M&A deals involving India touch record high in H12023

Chennai: Mergers and acquisition activity involving India witnessed a record number of deals during the first half of the calendar year 2023 even as the value of M&As slumped as large deals were few. The equity markets saw the busiest first half since 2018.With more than 1,400 transactions announced to date, H1 of 2023 was the busiest semi-annual period by number of announced deals involving India since records began in 1980, as per financial research firm Refinitiv. However, in terms of value, the total Indian M&A activity stood at $32.6 billion in the period, down 75% compared to a year ago due to the lack of mega deals above $5 billion. The corresponding period last year saw the $65 billion HDFC merger being announced. IPOs by Indian companies grew 25% compared to a year ago with 75 small-to-mid-sized listings raising $1.4 billion (a 73% decline in proceeds). The proposed shortened listing timeline could drive more activity in India’s IPO markets, Refinitiv said. “Given the global macroeconomic uncertainty, deal makers are exercising a degree of conservatism, translating into fewer large deals,” Elaine Tan, Senior Analyst at Refinitiv, said. “No deals bigger than US$1 billion involving India have been announced during the first quarter of 2023, but we have seen at least four deals within the US$1-billion range announced in the second quarter,” Tan added. While mid-market transactions dominated the market in this half year, the anticipated merger of IDFC First Bank with IDFC could prop up India’s M&A activity for the rest of the year. In terms of fees, India investment banking activities generated $515.2 million during the first half of 2023.