Kotak Mahindra Bank’s investing banking unit is planning to hire nearly 20 bankers to bolster its mergers and acquisitions (M&A) business next year, reported Bloomberg.
The move will increase the strength of the unit’s existing 80-member team by 25%, stated Kotak Investment Banking managing director and CEO S Ramesh.
The company also plans to make new appointments, including analysts and directors, throughout various categories such as financial services as well as health care and technology, where Amazon and Walmart could invest, he added.
In an interview in Mumbai, Ramesh said: “We expect global strategic companies to start firing the engine to consolidate their businesses in India across diversified sectors.
“We expect the 2023 M&A volumes to overtake that of 2022.”
A separate Bloomberg report revealed that $168bn worth of pending and closed deals occurred in India until this year and the country is moving towards an annual record in the sector.
HDFC Bank’s $58bn stock acquisition of Housing Development Finance led this increase.
India’s wealthiest individual Gautam Adani led a $10bn deal to buy Holcim’s local cement operations, marking this year’s second biggest deal in India.
According to Ramesh, financial investors, who are eager to pay larger amounts for acquisitions, could further push the deals momentum deals in India.
He also noted that new generations of family-run businesses are more inclined towards sell, but conglomerates are considering streamlining of operations to attain future growth.
Kotak Investment Banking aims to raise at least INR750bn ($9bn) next year through initial public offering.
Ramesh added: “I expect 2023 to be a much better year for IPOs, driven by peaking of interest rates hikes, inflation and local pools of money coming into Indian offerings.
“India has the potential to stand out amid the global headwinds.”