announced value of $583.95 million. Out of the 43 deals 17 were domestic, where in both acquirer and target being Indian and 26 were cross-border deals. In the private equity deal segment similar trend was witnessed. The total number of PE deals during the first seven months of 2008 stands at 215, with an announced value of $7.74 billion as against 224 deals amounting to $9.52 billion during the corresponding period in 2007.
About 40 per cent of respondents felt fraud had gone up in India, while 67 per cent said the new Act would improve governance.
Corporate India's shopping spree continued unabated in the second month of this year, as deals worth over $1.3 billion were announced, a five-fold jump from the year-ago period, a report by global consultancy firm Grant Thornton said.
A Grant Thornton's International Business Report says 40% businesses worldwide have no women senior managers and less than 22% of top positions are filled by women.
Following the SGM in Ahmedabad, BCCI secretary Jay Shah said the World Cup schedule is expected to be announced during the WTC Final.
This pertains to certain irregularities in loan disbursements towards the development of two Slum Rehabilitation Authority projects undertaken by the company in the past.
According to data compiled by global consultancy firm Grant Thornton, the volume of M&A deals by Indian companies in countries like Brazil, Scotland, Netherlands and Canada is greater than that in the UK. The value of the nine deals in the UK clinched by Indian firms so far this year stands at just $58.50 million, while India Inc acquired four companies in Canada for a total of $166.70 million, one deal in Scotland for $80 million and another in Brazil for over $33 million.
The decision by the Reserve Bank of India to introduce a unified regulatory framework on connected lending for all the regulated entities (RE) is expected to reduce the influence of business conglomerates in the Indian lending space, said bankers and experts. "Connected lending pertains to lending to related parties within the same business group. "While the RBI might appear more agreeable to allowing business conglomerates to own banking licenses, it deems it crucial to bolster regulations that would prevent conglomerate-owned banks from gaming the system," said Shivaji Thapliyal, head of research and lead analyst, YES Securities.
The value of mergers and acquisitions that India Inc snapped up in the first half of the year surged over seven times to a staggering $38 billion or over Rs 1.8 trillion, led by big ticket deals in the telecom and pharma sectors.
A total of 62 M&A deals valued at $3.37 billion were announced in August, against 59 deals worth about $0.94 billion in July, according to data compiled by Grant Thornton.
There were 312 deals in 2008 with a total announced value of $10.59 billion compared with 405 deals with an announced value of $19.03 billion in the year 2007, according to Grant Thornton's latest annual issue. Though there has been a decline in PE deals but still India Inc braved the downtrend and managed to attract decent number of such deals.
Globally, 69 per cent businesses plan to finance their growth through retained earnings, followed by bank finance at 59 per cent.
The overall physical presence of life insurance companies in Tier-II and Tier-III cities increased in FY23 compared to a year ago period on account of the higher impetus given to financial inclusion by the government and insurance regulator, as well as recovery from the Covid-19 pandemic, according to the latest data released by the Insurance Regulatory and Development Authority of India (Irdai). It is the first time that there has been growth in the number of offices since the financial year 2019-20.
Indian businesses strongly support greater shareholder involvement in setting CEO compensation and would rather opt for a more transparent machinery.
A quick look at the winners of the 82nd Annual Golden Globe awards.
The findings of the Grant Thornton International Business Report come ahead of the ceremony tomorrow of the 2012 Olympic Games in London.
Household budget may make a larger hole in the pockets of Indian consumers in the coming months, as an estimated 41 per cent of food and beverages businesses are looking to hike their prices over the next one year, a survey has said.
In MArch PE investment continued to show an uptrend.
As corporate India prepares to put its house in order, the transition raises concerns
Share prices of Indian companies listed on LSE continue to outperform both the AIM All-Share and the FTSE 100, according to India Watch, a quarterly review due to be released by business and financial adviser Grant Thornton. AIM is the LSE's international market for smaller growing companies.
According to global consultancy firm Grant Thornton, 57 per cent of privately held businesses in 14 of the world's leading emerging markets indicated that they were optimistic about the prospects of their country's economy in the year ahead, while just 2 per cent in mature economies believed so.
Markets regulator Sebi has empanelled as many as 16 entities -- including BDO India, Ernst & Young and Deloitte Touche Tohmatsu India -- for conducting forensic audits of financial statements of listed companies as part of efforts to curb frauds. The other empanelled entities are -- Chaturvedi & Co, Chokshi & Chokshi LLP, Grant Thornton Bharat LLP, Haribhakti & Co. LLP, KPMG Assurance And Consulting Services LLP, Mukund M Chitale & Co and Protiviti India Member Pvt Ltd, according to a public notice. In addition, Rajvanshi & Associates, Ravi Rajan & Co LLP, SKVM & Company, Suresh K Jha & Co, T R Chadha & Co LLP and V Singhi & Associates have been selected to conduct the forensic audits, it added.
The number of deals were only 31 in August this year, but the value was just a notch higher at $4.63 billion than in September this year, international accounting and business advisory firm Grant Thornton said in its monthly report. During July-September period of the current year, Indian company's had done more acquisitions valued at $9.2 billion than in the same period in 2007 at $5.3 billion.
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