Deal activity in India May: Deal activity in India grows 3.2% in May, although APAC records a drop: report

Transaction activity (including M&A, private equity and venture finance deals) in India rose 3.2% in May, although the Asia-Pacific region as a whole saw a sharp 12.7% decline in May from 1,330 deals to 1,161 deals this year, reports from GlobalData, a data analytics company, revealed.

This is the second straight month-to-month decline in the number of deals in the region. In addition, the transaction volume also fell below the monthly average of the first quarter of 2022, the company said.

The decline is due to the rise in Covid-19 cases and recession fears emerging in key markets.

Major markets in the APAC region saw sharp declines this month. New Zealand saw the sharpest drop of 42.9%, while other key markets including China, Japan, South Korea, Singapore, Indonesia and Malaysia saw transaction volume declines of 14.8%, 42.7%, 2.3%, 9, 9%, 36.4% and over recorded 40% and

On the contrary, a few markets saw transaction volume growth in May. Hong Kong recorded 21.7% growth, followed by Australia (15.2% growth) and India (3.2% growth).

Deal types also saw a drop in volume. The transaction volume for private equity fell by 21.8%. Meanwhile, M&A and venture capital deal volume also declined, down 15.5% and 9.9%, respectively.

“Deal activity in the APAC region has borne the brunt of subdued deal-making sentiment driven by an increase in the number of COVID-19 cases in some of the key markets such as China and looming recession fears,” said Aurojyoti Bose , senior analyst at GlobalData.

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