Total value of deals involving Indian companies plunged 80% year-on-year in February, although experts said the momentum will gather pace soon spurred mainly by aviation, media, retail and pharma sectors.
According to leading assurance, tax and advisory firm Grant Thornton, there were 70 transactions worth $3 billion, of which merger and acquisition (M&A) deals were worth $2.7 billion, while private equity transaction amounted to $0.3 billion, in February.
This represents a drastic decline of nearly 80.58% from the year ago period, when the deal tally stood at a whopping $15.45 billion.
"With the 2013 budget being done and Government's focus to control fiscal deficit and bring back growth, we expect deal momentum to pick up in 2013 hopefully with cross-border action coming back in sectors like aviation, media, retail, pharma etc," Grant Thornton India Partner, Transaction Advisory Services Raja Lahiri said.
In February, inbound deals, wherein foreign firms or their subsidiaries acquired Indian entities, were the flavour of the month. In February 2013 there were $1.99 billion worth of deals through 7 transactions as compared to $0.27 billion by way of 9 deals in the corresponding month of 2012.