An In-Depth Analysis of Trend, Pattern and Progress of Mergers and Acquisitions in Indian Manufacturing Companies

Abstract

The corporate world across the globe has been restructuring its business operations, adopting various types of integration strategies amidst different challenges posed by the changing faces of markets. To meet the challenges, companies have opted to grow inorganically using various forms of business restructuring strategies like mergers and acquisitions. Hence, an explanatory attempt has been made to know the trends, patterns, and progress related to mergers and acquisitions in the Indian manufacturing industry. During the study period, the lion’s share of M & A deals has EPS less than ₹10, a face value of ₹10 each, an offer price of less than ₹250 and being from Indian acquirers. As the age of companies increases, the number of M & A deals decreases sharply during the study period. As the percentage of promotors holding increases from 0-75%, the number of M & A deals also increases. More than half of M&A deals have offered shares less than ₹50 lakhs, being from the southern region and belonging to the horizontal type of structure over the study period. More than ¼th of M&A deals belonged to the metal sector. The majority of M & A deals are consistent, positively skewed, and leptokurtic. Almost all M&A deals have significant differences among them.