The Covid-19 pandemic has walloped inbound investments (down 64 per cent) in the first quarter of 2020, pulling down the overall deal-making activities by over 31 per cent to USD 18.7 billion despite a good show by domestic and outbound activities, says a report.
Despite the fall, India saw 87 deals in Q1, securing 15.4 per cent market share in the APAC region, almost on par with 2019 levels, according to the data collated by Mergermarket. The 31.1 per cent plunge in overall deal-making was driven by very low inbound deals which plunged 63.9 per cent, but both outbound and domestic deal spaces remained hectic, it added.
While the domestic deal market saw an 11.1 per cent growth, outbound deals grew by around USD 500 million.
“Deal-making might regain momentum in the second half thanks to steps taken by the Government to attract foreign investors. Medical and e-commerce firms may also become magnet for investment,” the report said.
According to the data, the overall deal-making has been recorded at USD 18.7 billion across 87 deals in Q1, a fall of 30.1 per cent in terms of value, but still securing 15.4 per cent market share in the APAC region deal chart, almost on par with 2019 levels.
Four of the top 10 deals were driven by the government selling state-owned assets, pushing domestic deal making up by 11.1 per cent to USD 13.4 billion and 54 in total, compared to the year-ago period when it stood at USD 12 billion across 57 deals.