PE/VC FUNDS STRIKE $1.7 BN BUYOUT DEALS IN JULY

The wholesale price-based inflation stood at (-) 0.58 per cent in July, even as food items turned costlier. WPI inflation in June was at (-) 1.81 per cent, while for the month of May and April it was (-) 3.37 per cent and (-) 1.57 per cent, respectively. Inflation was at 1.17 per cent in July 2019. Inflation in food articles in July stood at 4.08 per cent, as against 2.04 per cent in June. But fuel and power basket inflation fell 9.84 per cent.

The country's foreign exchange reserves swelled by $3.623 billion to a record high of $538.191 billion in the week ended August 7, RBI data showed. In the previous week ended July

31, the reserves had increased by $11.938 billion to reach

$534.568 billion. Foreign currency assets, a major component of the reserves, rose by

$1.464 billion to $492.293 billion. Gold reserves were up by

$2.160 billion to $39.785 billion.

Private equity and venture capital funds are finding the current economic slump as an opportunity to buy controlling stakes in quality businesses at attractive valuations. July saw the highest value and number of buyout deals in

11 months.

In July, six buyout deals valued $1.7 billion were inked and across different deal types, buyouts recorded the highest value of investments. July recorded the highest value and number of buyouts in 11 months, says a monthly report by IVCA-EY.

Between January and June this year, only 14 buyouts had happened and that too for a total transaction value of $794 million. Buyout deals in the month of July were almost $1 billion more than the entire value of H1 2020.

Among the major deals, Majesco was fully bought over by Thoma Bravo for

$594 million. KKR Asian Fund III picked up 65 per cent in J B Chemicals.