HDFC-HDFC deal volume hits record high in April

The deal volumes between HDFC Bank and parent HDFC, the biggest ever deal in the country, went to a record high of $46.3 billion in April 2022, a report from a consultancy firm said on Thursday.

The same number had stood at $12.91 billion in the year-ago period and $8.7 billion in 2020, making it clear that there are clouds of uncertainty in the deals landscape for the near-term, according to a report by Grant Thornton Bharat.

Various domestic macro factors such as tax revenue growth, improvement in consumption, and industrial high frequency indicators, and others could likely cloud the near-term growth prospects, according to the geopolitical concerns and rising global inflation. Shanthi Vijetha's partner said that they are supportive of economic growth and positive news for deal making.

There were 183 deals in the month, with startups, information technology, banking and media dominating the market.

There were 45 deals worth $42.73 billion on the merger and acquisition front, which was a 676 per cent jump in activity by value.

Private equity investments came at $3.6 billion over 138 deals, a 52 per cent drop in value terms due to the absence of big-ticket deals, it said.

It said that the start-up sector continued to drive volumes, with a 71 per cent share of PE volumes with investment values of $0.9 billion.

It added that there were eight high-value investments of $100 million and above in five sectors, including media, banking, e-commerce, start-up and real estate.