Deals in India

Annual review 2022

January 2023
Table of contents

01 2,353
2,103
02 03 2,353
2,103

Foreword 2022 deal activity surpassed H1 contributed to 70% of

2,066 2,077 2,066 2,077
M& A deal value (in USD M& A deal value (in USD
1,677 billion) 1,677 billion)

1,433 PE deal value (in USD 1,433 PE deal value (in USD

pre-pandemic levels the deal activity

billion) billion)
1,085 1,136 1,085 1,136
990 1,299 PE deal volume 990 1,299 PE deal volume
56 56
941 107 941 107
981 981
80 38 46 920 804 M& A deal volume 80 38 46 920 804 M& A deal volume
687 687

Total deal volume Total deal volume

41 41 44 67 52 41 41 44 67 52

2018 2019 2020 2021 2022 2018 2019 2020 2021 2022

04 05 06
A domestic focus – the year PE activity driven by early- Outlook for 2023
of consolidation, mergers stage and growth deals
and disruption

2 PwC Deals in India: Annual review 2022

Foreword

2022 started off strong in the initial months, almost in line with the trends of 2021, but as the months progressed, deal activity
2,066 2,077
2,353
2,103 tapered down. The headwinds grew stronger and new ones emerged – inflationary risks, rapidly accelerating interest rates and
2,066 2,077
2,353
2,103

geopolitical tensions, which prompted caution in the markets and the investment landscape. Despite these, India demonstrated
M& A deal value (in USD M& A deal value (in USD
1,677 billion) 1,677 billion)

1,433 PE deal value (in USD 1,433 PE deal value (in USD

signs of a stable deals market overall, defying the trend among most major economies of the world. Although deal activity in
billion) billion)
1,085 1,136 1,085 1,136
990 1,299 PE deal volume 990 1,299 PE deal volume
56 56
941 107 941 107

2022 has been lower than 2021, it has surpassed pre-pandemic levels.
981 981
80 38 46 920 804 M& A deal volume 80 38 46 920 804 M& A deal volume
687 687

Total deal volume Total deal volume

41 41 44 67 52 41 41 44 67 52

Dinesh Arora Mergers and acquisitions (M&A) accounted for a major share of the deal value, boosted by more than 20 large transactions, and
2018 2019 2020 2021 2022 2018 2019 2020 2021 2022

Partner and Leader reached a record high of USD 107 billion – almost twice that of 2021. However, excluding the HDFC Ltd and HDFC Bank merger,
Deals, PwC India M&A deal values were about 15% lower than that of 2021. Private equity (PE) investments stood at USD 52 billion, 22% lower than
2021 but 20% higher than all other preceding three years in terms of value and quantum.

2022 witnessed some of the largest-ever transactions in the cement, aviation and banking sectors, which were driven by companies
looking to either consolidate their positions or enter new segments. The Indian start-up ecosystem maintained its buoyancy and
contributed well to the M&A activity, though there was a decline in the start-up deal activity as compared to 2021. 

Investor perspective on India is more long term, and the current market slowdown may not result in a sense of urgency or concern
for most. It will be interesting to see how the first two quarters of 2023 pan out. It is anticipated that stakeholders may be more
realistic and pragmatic post the impact of the macroeconomic factors that triggered the dip in valuations, reviewing of business
plans, layoffs, etc. A more conducive deal environment, backed by effective reforms and better governance, would also boost
sentiment and attract investments.

3 PwC Deals in India: Annual review 2022

2022 deal activity surpassed pre-pandemic levels
Deal activity in India
2,353 Top ten deals announced in 2022
2,103
2,066 2,077 Deal value
Target Buyer(s) % Sought
M& A deal value (USD billion)
1,677 (USD billion)
107 Housing Development HDFC Bank Ltd. 60.4 100%
Finance Corporation
1,433 PE deal value
(USD billion) Ltd
1,085 1,136 2,353
Ambuja Cements Ltd.
2,353
Adani Enterprises 6.2 63%
1,299
2,103 2,103

990
2,066 2,077 2,066 2,077
M& A deal value (in USD
PE deal volume Ltd.
M& A deal value (in USD

56
1,677 billion) 1,677 billion)

1,136
941
1,433 PE deal value (in USD
billion)
1,136
1,433 PE deal value (in USD
billion)

981
1,085 1,085

Viatris Inc., biosimilars Biocon Biologics 3.3 100%

990 1,299 PE deal volume 990 1,299 PE deal volume
56

46
56
941 107 941 107
981 981

80 38 920 804
46 46

M& A deal volume

80 38 920 804 M& A deal volume 80 38 920 804 M& A deal volume
687

Total deal volume

assets Ltd. 687

Total deal volume

687
41 41 44 67 52 41 41 44 67 52

2018 2019 2020 2021 2022 2018 2019 2020 2021 2022

Total deal volume Essar Group, ArcelorMittal 2.4 100%

41 41 44 67 52 infrastructure assets Nippon Steel India
Ltd.
2018 2019 2020 2021 2022
MindTree Ltd. Larsen and Toubro 2.2 100%
M&A PE Infotech Ltd.

