New Delhi: The total value of merger and acquisition (M&A) deals made by Indian companies in April dropped 73% on-year to Rs $1.97 billion as against $7.44 billion in the same quarter last year, due to lack of big ticket deals, according to consultancy firm Grant Thornton India LLP's report.
In terms of number of deals, a total of 60 M&A deals were signed in April, as compared to 64 such transactions in the same period a year ago, the report said.
"The uniform trend in all segments is a drop in average deal values the reasons for which could be lower appetite for larger deals and dip in valuations," Harish H V Partner, India Leadership Team, Grant Thornton said.
Meanwhile, the total value of inbound deals, wherein foreign companies acquired Indian businesses, was at $1.1 billion in the month through 21 transactions and outbound deals, wherein Indian firms acquire businesses outside India, was at just $0.4 billion via 7 deals.
The average deal size also fell during the period to $32.94 million.
Besides, a total of 32 domestic deals worth $0.5 billion were signed during the month, as against $0.2 billion through 25 transactions in the same period last year.
According to the report, the 26% stake acquisition by Japan's Mitsui Sumitomo Insurance Co Ltd in Max New York Life Insurance Co Ltd for $530 million, which marked the exit of the US-based New York Life Insurance Co from the Indian joint venture, was the largest deal in the month.
"The top five M&A deals accounted for 69% of the total M&A deals values," the report said.
The second biggest deal was acquisition by India Hospitality Corp of Adelie Food Holdings Ltd for $350 million, followed by Roquette Freres' 60% stake buy in Riddhi Siddhi Gluco Biols for $190 million.
Some of the other deals include, Aditya Birla Nuvo Ltd's 44% stake acquisition in the Kishore Biyani-led Future Group's Pantaloon Format business for $160 million, and Dutch commodities trader Trafigura Pte Ltd's 24% stake buy in Hyderabad-based Nagarjuna Oil Corp Ltd for $130 million.