In the first half of 2023, there were a whopping 11 IPOs worth $1.4 billion.
Bombay:
India Inc’s deal closing has suffered heavily from economic challenges in the first half of this year, a report said on Tuesday.
There were just 676 deals with an underlying value of $23 billion in the January-June 2023 period, down 78 percent in value and down 42 percent in volume, according to consulting firm Grant Thornton Bharat.
Mergers and acquisitions suffered the most, with a 92 percent fall in value to USD 6.685 billion, the report said, adding that there was a much higher base in the period last year, which witnessed the HDFC-HDFC mergers Bank and also LTI with Mindtree.
“The first half of 2023 witnessed a decline in deal activity in India, mainly due to uncertainties causing supply chain disruptions leading to inflation and fluctuating interest rates,” said partner Shanthi Vijeta.
However, Vijetha is more optimistic about the coming quarters given macroeconomic conditions, reduced market volatility and stable interest rates.
The private equity/venture capital (PE/VC) fund space recorded 521 deals totaling $16.4 billion, representing a 40 percent drop in volume and a 35 percent drop in value, the report said. .
$3 billion deals and 29 high-value deals in the PE/VC sector helped soften the impact of the downturn in M&A, it said.
The pharma, healthcare and biotech sectors emerged as the leader in terms of value thanks to a $1 billion deal and three other high-value deals within the industry, which were valued at $3.45 billion, the report said.
The first half of 2023 saw a whopping 11 initial public offerings (IPOs) worth USD 1.4 billion, a 35 percent drop in terms of volume and a 77 percent drop in total value compared to the same period in 2022 .
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