Deal Numbers Touch A Decadal High In April Despite Covid-19 Pandemic

Achieving market leadership position appeared to be the rationale for the big-ticket domestic transactions

Topics

Private Equity | Indian markets

Deals, mergers,

The Covid-19 second wave is expected to negatively impact the deal landscape in the short term

Deal-making in April 2021 saw the highest volumes since 2011, triggered by the highest number of (PE) deals in any month. April reported 161 deals amounting to $13 billion.

This record coincides with the peak in Covid-19 cases and also reflects the importance of the time period between the first wave and second wave, which witnessed several fiscal and economic incentives and created opportunity.

Domestic mergers and acquisitions (M&A) transactions led the pack with 32 deals amounting to $5 billion, which included two transactions in the billion-dollar category. Achieving market leadership position appeared to be the rationale for the big-ticket domestic transactions. The Covid-19 second wave is expected to negatively impact the deal landscape in the short term.

chart

However, the impact is also expected to create opportunities for more transactions, going forward, and will be a matter of timing.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sun, May 23 2021. 22:31 IST

RECENT NEWS

JPMorgan Deploys AI Chatbot To Revolutionize Research And Productivity

JPMorgan has deployed an AI-based research analyst chatbot to enhance productivity among its workforce, with approximate... Read more

Private Equity And Banks: The Complex Web Of Leverage

Private equity has emerged as a significant force in the global financial landscape, driving substantial growth and inve... Read more

Financial Watchdog Highlights Unresolved Vulnerabilities In Shadow Banking Sector

The world’s leading financial stability watchdog has issued a warning about the unresolved vulnerabilities within the ... Read more

JPMorgan And Small Caps Lead Market Rally: A Sign Of Economic Optimism

In a week marked by strong financial performance, JPMorgan Chase & Co. reported a 25% rise in profits, and US small-... Read more

Big Banks Vs. Regional Banks: The Battle For Market Share

The financial industry is a competitive landscape where big banks and regional banks vie for market share. Each type of ... Read more

The Evolution Of Philanthropic Advisory Services In Private Banks

The landscape of philanthropic advisory services provided by private banks has undergone a significant transformation. T... Read more