India M&A activity in April 2022 saw the highest monthly total on record with transactions amounting to $68.1 billion, showed the latest data from Refinitiv, a provider of financial market data.

This deal activity volume was a four times increase over the deal value of $14.78 billion in April 2021, and a seven-fold jump from March 2022 levels of $9.18 billion.

This brings India-involvement M&A activity this calendar year (Jan 1 to May 11) to $107.7 billion, up 141.5 per cent from $44.6 billion in the same period last fiscal. Even in terms of number of deals, the current year saw the highest-ever number at 874 since Refinitiv records began in 2000.

HDFC merger impact

Elaine Tan, Senior Analyst, Deals Intelligence, highlighted that the number of deals — at 171 in April — was down 24 per cent from 223 deals recorded in March 2022, as activity in April was propped by the mega-merger between Housing Development Finance Corp Ltd and HDFC Bank worth $ 60.4 billion. 

The deal is currently the largest Indian involvement deal on record, surpassing the $16 billion Flipkart-Walmart deal in 2018, Tan added.

The strong show of M&A activity in India comes at a time when global M&A activity has also been quite strong. Deals totalling $378.4 billion were announced around the world during April 2022, up 23 per cent on a year-on-year basis. 

Private equity-backed M&As

Meanwhile, private equity-backed M&A activity in India too saw robust increase of 25.2 per cent from January 1 to May 11 of this year at $12.90 billion from $10.3 billion in same period last year. This was the highest ever since the Jan-May 11, 2000, period. There were 234 such deals in the period under review, higher than 155 deals last year.

The month of April saw PE-backed monthly volume of $ 2.59 billion, lower than the $5.67 billion in the same month last year. The number of monthly deals too saw a decline to 41 from 54 deals last year. Activity in India in March 2022 stood at $2.96 billion across 52 deals.

In April 2022, global private equity-backed M&A saw a strong show at $147.4 billion, up 43 per cent over the previous month. In the first four months of this calendar year, global PE-backed M&A deals worth $442 billion were recorded, 28 per cent higher that the same period last year and an all-time year-to-date high, according to Refinitiv.

Private equity deals accounted for 31 per cent of all deals by value this year, the highest year-to-date share.