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Transport, power and renewable energy dominated dealmaking during financial year 2017-2018 and will likely continue to do so in 2018-19 too, according to a report by Inframation deals.
Inframation is a deals and financial information provider owned by Acuris, a media company that specialises in generating content for financial professionals.
According to the report, financial year 2017-18 saw 57 major deals valued at $19.96 billion.
“Asset recycling has been the cornerstone policy of the Narendra Modi government to raise money to modernise India’s creaking infrastructure. The Roads and Highways Ministry has identified 105 operational highways for auction under the Toll-Operate-Transfer model and aims to raise as much as ₹ 1.25 trillion through this route,” a statement from the company said.
“According to the government’s Economic Survey last year, India has an infrastructure [funding] gap of $784 billion and it has been advocated that this be filled by private financing,” the statement said.
It also said: “Deloitte ranked first on the financial advisors league table by both value and deal count (in financial year 2017-2018), advising on deal worth $5.23 billion. Cyril Amarchand Mangaldas ranked first on the legal advisors league table by value, while AZB & Partners won by deal count.”
Airport privatisation
On the privatisation of airports, the report said, “Apart from Indian developers such as GVK and GMR, airport privatisation is likely to draw interest from global investors such as Incheon, Munich Airport, Zurich Airport, Macquarie Group and PSP Investments-backed AviAlliance.” The healthy interest from local and global developers comes even as the single-phase bidding window remains relatively short.
Slowdown expected
The government has “sweetened the deal” by extending the concession period to 50 years from 30 years, said a global infrastructure fund manager, according to the report.
“The Modi government is keen to complete the airport privatisation process by February before the model code of conduct for the general elections kicks in,” the report added.
The dates for the Lok Sabha election are likely to be announced towards the end of February.
“Deal-making and greeneld project awards are likely to slowdown in the first half of 2019 due to the election,” said Sandeep Upadhyay, Managing Director, Centrum Infrastructure Advisory.
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