In 2023, India experienced a significant reduction in deal values, amounting to only USD 66 billion, marking a sharp decrease despite the country’s robust economic growth. This trend, highlighted in a recent report by Grant Thornton Bharat, was attributed to a cautious stance adopted by investors. The report detailed a 20% reduction in deal volume, with just 1,641 transactions recorded.

Shanthi Vijetha, a partner at the firm, cited factors like the global liquidity crunch, market volatility, and wary investor outlook as primary deterrents to deal-making activities in the past year. Vijetha also noted that while India is increasingly seen as a promising destination for sustainable and environmentally responsible investments, challenges like currency fluctuations and global instability need to be navigated.

The mergers and acquisitions (M&A) sector saw a dramatic 72% drop in deal values to USD 25.2 billion, spanning 494 transactions, significantly impacting the aggregate deal figures. The outbound M&A segment was particularly hit hard, plummeting to USD 3.2 billion from USD 17.9 billion in the previous year. The report highlighted a sluggish M&A environment in the first half of 2023, with deal values totalling just USD 7.8 billion.

The year’s largest deal was the Suraksha Group’s USD 2.5 billion acquisition of Jaypee in the real estate sector.

On the private equity front, there were 1,045 deals in 2023, totalling USD 27.4 billion in value, a 23% decrease from the previous year. The largest among these was Temasek Holdings’ USD 2 billion investment in Manipal Health Enterprises.

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The public market saw 57 companies going public, raising a total of USD 6.2 billion, which was a notable decrease from the previous year, both in terms of the number of IPOs and the average amount raised. However, Qualified Institutional Placements (QIP) saw a rise in popularity, with 45 companies raising USD 7 billion, a significant increase from USD 1.5 billion raised by 14 companies in 2022.

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