India Inc inked 1,149 deals valued at $104.3 billion in the first half of 2022, according to the Grant Thornton Bharat Dealtracker report. 

This represented a 34 per cent increase in overall deal volumes, while deal values more than doubled, increasing 143 per cent. 

While private equity deal activity continued to dominate, accounting for three-fourths share of total deal volumes, deal values were driven by M&As, which accounted for 76 per cent of the total in H1 2022. The start-up, e-commerce and IT sectors led deal activity in the period, driving 76 per cent of all deals, followed by the retail, education and pharma sectors. 

Shanthi Vijetha, Partner, Growth, Grant Thornton Bharat said, “Amid macro-economic stress, overall deal sentiment for 2022 is expected to continue given the support from the government on infrastructure spending, supply-side response and key fiscal measures.” 

However, he added, corporates and, more importantly, PE/ VCs may employ a cautiously optimistic approach, as the impact of the global economic slowdown on the Indian economy becomes evident.

Mergers and acquistions

The mergers and acquisitions space saw 284 deals being formalised in H1 2022, representing 27 per cent growth YoY and a healthy 3 per cent increase QoQ. Deal values, which stood at $79.2 billion, marked the highest half-yearly values since 2011.

The banking and financial sector contributed 53 per cent of overall deal values in thr first half, followed by the IT and manufacturing sector. The start-up sector saw 91 deals being formalised in H1 2022, against 42 in the previous period.

The year also witnessed the highest funds raised in the first six months via Initial Public Offerings (IPO) across 17 issues. The deal landscape was driven by LIC’s $2.8-billion fund-raise and eight other issues valued at over $100 million, predominantly in the retail, manufacturing, and banking sectors.