The addition will result in a 25 per cent increase in its existing 80-strong investment banking unit, according to S Ramesh, MD and CEO. Kotak Investment Banking, He said the firm is looking to fill positions from analyst to director level in sectors including financial services, health care and technology, where foreign companies such as Amazon.com Inc and Walmart Inc can seek investment opportunities. Electric vehicles and renewable energy may also attract interest.
“We expect global strategic companies to start energizing the engine to strengthen their business India in diverse fields,” Ramesh said in an interview in Mumbai. “We expect 2023 M&A volumes to overtake 2022.”
India has seen pending and completed deals worth $168 billion so far this year, according to data compiled by Bloomberg, and is heading towards an annual record. boom was HDFC Bank LimitedHousing Development Finance Corp’s $58 billion all-stock purchase India’s richest man and the world’s third richest Gautam Adani led the $10 billion acquisition of Holcim AG’s local cement business, the country’s second largest of the year deal.
Ramesh said another factor that could boost deal flow into India is financial investors who are willing to write large checks for acquisitions. He added that the new generation of flagship family-run businesses are also more willing to sell, while the group is looking to consolidate to position itself for future growth.
On the initial public offering front, Kotak Investment Banking expects to raise 750 billion rupees ($9 billion) in 2023. The companies have raised nearly $5.8 billion through share sales for the first time in India, led by Lyft. India’s $2.7 billion insurance corporation, according to data compiled by Bloomberg.
“I expect 2023 to be a better year for IPOs, driven by interest rate hikes, inflation and local pools of money coming into Indian offerings,” Ramesh said. “India has the potential to stand out in the midst of global adversities.”
Kotak Investment Banking provides services including equity and debt capital market issues, M&A advisory and private equity advisory, according to its website. The firm advised KKR & Co about a stake in the $1.1 billion block business through an affiliate in India’s largest hospital chain. Max Healthcare Institute Ltd. Kotak was also one of the 10 consultants to manage LIC IPO in May, which was the biggest ever IPO in the history of India.