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Mumbai, June 13 Uncertainty in global financial markets seems to have dented merger and acquisition deals in India.

For the first five months of 2008 there were only 215 M&A deals valued at Rs 57,372 crore ($13.66 billion) against 272 deals amounting to Rs 1.77 lakh crore ($42.24 billion) in the same period last year, according to a study by Grant Thorton.

In May, there were 49 deals announced, valued at Rs 12,264 crore ($2.92 billion), with Essar Steel Holdings Ltd bidding Rs 4,662 crore ($1.11 billion) to acquire US-based steel producer and distributor Esmark followed by Irish company CRH’s acquisition of 50 per cent stake in India-based My Home Industries for Rs 1,969 crore ($469 million).

Of these 49 deals, there were 23 domestic deals (both acquirer and target being Indian) with an announced value of Rs 1,008 crore ($240 million) and 26 cross-border deals with an announced value of Rs 11,256 crore ($2.68 billion).

Of the total cross border deals, 17 were outbound (Indian companies acquiring overseas business) with a value of Rs 5,636 crore ($1.58 billion) and nine were inbound (international companies or their subsidiaries acquiring Indian business) with an announced value of $1.10 billion.

The total number of M&A deals announced in 2007 stood at 676 with a total announced value of Rs 2.14 lakh crore ($51.11 billion).

In May 2008, there was only one IPO which raised Rs 14.7 crore ($3.50 million).

Total funds raised through 25 IPOs between January and May 2008 was Rs 16,749 crore ($3,987.99 million).

Highlighting the long term potential in Indian companies, there were 170 private equity investments valued at Rs 26,838 crore ($6.39 billion) in five months of 2008 against 159 deals amounting to Rs 20,874 crore ($4.97 billion) in 2007.

The total number of private equity deals announced during the month of May stands at 14 with an announced value of Rs 6,090 crore ($1.45 billion) as against 32 deals amounting to Rs 235 crore ($0.56 billion) in April.

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