Overall deal activity jumped 55 per cent in January: Grant Thornton

 Niti Kiran   New Delhi     Last Updated: February 13, 2017  | 13:01 IST
Overall deal activity jumped 55 per cent in January: Grant Thornton

January witnessed around 125 transactions contributing over $3 billion, a 55 per cent in values over the same month last year, according to a report by assurance, tax and advisory firm Grant Thornton. 

The primary growth driver continued to be domestic mergers and acquisitions (M&A). The segment contributed over $ 1.6 billion and over four times of the growth.

On the other hand, PE activity continues to slide both from a volume and value perspective. The month of January saw around 80 transactions, contributing just about $650,000. This was a 40 per cent drop in value from last year's level. Cross-border activity seems to be an equal mix between inbound and outbound, contributing around half a million dollars.

In terms of sector trends, the key contributor in M&A was energy & natural resources with $1.3 billion. In PE, it was the start-up sector which continued to lead the activity by contributing $180,000, followed by media & entertainment which contributed $120,000.

The month also witnessed some big ticket deals, valued over $100 million each, in sectors such as pharma, healthcare and biotech, and infrastructure management, the report added.

"With the visibility on GST and demonetisation effect behind us, combined with the pragmatic budget, domestic consumption and growth should see further acceleration. This will increase traction in domestic M&As as well as inbound investments. With specific boost to infrastructure, FDI and more money in the hands of the people, 2017 should be a very exciting year for deal making," said Prashant Mehra - Partner at Grant Thornton India LLP in the report.

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