Distressed M&A in India: A risk worth taking?

15 October 2018

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Mergermarket is pleased to present Distressed M&A in India: A risk worth taking?, published in association with Kroll.

Distressed M&A is becoming part of the patchwork of investment opportunities in India as the country’s Insolvency & Bankruptcy Code (IBC) sees hundreds of companies restructure or liquidate assets, creating abundant opportunities at discounted valuations. According to Mergermarket data, since 2017, these distressed deals have totalled US$14.3bn, a not so insignificant total and overall percentage of M&A in the country – and these deals are set to increase as more companies reorganize and sell off assets. 
 
In this issue, we look at key data trends and explore the distressed M&A environment, with a special feature interview with Kroll Managing Director and Head of South Asia Tarun Bhatia and Duff & Phelps Managing Director and India Country Leader Varun Gupta. 
 
Key highlights include:Key highlights include:
 
  • Sector opportunities: India’s industrial sector (specifically steel assets) have helped drive distressed M&A in the past 24 months, however, power, real estate and infrastructure companies could be prime candidates as these companies are restructured.
  • Investor groups: Foreign interest is growing, especially from international PE funds, although this has yet to translate into significant dealmaking, with most distressed deals conducted by Indian buyers or MNCs. 
  • Navigating the process and environment: Even experienced M&A practitioners must take a cautious approach to the India market. Inexperience, however, is no reason to avoid these types of deals altogether.