The global community continues to experience the aftermath of the Russia-Ukraine conflict, which has significantly impacted global economic trends. The recent collapse of the Silicon Valley bank has added to the existing uncertainty, further complicating the situation. Additionally, the beginning of 2023 has seen a slow start for domestic players, who were instrumental in driving the 2022 deal market. The first quarter of 2023 recorded 332 deals, amounting to USD 9.7 billion. This represents a 46% decline in deal volumes and a 35% decline in deal values.
"Q1 2023 witnessed a significant decline in deals landscape compared to Q1 2022. The funding winter continued in Q1 2023 resulting in PE activity recording its lowest in the last eight quarters; the recent collapse of the SBV may have contributed to the same. Further, the global developments appear to have dampened the deal activity of the domestic players. However, it seems to be temporary as the pre-deal activity picked up in March/ April", said Shanthi Vijetha, Partner, Growth, Grant Thornton Bharat.
- M&A activity recorded 76 deals worth USD 4.4 billion. This was 56% lower in volumes and a 21% decline in values over Q1 2022
- PE activity witnessed a declining trend, by 42% (volumes) and 44% (values), recording 256 deals worth USD 5.3 billion.
- Q1 2023 witnessed four IPO issues raising USD 84.4 million, compared to three issues raising USD 1 billion in Q1 2022.
- QIP witnessed two fundraise worth USD 301 million.
|Key highlights – sector-wise:|
|Automotive sector||2 M&A deals collectively worth USD 588 million|
|17 PE deals worth USD 456 million|
|Samvardhana Motherson and SAS Autosystemtechnik signed a cross-border agreement worth USD 578 million.|
|Technology sector||16 M&A deals worth USD 39 million|
|72 PE deals worth USD 272 million|
|Consumer, retail & e-commerce sector||14 M&A deals worth USD 65 million|
|64 PE deals worth USD 1261 million|
|Lenskart and VLCC raised USD 500 million & USD 300 million, respectively, accounting for 66% of the sector’s PE values.|
|Pharma, healthcare & biotech sector||9 M&A deals worth USD 140 million|
|30 PE deals worth USD 1105 million|
|Dr. Reddy’s acquired Mayne Pharma's US generic production portfolio for USD 105 million.|
|Banking & financial services sector||9 M&A deals worth USD 312 million|
|31 PE deals worth USD 1.1 billion|
|PhonePe raised USD 200 million from its largest shareholder, Walmart.|
|Automotive sector Dealtracker||Technology sector Dealtracker|
|Download PDF [ 417 kb ]||Download PDF [ 1058 kb ]|
|Consumer, retail and e-commerce sector Dealtracker||Pharma and healthcare sector Dealtracker|
|Download PDF [ 331 kb ]||Download PDF [ 323 kb ]|
|Banking & financial services sector Dealtracker|
|Download PDF [ 547 kb ]|