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India Inc recorded 106 deals valuing USD 4.6 billion in May 2023, a 45% decline in deal volumes and a steep 87% decline in deal values compared to May 2022 owing to the absence of big-ticket transactions. Unlike May 2022, which saw four multi-billion-dollar deals totalling USD 31.5 billion, May 2023 did not witness any such transactions. Domestic M&A volumes reached a three-year low with 20 deals, while cross-border M&A activity hit its lowest monthly volumes and values to date.
“We are currently seeing persistent global macro-concerns centre around inflationary pressures in the US and eurozone. The global banking sector is already experiencing the impact of higher interest rates, because of which global deal-making has witnessed high levels of volatility and uncertainty. India is also experiencing a downturn in deal activity compared to the past year. While there has been an overall decline in the deal activity compared to past years, both M&A and PE volumes have witnessed a gradual m-o-m increase since February 2023. In addition, the government's emphasis on regulatory reforms to enhance the ease of doing business, combined with the country's robust fundamentals, create a strong foundation for deal-making in India,” said Shanti Vijetha, Partner, Growth, Grant Thornton Bharat.
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