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India MA deals up 26 percent to USD 5.6 bn in Q1

The value of mergers & acquisitions (M&As) was USD 4.4 billion in the January-March quarter of 2014. Private Equity investment in Q1, 2015 witnessed a year- on-year jump of 30 percent to USD 2.6 billion.

India M&A deals up 26 percent to USD 5.6 bn in Q1

The value of M&A deals involving Indian firms surged 26 percent to USD 5.6 billion in the first quarter this year, Grant Thornton said today.

The value of mergers & acquisitions (M&As) was USD 4.4 billion in the January-March quarter of 2014. Private Equity investment in Q1, 2015 witnessed a year- on-year jump of 30 percent to USD 2.6 billion.

In terms of volumes, PE investments surged by 67 percent to 219. The overall deal activity in the country for Q1 2015 was USD 8.2 billion (350 deals), against USD 6.4 billion (257 deals) in the year ago period. The number of M&A deals was 131 in the first quarter this year as against 126 transactions in the year-ago period, according to the latest issue of Grant Thornton Deal Tracker.

The transactions in this space were largely driven by inbound activity, the report said. “We ended the year 2014 on a high note, with a new government at the centre promising to be business friendly and renewing the optimism among business leaders,” Grant Thornton India Partner India Leadership Team Harish HV said. “This was also reflected in a significant pickup in deal momentum picking up post the Lok Sabha Elections.

We continue to see this momentum in 2015,” Harish added. As per the report, IT&ITeS and Pharma/Healthcare sector drove both M&A and PE deal activity. E-Commerce continued to garner multi-million dollar investments coupled with big ticket consolidations amongst players, it noted.

In M&A space, IT&ITES sector continued to be a major attraction with 37 percent of the deal values. Notable strategic deals during the quarter were Harman International Industries-Symphony Teleca Corporation (USD 780 million), Alibaba Group – One97 Communications Ltd (USD 575 million). Key PE investments during the quarter were TPG Capital’s investment into Manipal Health Enterprises (USD 150 million), and Equis Funds Group’s investment in Assetz Property (USD 116 million).

“Given the strong Q1 activity and a positive macro environment, we expect an exciting year of deals and more importantly, healthier and encouraging corporate environment,” Grant Thornton India Partner Prashant Mehra said.

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