The value of mergers and acquisitions in India has more than quadrupled to a record 18.3 billion dollars this year, as companies seek to capitalise on the country's long-running economic boom, a leading London daily reported Thursday.
A total of 872 Indian companies merged or were taken over in the year up to November 30, compared with 565 deals worth 4.5 billion dollar in the same period in 2004, The Times reported, quoting research agency Thomson Financial.
The merger and acquisition surge forms part of a broader economic boom in India, which has seen its 30-share benchmark stock market index (Sensex) nearly triple from 3,300 in March 2003 to 8,788.81 at Wednesday's close.
The index, which hit a record 9,033.99 points Tuesday before falling back slightly after profit-taking, is likely to rise by as much as 18 per cent a year over the next few years, according to the Indian unit of the bamk Societe Generale.
Foreign companies and institutional investors are pouring into India, which recorded an annual increase of 8 per cent in its GDP in the three months to October, according to figures published Wednesday.
The investors are attracted by India's burgeoning affluent classes, which have nearly tripled from 30 million households to 81 million in the past ten years.
India, which has particular strengths in IT, outsourcing and manufacturing, also has a young, well-educated population,
many of whom speak English.
About half the country's population are under 25.
Vodafone's Rs 6,700 crore purchase of a 10 per cent stake in Bharti Tele-Ventures, India's largest mobile phone operator, in October, is the largest foreign investment this year.
The Rs 8,000 crore acquisition of Dabhol Power, the utility, by Ratnagiri Gas and Power is the largest takeover this year, according to Thomson financial.