Deal value Deal value Adani Group, three International 2.0 NA

Deal size No. of deals No. of deals
(USD billion) (USD billion) portfolio companies Holding Company

> USD 1 billion 12 85.5 4 5.0

Citibank N.A., Indian Axis Bank Ltd. 1.6 100%
USD 100–1000 consumer banking
53 14.6 117 31.5
million business
USD 10–100 Neelachal Ispat Nigam Tata Steel Long 1.6 94%
167 6.5 425 13.3
million Ltd. Products Pvt. Ltd.
< USD 10 million 187 0.5 627 1.9
Sembcorp Energy Tanweer 1.6 100%
Average deal size USD 255.5 million USD 43.9 million India Ltd. Infrastructure Pte.
Ltd.
Deals with SolEnergi Power Pvt. Shell Plc. 1.6 100%
385 126
undisclosed value Ltd.
Source: VCCEdge, Venture Intelligence and PwC analysis

4 PwC Deals in India: Annual review 2022

H1 contributed to 70% of the deal activity
Quarterly deal activity in 2022
180 12.00

160
10.00 Deal activity witnessed a

Deal value (in USD billion)

140 steady decline quarter-on-
quarter after a strong start in
120 8.00
the initial months of 2022.
100
Deal count

70%
2,353 2,353

2,066 2,077
2,103

M& A deal value (in USD

2,066 2,077
6.00
2,103

M& A deal value (in USD

80 1,677 billion) 1,677 billion)

1,433 PE deal value (in USD 1,433 PE deal value (in USD

of deal activity
billion) billion)
1,085 1,136 1,085 1,136
990 1,299 PE deal volume 990 1,299 PE deal volume
56 56

60 4.00
941 107 941 107
981 981

in terms of value and volumes

80 38 46 920 804 M& A deal volume 80 38 46 920 804 M& A deal volume
687 687

Total deal volume Total deal volume

was witnessed in H1 2022,

41 41 44 67 52 41 41 44 67 52

40 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022

2.00
20
with only 30% activity in H2
2022.
0 -
Jan Feb Mar Apr May Jun July Aug Sept Oct Nov Dec
M&A count PE count M&A value PE value
Deal analysis: M&A Deal analysis: PE
Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total

Deal count 292 239 131 141 803 Deal count 431 360 278 230 1,299

USD 14 USD 21 USD 8 USD 4 USD 47 USD 17 USD 16 USD 9 USD 10 USD 52
Deal value Deal value
billion billion billion billion billion billion billion billion billion billion

Average deal USD 99 USD 153 USD 139 USD 44 USD 112 Average deal USD 44 USD 49 USD 35 USD 48 USD 44
size million million million million million size million million million million million

Deals > USD Deals > USD

5 10 4 1 20 4 7 2 3 16
500 million 500 million

Undisclosed Undisclosed
153 100 73 59 385 41 29 31 25 126
deals deals
Above analysis excludes the HDFC merger deal to avoid skewness.
Source: VCCEdge, Venture Intelligence and PwC analysis

5 PwC Deals in India: Annual review 2022

A domestic focus – the year of consolidation, mergers and disruption

M&A activity by deal value (USD billion)

43 The top five deals of 2022 were all

35
domestic deals.
2,353
2,103
33 2,353
2,103
2,066 2,077 2,066 2,077

72%
M& A deal value (in USD M& A deal value (in USD
1,677 billion) 1,677 billion)

1,433 PE deal value (in USD 1,433 PE deal value (in USD
billion) billion)
1,085 1,136 1,085 1,136
990 1,299 PE deal volume 990 1,299 PE deal volume

23 23
56 56

of disclosed deal value was generated

941 107 941 107

21
981 981
80 38 46 920 804 M& A deal volume 80 38 46 920 804 M& A deal volume
687 687

from domestic deals in 2022 (88%, if the HDFC merger

Total deal volume Total deal volume
41 41 44 67 52 41 41 44 67 52

2018 2019 2020 2021 2022

16 2018 2019 2020 2021 2022

11
13 deal is considered).
8 9 9
4 5 4 4
2 2 3
1

2018 2019 2020 2021 2022

Domestic Inbound Outbound Other

M&A activity by deal volume

Companies sought to consolidate positions, curb 635

591 593
competition and enter new disruptive segments, leading 550
to some of the largest-ever transactions in the banking,
411
cement and aviation sectors.
Sectors such as financial services, technology,
healthcare, energy and power, and industrials are 148 151
120 143 118101
expected to stay active on the domestic front in terms of 101 98 97 116 107
78 63 77
value creation and market share gain. 35

