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India’s deal making activity saw a surge in November — both in terms of value and volume. With only one month to go, the deal-making activity is unlikely to reach 2022 levels for the full year, let alone surpass it, as per Grant Thornton.
The calendar year so far has seen 1,321 deals amounting to $45.9 billion. That’s 62% lower in value, and 29% lower in volume as compared to the same period last year.
“The prevailing economic factors, including rising inflation, soaring gold prices, and escalating interest rates, suggest a challenging environment. The strength of the dollar and more stringent global financial conditions pose additional threats affecting capital flows and investor risk sentiments,” says Shanthi Vijetha, partner at Grant Thornton Bharat.
In November 2023, 132 deals were sealed, amounting to $6.5 billion. This is the second best month of the year, after August. Thanks to big ticket deals, November’s deal value went up 143% on a month-on-month basis, even as volumes fell 21% from October.
“This month set a record for the highest mergers and acquisition values in 2023, reaching a remarkable four-billion-dollar mark in a single month,” said Vijetha.
The biggest deal of the month is Siemens AG increasing its stake in Siemens to 69% for $2.28 billion. This transaction alone was responsible for 35% of the month’s overall values.
The other top deals include transactions in the financial sector – like AU Small Finance Bank’s acquisition of Fincare Small Finance Bank for $529 million. Zurich Insurance also acquired a controlling stake in Kotak General Insurance for $494 million.
The inbound space drove the values with a 63% contribution while continuing the trend. Domestic deals dominated in terms of deal volumes with a 78% contribution.
| Type of deal | Volume | Value |
|---|---|---|
| M&A | 51 | $4.4 billion |
| PE | 81 | $2.1 billion |
| IPOs | 7 | $1 billion |
| QIPs | 8 | $1.5 billion |
| Total | 132 | $6.5 billion |
Source: Grant Thornton
As many as 81 PE deals were closed during the month, totalling $2.1 billion. While there was a 28% decline in PE volumes compared to October 2023, the values stood unchanged – indicating that big deals are back.
The average deal size for November 2023 reached $26 million, marking an increase compared to the preceding months.
Three of the top five PE deals were above $200 million – including Blackstone acquiring a stake in Quality Care, undisclosed investors buying a stake in PhamEasy and Alta Capital’s acquisition of Capella Eduinfra.
As compared to September 2023, November the month witnessed a 15% increase in values, driven by four high-value deals totalling $1.4 billion.
The press release was issued in Business insider on 12 December 2023.