India sees 20% decline in M&A deals

The mergers and acquisition in India has declined by 20% registering only 42 transactions worth $899 million in August. Interestingly, according to assurance, tax and business consultancy firm Grant Thorton, 47 deals worth $1.27 billion were recorded in August 2014.

"M&A remains subdued with volumes remaining about the same but deal values coming down by about 20% as compared to same period last year. Most part of the M&A deal value has actually come from inbound investments," said Grant Thornton India LLP Partner Prashant Mehra.

It should be noted that till August, the tally for M&A deals have reached $21.23 billion recording 364 transactions. However, this is a tad lower than that recorded in the January-August period of last year, which was 367 transactions worth $22.18 billion.

"This seems primarily because the corporate balance sheets continue to be stretched for cash to invest in inorganic growth and also foreign assets having become expensive due to the recent rupee depreciation," Mehra said.

The report noted that M&A deal value has actually come from inbound investments, whereas domestic M&A activity and outbound transactions have been falling behind.

However, it has been projected that the tally is likely to improve in the coming months for domestic and outbound M&As.