Merger, acquisition activity low in India in Oct 09: Grant Thornton

Mumbai, Nov 6 : Merger and acquisition activity in India was relatively low during October 2009 with the total deal value being about half a billion dollars.

According to Grant Thornton Partner for special advisor services, C G Srividya, the deal size for the month was lower than the levels reported in the last four months. There have been a few large mergers, which took place during the month, but the deal values have not been annoucned so far.

Deal values continue to be driven inbound and domestic, the report released byGrant Thornton here said.

Private equity is sustaining high levels of activity with USD 1.3 billion worth of deals during this month, primarily coming from qualified institutional placements. However, the proportions of real estate QIPs have significantly come down for October 2009. New equity and debt issues have continued to show good traction.

The total number of M&A deals during the first 10 months of 2009 stood at 234 deals with an announced value of USD 7.66 billion as against 405 deals amounting to USD 27.12 billion during the corresponding period in 2008. The total number of M&A deals announced during the calendar year 2008 stood at 454 with a total announced value of USD30.95 billion.

The total number of PE deals during the first 10 months of 2009 stands at 185 deals with an announced value of USD8.67 billion as against 273 deals amounting to USD 9.49 billion during the corresponding period in 2008. The total number of PE deals announced during the calendar year 2008 stood at 312 with a total announced value of USD 10.59 billion.

In October 2009, four IPOs were listed which raised a sum of USD 0.44 billion from the public. The total amount raised through IPO during the first 10 months of 2009 was USD 3.10 billion from 14 IPOs.

The total amount raised through IPO during the period from January-December 2008 was USD 4,508.85 million from 44 IPOs.

The estimated debt raised through public issue for the month of October 2009 was USD 1.33 billion from seven debt issues. The total estimated amount raised through debt during the first 10 months of 2009 was USD 2.66 billion from 10 debt issues.

--UNI

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