Infrastructure sector high on M&A, fund-raising deals.

The infrastructure sector, which saw acquisition and fund-raising deals in the last three months after a three-year lull, is poised for a flurry of deals that will revive stranded projects and help the sector bounce back in 2015. The sector - which has been struggling for years due to slowdown in government's decision making, issues over land acquisition and environment, and poor financial health of private sector developers - is suddenly abuzz with activity. Recently, Reliance Power agreed to buy the hydroelectricity portfolio of Jaiprakash Group for about Rs. 12,000 crore.

And over the past three months, companies such as Jaiprakash Associates, GMR Infrastructure and J Kumar Infrastructure have together raised Rs. 5,000 crore through qualified institutional placement (QIP), or share sale to qualified institutional buyers (QIBs).

Experts and industry players expect infrastructure companies to raise Rs. 8,000-10,000 crore more through QIPs, initial public offering (IPO) and other equity sale. They also believe more deals in the renewable energy, thermal power and road sectors are in the pipeline as highly leveraged companies have been looking to sell stake in projects.

Infrastructure companies ET spoke to recently said that though not much has changed on the ground, things are moving in the right direction under the Narendra Modi-led government.

ET