HSBC India's Malhotra on M&A Outlook

The transcript discusses HSBC's role in acquisition financing, particularly in India, highlighting trends in M&A activities and expectations for 2023. It covers the impact of interest rates on corporate funding, sector opportunities, IPO trends, and risks in M&A activities. The discussion emphasizes India's bright spot in global trade and the rapid growth post-COVID, with a focus on digital transformation.

What role does HSBC play in acquisition financing in India?

• HSBC is a minor player in acquisition financing.

• HSBC provides limited services to small businesses.

• HSBC is a key partner for large corporates in acquisition financing.

• HSBC only supports domestic transactions.

What is the expected trend for acquisition financing in 2023?

• A decline in acquisition financing activities.

• A shift towards only equity financing.

• An increase in acquisition financing momentum.

• Stagnation in acquisition financing.

How has the interest rate environment affected Indian corporates?

• It has led to a decrease in CapEx growth.

• It has made international paper more accessible.

• It has restricted access to domestic banking and bonds.

• It has encouraged the use of domestic banking and bonds.

Which sector is identified as a new sunrise sector in India?

• Pharmaceuticals

• Data centers

• Automobiles

• Textiles

What is the outlook for Indian IPOs in 2023?

• No change in the number of IPOs.

• A shift towards more confidential filings.

• An increase in both numbers and values.

• A decrease in both numbers and values.

What are some risks for M&A activities in 2023?

• Increased geopolitical stability.

• Decreased availability of credit.

• Stable global supply chains.

• Low interest rates.

What was a surprising aspect of 2022 for HSBC?

• The decrease in supply chain disruptions.

• The decline in digital transformation.

• The rapid pace of growth post-COVID.

• The slow pace of growth.