Equity markets in India have shown immense resilience despite the weak global macro data and has opened a window of opportunity for many equity deals on the bourses. Private equity-led block deals in particular have been the trend in recent times.

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However, what does it mean for the broader equity market deals and are these sustainable? To discuss this, Nisha Poddar spoke to Vivek Gupta, Partner and Head, M&A and PE tax, KPMG India and Salil Pitale, Jt. MD & Co-CEO, Axis Capital on the show ‘Big Deal’.

Pitale said, “The deal street is coming off, with 7-8 months of very tough periods, wherein we would have seen that there has been a lot of FII capital flow out of the country. It's reversed in the last month or so. The fact that now the foreign money and good, longer, only quality money coming in, and domestics holding fort, retail, HNI looking stronger, means that the deal activity, at least right now is definitely there. It has to be carefully calibrated. It's not that every deal goes through.”

He added that there is a fair amount of action on the ground. "We as bankers are engaged with a lot of players right now, to see which of them hit the markets. So we are quite enthused, we think this is a market window, which is opened up, they would be sent some deal opportunities, which will still go ahead,” he said.

Gupta said he believes the scope of the equity market window will be more calibrated, investors would be more careful. "The kinds of assets that will be able to access the primary markets, at least they will need to show a higher threshold than we were seeing in the last two years. I am optimistic, though cautiously so," Gupta said.

Watch accompanying video for the entire interview

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First Published:Sept 15, 2022 5:36 PM IST