India’s financial capital, Mumbai, continues to be a hotbed for private investments as well M&A activity in the country in 2015, according to data from VCCEdge. Mumbai led the private investment race drawing deals worth $5.5 billion over 289 deals, while Bengaluru came in second as it drew investment worth $3.4 billion across 304 deals, according to the firm.
On the merger and acquisition front, Mumbai led the pack with 180 deals worth $4.6 billion. New Delhi and Bengaluru secured the second spot in value terms with $733 million investment, over 112 and 104 deals respectively.
However, the report pointed out that overall M&A deal value declined 31.5 per cent to $22.9 billion in 2015, compared to $33.5 billion in 2014. The aggregate deal value is less than the previous year, while the volume grew to 938 deals in 2015 when compared to 892 deals in 2014.
The data also showed that deal value declined significantly for domestic M&A deals, though both inbound and outbound deals grew significantly. Domestic M&A deals fell 58.5 per cent to $8 billion during the year.
Inbound and outbound deal value grew 70 per cent to $7.8 billion, and 95 per cent to $5.1 billion, respectively, during the year, it added.
VCCEdge report also said private equity inflow hit $21 billion for the full year 2015, beating the previous high of $18 billion in 2007, just ahead of the 2008 financial crisis.
The 2015 private equity inflow grew 67 per cent from $12.5 billion in 2014. The data excludes real estate and venture debt. The data also showed that deal-making hit an all-time high with 1,375 deals being recorded during 2015, surpassing the deal volume witnessed in any previous year in the history of Indian private equity. Compared to 934 deals clinched in 2014, the deal volume surged 48 per cent in 2015.
