Deal volumes double, value rises 24% to $9.2bn in Oct

Bengaluru: India witnessed 221 deals valued at $9.2 billion in October, a 11% increase in deal activities compared to September, showed data from Grant Thornton Bharat Dealtracker. Compared to October 2020, the volumes doubled, and values rose 24%.
The total M&A transaction stood at $3.3 billion across 61 deals, which is a multi-fold increase both in terms of deal volumes and values, as compared to October 2020.Positive domestic business sentiment across sectors and global economic recovery continue to aid the overall trend. Startup and IT sectors continued to drive M&A volumes, accounting for over half the deals with a value of $391 million. October also saw the emergence of five new unicorns – CoinSwitchKuber, Acko General Insurance (both fintech), Faasos, Licious (both food tech), and Vedantu (edtech).
Domestic consolidation continued to dominate the M&A segment, with 79% of M&A deal volumes. This included a marquee deal – Tata’s acquisition of Air India. Compared with September, although the volumes almost doubled, it fell 48% by value. “October has been encouraging, both in terms of deal volume and deal value, indicating the continuum in deal activities. While volumes recorded a 2x increase over October 2020, deal values saw a strong 24% increase. The economy is being bolstered by the rapid improvement in high-frequency indicators such as the e-way bills, GST collection, power demand, rail freight and exports growth. The current pace is likely to re-establish economic growth momentum,” said Shanthi Vijetha, partner, Grant Thornton Bharat.