Deal tracker: Grant Thornton sees M&A traction improving

Excerpts from Reporter's Diary on CNBC-TV18 Watch the full show » Nifty BSE | NSE 10/02/12 Are Mutual Funds betting on Nifty?

There have been 28 deals done in September and October, according to a deal tracker report by leading specialist advisory services firm Grant Thornton. The report says that largely the deals have been on the inbound and domestic side and fewer in the outbound sector. Private equity has done extremely well with USD 1.3 billion worth of deals, the report said.

 

In an interview with CNBC-TV18, CG Srividya, Partner at Grant Thornton, spoke about the deals on the M&A front and value side in September and October.

 

Here is a verbatim transcript of the exclusive interview with CG Srividya on CNBC-TV18. Also watch the accompanying video.

 

Q: If you could tell us about the findings of the report and the kind of deals that you have seen in the month of September and October?

 

A: On the M&A front, the volumes have been very good at 28 deals. This has definitely been better than the last few months and it shows that the market is maturing and the traction is improving.

 

On the value side, it is just about USD 500 million. That again I think is primarily because there have been some large mergers where the values have not been reported but it is only the share exchange ratio which gets reported. By and large, the deals have been on the inbound and the domestic front and there have been very few deals on the outbound sector.

 

The private equity has done extremely well with about US 1.3 billion worth of deals. It is continuing the good traction it started showing from July 2009 onwards and true to the last four months most of the deals have been in qualified institutional placements.

 

However the very important significant trend here is that not all QIPs and investments are going to the real estate sectors. But this month it's been more on the non-real estate sector, which could include spirits, electronics, power, IT, ITES, metals and many other sectors.