Air India Sale and Tatas' EV Arm Keeping Dalal Street Bus, Chennai Metro Rail contract worth Rs 1,309 crore secured and other business deals news
With USD 9.2 Billion in Cash Flows, the Air India Sale and Tatas' EV Arm Kept Dalal Street Busy.
According to an industry assessment, the sale of Air India to the Tatas aided the deal street's sizzle in October, which saw 221 deals/agreements worth USD 9.2 billion, and a 24 percent increase over the same month in 2020. According to a Grant Thornton dealtracker report released on Monday, October was encouraging in terms of deal volume and value, showing that deal activity is continuing. While volume increased by double from October 2020 to October 2021, value increased by 24%.
According to the data compiled by the agency, there were 61 mergers and acquisitions worth USD 3.3 billion announced in October, with Tata paying the government as much as USD 2.4 billion for the national carrier Air India. There were also 160 private equity deals worth USD 5.9 billion, which was 62% more than the year before period. M&As reached their highest level since 2015, with 61 transactions, representing a 62 percent increase in volume and a 25% increase in value.
M&As alone brought in USD 3.3 billion, driven by startups and IT sectors, which accounted for 24% and 8% of all deals, respectively, with an aggregate value of USD 391 million; hospitality and leisure, pharma and healthcare, e-commerce, retail and consumer sectors accounted for 32% of M&As. The largest transaction was the Tatas' purchase of Air India for USD 2.4 billion. Domestic consolidation continues to dominate the M&A street, accounting for 79 percent of all transactions, mainly to the Air India purchase.
In October, 160 private equity agreements totaling USD 5.9 billion were disclosed, with 14 high-value investments in startups accounting for 70% of total volume.
Chennai Metro Rail contract worth Rs 1,309 crore secured by Hindustan Construction Company-KEC JV
The Chennai Metro Rail Limited has awarded Hindustan Construction Company (HCC) and KEC International Limited (KEC) a contract worth Rs 1,309 crore for the construction of an elevated viaduct section and eleven elevated stations on Corridor 5 of Phase 2 of the Chennai Metro. This is the second order for Chennai Metro that the HCC-KEC Consortium has received. This project will take 36 months to complete. In the joint venture with KEC International, HCC owns a majority stake of Rs 668 crore. HCC is a subsidiary of the HCC Group, which has a market capitalization of Rs 9,437 crore. In Switzerland, the HCC Group consists of HCC, HCC Infrastructure Limited, and Steiner AG.
Madipakkam, Killkattalai, Echangadu, Kamaraj Garden Street, Elcot, Global Hospital, Perumbakkum, Vellakkal, Medavakkam Koot Road, Kovilambakkam, and Medavakkam Junction are among the eleven elevated stations. According to the press release, the scope of work includes civil work, plumbing and drainage, architectural and signage work, and temporary services.
At the moment, HCC is working on a piece of Mumbai Metro Line III, one Delhi Metro package, one Bangalore Metro Rail Project package, two Pune Metro contracts, and one Chennai Metro package. HCC has previously worked on six Delhi Metro packages totaling 18.14 kilometres of tunnels and 13 underground stations. HCC has built 6.47 km of Kolkata Metro tunnels, including four underground stations, in six packages. In Mumbai Metro I, the company constructed eight elevated stations.
Written By: Kovid Gopikaramanan
Edited By: Ronojoy Borpujari