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An increase in outbound deals led to a jump in the total M&A and PE deal value in July 2012 to $2 billion, from $1.4 billion in the previous month.
Raja Lahiri, Partner, Transaction Advisory Services, Grant Thornton India, said this is a welcome surprise, given the overall economic head-winds.
The total number of deals in July, though, posted a slight decline to 75, compared with 83 deals in June.
Outbound value
The total value of outbound deals in July was $1.30 billion (17 deals), higher than the corresponding values of $0.85 billion (12 deals) and $0.14 billion (8 deals) during the same month in 2011 and 2010, respectively.
Inbound deals in July were worth $0.13 billion (8 deals) as compared with $1.50 billion (10 deals) and $1.15 billion (5 deals) during the corresponding month in 2011 and 2010, respectively
July witnessed increase in M&As — $1.9 billion, from 44 deals, compared with $0.7 billion/48 deals in June 2012. This was largely driven by outbound transactions such as the GMR-UFS deal ($0.6 billion), Grasim-Terrace Bay Pulp ($0.36 billion) and Crompton Greaves-ZIV Group ($0.19 billion), Lahiri said.
Though PE/VC activity was good in terms of number of deals ($166 million/31 deals), values declined over June ($762 million).
Average deal sizes have fallen following increased activity in the VC deal space.
PE activity
“PE/VC deal space continued to see activity in the e-commerce / Internet space and in renewable energy. Companies which have cash will drive M&A deal momentum going forward, since the time offers good deal opportunities in terms of valuation,” Lahiri said.
PE deal values amounted to $0.17 billion (31 deals) in July 2012, lower than the $0.74 billion (35 deals) and $0.76 billion (21 deals) garnered during the corresponding month in 2011 and 2010, respectively
Also, there were two IPOs listed in July, that raised $13.40 million from the public.
The total amount raised through IPOs during January-December 2011 was $1.20 billion, from 30 IPOs.
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