India's M&A activity touched an all-time high with a 38% jump in 2022

As per the India Investment Banking Review 2022 report by Refinitiv, India's merger and acquisition (M&A) deals in 2022 were the highest ever, at US$ 170.6 billion. In 2022, the deal activity was 38% more than that of 2021.

The financial sector topped the list of target sectors as it received investments of over US$ 70 billion. The next most-favoured sector was the technology sector with investments worth US$ 20.4 billion.

The report highlighted that HDFC Bank’s merger with Housing and Development Finance Corp. was the biggest deal by book value, which was valued at US$ 60.4 billion.

Furthermore, in 2022, the capital raised by the companies through an initial public offering (IPO) and follow-on public offering (FPO) routes stood at US$ 19.4 billion. The Life Insurance Corporation (LIC) (US$ 2.7 billion) raised the highest amount in equity markets in 2022.

It was further reported that the outbound M&A activity registered an increase of 31.6% on a year-over-year basis to reach US$ 9.8 billion. It was pumped up by Biocon Biologics’ acquisition of Viatris Inc’s US-based biosimilar company worth US$ 3.3 billion.

So far, in 2023, the industrial sector is leading in terms of M&A deals by deal value and deals worth US$ 2 billion have taken place. This year’s biggest deal has been the Samvardhana Motherson Automotive Systems Group acquiring the German firm SAS Autosystemtechnik. The second most favoured target sector, the financial sector has raised under US$ 1.5 billion this year.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.