A gap of 76 percent in M&A in the first six months of the current year

Mumbai: In the first six months of the current calendar year, the value of mergers and acquisitions (M&A) in the country has fallen by 76 percent year-on-year to $3.20 billion. However, there has been a 12 percent increase in the amount of money raised by Indian companies from abroad.

In the period of January to June 2022, there were 1914 deals worth 13.42 billion dollars of M&A, compared to 1201 deals worth 3.20 billion dollars in this period of the current year, according to a report.

Even as the country's stock markets hit new highs, M&A deals are on the decline. According to a report, the decline in deals has been seen due to macro economic challenges such as Russia-Ukraine war, high inflation, fear of recession.

Global rather than domestic factors have affected the MND agreement. Inflation and high interest rates have reduced investors' appetite for investment.

Gaps in the valuation of new-age technology-based companies at home have also slowed investment and shaken investor confidence.

M&A's outlook for the remaining six months of the current year is mixed. Several contracts are currently under process, the report also noted.

Meanwhile, according to another report, the amount of funds raised by Indian companies from abroad increased by 12 percent year-on-year to 9.70 billion dollars in the first six months of 2023. In the first 6 months of 2022, the figure was 8.60 billion dollars.