India’s overall deal activities fall

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September 12, 2014

In August, Indian companies conducted 95 deals, compared 110 deals in July

Mumbai: The overall deal activities fell drastically to $1.6 billion in value terms in August, with the Indian companies conducting 95 deals during the month.

September 12, 2014

In August, Indian companies conducted 95 deals, compared 110 deals in July

Mumbai: The overall deal activities fell drastically to $1.6 billion in value terms in August, with the Indian companies conducting 95 deals during the month.

This compares with $8.39 billion in July across 110 deals, which had some large deals such as Reliance-Jaypee, Diageo-United spirits and PE deals including investment in Flipkart, according to Grant Thornton India’s Dealtracker report.

Under-deals, Grant Thornton India — an assurance, tax and advisory firm — covers mergers and acquisitions, private equity and stake stale among others.

"August has been a relatively dull month…,” Harish H.V., Partner at Grant Thornton India said.

“However, we see the overall trend continuing in terms of quantity of deals. We have seen some very interesting deals in the infrastructure and manufacturing sector among the corporate M&A, and we continue to see an uptick in the private equity and cross-border deals as we go along,” he added.

While cross-border deals fell to $375 million during the month, compared with $3.2 billion, domestic deals rose to $742 million ($376 million).

Adani Power’s acquisition of Lanco Infratech Ltd's 1,200 MW plant in Uduppi, JSW Steel’s buyout of Welspun Maxsteel and Shree Cement’s acquisition of Jaiprakash Associates cement unit were among the highlights during the month.

On the private equity front, Tiger Global and Bharti Softbank Holdings’s investment of $65 million in Hike Technologies, Falcon Edge Capital and Rocket Internet’s investment of $60 million in Foodpanda and Metmin Investment’s acquisition of Avigo's stake in Spykar Lifestyle stood out during the month.

At an overall level, deal numbers and values are up this year compared with the previous two years. This year, on the M&A front, will be much better compared with the previous two years, the report said.

The overall deal value during the month under review also fell compared with that posted during the same month a year ago. The overall deals stood at $4.7 billion in August 2013.

In August last year, there were many outbound deals such as ONGC’s acquisition of an oil field in Mozambique for $2.5 billion.

The month also saw two Qualified Institutional Placement (QIP) worth $204 million that of Prestige Estates and Karur Vysya Bank.


Courtesy: Hindu Business Line