1. Home
  2. Infrastructure Urban
  3. ECONOMY & POLICY
  4. Consumer Tech, Renewables Top Themes as M&A Activity Picks Up
Consumer Tech, Renewables Top Themes as M&A Activity Picks Up
ECONOMY & POLICY

Consumer Tech, Renewables Top Themes as M&A Activity Picks Up

25 Dec 2024 2 Min Read CW Team
Consumer technology, renewable energy, and healthcare sectors are expected to dominate investment banking activities in 2025, even as a slowdown in earnings growth over the next two quarters, driven by weakening demand, may lead to corrections in equity valuations, according to Pramod Kumar, CEO of Barclays India.

The UK-based bank, which derives more than half of its revenue from investment banking in India, remains cautious about lending to non-banking financial companies (NBFCs) until the sector increases its provisions.

"The biggest risk to current valuations is likely to come in the next couple of quarters. Earnings growth could disappoint due to inflation, leading to a slowdown in demand... However, we won’t see a significant drop in markets, given the strong economic growth and large domestic inflows that are supporting them," Kumar said.

Barclays' total assets in India remained stable at Rs 53,910 crore for the fiscal year ending March 2024. However, it reduced its loan book by approximately 5% to Rs 9,026 crore from Rs 9,467 crore, while increasing its cash balances with the central bank by 68% to Rs 1,030 crore, reflecting increased risk aversion. The bank’s investments, on the other hand, grew by 13% to Rs 33,137 crore from Rs 29,425 crore in March 2023.

Kumar mentioned that Barclays reduced its exposure to NBFCs amid early signs of stress in the sector, focusing instead on larger NBFCs. He expects merger and acquisition (M&A) activity to rise in 2025, following a period of subdued deal-making.

"M&A activity was somewhat muted this year, primarily due to stretched valuations. However, with a reduction in US interest rates, the dollar bond market could become active, and we may see more inbound strategic interest into India," Kumar said.

Consumer technology, renewable energy, and healthcare sectors are expected to dominate investment banking activities in 2025, even as a slowdown in earnings growth over the next two quarters, driven by weakening demand, may lead to corrections in equity valuations, according to Pramod Kumar, CEO of Barclays India. The UK-based bank, which derives more than half of its revenue from investment banking in India, remains cautious about lending to non-banking financial companies (NBFCs) until the sector increases its provisions. The biggest risk to current valuations is likely to come in the next couple of quarters. Earnings growth could disappoint due to inflation, leading to a slowdown in demand... However, we won’t see a significant drop in markets, given the strong economic growth and large domestic inflows that are supporting them, Kumar said. Barclays' total assets in India remained stable at Rs 53,910 crore for the fiscal year ending March 2024. However, it reduced its loan book by approximately 5% to Rs 9,026 crore from Rs 9,467 crore, while increasing its cash balances with the central bank by 68% to Rs 1,030 crore, reflecting increased risk aversion. The bank’s investments, on the other hand, grew by 13% to Rs 33,137 crore from Rs 29,425 crore in March 2023. Kumar mentioned that Barclays reduced its exposure to NBFCs amid early signs of stress in the sector, focusing instead on larger NBFCs. He expects merger and acquisition (M&A) activity to rise in 2025, following a period of subdued deal-making. M&A activity was somewhat muted this year, primarily due to stretched valuations. However, with a reduction in US interest rates, the dollar bond market could become active, and we may see more inbound strategic interest into India, Kumar said.

Next Story
Infrastructure Urban
31 Jan 2025

We are shaping the next era of vertical mobility

Otis, a global leader in elevator and escalator solutions, is focusing on growth strategies for 2025. Sebi Joseph, President of Otis India, speaks with CW about sector trends and the company’s future plans.What are your key growth strategies for 2025?At the heart of our strategy for 2025 is a commitment to harness India’s growth potential, adapting to the changing landscape, and being a driving force in shaping the future of urban mobility. Our progress will be powered by:Tapping into emerging cities: India's tier 2 and 3 cities, including Jaipur, Indore, and Kochi, are driving rapid ..

Read More
Next Story
Real Estate
31 Jan 2025

Brookfield REIT Q3 NOI Rises 11% to Rs 5.03 Bn

Brookfield India Real Estate Trust reported an 11 per cent increase in adjusted net operating income (NOI) to Rs 5.03 billion for the quarter ended December 2024.In a regulatory filing, the company also declared distribution of Rs 29billion  or 4.90 per unit for the quarter ended December 31, 2024.Adjusted Net Operating Income grew by 40 per cent year-on-year during the April-December period of this fiscal to Rs 14.64 Bn from Rs 10.45 billiom in the year-ago period.Brookfield India REIT manages 10 Grade A assets across Delhi, Mumbai, Gurugram, Noida, and Kolkata.The Brookfield India REIT ..

Read More
Next Story
Infrastructure Transport
31 Jan 2025

Gurugram’s Key Corridor Set for Expansion

The National Highways Authority of India (NHAI) is set to develop a six-lane surface road and a flyover along the high-traffic stretch between Hero Honda Chowk and Umang Bhardwaj Chowk in Gurugram. The project, estimated at Rs 2.1 billion, aims to decongest one of the city's busiest corridors. The Gurugram Metropolitan Development Authority (GMDA), overseeing the project, has already funded utility relocations. Authorities are now finalizing cost estimates for shifting electricity, water, and sewage lines, with relocation work expected to take six months. Initially planned in 2021, the 3.2-k..

Read More

Opinion Poll

Question : Which technological advancement do you believe will most transform the real estate industry in the coming years?

Latest updates

We are shaping the next era of vertical mobility
ECONOMY & POLICY
31 Jan 2025

We are shaping the next era of vertical mobility

Brookfield REIT Q3 NOI Rises 11% to Rs 5.03 Bn
Real Estate
31 Jan 2025

Brookfield REIT Q3 NOI Rises 11% to Rs 5.03 Bn

Gurugram’s Key Corridor Set for Expansion
RAILWAYS & METRO RAIL
31 Jan 2025

Gurugram’s Key Corridor Set for Expansion

Mumbai-Ahmedabad Bullet Train: Major Progress in Maharashtra
RAILWAYS & METRO RAIL
31 Jan 2025

Mumbai-Ahmedabad Bullet Train: Major Progress in Maharashtra

Omaxe Group Unveils BeTogether to Drive Urban Development
Real Estate
31 Jan 2025

Omaxe Group Unveils BeTogether to Drive Urban Development

Greater Noida to Get New C&D Waste Plant
WATER & WASTE
31 Jan 2025

Greater Noida to Get New C&D Waste Plant

BBMP Eases Trade License Renewal in Bengaluru
ECONOMY & POLICY
31 Jan 2025

BBMP Eases Trade License Renewal in Bengaluru

Cabinet Approves Rs 25,000 Crore Shillong-Silchar Corridor
ROADS & HIGHWAYS
31 Jan 2025

Cabinet Approves Rs 25,000 Crore Shillong-Silchar Corridor

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000