India’s dealmaking ecosystem reached a new milestone during 2021. While the private equity activity peaked during the year, the mergers and acquisitions (M&A) was also at its all-time high.
According to a White & Case report, M&A activity recorded 598 deals that were valued at $112.8 billion during 2021.
Although, the average deal size declined by close to 10% from $211 million in 2020 to $189 million during 2021, the high deal value transactions (more than $1 billion in value) have peaked at 23 deals in 2021 as compared to 21 deals in 2020.
The technology, media and telecom (TMT) sector emerged as the most active in India during 2021 with 210 deals recorded worth $37.6 billion.
The largest TMT deal during the year was PayU Payments’ acquisition of Billdesk for $4.7 billion.
Financial services sector followed the suit. The sector recorded deals worth $22.1 billion during the year.
The largest deal in the sector involved merger of Shriram City Union Finance with Shriram Transport Finance Co Ltd. for $5 billion.
Private equity dealmaking recorded 294 deals worth $57.94 billion, including domestic deals, driven by investments from buyout firms, the report said.
Such buyout investments were led by Blackstone’s acquisition of additional 26% stake in IT outsourcing services provider Mphasis for $3.2 billion.
With private equity firms, SPACs and local and international corporations all seeking out opportunities within India, the country’s M&A could reach even greater heights in 2022.
Interest from international bidders looking to expand into new markets will only increase as global markets open up, macroeconomic conditions improve, and Covid-19 curbs are gradually eased globally, the report added.
