India M&As halve to $7.7 bn in first quarter

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India M&As halve to $7.7 bn in first quarter
The more than 6% drop in M&A deals recorded in the January quarter witnesses a further fall. The M&A deals, that also include Indian firms, have more than halved to $7.7 billion in the June quarter, resulting a decline in deal size to about $ 90 million as against $ 192.4 million in the three months ended March.

As per the analysis by Ernst &Young, the fall, that recorded only 212 M&A deals in the last three months, resulted from the high inflation and weak stock market.

Commenting on the same further, E&Y said, “This deal value is 55.3% lower than the previous quarter's value of $17.3 billion." The deals recorded in the January quarter were 226.

Commenting on the high inflation, E&Y Partner and National Director (Transaction Advisory Services) Ranjan Biswas, said, “After regaining momentum in the previous quarter, M&A activity in India has again slowed down owing to rampant inflation, dented stock market sentiments and concerns over GDP growth expectations."

He further mentioned that the tightening of the monetary policy that resulted due to the high inflation further pushed the financing cost higher.

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