Monthly Dealtracker – January 2023

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In January 2023, India Inc recorded 145 deals, valuing USD 2.7 billion, the second-highest deal volume witnessed in January after 244 deals recorded in January 2022. However, the month witnessed an overall decline in deal activity owing to a significant drop in the M&A deal space. There has also been a declining trend in PE investments and the initial public offering and qualified institutional placement activity over January 2022.

Commenting on the same Shanti Vijetha, Partner, Growth, Grant Thornton Bharat said, “2022 was rocky for deal activity, globally as well in India, mainly due to a possible recession in the USA, inflation rates, increase in oil prices and the geopolitical instability caused due to the Russia-Ukraine war. Multiple industries witnessed continued shutdowns, salary freezes and layoffs, leaving investors uncertain about their portfolios and future investments. India’s macroeconomic outlook remains strong despite global tensions, making it an attractive destination for sector-wide foreign investments. India witnessed record deal values in 2022, driven by domestic deal activity in the backdrop of domestic resilience. Domestic deal activity is expected to remain at the forefront of M&A activity even in 2023. With the domestic economy expected to be buoyant, PE/venture capital funds are expected to direct their capital into the attractive Indian market.”

Key highlights 

  • Deal volumes increased marginally by 3% compared with December 2022.
  • Values declined by 62% due to the absence of big-ticket transactions over January 2022. January 2023 recorded no deals in the billion-dollar category and six high-value deals worth over USD 100 million.
  • Pharma, healthcare and biotech stood at the top in terms of overall deal values, recording six deals valuing USD 921 million, most of which were contributed by two big-ticket transactions in the PE space.