JPMorgan M&A head sees up to $150 billion funds focused on India

Written by The Anand Market

Updated on:

India’s burgeoning economy and attractive investment opportunities have caught the eye of global investors, with approximately $2 trillion in funds poised for deployment. An estimated $100 billion to $150 billion of this capital is specifically targeted at India, according to Anu Aiyengar, the Global Head of Mergers and Acquisitions at JPMorgan Chase & Co.

Speaking at the closed-door India Investor Summit in Mumbai, Aiyengar highlighted the positive outlook for India’s investment landscape. She noted that a combination of inflows into the Indian market and successful exits by financial sponsors has set the stage for further investments in the country.

India’s rapidly growing GDP, coupled with its stability and a diverse range of technological, healthcare, and infrastructure solutions offered by numerous companies, make it an exceptionally appealing market for investors, Aiyengar emphasized.

Despite a slowdown in merger and acquisition (M&A) activity in India, with deals worth $33 billion recorded year-to-date, representing a 72% decline compared to 2022, optimism persists. Aiyengar cited the Housing Development Finance Corp.’s all-stock merger with HDFC Bank Ltd., a deal on which JPMorgan collaborated with 17 other advisers, as a highlight of the previous year’s M&A activity in India. The same enthusiasm has yet to materialize in 2023, largely due to a global decline in dealmaking.

Nevertheless, JPMorgan is maintaining a strong position in the M&A landscape, moving up from third place in 2022 to the second position globally in terms of M&A volume year-to-date, as per Bloomberg’s league tables.

Aiyengar also pointed to key investment themes, including technology, healthcare, infrastructure, and the energy transition, as driving forces behind M&A activity in India. She noted the establishment of several infrastructure-focused funds and the substantial infrastructure spending taking place in the country.

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For owners seeking exit opportunities, Aiyengar identified signs of life in the once-quiet initial public offering (IPO) market. She highlighted the potential for “dual-track dealmaking,” where asset owners explore the possibility of selling their holdings through either IPOs or M&A transactions, providing a valuable avenue for companies to realize their exit strategies.

“We’re very bullish on the propensity of companies to exit in both markets, and being able to successfully run dual tracks, comparing and contrasting valuations in the private market as well as public markets,” Aiyengar concluded, underscoring the promising future of India’s investment landscape.