According to Grant Thornton, private equity (PE) investments witnessed a year-on-year increase of 58% in volume terms and 48% in value terms, driven by four large deals during May. Also, PE deals increased 66% year on year, recording large investments in sectors like IT & ITES, banking and financial services, pharma, real estate and manufacturing. However, M&A deal activity in May declined, both in terms of volume and value. There were 115 deals worth $3.3 billion, which was higher in terms of volume (21%) but lower in terms of value (37%) on a year on year basis. The decline can be attributed to lower domestic and inbound M&A deal values, primarily due to fewer big-ticket deals this month.
Grant Thornton said YTD May 2015, M&A and PE together accounted for 23 deals valued over $100 million each and 20 deals over $50 million each. The month witnessed the sixth-largest overseas acquisition in the pharma sector by an Indian company. In May, Strides Arcolabs acquired Aspen Pharmacare’s generic drug business in Australia for $300 million, the sixth-largest overseas acquisition in the pharma sector.