Thursday, March 13, 2008

Sub-Prime Benefits Indian MidCap Companies

This Business Line article reports that Indian Midcap companies have a hit a good time in their Deal Intentions in the US. Reduced profitability, crunch for working capital requirement (this requires a second look though..) & distressed assets on the block are all adding up to increased acquisitions.
This cross sector trend has seen Bangalore-based Kavveri Telecom Products and Pradot Technologies Pvt Ltd, the Ahmedabad-based Azure Styx Infotech, the Hyderabad-based FXLabs Studios, the Indore-based Plethico Pharmaceuticals, the Aluva-based Kerala Ayurveda Ltd and the Vadodara-based Minal Jewels figure among the mid-cap firms that have bought out US companies post-November 2007.

According to Virtus Global Partners’ estimates, deal sizes of less than $25 million accounted for 76 per cent of the US-bound acquisitions by volume in 2007, followed by transactions in the $25 million-50 million range ( eight per cent). “Deal sizes in the $50 m-100 m, $100 m-500 m, and greater $500 m range each accounted for less than six per cent of the 2007 transactions,” an analyst said.

For a list of deals below $25 Mn. read the complete article on Business Line

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