Capital Market at the center of investment action - VCCEdge Q3 2017 Deal Report

VCCEdge, the financial research platform of VCCircle, has released the Deal report for the quarter ending September 2017. The report presents a data-driven overview of PE, M&A and Equity Capital Markets deals in India, with sector and region-wise analysis. The quarterly report includes a special "startup" section, this is in keeping with our focus on startup related news and analysis we present in the "VCC Startups" section on our website [www.vccircle.com](. Capital markets, which are in a state of buoyancy since the start of the year, continues to be at the centre of investment action. The initial public offering (IPO) activity in India is headed for a record year, dominated by the SBI Life Insurance Co which raised USD 1.3 billion on BSE, one of the largest by proceeds in EMEIA this quarter. Firms seeking capital, in particular, companies in the financial sector, flocked to the equity markets to garner what turned out to be the highest level of fund raising through the public route in the last five years. PE: Investors fund with caution PE deal activity continue to slump during the quarter ending September 2017. PE investors' seem to be extremely cautious and selective, this is clearly reflected in the steep decline in the deal activity and value as compared to the previous quarter this year. That said, the marked rise in the mean and median deal value Y-o-Y, indicating investor's confidence in strongly backing firms in which they find value and favourable valuations as against the same period last year. PE exit activity declined further and hits its lowest in five years in Q3 2017, however the value remained strong on the back of couple of large exits through IPOs. Open market deals, along with mergers and acquisitions were the most active route of exit as well, however the activity and value across both the categories has declined considerably in quarter ending September 2017. Exits in the healthcare sector dropped significantly, and nearly halved in the in IT, Financials, Consumer Discretionary, Industrial, and Material sectors as against the same time last year. M&As: Deal value hits a five year low Q3 2017 was the weakest quarter for merger and acquisition value in 5 years with deal value down 51% on Q-o-Q basis and 81% on Y-o-Y basis. This quarter saw companies engaging in smaller deals. Q3 2017 did not witnessed any mega M&A deals unlike preceding quarters, this quarter saw companies engaging in smaller M&A activity. ECM: Remained strong on back of IPOs ECM deal value of $4.8 billion in Q3 2017 across 38 deals, saw its highest level in the last 18 quarters. Deal values more than quadrupled Y-o-Y indicating big-ticket deals in Q3 2017. There has been strong activity in the insurance sector due to regulatory changes and a number of major insurance companies are getting ready for IPO. Listing of SBI Life Insurance IPO, one of the largest in this quarter, demonstrates the strengths of the Indian IPO environment and the continued buoyancy in the equity markets. IPOs lead the ECM activity and investment value with 38 deals accounting for 66% of the total ECM deal value. Startups: Investment activity nose-dived further The number of startups that received angel or seed funding in the three months through September plunged to the lowest level in at least two years as investors remained wary of backing untested entrepreneurs. The slowdown in angel and seed investments also dragged down overall venture capital funding in India during the third quarter of 2017, indicating that most startups are still struggling to attract investors VCCEdge is a leading player in providing India centric financial, deal and company information. The platform has in-depth profiles of private and public companies, deals including private equity, venture capital, M&A, equity capital market issues and debt offerings, key developments, and detailed data on investors and their portfolios. VCCEdge provides information on demand and helps reduce research time, for users including, strategy managers, investors, bankers and consultants. [Download report]( For more information on our products, please feel free to reach out to Vijay Prakash Rai ([vijay.prakash@vccircle.com](mailto:vijay.prakash@vccircle.com;), +91-9987526393). [vccircle]( A-83, Ground Floor, Sector - 2, Noida - 201301, Phone: 0120-4171111 Mosaic Media Ventures Pvt. Ltd., A-83, Ground Floor, Sector 2, Noida, 201301, India [Unsubscribe](