Monthly Dealtracker – June 2021

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Despite the second wave of COVID-19, 44% increase in deal values and 21% in deal volumes compared with May 2020

May registered 121 transactions aggregating to USD 8.2 billion. This translates to 21% hike in the deal volumes and 44% increase in deal values compared with the corresponding month last year. This came on the back of mergers and acquisitions (M&A) deal activity that was limited in May 2020 due to a nationwide lockdown consequent to the first wave. During the current second wave, deal activity continued unhindered as corporates were in advance stages of deal making and had adapted to the covid situation. Since lockdowns are more ‘localised’ now, the deal activity is expected to continue the trend.

Recent deal activity indicates that deal makers have recognised that there will be short-term hiccups and disruption from COVID-19, but the growth prospects of select sectors/businesses are strong. Government’s impetus to manufacturing sector and infrastructure is likely to bring in deal interest in those spaces too. With streamlined vaccination programme, favourable policy initiatives and global outlook, the recovery is expected to be immediate, which should be conducive for more deal activity.

Key highlights of the publication

  • 121 deals, 44% increase in deal values and 21% in deal volumes, compared with May 2020
  • YTD 2021: 39% increase in deal volumes with strong 15% increase in deal values

M&A snapshot

  • 37 transactions totalling to USD 5.3 billion
  • IT sector with nine deals leads in volumes, while energy and natural resources lead on value
  • Adani Group’s acquisition of SB Energy India for USD 3.5 billion - largest acquisition in the renewable energy sector in India
  • Three out of five deals in the cleantech space
  • One deal each in the energy and e-commerce sectors (worth more than USD 1 billion) and the education sector (valued at USD 200 million)

 PE snapshot

  • 84 deals valued at USD 2.9 billion
  • Start-ups drive volumes with 62% share, transports and logistics capture values with 25% share
  • Blackstone Group’s investment in Embassy Industrial Parks - largest PE deal for the month -  also one of the largest investments in the Indian logistics and warehousing segment
  • Two e-commerce companies join the unicorn club. Urban Company (on-demand services segment) with latest USD 191 million funding and Moglix (retail segment) raised USD 120 million. Moglix is also the second unicorn to emerge this year in the B2B commerce sector