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Dealtracker January 2015 – M&A and PE deal insights

We are pleased to present the January edition of Dealtracker, that captures the deal activity in India in January 2015.

The highlights of the report are as follows:

  • In January 2015, the Indian deal market witnessed financial and strategic deals worth US$ 3.4billion (118 deals), as against US$ 1.6billion (87 deals) in January 2014, and US$ 1.2billion (74 deals) in the corresponding month of 2013. However, January 2015 saw lower deal activity when compared to the previous month December 2014, which contributed 105 deals to the tune of US$ 4billion.
  • Inbound deals have seen a 238% increase in the deal value led by the Herman – Symphony deal worth US$ 780million and 3 other deals over US$ 100million each. There have not been too many big-ticket outbound deals, despite a jump in volume of 166% increase in volume.
  • The upward trend in PE investment activity continued in January, with 74% higher deal values and 30% volumes compared to the corresponding month in the previous year.
  • IT&ITES continued to lead both M&A and PE activity in India, M&A majorly driven by consolidation trends within the sector. While large deals in the sector were mainly in the IT consulting and IT solutions space, acquisition trend continued in the intensely robust e-commerce segment. PE players showed greater interest in IT & ITES (e-commerce in particular), which drove both values and volumes.
  • The month saw big ticket investments from global PE players in the Indian hospital sector. BFS also witnessed renewed interest, with Ujjivan Financial receiving close to US$ 100million of funding, making it the single largest investment in a microfinance lender in India.

Prashant Mehra, Partner at Grant Thornton India LLP says:
Deal activity continues to be robust with January witnessing a total of 118 deals contributing US$ 3.4 billion which is 36% higher in volume and 112% in value as compared to January 2014. IT&ITES continues to lead both M&A and PE activity in India with M&A majorly driven by consolidation trends within the sector and PE still maintaining the sector as flavour of the month. Outbound activity though has grown in volume but otherwise remains sluggish, however this is expected to change soon as Indian acquirer’s balance sheets are gradually coming out of the red. Inbound deal value has more than doubled. Though this is primarily because of the big ticket Herman-Symphony deal, the estimate by the Ministry of Statistics and Programme Implementation that India will demonstrate a growth rate of 7.4% will perhaps lead to higher inbound activity and also drive domestic investment.

Please write to us at for a copy of the report.