Investments in Indian infrastructure shot up by about 25 per cent to $28.74 billion 2019 — the highest since 2016. In 2018, the sector managed to receive about $22.91 billion. However, the number of mergers and acquisitions (M&A) deals in 2019 plunged to 58 from 64 in 2018, according to data compiled by Inframation. Of the total amount received, renewable energy attracted the highest share of investments at 35 per cent, followed by power and transport sectors that attracted 25 per cent and 24 per cent respectively.
That said, compared to 2018, even within energy sector, deal closures proved to be a challenge in 2019 with the segment managing to get just 18 per cent of the total investments. According to Inframation, the sale of Sadbhav Engineering’s nine road projects for a consideration of $995 million to Canada Pension Plan Investment Board, an infrastructure investment trust (InvIT), was the country’s biggest infrastructure M&A deals in 2019.
Interestingly, InvITs received a boost with their number going up to eight from one in 2018 and more infrastructure trusts are likely to be set up with investors considering InvITs as the preferred route for investments, according to the report. Among the players, SBI Capital Markets led the financial advisors ranking by value (2 deals valued $8 billion), while Deloitte topped the pack with a deal count of three aggregating $1.7 billion in value.
SBI Capital Markets stood atop among the loans league table by value, while Rural Electrification Corporation (REC) was ranked the first in terms of deal count. JP Morgan topped the bond arrangers league table by both value and deal count at eight valued $0.52 billion, and Cyril Amarchand Mangaldas led the legal advisors ranking by value and deal count, having advised on 22 deals worth $14.7 billion.