The size of deals was, however, higher than in June. The total M&A as well as Private Equity (PE) deals in July were up from USD 1.4 billion in June 2012, but a fall of 43.36 per cent from USD 3.69 billion in July last year, said consultancy firm Grant Thornton's Dealtracker report.
"July 2012 witnessed increase in deal value, USD 2.09 billion from USD 1.4 billion in June 2012 which is a welcome surprise in the deal market given the overall economic head-winds," said Raja Lahiri, Grant Thornton India LLP Partner - Transaction Advisory Services.
Going forward, the M&A space is likely to heat up as the economic uncertainty is providing good deals in terms of valuations.
"Companies which have cash will drive M&A deal momentum going forward since the time offers good deal opportunities in terms of valuation," Lahiri said.
Outbound deals, wherein Indian companies acquired businesses outside India were the flavour of the month, as there were 17 such transactions amounting to USD 1.30 billion.
Meanwhile, inbound deals (foreign companies or their subsidiaries acquiring Indian businesses) in July 2012 was USD 0.13 billion by way of 8 deals as compared to USD 1.50 billion through 10 deals, in the year ago period.
The total value of domestic deals in July 2012 was USD 0.28 billion (17 deals) as compared to USD 0.07 billion (19 deals) in July 2011.
Last month saw 75 transactions, lower than the 83 deals in the same period last year.
In the M&A space, the top deals included the GMR-UFS deal worth USD 0.6 billion, Grasim-Terrace Bay Pulp (USD 0.36 billion) and Crompton Greaves-ZIV Group transaction valued at USD 0.19 billion.
Top 5 M&A deals accounted for 70 per cent of the total M&A deal value, the report said.
PE deal values amounted to USD 0.17 billion (31 deals) in July 2012 as compared to USD 0.74 billion (35 deals) and USD 0.76 billion (21 deals) during the corresponding month in 2011 and 2010 respectively.
"PE/VC deal space continued to see activity in the e-commerce/internet space and renewable energy space," Lahiri said.
Stocks More on Grasim
Company INFO More on Crompton Greaves