There are dramatic changes in market valuations due to adverse macro factors and this has a huge bearing on deals, mergers and acquisitions, and investments. CNBC-TV18’s Nisha Poddar spoke to Pramod Kumar, MD & Head — Investment Banking at Barclays Bank India; Cyril Shroff, Managing Partner at Cyril Amarchand Mangaldas; and Rahul Bhasin, Managing Partner at Baring Private Equity Partners, to find out from the deal makers about the winds of change and the new trends developing.

Shroff said, “As we come out of the pandemic, we are seeing record levels of deal activity. I think there are many themes. The interesting thing is that there are deals happening both in what I would call the old economy and the new economy. Ticket sizes are large, there is a lot of internal restructuring as well taking place where holding subsidiary companies are collapsing or, their internal demergers. So we are seeing tremendous change in pieces moving around on the domestic side. Even foreign investment, I think is certainly picking up and there is high level of strategic interest in India.”

Bhasin said, “If you look the entire investment ecosystem here in India, you will find that there is plenty of growth opportunity, and that is very broad. It is there in the whole economy, then in the financial sector, it is there in a lot of the disruptive part of the economy.”

Kumar said, “I don’t think Deal Street will come to a grinding halt, but it will be fair to say that given the inflationary pressures that we are seeing and rise in interest rate and also pulling out of liquidity by central banks all over the world, the deal activity will slow down, there is no doubt about that.”

For full interview, watch accompanying video