Indo-Japanese deal enquiries increased since Modi’s Japan visit

Mumbai: Indo- Japanese deal enquiries have increased manifold since Prime Minister Narendra Modi’s visit to Japan and 35-40 Japanese companies are looking at the domestic market after his May victory, boutique investment bank Singhi Advisors has said. The queries since the May victory are worth around USD 1.5 billion, according to a back of the envelope calculation. “Modi’s recent visit to Japan has generated a lot of interest from Japanese investors in the domestic market.

Mid-size deals worth USD 35-40 million each, involving investments or outright buyouts in infrastructure, power, building materials, healthcare and even consumer sectors have increased deal appetite tremendously,” Singhi Advisors’s Founder and Managing Ditector Mahesh Singhi told PTI. “Since the Modi win, 35-40 Japanese firms are looking at the domestic market,” he added He said excluding large deals like Ranbaxy-Daichi and RelCap-Nippon deals, as many as 38 deals under USD 50-million ticket size were closed during the past two years, which involved either Japanese companies picking up a controlling stake or a complete buyout.

Singhi, who visited Japan after Modi’s visit, said that his company has long been focused on the Indo-Japanese corridor and is working on two deals at present. Since the Prime Minister’s visit, deal enquires have jumped manifold, he said. “We are working on two deals in the building materials space and power equipment sector. The Japanese are largely looking at picking up controlling stake in some companies in these sectors which have a ticket size of around USD 30 million each,” Singhi said.

However, he said that the pharma sector is unlikely to see any deal since the sector has taken a beating after the Ranbaxy-Daichi deal which soured after the conclusion of the agreement. But on the positive side, there is lot of interest in the healthcare and consumer sectors now, Singhi said.

Indo- Japanese deal enquiries have increased manifold since Prime Minister Narendra Modi’s visit to Japan and 35-40 Japanese companies are looking at the domestic market after his May victory, boutique investment bank Singhi Advisors has said. The queries since the May victory are worth around USD 1.5 billion, according to a back of the envelope calculation. “Modi’s recent visit to Japan has generated a lot of interest from Japanese investors in the domestic market.

Mid-size deals worth USD 35-40 million each, involving investments or outright buyouts in infrastructure, power, building materials, healthcare and even consumer sectors have increased deal appetite tremendously,” Singhi Advisors’s Founder and Managing Ditector Mahesh Singhi told PTI. “Since the Modi win, 35-40 Japanese firms are looking at the domestic market,” he added He said excluding large deals like Ranbaxy-Daichi and RelCap-Nippon deals, as many as 38 deals under USD 50-million ticket size were closed during the past two years, which involved either Japanese companies picking up a controlling stake or a complete buyout.

Singhi, who visited Japan after Modi’s visit, said that his company has long been focused on the Indo-Japanese corridor and is working on two deals at present. Since the Prime Minister’s visit, deal enquires have jumped manifold, he said. “We are working on two deals in the building materials space and power equipment sector. The Japanese are largely looking at picking up controlling stake in some companies in these sectors which have a ticket size of around USD 30 million each,” Singhi said.

However, he said that the pharma sector is unlikely to see any deal since the sector has taken a beating after the Ranbaxy-Daichi deal which soured after the conclusion of the agreement. But on the positive side, there is lot of interest in the healthcare and consumer sectors now, Singhi said.
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