41% decline in deal values in Indian market in October: Report
Updated: Nov 16th, 2023
 |
| Indian Market (imgL IANS) |
India saw 122 deals valued at $2.5 bn (₹20,807 cr) in October, a 41% decline in deal values from the previous month, a report showed today.
Despite a decline in deal values, primarily due to the absence of major mergers and acquisitions (M&A) transactions, October showcased resilience with a 14% increase in deal volumes.
High-value deals worth over $100 m (₹832.3 cr) dropped from nine in September to just four in October, with the total values decreasing from $3.7 bn (₹30,796 cr) to $2.2 m (₹18.31 cr).
“While the absence of big-ticket transactions has affected deal values, the robust 101 private equity (PE) deals worth $1.9 bn (₹15,813.8 cr) reflect the ongoing opportunities in the market,” said a partner at a business consulting firm.
“With the festive season on and an anticipated surge in consumer demand, the economy and deal market are poised for an upbeat period, demonstrating the presence of diverse growth themes and opportunities amidst a challenging backdrop,” she added.
Action in Mergers & Acquisitions
October continued to witness a downward trend in mergers and acquisitions (M&A) space with 21 deals amounting to $0.24 bn (₹1,997.4 cr), marking a 19% drop in volumes compared to the previous months.
Furthermore, the past two months have seen a substantial decline in deal values in M&A landscape, plummeting from $3.7 bn (₹30,796 cr) in August to $235 m (₹1,995.9 cr) in October, leading to a significant reduction in the average ticket size from $141 m (₹1,173.5 cr) in August to $75 m (₹624.2 cr) in September and a mere $11 m (₹91.56 cr) in the latest month.
The top deal in this space was the acquisition by Reliance Retail Ventures Ltd of Superdry Plc’s licences and brand assets in India, Sri Lanka, and Bangladesh, valued at $48 m (₹399.5 cr).
The PE landscape showed signs of vigour, with a total of 101 deals worth $1.9 bn (₹15,814.4 cr).
Notably, the month was characterised by smaller-ticket PE investments, further reinforcing faith in the PE market. A standout deal in this space was the significant investment of $598 m (₹4,977 cr) made by the Abu Dhabi investment authority, which acquired a 0.6% stake in Reliance Retail Ventures Ltd.
The market saw the launch of six IPOs, collectively raising a total of $546 m (₹4,544.3 cr) in capital.
The startup sector continued to be a dominant force, accounting for 60 deals, which represented nearly half of the overall deal activity, said the report.
(Source: IANS)
- Edited for style
