+
Consumer Tech, Renewables Top Themes as M&A Activity Picks Up
ECONOMY & POLICY

Consumer Tech, Renewables Top Themes as M&A Activity Picks Up

Consumer technology, renewable energy, and healthcare sectors are expected to dominate investment banking activities in 2025, even as a slowdown in earnings growth over the next two quarters, driven by weakening demand, may lead to corrections in equity valuations, according to Pramod Kumar, CEO of Barclays India.

The UK-based bank, which derives more than half of its revenue from investment banking in India, remains cautious about lending to non-banking financial companies (NBFCs) until the sector increases its provisions.

"The biggest risk to current valuations is likely to come in the next couple of quarters. Earnings growth could disappoint due to inflation, leading to a slowdown in demand... However, we won’t see a significant drop in markets, given the strong economic growth and large domestic inflows that are supporting them," Kumar said.

Barclays' total assets in India remained stable at Rs 53,910 crore for the fiscal year ending March 2024. However, it reduced its loan book by approximately 5% to Rs 9,026 crore from Rs 9,467 crore, while increasing its cash balances with the central bank by 68% to Rs 1,030 crore, reflecting increased risk aversion. The bank’s investments, on the other hand, grew by 13% to Rs 33,137 crore from Rs 29,425 crore in March 2023.

Kumar mentioned that Barclays reduced its exposure to NBFCs amid early signs of stress in the sector, focusing instead on larger NBFCs. He expects merger and acquisition (M&A) activity to rise in 2025, following a period of subdued deal-making.

"M&A activity was somewhat muted this year, primarily due to stretched valuations. However, with a reduction in US interest rates, the dollar bond market could become active, and we may see more inbound strategic interest into India," Kumar said.

Consumer technology, renewable energy, and healthcare sectors are expected to dominate investment banking activities in 2025, even as a slowdown in earnings growth over the next two quarters, driven by weakening demand, may lead to corrections in equity valuations, according to Pramod Kumar, CEO of Barclays India. The UK-based bank, which derives more than half of its revenue from investment banking in India, remains cautious about lending to non-banking financial companies (NBFCs) until the sector increases its provisions. The biggest risk to current valuations is likely to come in the next couple of quarters. Earnings growth could disappoint due to inflation, leading to a slowdown in demand... However, we won’t see a significant drop in markets, given the strong economic growth and large domestic inflows that are supporting them, Kumar said. Barclays' total assets in India remained stable at Rs 53,910 crore for the fiscal year ending March 2024. However, it reduced its loan book by approximately 5% to Rs 9,026 crore from Rs 9,467 crore, while increasing its cash balances with the central bank by 68% to Rs 1,030 crore, reflecting increased risk aversion. The bank’s investments, on the other hand, grew by 13% to Rs 33,137 crore from Rs 29,425 crore in March 2023. Kumar mentioned that Barclays reduced its exposure to NBFCs amid early signs of stress in the sector, focusing instead on larger NBFCs. He expects merger and acquisition (M&A) activity to rise in 2025, following a period of subdued deal-making. M&A activity was somewhat muted this year, primarily due to stretched valuations. However, with a reduction in US interest rates, the dollar bond market could become active, and we may see more inbound strategic interest into India, Kumar said.

Next Story
Infrastructure Urban

India to Invest Rs 600 Billion to Upgrade 1,000 ITIs

As part of its drive to modernise vocational training, the Ministry of Skill Development and Entrepreneurship (MSDE), in collaboration with Gujarat’s Labour and Employment Department, held a State-Level Workshop at the NAMTECH Campus within IIT-Gandhinagar to discuss the National Scheme for ITI Upgradation.The consultation brought together key stakeholders from industry and the training ecosystem to align expectations and support implementation of the scheme, which aims to transform 1,000 Industrial Training Institutes (ITIs) across India using a hub-and-spoke model. The total outlay stands ..

Next Story
Infrastructure Urban

India Unveils Rs 600 Billion Maritime Finance Push

The Ministry of Ports, Shipping & Waterways (MoPSW) hosted the Maritime Financing Summit 2025 in New Delhi, bringing together over 250 stakeholders including policymakers, industry leaders, global investors, and financial institutions. The summit, held under the ambit of Maritime Amrit Kaal Vision (MAKV) 2047, focused on transforming India into a leading maritime power with strengthened financial, infrastructural, and technological capabilities.Union Minister Sarbananda Sonowal emphasised India's strategic progress, noting that average port turnaround times have dropped from four days to u..

Next Story
Infrastructure Urban

Govt Allocates Rs 500 Million To Boost Community Radio

The Central Government, through its ‘Supporting Community Radio Movement in India’ scheme, has allocated Rs 500 million to strengthen the community radio ecosystem across the country. The initiative aims to assist both newly established and long-operational Community Radio Stations (CRSs), ensuring their relevance to local educational, social, cultural, and developmental needs.According to the policy published by the Ministry of Information and Broadcasting, CRSs may be set up by not-for-profit organisations with at least three years of demonstrated community service. These stations are ex..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?