NEW DELHI: According to an estimate, the overall value of deals fell by 60% to USD 1.8 billion in February, signalling a worsening funding crunch for startups and a nearly complete lack of Initial public offerings (IPO).
As investors continued to exercise caution in the face of macroeconomic worries, the industry saw only 89 agreements totaling USD 1.8 billion in February, which is 60% less in value terms than the same month last year and 54% less in volume.
This is the second-lowest deal volume and the lowest value since 2014. Of the total deals, M&As saw significant downtrend both in terms of volume which fell 48 per cent to 24 deals, and by 47 per cent in value clocking at USD 755 million compared to February 2022. The IPO segment was the worst with just one issue of USD 8 million, compared to three issues raising USD 1 billion a year ago.
While Merger and Acquisitions were dominated by cross-border deals, particularly outbound transactions on the back of one big-ticket transaction of USD 578 million, volume continued to be dominated by domestic consolidations accounting for 67 per cent of transactions. The pharma, healthcare and biotech, and IT and Information Technology Enabled sectors led the deal activities with 17 per cent and 13 per cent of the volume, respectively, followed by the automotive sector thanks to the Autosystemtechnik's acquisition by Motherson International for USD 578 million.
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