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Business News/ Industry / PE, M&A deals up 55% in October: Grant Thornton Dealtracker
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PE, M&A deals up 55% in October: Grant Thornton Dealtracker

153 PE and M&A deals were closed in October, adding up to a total of $4.2 billion, compared with 98 deals worth $2.69 billion last year

Among PE deals, even as deal volume witnessed a jump of 73% to 95 deals in October, the value of deals fell 40% to $1.04 billion due to the shrinking deal size. Photo: Ramesh Pathania/ MintPremium
Among PE deals, even as deal volume witnessed a jump of 73% to 95 deals in October, the value of deals fell 40% to $1.04 billion due to the shrinking deal size. Photo: Ramesh Pathania/ Mint

Mumbai: Both the value and number of deals struck in October jumped more than 55% from a year ago, driven by an increase in mergers and acquisitions (M&A) during the month, according to the Grant Thornton India Llp Dealtracker.

As many as 153 private equity (PE) and M&A deals were closed during the month, adding up to a total of $4.2 billion. In October 2014, 98 deals worth $2.69 billion were struck.

The value of M&A deals surged three times to $3.14 billion compared with October 2014, primarily due to big-ticket deals closed during the month. Seven deals valued over $100 million each and one deal worth $1 billion were reported in October.

Among PE deals, even as deal volume witnessed a jump of 73% to 95 deals in October, the value of deals fell 40% to $1.04 billion due to the shrinking deal size, said Grant Thornton.

“October witnessed a total deal value of around $ 4.2 billion across over 150 transactions, which is a high growth of over 50% in value and volume terms as compared to same period last year. This growth is mainly driven by inbound transactions, which contributed $ 1.6 billion across 12 transactions clocking a growth of over seven times in value from October 2014," said Prashant Mehra, partner at Grant Thornton India Llp.

American Tower Corp.’s acquisition of 51% stake in Viom Networks Ltd for $1.19 billion, Carnival Group’s acquisition of commercial real estate property (Elante Mall, Hyatt luxury hotel and office premises with central courtyard) for $267 million and Aster DM Healthcare’s 57% stake acquisition in Sanad Hospital for $250 million, were among the top three M&A deals in October.

Since the start of the year, M&A deals worth $28.79 billion (across 486 deals) have been recorded, up by 5% from $27.51 billion worth of M&A deals (across 476 deals) closed during the same period last year.

However, year to date, PE deals are up 39% at $13.83 billion. The number of PE deals struck is up 74% to 863 deals so far this year from 497 deals in the same period last year.

PE deal activity in 2015 has been led by sectors such as IT & ITES (information technology & information technology-enabled services), energy and natural resources, manufacturing, banking and financial services, telecom and pharma.

Renew Power Venture’s $265 million fund raise from Abu Dhabi Investment Authority, Goldman Sachs and The Global Environment Fund was the biggest PE deal in October. General Atlantic’s investment of $173 million in financial services firm IIFL Wealth Management Ltd and Apax Partners’ investment of $129 million in Zensar Technologies Ltd were the other top deals last month.

IT & ITES continues to be the preferred sector for private investments, with 67% of total deal volume, the report said.

“Within this sector, the e-commerce space witnessed more than 50% investments in the current month," the report said.

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ABOUT THE AUTHOR
Swaraj Singh Dhanjal
" Based in Mumbai, Swaraj Singh Dhanjal is responsible for Mint’s corporate news coverage. For the past eight years he has been writing on the biggest deals in private equity, venture capital, IPO market and corporate mergers and acquisitions. An engineer and an MBA, he started his journalism career in 2014 with Mint. "
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Published: 13 Nov 2015, 04:59 PM IST
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