India Inc signs 1,149 deals worth over $104 bn in 2022 first half
The numbers represent a significant 34 per cent increase in the overall deal volumes, while deal values further than doubled( with a 143 per cent increase) from the same period last time, according to the Grant Thornton Bharat Dealtracker report.
Driven by HDFC Bank and HDFC Ltd’s$ 40 billion junction, LTI and Mindtree junction($17.7 billion) and Adani Group- Holcim Ltd’s$10.5 billion deal, M&A deal values recorded an over two times increase over H1 2021. These three deals alone reckoned for 86 per cent of the total M&A deal values in H1 2022.
Amidmacro-economic stress, the overall deal sentiment for 2022 is anticipated to continue given the support from the government on structure spending, force- side response and crucial financial measures,” said Shanthi Vijetha, Partner, Growth, Grant Thornton Bharat.
still, corporates and more importantly PE/ VCs may employ a cautiously auspicious approach as the impact of the global profitable retardation on the Indian frugality becomes apparent,” Vijetha added.
While private equity deal exertion continued to dominate total deal volumes with 3/ 4th share, deal values were driven by combinations and accessions with 76 per cent of the total deal values in H1 2022.
incipiency,e-commerce and IT sectors led deal exertion in H1 2022, driving 76 per cent of all deals followed by retail, education and pharma sectors.
The M&A space witnessed a significant increase in the first half, witnessing 284 deals while representing a 27 per cent growth over H1 2021.
The banking and fiscal sector had the loftiest donation of 53 per cent in terms of overall deal value in H1 2022, followed by IT and manufacturing sectors.
The private equity and adventure capital investments saw record volumes and values in the first six- month period with 865 deals at$25.1 billion.
still, there was a 12 per cent and 15 per cent drop in investment volumes and values over H2 2021( the antedating six months), the report noted.
” The drop in the deal values is due to a fall in big- ticket investments coupled with prevailing factors including geopolitical pressures, stock request volatility, enterprises about the rise in commodity prices and the impact of affectation,” the report noted.
nonetheless, large finances like Tiger Global, Westbridge, Baring PE, TPG, Brookfield, Blackstone and Warburg Pincus, among others, continued to keep pace with their exertion.
The launch- up space attracted the most investment at$5.1 billion across 550 deals, recording a growth of 69 per cent in deal values.
