Mumbai: With the improvement in sentiments in markets, there is a strong wave of value buying in the private equity and mergers and acquisitions part of the markets. In November this, there has been considerable improvement in the total value of private equity and mergers and acquisition deals.
According to a study by Grant Thornton India, the total value of private equity and mergers and acquisitions deals in November increased by five times to US$ 10.1 billion from US$ 1.9 billion in the same month last year.
This is a good sign for investors who have been circumspective about investing in markets. Since, private equity players are one of the early strategic investors, which identify value investments in the markets.
According to the study by the advisory firm, in November this year, in terms of mergers and acquisitions, even though the number of inbound deals-foreign companies or their subsidiaries acquiring Indian businesses, has come down (to 12 deals from 16 deals, year on year), the total value of inbound deals has risen considerably.
The total value of inbound deals trebled to US$2.1 billion in November this year. Interestingly, the number of outbound deals-Indian companies acquiring businesses outside India and their total value, in November this year, showed remarkable improvement in November this year.
In November, the number of outbound deals shot up to 15 deals from 10 and its total value rose to US$6.7 billion from US$1.9 billion in the same month last year.
As regards, private equity deals, the total value of private equity deals in November this year, rose to US$39 billion from US$0.4 billion in November last year, indicating that private equity players are preferring concentrated exposure to their value investments.
In terms of sectors, around 52% of total value of mergers and acquisitions deals came from Oil & Gas sector, followed by Breweries & Distilleries (22%), and Plastics & Chemicals (11%), while the remaining value of the mergers and acquisitions came from Pharma, healthcare & Biotech and Banking and Financial services.
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