NEW DELHI: The Indian deal market is buzzing again with action as the concerns of pandemic die down, and economic activities getting back to normal faster than expected. According to Grant Thornton Bharat Dealtracker, a record 597 deals amounting to $30 billion were reported in the third quarter (July-September) 2021. The quarter also witnessed the highest number of IPO issues in over a decade with 18 issues amounting to $5 billion, recording an increase of 86% (in numbers of deals) in the corresponding period last year. In value terms, the quarter recorded a 31% increase.
According to the Dealtracker, this year so far has recorded 1,454 deals worth $73 billion, 25% higher than in last year ($58.5 bn). “The year witnessed growth every quarter and we expect the trend to continue for the coming quarters. The monthly expansion in services and manufacturing activity coincided with relatively low new Covid-19 cases and enhanced pace of vaccinations across the nation,” said Shanthi Vijetha, Partner, Grant Thornton Bharat.
While the deals comprise merger and acquisitions, private equity deals and initial public offers, PE deals continue to drive this space. “PE deals had an action-packed third quarter with all-time high deal activity in volumes and values at $17.1 billion, across 486 investment rounds,” says a statement issued by Grant Thornton. Both volumes and values saw a 2x increase from last year. As many as 11 unicorns emerged during the quarter.
According to the tracker, start-ups claimed a major share in deal volumes at 64%, while e-commerce trumped in deal values with 30% share. Retail and consumer, education and pharma sectors remained active together constituting 11% of PE volumes. High-value investments were also witnessed in sectors such as IT, telecom, education, banking, media & entertainment, energy, manufacturing, hospitality & pharma.
M&A deals, however, recorded a year-on-year decline in the third quarter due to absence of high-value deals. For Q3 2021, M&A deals were valued at $12.8 billion, a 10% decrease compared to last year. The IT sector dominated the M&A deal values with $5.2 billion worth deals. In terms of Initial Public offers (IPOs) and Qualified Institutional Placements (QIPs), the third quarter of 2021 recorded the highest number of issues in any given quarter, since 2011, with 18 issues amounting to $5 billion.