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India involvement M&A activity hit a three-month high of $6.6 billion in November 2023 even as the number of deals fell sharply to 113 in this month, latest data from LSEG Deals Intelligence showed.
In November last year, the total deal value of India involvement M&A activity stood at $5.2 billion with 249 deals. M&A activity in October 2023 and September 2023 stood at $5.98 billion and $ 2.80 billion respectively.
M&A deal activity had hit a 16-month high of $22.5 billion in August.
However, on a year-to-date basis, the aggregate volume of M&A activity in January-December 4, 2023 was down 51.9 per cent to $78.6 billion from $163.42 billion in the year-ago period. The number of deals also saw decline to 2,293 from 2,387 in the same period.
3-year low
Target India M&A activity hit a three-year low of $72.13 billion during January 1-December 4, down 52.4 per cent from a year ago.
A majority of the deal-making activity involving India targeted the financials sector which totalled $30.7 billion, down 56.39 per cent over $70.4 billion in January-December 4 last year, and capturing 43 per cent of the market share.
Industrials followed in second with 15 per cent market share and high technology, which saw the greatest number of deals so far this year, accounted for 9.6 per cent market share.
Elaine Tan, Senior Analyst at LSEG Deals Intelligence, said, “Given the global macroeconomic uncertainty, deal makers are exercising a degree of conservatism, translating into fewer large deals. While M&A activity may not have been driven by mega deals this year, a healthier level of mid-market transactions dominated the market”.
Tan said that M&A deals bigger than $1 billion involving India saw 11 deals announced so far this year, compared to 20 deals announced during the same period last year.
Private equity-backed M&A deals targeting India hit a three-year low of $12.34 billion in January-December 4, 2023, down 59.3 per cent from $30.3 billion year ago, according to LSEG Deals Intelligence.
Private equity firms continue to eye opportunities in technology, renewable and energy transition space for investments in India.
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