A STUDY OF IMPACT OF MERGERS AND ACQUISITIONS ON SELECTED SECTORS IN INDIA

Abstract

The present research is done to understand the impact of mergers and acquisitions (M&A) on corporate sector in India. There are three research objectives first trends of M&A in India second to examine the financial performance of selected companies after M&A and third to study the impact of companies after M&A on Indian corporate sector .The study has covered mostly all recent mergers and acquisition from 2005 to 2007. The financial performances of the following selected Banking, Aviation, Steel, Software, Pharmaceutical, FMCG, Petroleum, Electronics, and Telecom and Energy sectors and concerned companies have been taken to study the impact. The different financial ratios like Liquidity, profitability and solvency ratios have been taken for the analysis. The analysis is conducted with the help of Chi-square and T-test. It was concluded that mergers and acquisitions do not through profits immediately; a company has to face liquidity problems for a period of few years. But these mergers and acquisitions surely gives a good return in long period.