Topics In Demand
Notification
New

No notification found.

Analysis of India’s M&A, Equity Investments, and Exits in 2021
Analysis of India’s M&A, Equity Investments, and Exits in 2021

August 19, 2021

353

0

The recently released edition of Nexdigm (SKP)’s Investment Chronicle provides a brief overview of India’s deal-making landscape in January to June 2021. In the publication, Tanwir Shirolkar, Director- Transaction Advisory Services at Nexdigm focuses on the deal-making landscape in India, comprising Mergers and Acquisitions (M&As), equity investments, and exits.

Despite the challenges posed by India’s second wave and looming concerns around a third wave, deal-making in the first half of 2021 has shown considerable resilience, with 1,207 deals valued at USD 47.35 billion. H1 2021 has witnessed a growth in value terms of 13% vis-à-vis H1 2020. In Q1 2021, 52% of the deal value was contributed by M&A, however, the weightage shifted to Equity Investments contributing 46% in Q2 2021. After the dip in the first half of 2020, the improving deal volumes were primarily driven by consistent growth in Equity Investments. A total of 781 Equity Investments were witnessed in H1 2021 vis-à-vis 569 deals in H1 2020 and 669 deals in H2 2020.

sdf

Source: Nexdigm’s Investment Chronicle | Jan-Jun 2021

Despite anticipated challenges, PE/VC firms have maintained enthusiasm in Indian markets owing to confidence in the recovery and long-term potential of the Indian market, lucrative opportunities in the startup space, and promising entrepreneurial talent. Investors continued to allocate capital and tap into deal opportunities in the recovering landscape as the Indian economy demonstrated adaptability and agility. Ongoing vaccination drives, recovery of several COVID-19 affected sectors, upscaling technology, and digitization of work areas reinforced anticipations of a strong recovery. The upside in market sentiment and investor confidence can be gauged from the fact that the IPOs of several small companies were largely oversubscribed.

Government initiatives for boosting the manufacturing segment in the form of Production Linked Incentive (PLI) schemes and relaxations in tax norms are aimed at upholding investor confidence through challenging times. Backed by a clear focus on strengthening the domestic supply chain and export capabilities combined with interest of global companies in decentralization of operations, the recovery of the deal landscape is expected to continue in the coming months.

For a more details of deal values, rationales for indicative transactions, industry and sectoral insights, and crucial investments,
click here to read the complete report.

Article excerpt by Tanwir Shirolkar, a Director in the Transaction Advisory Services practice of Nexdigm (SKP).


That the contents of third-party articles/blogs published here on the website, and the interpretation of all information in the article/blogs such as data, maps, numbers, opinions etc. displayed in the article/blogs and views or the opinions expressed within the content are solely of the author's; and do not reflect the opinions and beliefs of NASSCOM or its affiliates in any manner. NASSCOM does not take any liability w.r.t. content in any manner and will not be liable in any manner whatsoever for any kind of liability arising out of any act, error or omission. The contents of third-party article/blogs published, are provided solely as convenience; and the presence of these articles/blogs should not, under any circumstances, be considered as an endorsement of the contents by NASSCOM in any manner; and if you chose to access these articles/blogs , you do so at your own risk.


Nexdigm

© Copyright nasscom. All Rights Reserved.