A conversation with Inderpreet Singh Chadha, Head of Investment Banking and M&A at Ascentium India
What is driving growth in India’s capital markets today?
A: It’s buzzing. India today is arguably one of the most vibrant economies globally. You can see it in the capital markets, with more than 300 listings in 12–18 months and over USD 20 billion raised. That’s a record for India.
And it’s not one sector; it’s many. Manufacturing, technology, precision engineering, financial services, almost every major industry is on the rise. India is positioning itself to be a global hub for manufacturing and services over the next 20 to 25 years.
At Ascentium India, we’re seeing it first-hand. We have about 40–50 clients preparing for listings or strategic moves over the next 3 to 5 years.
What are the biggest challenges in M&A and capital markets in India?
A: There are two big ones. First is regulation. Anyone investing in India needs a deep understanding of the regulatory framework, tax implications, foreign investment rules, and sectoral caps. Without the right advisor, the risk of getting caught in unexpected regulatory challenges is high.
Second is culture. India is still largely a family-owned business ecosystem. Governance styles differ. Decision-making dynamics differ. Understanding cultural fit, and whether partners can work together long-term, is just as important as the numbers.
Deals don’t fail because of valuation gaps alone. They fail because of misalignment in expectations and ways of working.
How does Ascentium approach investment banking and M&A differently?
A: We build relationships, not transactions. Many of our clients have worked with us for 10, 15, sometimes more than 20 years across multiple deals.
One example: A power-backup solutions company approached us for an M&A sale. Our advice? Not yet. Grow from a regional to a pan-India player first. We tested the market, confirmed the feedback, and eventually took the company public a few months later. Now they have the capital to scale properly.
Our value lies in helping clients make the right decision at the right time, even if the timing isn’t immediate.
What should founders consider before raising capital or pursuing M&A in India?
A: Investors are flocking to India from the Middle East, Southeast Asia, and beyond. Capital is abundant, but choosing the right partner is how businesses will unlock it.
You want someone who thinks long-term and understands your business, your vision, your workforce, and your culture. We recently worked with a workforce-management company supporting millions of blue-collar workers. Instead of the highest bidder, we advised partnering with an impact-driven foundation.
For their mission, that alignment mattered more than anything else.
Founders should remember: You’re not just taking capital, you’re taking on a partner who will shape your next decade.
Conclusion
India’s growth is creating strong opportunities across sectors, but navigating this environment requires more than capital.
Success depends on understanding regulation, aligning with the right partners, and making decisions that support long-term growth.
For businesses entering or expanding in India, the focus is not just on completing deals, but on building the right foundation for what comes next.
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