Almost two years since its inception, India's Insolvency and Bankruptcy Code (IBC) is proving to be more than just another acronym in a series of past failures by Indian regulators to create a viable restructuring mechanism in the country. Since May 2016, some 900 companies have been referred to the National Company Law Tribunal (NCLT) and the list of companies going through the restructuring and insolvency process – starting with the notorious “dirty dozen” – continues to grow. Opportunities for investors and acquirers have also grown as quality assets at attractive valuations come to market, providing impetus to an already hot market for M&A in India.
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- M&A Market Overview: Reported trends in the market and foreign interests in the Indian M&A market since the inception of the IBC.
- Key Sectors in Distress: Steel, power, real estate and infrastructure companies are prime candidates for referral to the NCLT. Many companies in sectors such as manufacturing, textiles, consumer and metals are also over-leveraged and likely to face the chopping block.
- Outlook: 2018 and Beyond: In addition to the 900 companies referred to the NCLT, more are expected to join the list imminently, creating a robust pipeline of acquisition opportunities in the months and year ahead.
- Navigating through Opportunities and Managing Risks: The risks in these distressed assets are not much different than the risks in any other M&A transaction or investment. It is important that investors have the right strategy and approach.
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