M&A deals sluggish in the current year, down 80 per cent in value terms
Mumbai: Mergers and acquisitions (M&A) by Indian companies have declined by 80 percent year-on-year so far in the current year. Due to high volatility in Indian stock markets and reduction in profit margins of companies, M&A deals have been sluggish.
According to the received statistics, M&A deals worth 3.30 billion dollars have been done so far in the current year, which is 80 percent less year-on-year. In terms of volume, the number of deals has been 253.
Cross-border deals by Indian companies also fell by 84 percent to $1.50 billion.
Buyers are waiting for companies' margins to improve. According to an analysis, the combined net profit of 2,790 listed companies fell by 14.20 percent year-on-year to Rs 1.49 trillion in the December quarter.
Talking about the global level, in the current year till date, there have been 50.70 billion dollars of M&A contracts at the global level, which is 70 percent less.
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