Deals
Forced Insolvency Taking India Deals to $80 Billion, Moelis Says
- Moelis CEO expects M&A volumes of $70 billion to $80 billion
- Distressed assets, local consolidation in focus, Girotra says
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Overseas fund managers and companies are tracking India’s efforts to force its biggest defaulters into insolvency proceedings as interest in buying distressed assets grows, according to investment bank Moelis & Co.
A dozen companies in sectors including steel, power and construction may become buyout targets after the Reserve Bank of India ordered lenders to take them to insolvency court and set in motion a timeline for them to devise a restructuring plan or face liquidation. The “finite” process under a 2016 law means some offshore investors may have the confidence to “take a shot” and bid for good-quality assets, said Manisha Girotra, chief executive for the India operations of Moelis, the investment bank founded by Kenneth Moelis.