M&As rise 8% to USD 32.3 bn till Apr despite Covid wave: Report

A massive 133 per cent jump in the proceeds from initial public offerings (IPOs) has seen the deal street on a near roll in spite of the raging second wave of the pandemic, with the value of mergers and acquisitions increasing by 8 per cent to USD 32.3 billion across 437 deals till end-April this year, says a report.

As many as 28 initial public offerings (IPOs) raised USD2.7 billion in proceeds till end April, which is a massive 133 per cent more than the same time last year, according to the latest data collated by Refinitiv, which is a global leader in financial markets data, and is an arm of the London Stock Exchange.

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The deal street got the second boost from the private equity-backed deals which soared 110 per cent year-on-year with as many as 93 deals worth USD 5.9 billion, show the Refinitiv data.

Cross-border deals saw a marginal 4 per cent growth, accounting to USD 14.3 billion across 124 transactions, while strategic deals declined a marginal 3 per cent to USD 26.4 billion across 338 deals.

On the other hand, equity capital markets jumped 23 per cent with as many as 62 issues and worth USD 8 billion in proceeds, but debt capital market saw a 27 per cent decline, according to the Refinitiv data.

The numbers show that the deal activity has not been impacted much by the second wave of the pandemic as the deals rose 17.4 per cent between January 1 and March 31 to USD 25.3 billion across 97 deals -- meaning April alone concluded deals worth USD7 billion.

Also, Q1 saw a massive 20.5 per cent plunge in deal volume from 122 deals to 97 transactions. Pharma, technology, real estate, consumer and energy were active sectors in the march quarter, according to the Refinitiv data.