India involvement M&A activity fell to a three-year low in the first nine months of this calendar year at $65.6 billion, down 56.6 per cent from $ 151.3 billion a year ago, according to the latest data from Refinitiv, an LSEG business.

However, the number of announced deals saw a 3 per cent year-on-year growth to 1,985 deals (1,921 deals in Jan-Sep 2022).

Target India M&A activity reached $60.5 billion, down 56.8 per cent from a year ago and the lowest in the first nine months period by value since 2020. Lucille Jones, Deals Intelligence Analyst at LSEG, said domestic M&A activity for January-September 2023 totalled $44.1 billion, down 59.7 per cent from the same period in 2022.

While inbound M&A activity fell 46.6 per cent from a year ago and totalled $16.4 billion, outbound M&A activity reached $4.8 billion, down 46.5 per cent year-on-year with the US as the most targeted nation with a market share of 24.6 per cent.

A majority of the deal-making activity involving India targeted the financials sector which totalled $30.6 billion, down 55.9 per cent in value from a year ago, and which accounted for 46.7 per cent market share. Industrials totalled $7.7 billion, down 32.4 per cent from a year ago with 11.7 per cent market share. High technology, which saw the greatest number of deals, captured 9.0 per cent market share with $5.9 billion worth of deals, down 71.7 per cent compared to last year.

Private equity-backed M&A in India during January-September 2023 stood at $11.1 billion, down 58.1 per cent from a year ago, and the lowest in the first nine months period by value since 2020, according to Jones. 

M&A deal activity had hit a 16-month high of $22.5 billion in August 

 INVESTMENT BANKING SIZZLES

India’s investment banking activities generated $967.5 million during the first nine months of 2023, a 41 per cent increase compared to the first nine months period last year and the highest since records began in 2000. 

Completed M&A advisory fees grew 34 per cent year-on-year and totalled $ 362 million. 

Citi took the top position for overall investment banking fees in India with a total of $58.6 million, accounting for 6.1 per cent wallet share of India’s IB fee pool, Refinitiv data showed.

EQUITY CAPITAL MARKETS 

India’s equity capital markets (ECM) raised $18.4 billion in the first nine months of 2023, a 34.4 per cent increase compared to a year ago, making it the highest first nine months period by proceeds since 2021. 

Number of ECM offerings saw 253 equity and equity-linked issuances, up 30.4 per cent year-on-year. 

Initial public offerings (IPO) from Indian issuers raised $3.5 billion during the first nine months of 2023, down 38.1 per cent by proceeds from a year ago, but number of IPOs saw a 35.2 per cent year-on-year increase as capital raisings were done in relatively smaller amounts. 

Follow-on offerings, which accounted for 81 per cent of India’s overall ECM proceeds, raised $14.9 billion, up 85.0 per cent from a year ago, while number of follow-on offerings grew 24.4 per cent year-on-year.

Jefferies LLC leads the ranking for India’s ECM underwriting with $2.3 billion in related proceeds and 12.4 per cent market share.

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