India Inc Closes 181 Transactions Worth $ 13.2 Billion In July, Retail News, ET Retail
There was a significant year-over-year increase in transaction volumes to 66% and a 3% increase in transaction value. It is also the highest record volume for any given month since 2005.
“This increase in transaction activity is mainly due to the fact that companies continue to borrow economically and spend their cash reserves on transformative transactions to reposition themselves in the post-Covid-19 world. Indian companies have already done so. demonstrating agility and adaptability in the face of crisis, “said Shanthi Vijetha, Partner, Growth, Grant Thornton Bharat.
“Government reforms and demographic advantage reaffirm India’s potential as a key investment destination. We hope that the trend for agreements will also remain positive in the coming months,” Vijetha said.
M&A transaction activity saw 36 deals worth $ 5.6 billion in July 2021. While volumes increased 13%, deal values declined 37% from to July 2020. This was mainly due to the lack of large transactions. .
There were 145 deals valued at $ 7.5 billion in the PE / VC investment segment. Record trades were accelerated by the surge in stocks, higher liquidity and, most importantly, increased interest in all sectors.
Businesses across the country are on the rebound path, resulting in an increased appetite for loans which has led to record PE deals. Online business models have been significantly accelerated by the pandemic with monumental growth in their valuation compared to 2019-20.
Startups dominated both the M&A and PE segments in the volume chart in July 2021 with 109 deals worth $ 1.6 billion. The month also saw several start-ups announce their intention to go public with their IPO. Zomato, Paytm, Nykaa, and Ola are some of the biggest names that have signaled their IPO plans.
Zomato had a successful run as it received requests worth close to Rs 3.5 lakh crore via IPO.
Byju’s acquisition of electronics technology company USA’s Epic for $ 500 million, followed by Great Learning for $ 600 million and Flipkart which raised $ 3.6 billion in fresh funds from global investors were the main highlights of the month.
So far, the year has been marked by 10 transactions worth billions of dollars and 81 transactions worth equal to or greater than $ 100 million. These high-value transactions together accounted for 84% of the total transaction value in 2021. There were 13 unicorns in 2021, up from seven in 2020, supporting the increase in transaction value in 2021.