Corporate India's deal activity jumps 58% to USD 3.1 bn in Jul: Report

Mumbai: Corporate India's deal activity witnessed a 58 per cent jump in value terms to USD 3.1 billion in July, largely driven by big-ticket transactions, while caution in the private equity world led to a reduction in overall volumes.

According to data collated by Grant Thornton, the month of July recorded 95 deals worth USD 3.1 billion, registering a 46 per cent plunge in volume terms and 58 per cent increase in value terms.

Shanthi Vijetha, a partner at the consultancy, said the impact of the global slowdown is visible in the deal street which has been subdued since the beginning of the year.

While cross-border transactions propelled the surge in deal value, caution in the private equity world led to a reduction in overall volumes, Vijetha said.

This surge in deal value was anchored by 29 deals valued at USD 2 billion, where six high-value transactions encompassing traditional sectors like IT, auto, retail, and manufacturing took the centre stage.

The deal value was driven by Proximus Opal's 58 per cent controlling stake acquisition in Route Mobile for USD 721 million.

As per the report, outbound activity reached its highest monthly level in 2023, while inbound activity recorded the highest monthly value since July 2021.

Remarkably, cross-border activity accounted for five of the top six M&As for the month.

Private equity investments declined to USD 1.1 billion across 66 deals, marking the second lowest monthly volume and values since August 2020. The startup sector dominated the deal activity, accounting for 44 per cent.

Bain Capital's 90 per cent stake buy in Adani Capital and Adani Housing Finance for USD 176 million was the biggest deal in the sector.

The IPO landscape was not bad with three issues collectively raising USD 187 million across the IT, retail, and banking sectors. This is in stark contrast to the stagnant IPO landscape of July 2022.

Similarly, qualified institutional placements saw momentum, showcasing four issues valued at USD 668 million, thanks to the strategic QIP allotments by Aditya Birla Capital and Federal Bank, commanding 87 per cent of the QIP value.

Year-to-date 2023 deal volume fell 42 per cent decrease, while value plummeted 75 per cent to USD 26.2 billion. PTI BEN DRR DRR