2007: M&As toast of season for India Inc

India's corporate honchos spent a considerable time and energy this year at deal tables and executed over thousand transactions involving sale or purchase of equity stakes in their companies.

On an average, every single day of 2007 saw about three deals being announced. This included a total of 1,047 merger and acquisitions as well as private equity deals for a total value of $68.32 billion (about Rs 2,75,000 crore).

Besides, some deals such as the sale of Ford Motors' Jaguar and Land Rover brands involving approximately $2 billion, for which home-grown Tata and Mahindra groups have emerged as front-runners, may be concluded soon.

But, the appetite for such deals is expected to continue and possibly grow in 2008.

"This space would witness a lot of action in the coming year. The momentum will continue with the number of deals next year most likely to surpass this year's figure," consulting firm Grant Thornton's M&A advisory head Pankaj Karna told PTI.

The only possible dampener could be the Competition Bill, which seeks to examine all large-size deals, Grant Thornton Partner (Corporate Advisory Services) Harish H V said. 

Interestingly, shopping for companies abroad emerged as the toast of the season with the value of foreign acquisitions by Indian companies exceeding that of inbound acquisitions as well as overall FDI coming into the country during 2007.

India Inc spent $32 billion for its overseas M&A deals, against $15 billion bill footed by foreign firms for acquisitions in India and an estimated $16 billion of foreign direct investment.