Publication

Q3 dealtracker

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Q3 2023 witnessed stable M&A deal activity, recording 82 deals at USD 7.7 billion, marking the highest quarterly values in 2023. However, the PE sector recorded its lowest figures, impacting the overall deal activity in Q3 2023. During this period, only 302 deals valued at USD 13.4 billion were recorded, marking the lowest quarterly volumes in the last three years. The decline in deal volumes and values was primarily due to dwindling investor activity. Large deals made a comeback in Q3 2023, with six megadeals valued over USD 1 billion, taking the average deal size to USD 37 million.

Despite this, the near-term economic outlook for 2023-24 remains positive due to India's growth-oriented policies, reduced inflation, and increased infrastructure spending. This strong domestic growth is expected to fuel deal activities. Buyouts and majority-stake acquisitions have notably increased, primarily in traditional sectors. The ongoing digital transformation in India is set to accelerate e-commerce growth, attracting global technology and e-commerce giants to the Indian market. Key sectors such as e-commerce, IT & ITES, pharmaceuticals and healthcare witnessed significant deal activity, underscoring their importance in the Indian economy.

Shanthi Vijetha"India's unwavering commitment to global cooperation and its demonstrated economic resilience has positioned the country for a promising future in deal activities. With a robust GDP growth in Q1FY24 and a strategic emphasis on multilateralism, India is poised to weather challenges. While concerns persist over declining global trade and potential US interest rate hikes, stable M&A deals in Q3 2023, with six megadeals, suggest a positive near-term outlook. With growth-oriented policies, reduced inflation, and increased infrastructure spending, India's domestic growth is set to fuel deal activities, particularly in traditional sectors (pharmaceuticals and healthcare) and the ever-accelerating digital transformation landscape (e-commerce and IT & ITES)."
Shanthi Vijetha, Partner, Growth, Grant Thornton Bharat