Illustration: Binay Sinha
When the Insolvency and Bankruptcy Code (IBC) kicked in, mergers and acquisitions (M&A) activity was expected to turn robust as it was felt that valuable assets and companies
would go on sale.
However, compared to the enthusiasm expressed by domestic and international investors, M&A activity in the stressed assets space has been a damp squib, states a report by PWC. While investors are awaiting the outcome of big cases under the IBC process, modifications to the code have not addressed their concerns, said PWC.
These concerns mainly relate to the operational capacity of factories and plants of stressed corporates that have been admitted under the insolvency process.