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219 deals worth $8.4 bn in August, record volumes since 2005
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SME Times News Bureau | 14 Sep, 2021
It has been an 'August' month for India Inc., which witnessed 219 deals
aggregating $8.4 billion last month, record volumes for any given month
since 2005.
While the volumes almost doubled, compared to August
2020, transaction values jumped by 5.8x times driven by over 13x
increase in the PE investment values, according to an analysis by Grant
Thornton Bharat.
"Domestic consolidation led to 68 per cent of
the deal volumes in M&A. Unicorns, such as Byju's, Unacademy and
Dream Sports sealed some of the M&A deals. As improvement in
industrial indicators and external demand unfold, we hope economic
activities would normalize in the coming months driven by pent-up
demand, ongoing vaccination drive, support from policy mix and a
resurgence in global growth," said Shanthi Vijetha, Partner (Growth),
Grant Thornton Bharat.
According to the report, August saw total
M&A transaction value at $867 million across 37 deals, as opposed to
August 2020 that witnessed 30 transactions with values aggregating to
$908 million.
Private equity and venture capital firms recorded
182 deals, valued at $7.6 billion driven mainly by high value
investments in Indian companies and unicorns, supported by confidence in
recovery, lucrative opportunities in the startup space and promising
entrepreneurial talent.
The star sector of the month continued to
be tech followed by education, pharmaceutical and energy sectors. The
bulk of the deals were in IT solutions, data analytics, cleantech,
pharmaceuticals, e-commerce, consumer retail, digital healthcare,
fin-tech and ed-tech companies, whose products and services have seen
strong demand during the Covid-19 pandemic.
The month also saw
the birth of seven new unicorns. This trend indicates that both fund
inflow and startups with a valuation of $1 billion are likely to
continue to grow and expand through the year, Grant Thornton Bharat
said.
The Indian startup ecosystem witnessed fund inflow of $1.4
billion, as reflected by the positive funding momentum with 115 deals
(63 per cent share of the PE volumes). With this, the sector topped both
the volume and values chart for the month.
August also witnessed
a surge in deal activity at 219 deals with 21 per cent hike compared to
July 2021. However, the deal values on the hand dropped by 36 per cent
on the back of a 6x drop in M&A deal values.
While August
recorded one deal in the billion-dollar category and 21 deals valued
at/over $100 million, July 2021 had recorded two and 22 such deals,
respectively.
The year so far witnessed 11 deals in the
billion-dollar category and 102 deals valued at/above $100 million.
These high value deals together accounted for 84 per cent of the total
deal values in 2021.
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Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
|
66.20
|
64.50 |
UK Pound
|
87.50
|
84.65 |
Euro
|
78.25
|
75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
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