India inbound M&A volume touches $23 bn in 2011: Dealogic

India inbound M&A volume touches $23 bn in 2011: Dealogic

New Delhi: India’s inbound M&A volume has surged to $23.4 billion in 2011 with the United Kingdom emerging as the top acquiror.

According to global deal tracking firm Dealogic, India’s inbound M&A volume has surged to $23.4 billion till last week, slightly behind the record volume announced in the same period of 2007.

The UK has emerged as the top acquiror into India with deals worth $15 billion, much more than the corresponding period in 2010, when the year-to-date inbound deal volume stood at $151 million, the report said.

BP’s $9 billion bid for 23 oil and gas blocks from Reliance Industries in February 2011 was the most significant transaction by the United Kingdom into India.

The top acquirer nations into India so far in 2011 was the UK, which was responsible for 64% of inbound M&As, followed by the United States (17%), Germany (6%), Japan (4%), Denmark (3%).

Though year-on-year there has been an increase in inbound M&A volume so far this year, on a quarter on quarter basis there has been a significant decline.

India inflow M&A volume totalled to $3.3 billion in the second quarter of 2011, down a whopping 83% from the record quarterly volume of $20.1 billion achieved in the first quarter of 2011, Dealogic said.

Meanwhile, the equity capital market (ECM) volume for India so far for 2011 stood at $7.8 billion, almost half of the record high achieved in the same period under consideration in 2010 at ($15.4 billion).

Deal activity has also dropped to 55 deals in 2011 so far, a 40% decline year-on-year, Dealogic said.

The share of initial public offers in the India ECM volume stood at 9.8%, while follow-n offers accounted for 81.2%.

The report further noted that the Indian core investment banking revenue reached $271 million so far this year - down 24% from the year-to-date record achieved in 2010 ($368 million).