M&A revival: Kotak Mahindra Bank plans to hire 20 investment bankers | Tech US News


Kotak Mahindra Bank Ltd’s investment banking arm is planning to expand its operations by hiring around 20 bankers, betting on a recovery in deal activity next year.

According to S Ramesh, managing director and chief executive officer of Kotak Investment Banking, the addition will mean a 25% increase in its existing 80-strong investment banking unit. He said the firm is looking to fill positions from analyst to director level across sectors including financial services, health care and technology, where overseas companies such as Amazon.com Inc. and Walmart Inc. Can find investment opportunities. Electric vehicles and renewable energy may also be of interest.

“We expect global strategic companies to start firing the engine to strengthen their businesses in India across diversified sectors,” Ramesh said in an interview in Mumbai. “We expect 2023 M&A volumes to surpass 2022.”

India has seen $168 billion in pending and completed deals so far this year, on pace for an annual record, according to data compiled by Bloomberg. The increase was dominated by HDFC Bank Ltd’s $58 billion all-stock purchase of Housing Development Finance Corporation. Gautam Adani, India’s richest man and the world’s third-richest, led the country’s $10 billion acquisition of Holcim AG’s local cement business. The second big deal of the year.

Another factor that could boost deal flow in India is financial investors willing to write big checks for acquisitions, Ramesh said. New generations leading family-run businesses are also more willing to sell, he added, while conglomerates look to position themselves for future growth.

On the initial public offering front, Kotak Investment Banking expects to raise as much as 750 billion rupees ($9 billion) in 2023. Companies have raised about $5.8 billion through maiden share sales in India in the year to date, led by Life. Insurance Corp of India offered $2.7 billion, according to data compiled by Bloomberg.

“I expect 2023 to be a very good year for IPOs, due to rising interest rates, inflation and the local pool of money coming into Indian offerings,” Ramesh said. “India has the ability to stand up amid global headwinds.”

Kotak Investment Banking offers services including equity and debt capital market issuance, M&A advisory and private equity advisory, according to its website. The firm advised KKR & Co on a $1.1 billion block trade of shares in Max Healthcare Institute Ltd, India’s largest hospital chain, through an affiliate. Ever in the history of India


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