M&As In India: JPMorgan Says Dealmakers Should Expect Another Robust Year

India sealed its busiest M&A year ever with about $191 billion worth of transactions in 2022, bucking a global economic slump in deal activity, according to JPMorgan

Smaller transactions will drive deal flow in India this year with the majority being in the range of $500 million to $2 billion, said JPMorgan.

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JPMorgan Chase & Co said that dealmakers in India should expect another strong year for mergers and acquisitions (M&As) because geopolitical tensions could propel companies to diversify into the country, a Bloomberg report said.

According to data compiled by news agency, India sealed its busiest M&A year ever with about $191 billion worth of transactions in 2022, bucking a global economic slump in deal activity. While it’s unlikely for the country to repeat such a high mark this year, there will be decent deal flow to keep the bankers busy, said Nitin Maheshwari, JPMorgan's head of M&A for India.

Maheshwari in an interview said, "China has been a bit difficult to deploy so where can these managers go? You can go to Australia and Japan which are both competitive in terms of capital. That’s why more capital will continue to flow into India which is the biggest market for some global sponsors."

India — and its fast-growing economy — has emerged as a big bet for global financial firms, even though recent share rout at billionaire Gautam Adani’s business empire have dented the allure.

At the same time, China is struggling to attract capital after the nation’s protracted Covid Zero policy and a crackdown on private enterprises, including on its biggest tech firms, stunted the economy over the past years.

Smaller transactions will drive deal flow in India this year with the majority being in the range of $500 million to $2 billion, quoting Maheshwari, Bloomberg said.

Health care, energy, infrastructure, specialty manufacturing, and technology are expected to be fairly active, he pointed out. "Corporate clarity, financial sponsors and switch from public to private track will likely be the three key drivers for M&A this year," he added.