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Private equity deal values drop to three-year low in July: Grant Thornton

Private equity investments in July declined substantially both in terms of value and volume according to the latest Dealtracker report by Grant Thornton.

Private equity deal values drop to three-year low in July: Grant Thornton
Advance Syntex is going to hit capital markets on June 30 with an initial public offering (IPO) of 21,00,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 12 per equity shares. The issue will close on July 04, 2016.

Private equity investments in July declined substantially both in terms of value and volume according to the latest Dealtracker report by Grant Thornton. While volumes declined 23% y-o-y, value was down 73% y-o-y. In value terms this is the lowest monthly investment in the last three years. This comes in the absence of big ticket investments as there were only three investments above $50 million in the month compared to 11 in July 2015.

In terms of sectoral spread, pharma and manufacturing dominated, together contributing over 70% to total M&A deal values. Of the total PE deal value of $0.7 million in July, nearly 30% came from start-ups and the other major contributor was BFSI.

Gr3

On the M&A front, cross-border deals remained at par with the previous year but there was an eight-fold increase in deal value in domestic M&A, which contributed over $2 billion in July this year. The overall M&A market witnessed significant surge in deal values (96% y-o-y) with intensive domestic and inbound deal activity. Domestic deal activity grew exponentially, over eight times y-o-y contributing over 40% of the total deal values in July 2016.

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