Finance

PE, M&A offers in India in November 2020 highest within the final 5 years

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In mergers and acquisitions, transaction values ​​rose a whopping 81% despite a 14% drop in volume compared to the same period last year.

In November 2020, a total of 149 private equity (PE) and merger and acquisition (M&A) transactions were carried out in India – the highest in volume since November 2015. The month saw three transactions of over USD 1 billion each, during 11 transactions Estimated at 11 and over $ 100 million each.

According to Grant Thornton Bharat's monthly Dealtracker report, volume grew 19% year over year, while transaction value rose 52% annually to $ 6.9 billion in November 2020.

“In November 2020, 42 M&A transactions with a total volume of USD 2.7 billion were reported. The month was dominated by four domestic large-ticket transactions that were primarily aimed at consolidating, branding and achieving leadership positions in their respective sectors, ”said Grant Thornton Bharat.

November reported 107 PE transactions for a total of $ 4.2 billion, up 32% from the previous quarter but up 41% year over year, he added.

In sectors such as real estate, retail & consumer, manufacturing, pharmaceuticals, agriculture & forestry, and infrastructure, 9 high quality transactions totaled $ 5.3 billion, representing approximately 77% of total business values ​​reported for the month.

Around 86 transactions were reported in the start-up segment, including 9 mergers and acquisitions and 77 PE transactions with a total volume of USD 764 million, which corresponds to approximately 58% of the total volume.

“Real estate, retail and consumer, pharmaceuticals and IT & ITeS are expected to be evergreen sectors for M&A and PE transactions. Covid-19 has created multiple transaction opportunities by identifying sectors that remained isolated or thriving during the pandemic, highlighting high potential and highlighting those seriously affected, an indicator of the need for more resources. Hopes for a vaccine in the near future and government incentives in various forms and measures are expected to heat the transactional landscape and encourage all parties to take advantage of the opportunities presented, "said Grant Thornton.

Compared to October 2020, total business values ​​fell 6% due to an unmatched total of big ticket transactions. However, in November, business increased 41%, driven by a 68% increase in M&A and a 32% increase in PE, indicating increased business activity.

In mergers and acquisitions, transaction values ​​rose a whopping 81% despite a 14% drop in volume compared to the same period last year.

PE investment values ​​were $ 4.2 billion as of November 2020, driven by two transactions valued at over $ 1 billion each. This corresponds to an increase in investment values ​​of 37% compared to the same period of the previous year. Compared to the best monthly values ​​of $ 6.6 million recorded in October 2020, investment values ​​were down 36% in November 2020, ”said Grant Thornton.

In contrast, November 2020 saw the highest monthly investment volume after the 109 transactions recorded in July 2015. That month, the volume increased 41% from November 2019 and 32% from October 2020.

A single fundraiser through Qualified Institutional Placement (QIP) was valued at $ 34 million in November 2020, compared to three in November 2019 valued at $ 1.6 billion. The initial public offering (IPO) saw two issues worth $ 985 million, compared to just one issue of $ 58 million last year.

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Steven Gregory