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JPMorgan sees up to $150B inflows to India

India's fast-rising GDP among the attributes that make it so attractive.

Investors have about $2 trillion of funds available to invest, and about $100 billion to $150 billion of that is focused on India, according to Anu Aiyengar, JPMorgan Chase & Co.’s global head of mergers and acquisitions.

“As we look at a combination of the inflows into the Indian market, as well as the exits financial sponsors have successfully been able to do, that bodes well for more money getting deployed in India,” Aiyengar said in an interview with Bloomberg Television’s Rishaad Salamat during the bank’s closed-door India Investor Summit in Mumbai.

The New York-based banker pointed to India’s fast-rising GDP among the attributes that make it so attractive.

“It is hard to find a market like this which has the growth characteristics and stability as well as tech, health care and infra solutions that are being provided by a multitude of companies,” Aiyengar added.

There were $33 billion worth of M&A deals in India in the year to date, down nearly 72% compared to the same period in 2022. Housing Development Finance Corp.’s all-stock merger with HDFC Bank Ltd., which JPMorgan worked alongside 17 other advisers, helped drive volume in the country to a record last year. It’s a stark contrast with 2023, where a global dealmaking slump has gripped the industry.

JPMorgan is ranked second globally for M&A volume in the year to date, moving up from third place in 2022, according to Bloomberg’s league tables.

Along with the dominant investment themes around the world of technology and health care, Aiyengar cited infrastructure and the energy transition as particularly strong drivers of India M&A.

“You have multiple infrastructure-only funds that are now getting set up, and the infrastructure spend in India is substantial,” she said.

In terms of opportunities for owners to exit, Aiyengar sees green shoots emerging in the recently quiet initial public offering market. So-called dual track dealmaking, where asset owners consider selling their holdings either via IPOs or an M&A deal, will be on the table.

“We’re very bullish on the propensity of companies to exit in both markets, and being able to successfully run dual tracks, comparing and contrasting valuations in the private market as well as public markets,” she said.