Mergers and acquisitions and IPOs are booming in India, with multinational companies and financial giants flocking in.

A senior executive from JPMorgan recently stated that many global multinational companies and large financial institutions are eager to explore large-scale mergers and acquisitions in the Indian market, as well as potential large-scale initial public offerings (IPOs), as they seek to capitalize on the country's economic growth trends. Navin Vaidyavani, head of investment banking at JPMorgan in India, mentioned that large financial service providers, including insurance and banking institutions, seem to see numerous investment opportunities. Vaidyavani said in a media interview on Monday, "We see some global strategic companies, especially financial services companies, engaging in a certain amount of mergers and acquisitions." According to data collected by institutions, India has become a hotspot for large transactions in the financial industry, with companies listing on the Indian stock market for the first time this year raising nearly $9 billion through IPOs. The data shows that the scale of large transactions involving Indian companies, such as mergers and IPOs, has increased by 28% to reach $77 billion. India is witnessing some high-value transactions in the financial services sector, including the sale of stakes in Yes Bank Ltd. and IDBI Bank Ltd., which have attracted interest from Japanese and Middle Eastern investment institutions. Zurich Insurance Company purchased the majority stake in Kotak General Insurance Company Ltd., becoming the first large foreign insurance company to enter India after the relaxation of insurance sector regulations. Last year, a financial consortium led by A BPEA EQT AB agreed to acquire a majority stake in a subsidiary of an Indian housing finance company providing student loans, making it one of the largest private equity financing deals in India. The JPMorgan executive stated that the average size of mergers in the Indian market is expected to increase by $140 billion per year from 2021 to 2024, double the amount in the period from 2011 to 2020. Vaidyavani said, "Financial service providers are very active, while private equity firms are actively buying and selling and establishing businesses. This level of activity in the Indian market is expected to continue." He added that unlike the inherent idea of global multinational companies urgently seeking bulk transactions in the past, they are now collaborating with Indian domestic companies through joint ventures, including establishing joint ventures and taking strategic minority stakes. The JPMorgan executive mentioned that in addition to mergers and joint ventures, several multinational companies are considering listing their Indian subsidiaries in India to capitalize on the country's economic growth trends. Sources have revealed that Hyundai Motor Company, a leader in the automotive industry from South Korea, plans to sell shares of its Indian local subsidiary this year, which could be one of the largest IPO deals in India's history. According to reports, LG Electronics, a leader in the electronics industry from South Korea, has selected investment banks that may provide listing services for its business division in the Indian market, raising funds of up to $1.5 billion through the IPO. Kevin Welfare, global head of capital markets at JPMorgan, recently stated in an interview, "Portfolio managers in global emerging markets still under-allocate to the Indian market. They want to allocate more capital to this rapidly growing region." Welfare mentioned that more capital may flow into popular investment areas such as clean energy and infrastructure. He also noted that there are plenty of investment opportunities in the Indian and Chinese markets as both are expected to continue growing rapidly.