M & A CritiqueIndustry-wise break-up of the Schemes filed during the previous year April 2014 to March 2015.
| Industry | TOTAL | TOTAL |
| No. of Deals from April 2014 to March 2015 |
No. of Deals from April 2013 to March 2014 |
|
| Chemicals | 2 | 4 |
| Engineering | 11 | 23 |
| Entertainment | 2 | 10 |
| Financial Services | 24 | 21 |
| Investments | 31 | 24 |
| Information Technology | 22 | 24 |
| Pharmaceutical | 13 | 7 |
| Steel, Power & Cement | 8 | 9 |
| Real Estate | 46 | 30 |
| Telecommunication | 7 | 8 |
| Textile | 13 | 0 |
| Jewellery | 6 | 0 |
| Others | 119 | 83 |
| Total | 304 | 243 |
During the previous year April 2014 to March 2015, 304 (Three Hundred and Four) Schemes were filed, involving 888 (Eight hundred and Eighty Eight) Companies, of which 248 (Two Hundred and Forty Eight) Schemes were Scheme of Amalgamation, 39 (Thirty Nine) Schemes were Scheme of Demerger, 5 (Five) Schemes were Scheme of Arrangement and 12 (Twelve) Schemes were Composite Scheme of Arrangement.
The diagram shows that the Real Estate sector had the maximum numbers of deals cracked during the last one year with 46 deals in total, followed by Investment sector with 31 deals and Financial Services sector with 24 deals. ‘Others’ includes various sectors like Infrastructure,
Jewellery, Media and Auto Components to name a few.
Some other important details regarding Schemes filed during the previous year April 2014 to March 2015.
| No. of Listed Companies who have filled the scheme | 40 |
| No. of companies having paid up capital of more than Rs. 10 crore | 156 |
| No. of mergers schemes between holding and subsidiary companies | 125 |
| No. of schemes in which Transferor Company has carried forward losses and the Transferee Company is profit making | 59 |
| No. of schemes in which Transferor Company was profit making and the Transferee Company has carried forward losses | 42 |
| No. of schemes in which Transferor Company and the Transferee Company both have carried forward losses | 72 |
Analysis:
- There were 125 schemes between holding and subsidiary companies, i.e. these companies have gone in for internal restructuring. There has been trend of merger between holding and subsidiary company to gain from synergy of resources.
- There were 59 schemes in which Transferor Company had carried forward losses and the Transferee Company was profit making, thus the Transferee Company was able to acquire those companies at low prices while the Transferor Companies were able to exit business by gaining fair value for their loss making business.
- There were 42 schemes in which Transferor Company was profit making and the Transferee Company had carried forward losses, which were reverse mergers. Thus the Transferee Companies were able to seek relief under section 72A of Income tax Act.
- There were 72 schemes in which Transferor Company and the Transferee Company both had carried forward losses, thus the companies were mainly aiming at joint revival of the both transferor and transferee companies through the said schemes.
