PremiumListen to this article |
The mega-deal worth $10.5 billion acquisition of cement major Holcim by Adani Group, has lifted India Inc's deal value to more than double in May this year at $19.1 billion with 190 transactions. A year ago same month, the deal was valued at around $7.965 billion.
The overall deal includes mergers and acquisitions, a private equity landscape, and public market activity like IPOs.
When compared to April month, the overall deal value declined by 59% in May because of the $40 billion merger deal between HDFC Bank and HDFC that was inked in April, as per the latest report of Grant Thornton Bharat.
Last month, Adani Group signed a binding agreement with Holcim to acquire a 63.11% stake in Ambuja Cement, which owns a 50.05% interest in ACC, as well as its 4.48% direct stake in ACC. The transaction is expected to close in the second half of 2022.
Apart from the Adani-Holcim deal, the Grant Thornton report highlighted that in May, the $2 billion investment deal in Viacom18 by Reliance and Bodhi Tree. Also, 13 other high-value deals were amounting above $100 million aggregating to $5.1 billion in the month under review.
In terms of volume, the number of deal transactions rose to 190 in May compared to 120 in the same month last year. Also, the volume increased by 3% from the previous month.
The firm's partner Shanthi Vijetha said, "Start-up, e-commerce and IT-led the deal volumes for the month, while manufacturing, media and entertainment, and energy topped the overall value," reported by PTI.
Under merger and acquisition, there were about 40 transactions in May 2022 valuing $11.9 billion and more than a fourth of those came from the startup sector, which witnessed 11 deals valued at $70 million.
Further, the report highlighted that private equity investments garnered record values and volumes at $7.2 billion across 150 deals in May - which was a 169% higher in terms of values and an 81% surge in deal volumes.