PE deals touch $8.7 bn, M&A activity hits $2.1 bn in September Quarter

Karan Gupta , Partner
Corporate Finance
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23 November 2017

 Corporate India witnessed significant deal activity in the September quarter this year, as private equity invested USD 8.7 billion and M&A transactions attracted USD 2.1 billion, says a report.

According to tax and accountancy network BDO India's latest report, investment of private equity and venture capital increased 180 per cent in value terms over the last year to reach USD 8.7 billion in the July-September quarter of 2017.

The M&A(mergers and acquisitions) deal momentum, however, moderated as there were 118 transactions worth USD 2,142 million as compared to USD 11,221 million announced in the corresponding period last year through 139 deals.

Absence of big ticket deals were largely responsible for the decline in September quarter deal tally.

In the July-September quarter, only six transactions valued at and above USD 100 million were announced as compared to 14 deals in the year-ago period, including three billion- dollar deals.

"Throughout 2017, India has continued to be a healthy deal-making market and is expected to keep growing in the coming years," the report said.

"While the number of deals has largely remained the same, the ticket sizes of deals as well as number of exits are increasingly reaffirming investor confidence in India," the report added.

In the September quarter, the financial services sector led deal activity by contributing more than 26 per cent of the total transaction value.

The most notable deal of the quarter was Dilip Buildcon Ltd's sale of its stake in 24 road assets to Shrem Group for an enterprise value of USD 250 million, making it the biggest transaction so far in 2017 in the infrastructure sector.

"Application of Insolvency and Bankruptcy Code is likely to increase the number of transactions going forward into the next quarter and fiscal year," the report added.