MUMBAI : Merger and Acquisition (M&A) activity in India peaked in three years with deals worth $ 90.4 billion in the first nine months of 2021, an increase of 35. 1% compared to the same period a year ago, according to a report from financial markets tracker Refinitiv. The number of transactions increased 10.1% year over year.
The average deal value in the first nine months of 2021 totaled $ 105 million, up 14.4% year-over-year as 17 deals over $ 1 billion were announced during of this period. Those 17 deals totaled $ 38.8 billion, compared to 12 deals worth over $ 1 billion with a total of $ 30.1 billion in the first nine months of last year. .
Domestic mergers and acquisitions activity was $ 34.5 billion, up 14.1% in value from a year ago. Piramal Capital & Housing Finance Ltd, a unit of Piramal Finance Ltd, acquired the entire share capital of Dewan Housing Finance Corp Ltd for a total of $ 4.7 billion ( ??342.5 billion), which was the largest transaction in the first nine months.
India’s inbound mergers and acquisitions activity grew 66.4% year-over-year to $ 48.6 billion, the highest period in first nine months since the record began in 1980.
The United States was the most active foreign acquirer in India with $ 20.3 billion in transactions, up 19.3% from a year ago and accounting for 41.7% of the shares of India’s inbound mergers and acquisitions market.
Outbound M&A deals hit a three-year high and totaled $ 4.5 billion, up 18.2% from a year ago. The UK was the most targeted country in terms of Indian business value with 15 deals worth $ 2.1 billion, or 47.2% market share, while the US recorded the highest number of acquisitions with 41 transactions worth $ 1.4 billion, or 31.6% market share.
The majority of trading activity involving India has targeted the financial sector which totaled $ 21.9 billion in transaction value, up 156% from a year ago and captured a market share of 24.2%. Energy and electricity accounted for 15.2% market share after growing 12.1% in value to $ 13.7 billion. High tech, which recorded the most transactions, captured 14.0% and saw value growth of 182.7% year-on-year to a value of $ 12.7 billion.
On the other hand, India’s Equity Capital Markets (ECM) raised $ 22.1 billion in the first nine months of 2021, a 32.7% drop in proceeds from the first nine months of 2020, despite a decline. 65.6% growth in the number of ECM offers as transactions. were made in smaller value.
The follow-up offers, which accounted for 58% of India’s overall ECM proceeds, raised $ 12.7 billion in the first nine months of 2021, down 57.1% from a year ago. was one year old, but the number of follow-up offers grew 23.0% year-over-year. year.
Initial public offerings (IPOs) by Indian issuers in various industries hit record highs, with companies raising a total of $ 9.2 billion in the first nine months of 2021, more than four times the amount raised during the same period last year. The number of IPOs also jumped 160.7% year on year.
More than half of the proceeds from the IPO were raised in the third quarter of this year, which saw 34 IPOs worth $ 5.1 billion. Zomato’s $ 1.3 billion IPO in July is the largest Indian transaction to date this year, and the largest since SBI Cards & Payments Services listed $ 1.4 billion in March 2020.
ICICI Bank Ltd currently leads the ECM underwriting rankings in India with $ 2.5 billion in related products and 11.3% market share, according to the Refinitiv report. JP Morgan and Axis Bank round out the top three, with 9.5% and 8.8% market share respectively.
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