M&A: Deal values in India more than halved in 2023 to $66 billion despite high growth

Mumbai: Deal values in India more than halved in 2023 to $66 billion despite high growth, as investors took a wait-and-watch approach, a report said on Friday. From a volume perspective, there were 1,641 deals — a drop of more than 20 per cent over 2022 — the report by consultancy firm Grant Thornton Bharat said.

The firm’s partner Shanthi Vijetha said lack of liquidity in international markets, volatile market conditions, and cautious investor sentiment hindered deal activities in 2023.

“As India’s emphasis on sustainability and environmental responsibility positions it as an attractive hub for opportunities in the global economy, we must first overcome challenges such as currency strength and global instability,” Vijetha added.

Merger and acquisition deal values dropped 72 per cent to $25.2 billion across 494 transactions, impacting the overall number the most, the report said. Outbound M&As were at $3.2 billion — as against $17.9 billion in the year-ago period — were the biggest drag, the report said, adding that the overall M&As were sluggish in the first half of the year, which recorded deal values of only $7.8 billion.

The biggest transaction was Suraksha Group’s acquisition of Jaypee in the real estate sector that raked in $2.5 billion. On the private equity front, 2023 witnessed 1,045 deals with a collective value of $27.4 billion, which was a 23 per cent decline over the previous year.