India Inc mergers and acquisitions (M&A) deal value rose 17 per cent to USD 4.57 billion despite a fall in volumes during July primarily due to big-ticket inbound and outbound transactions, says a report.
Deals worth USD 3.9 billion were witnessed in July 2014, according to accountancy and advisory firm Grant Thornton's monthly dealtracker report.
The number of deals dropped 10 per cent to 46 in July 2015 from 51 in the same period a year ago.
"M&A deal values increased 17 per cent year-on-year despite a 10 per cent year-on-year fall in the overall deal volumes," Grant Thornton said in the report.
"This was primarily due to big-ticket inbound and outbound deals which drove average deal size in this segment," it added.
However, M&A deal activity showed a decline of 3 per cent in terms of value for the seven months ended July 2015.
Deals worth USD 20.34 billion were recorded in January-July period this year compared to USD 21.05 billion in the same period a year ago.
"M&A deal activity remained subdued due to lower mergers and internal restructuring," it said.
Meanwhile, the report said that private equity marked the highest activity for a month in 2015 with deals worth USD 2.15 billion in July - an increase of 16 per cent from year-ago period.
Volumes in private equity investments also doubled to 110 in July over the corresponding month last year.
"PE activity continues to show promising trends as the overall macro level indicators continue to look positive, whereas domestic M&A activity has been slipping," Grant Thornton India partner Prashant Mehra said.
Mehra noted that passage of GST bill in Parliament, inflation remaining under good control, expected increase in government spending, among other factors, should help M&A activity "swell upwards".
Energy and natural resources, banking and financial services and pharmaceutical attracted big ticket deals valued over USD 100 million in July, the report said.
Lupin's acquisition of Gavis Pharmaceuticals for USD 880 million in July was the largest acquisition by Indian pharmaceuticals company in the US.
With more than 60 per cent of total volume, IT & ITES continued to be the preferred sector for PE investments, in the month.
Sectors like telecom, real estate and manufacturing also witnessed big ticket PE investments of over USD 100 million.
