Slowdown-hit India Inc sees big-ticket deals disappear
The month of May saw only one IPO raising $390 million, compared to eight issues raising $4 billion witnessed in May last year.
NEW DELHI: India Inc recorded 106 deals valuing $4.6 billion last month - a 45 per cent decline in deal volumes and a steep 87 per cent decline in deal values compared to May last year, a report showed on Monday.
The month of May saw only one IPO raising $390 million, compared to eight issues raising $4 billion witnessed in May last year.
Unlike May last year, which saw four multi-billion-dollar deals worth $31.5 billion, the month gone by witnessed an absence of big-ticket transactions, according to Grant Thornton Bharat’s Dealtracker May 2023’ report.
Mergers and acquisitions (M&A) deal activity experienced a significant decline, with a 45 per cent decrease in deal volumes and a notable 98 per cent decrease in values compared to May 2022, recording only 22 deals valued at $675 million. Domestic volumes reached a three-year low with 20 deals, while cross-border activity hit its lowest monthly volumes and values to date.
“We are currently seeing persistent global macro-concerns center around inflationary pressures in the US and eurozone. India is also experiencing a downturn in deal activity compared to past year,” said Shanthi Vijetha, partner-growth, Grant Thornton Bharat.