India Inc saw its biggest drop in transaction value last month due to a lack of big investments, registering 171 mergers and acquisitions (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 14 percent drop in deal volume and a 95 percent drop in deal value, according to a Grant Thornton India DealTracker report.
Cross-border transactions were the second-lowest recorded in the last 12 months in terms of both transaction volume and value due to global tensions.
With 28 percent of M&A deal volume, the startup and IT sectors continued to dominate deal activity, with nine deals each having a combined value of $162 million.
Grant Thornton India Partner (Growth) Shanti Vijeta said: “Like many other countries, Asia’s third largest economy is struggling with rising inflation, fueled by rising commodity prices. A weak rupee has boosted imported inflation. further expanded.”
Still, startups, e-commerce and IT led the month’s transaction volume, while “infra, pharma, retail and banks led the total.”
“Only one unicorn in fintech, Onecard, was born this month,” she noted.
While M&A deal activity saw an increase in transaction volume compared to June, which saw its lowest monthly volume in the past 19 months, transaction value was down in most cases due to the lack of quality transactions and non-disclosure of values observed. Offers.
In the PE scenario, there were 139 transactions worth $1.7 billion.
While PE transactions continued to account for over 80 percent of total transaction activity, there was a significant drop in transaction values.
“The start-up sector continued to drive PE deal volume with a 70 percent share with investment values of US$0.6 billion for July 2022,” the report reads.
The retail tech segment led the investment volume in the start-up sector with 20 percent deals, followed by enterprise applications and infrastructure and fintech with 18 percent each.
The report found that since the beginning of (YTD) 2022, there have been 17 initial public offerings (IPOs) with an issuance volume of USD 6 billion.
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