India emerges among the fastest growing investment banking markets: CNBC

19 September 2006

India has emerged as Asia's most active market for mergers and acquisitions this year, with deals worth $29 billion having been concluded.

Although the number of deals has fallen by 21 per cent from last year, their value has pulled global investment bankers to take a closer look at India.

M&A deals in India have grown nearly six fold in two years from $5 billion in 2004 to $29 billion this year — more than anywhere in Asia.

Indian firms have been shopping almost as much as their foreign counterparts. In 2006 they acquired foreign companies in deals worth $5.4 billion, and foreigners picked up Indian entities in deals worth $5.2 billion.

Deal values jumped from $2.4 billion to $24 billion in two years. That's another big reason why global investment bankers such as Goldman Sachs and Merrill Lynch set up shop here.

In equity-related investment, India has emerged with the second highest numbers in Asia. India accounted for deals worth $10 billion, second only to China in Asia.