Deal activity via M&As and PE dropped in October compared to the same period last year, even as the month failed to witness any big-ticket transaction, a deal tracker report released by Grant Thornton indicates. October witnessed M&A deals worth $3.775 billion, compared with $17.321 billion for the same month last year. The significant decline in deal value compared to the previous year could be attributed to high deal values in October 2016, the report said. The banking & financial sector led the deal activity by contributing 69% of total value, the report said. IndusInd Bank’s merger with Bharat Financial Inclusion for $2.4 billion drove values in this sector.The IT & ITeS sector led deal volumes by capturing 23% of the same because of revived domestic investors interest in the IT solutions space, Grant Thornton said in the report.
“The month also witnessed a landmark deal with Blackstone’s acquisition of Anand Jain-promoted Urban Infrastructure Opportunities Fund, as private equity secondaries transaction of this nature has never been executed till date in India,” the report said. Prashant Mehra, partner at Grant Thornton India, said October M&A and PE activity witnessed more than 90 transactions valued at around $5.3 billion. “This was a decline from the same period last year, but that was primarily because of some big-ticket transactions in October 2016 such as Rosneft PJSC, Trafigura and United Capital’s acquisition of Essar Oil,” Mehra points out.