2018 2019 2020 2021 2022

Above analysis excludes the HDFC merger deal to avoid skewness.
Source: VCCEdge, Venture Intelligence and PwC analysis Domestic Inbound Outbound Other

6 PwC Deals in India: Annual review 2022

PE activity driven by early and growth-stage deals
PE investments by stage 384 157 152
350 140 138
300
270 248 104
62
49 50
45 21.1
40 40 20.3
31
18.0 26 24
16.8 739 16.7
698
18
2,353 550 525 2,353

464 13.6
2,103 2,103
2,066 2,077 2,066 2,077
M& A deal value (in USD M& A deal value (in USD

12.4 1,677 billion) 1,677 billion)

1,136
1,433 PE deal value (in USD
billion)
1,136
1,433
12.2 PE deal value (in USD
billion)
1,085 1,085
990 1,299 PE deal volume 990 1,299 PE deal volume
56 56
941 107 941 107

9.9
981 981

9.3 9.5
80 38 46 920 804 M& A deal volume 80 38 46 920 804 M& A deal volume
687

Total deal volume 8.7 8.4 687

Total deal volume

41 41 44 67 52 41 41 44 67 52

2018 2019 2020 2021 2022 7.6 2018 2019 2020 2021 2022

6.0
4.2
2.8 2.5 3.2
2.4
1.5 1.3
1.1 1.0 0.8
2018

2019

2020

2021

2022

2018

2019

2020

2021

2022

2018

2019

2020

2021

2022

2018

2019

2020

2021

2022

2018

2019

2020

2021

2022
Buyout Early Growth Late PIPE

Deal value (USD billion) Deal value (USD billion) Deal volume

PE exits

Early-stage deals saw an uptick in deal value by 13% compared to 2021,

Deal value (USD billion)

273 292
40 212 207
reflecting investor confidence and the outlook for the Indian start-up sector, 170
30
while buyouts and late-stage deals witnessed a 55% and 33% dip in deal value
respectively, compared to 2021. 20

PE exits witnessed one of the slowest years in the last five years, with a 53% 10
decrease in deal value and a 29% decrease in deal volume compared to 2021. -
2018 2019 2020 2021 2022
Strategic sale Public market sale Deal volume
Source: VCCEdge, Venture Intelligence and PwC analysis Secondary sale Buyback and others

7 PwC Deals in India: Annual review 2022

Outlook for 2023
The Indian transactions market in terms of deal value has been consistently growing over the last few years, with 2021 being the most exceptional year till date.
In comparison, 2022 was a more realistic year, barring a few extremely large-ticket deals. Similar to 2022, deal activity in 2023 will depend on the macroeconomic
factors at play. So far, it is expected that deal activity in 2023 will be steady but slow. The market is fundamentally strong, and M&A will be an essential instrument
for companies to move forward, integrate supply chains, beat disruption and boost their market share. Domestic action is at an all-time high, and there is significant
interest in the India growth story from foreign strategic investors as well as PE investors.  

Trends to monitor 2,353 2,353

2,103 2,103
2,066 2,077 2,066 2,077
M& A deal value (in USD M& A deal value (in USD
1,677 billion) 1,677 billion)

• A strong year ahead for the energy and infrastructure sectors

1,433 PE deal value (in USD 1,433 PE deal value (in USD
billion) billion)
1,085 1,136 1,085 1,136
990 1,299 PE deal volume 990 1,299 PE deal volume
56 56
941 107 941 107
981 981
80 38 46 920 804 M& A deal volume 80 38 46 920 804 M& A deal volume
687 687

Total deal volume Total deal volume

41 41 44 67 52 41 41 44 67 52

• Consolidation and buyouts in the new-age unicorn space

2018 2019 2020 2021 2022 2018 2019 2020 2021 2022

• Ramping up of deal activity in the manufacturing space

• Further efforts by PE funds to create value through complexity

• Renewed interest in digital assets, e-commerce and direct to consumer

(D2C)

• Domestic consolidation, restructuring and mergers to drive large-

ticket deals

• New-age diligence around data privacy and environmental, social and

governance (ESG) to gain prominence

8 PwC Deals in India: Annual review 2022

Contact us
Dinesh Arora Bhavin Shah
Partner and Leader, Deals Partner and Leader, Deals
PwC India PwC India
dinesh.arora@pwc.com bhavin.shah@pwc.com

Contributors Editorial support Design

Kanchana Ramamurthi Dion D’Souza Shipra Gupta
Shruti Bansal Rashi Gupta
Abhinav Kaushik

9 PwC Deals in India: Annual review 2022

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