In July, india Inc saw a 3% increase in deal activity, totalling USD 13.2 billion across 181 deals, according to a study. The number of transactions increased by 66% over 181 transactions, showing a decrease in average ticket amounts. Deal volumes were 6% higher in june than the previous month, while deal values increased by 33% due to a larger number of large-ticket deals.

“The increase in transaction activity was largely due to firms continuing to borrow economically and using their cash reserves on transformative deals to reposition themselves for the post-COVID-19 world,” said Shanthi Vijetha, a partner at the firm.

Vijetha expressed confidence that the deal trend will continue to improve in the coming months.

The USD 13.2 billion in investments is the most for any month since 2005, according to the report. In July, there were 36 mergers and acquisitions (M&A) agreements totalling USD 5.6 billion, according to the report, with volumes up 13% year on year but deal values down 37% due to a lack of big-ticket transactions.

A spike in stocks, better liquidity, and increased interest in industries that have benefitted from the coronavirus epidemic lifted private equity/venture capital (VC) investments to 145 deals worth USD 7.5 billion, according to the report. The rise was fueled by improved financing conditions as many businesses throughout the country recovered from last year's pandemic-induced downturn, according to the report.

IT solutions, e-commerce, consumer retail, wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital healthcare, fintech, and edtech firms accounted for the majority of the agreements, according to the report, whose products and services were in high demand throughout the epidemic.

With 10 transactions totalling USD 46 million, the startup sector dominated in terms of volume, while banking and financial services lead in terms of value, with five transactions totalling USD 2.26 billion. On the PE side, e-commerce took the lead with 11 acquisitions worth over $5 billion, compared to 99 startup deals totalling $1.04 billion.
For more interesting updates wa click and follow Indiaherald WhatsApp channel

Find out more:

India Inc

Kailas Ashwin Sathish

11/08/2021 10:15 AM