"There has been a significant level of activity in M&A and PE transactions during the first half of 2011," Grant Thornton India Partner and National Leader – Valuation Services Srividya C G said, adding that PE investments witnessed a substantial upsurge in comparison to the previous year.
While the M&A deal value so far this year is 7 per cent lower in comparison to the same period last year, PE investments have risen by over 70 per cent.
The first six months of this year saw M&A deals worth USD 26,743 million, while in the corresponding period last year, the deal value amounted to USD 28,892 million.
A notable trend in M&A in 2011 has been the shift from outbound deals to inbound deals.
"Several inbound deals have happened at premium valuations showing that Indian businesses have become attractive investment opportunities for global corporates," Srividya said.
The total value of outbound deals, wherein Indian companies acquired businesses outside India, stood at USD 5,893 million, while the total value of inbound deals (foreign companies or their subsidiaries acquiring Indian businesses) was a whopping USD 17,442 million.
There were five deals valued at over a billion dollars each transacted during the period, four of which were inbound, Grant Thornton said.
In the January-June period, the total value of PE deals amounted to USD 5,089 million, up 70 per cent from last year, when the figure stood at USD 2,950 million.
"Real estate and infrastructure have once again become the most attractive PE investment sectors during this period, attracting close to a billion dollars worth of investment," Srividya said.
The other key sectors in the PE sphere so far this year include automotive, manufacturing, banking & financial services and power and energy, the report said.