Citi expects big year for India M&As with capital flowing from far and wide

“India is moving to a different orbit,” Saraf said. “We will continue to do well, irrespective of whether China is doing well or not. We’ll continue to grow and we’ll continue to attract capital.”

An aggressive second wave of buying by private equity, sovereign and pension funds that already have a presence in India is likely as they have come to understand conditions in the country much better, according to Saraf.

Among them, Singapore’s Temasek Holdings Pte plans to commit as much as $10 billion in three years and expand its headcount, betting that the country can become a top growth driver, its India head said in an interview in July. Bain Capital has also earmarked $7 billion to invest in India in the next three to five years and intends to enlarge its team, Bloomberg News reported Thursday.

“We’re seeing mid-size companies mushrooming from every corner of the country, getting sold for $500 million, $800 million — some of them I’ve not heard of in my life,” Saraf said. “The tail of companies and businesses and opportunities is so thick that there’s enough and more for everybody.”

The Middle East corridor is looking busy too, with the United Arab Emirates considering investing as much as $50 billion in India, Bloomberg reported in November. Some of the investments could involve sovereign wealth funds such as the Abu Dhabi Investment Authority, Mubadala Investment Co. and ADQ.

“Middle East funds will look to India to buy infrastructure, digital and industrial assets,” Saraf said. “There will be more funds into India than in the past.”

Citi should get a decent portion of the fee pool after bagging a 12% share from announced India deals last year, Saraf added, describing that as “great” for “one bank in a 25 bank market.”