New Delhi: India Inc saw the biggest fall in deal value last month due to lack of large investments, registering 171 merger and acquisition (M&A) and private equity (PE) deals worth $2 billion, a new report showed. . At $280 million for 32 deals in July, M&A deals saw a significant decline of 14 per cent in terms of deal volume and 95 per cent in deal value, according to a Grant Thornton India DealTracker report.
Cross-border transactions in terms of both transaction volume and value were the second lowest recorded in the last 12 months due to global tensions. With 28 per cent of M&A deal volume, the start-up and IT sectors dominated deal activity with nine deals, each with a total value of $162 million. ,ALSO READ: 50% of companies planning job cuts amid economic slowdown: Report,
Grant Thornton India Partner (Growth) Shanti Vijeta said, “Like many other countries, Asia’s third largest economy is also battling rising inflation, fueled by rising commodity prices. A weak rupee has pushed up imported inflation. and extended.” Nevertheless, start-ups, e-commerce and IT led the deal volume for the month, while “infra, pharma, retail and banking sectors topped the overall value”. ,Also read: Tamil lyricist gets chicken in Swiggy sequence, says ‘strict vegetarian’,
“Only one unicorn in the fintech segment, Onecard, was born this month,” she noted. While M&A deal activity saw an increase in deal volumes as compared to June, which saw the lowest monthly volume in the last 19 months, a decline in deal value due to lack of high-value transactions and non-disclosure of values in the majority Viewed. of deals.
There were 139 deals worth $1.7 billion in the PE scenario. While PE transactions continued to account for over 80 per cent of the overall transaction activity, there was a significant drop in transaction values. “The start-up sector continued to drive PE deal volume with 70 per cent share with investment values of $0.6 billion for July 2022,” the report said.
The retail tech segment led the investment volume in the start-up sector with 20 per cent deals, followed by enterprise applications and infrastructure and fintech at 18 per cent each. The report noted that year-to-date (YTD) 2022 recorded 17 initial public offerings (IPOs) with an issue size of $6 billion as compared to 28 IPO issues, an increase of $7 billion in YTD 2021 .