Deal-making in India hits new high: M&A and PE lead the way, telecom tops

India's deal-making landscape experienced a notable increase in the third quarter of 2024, with 551 deals valued at US$ 19 billion. This marks the highest quarterly deal volume since the first quarter of 2022, reflecting heightened investor confidence and a robust economic environment, as consulting firm Grant Thornton Bharat reported. Mergers and acquisitions (M&A) activity reached an all-time high in deal volumes, recording 214 deals in a quarter. Notable companies on an acquisition spree included Nazara Technologies, 9 acquisitions worth US$ 223 million, and Aditya Birla Group and Lodha Group, each with 5 acquisitions. Cross-border outbound deals reached a 10-year high, totalling 35 transactions worth US$ 5.3 billion, significantly contributing to the surge with a 57% increase in volume and 65% in value compared to the previous quarter. Bharti Enterprises' US$ 4 billion acquisition of a 25% stake in a British telecom group emerged as the quarter's deal. At the same time, domestic activity recorded a remarkable 54% volume increase and a 24% value increase, achieving an all-time high in quarterly volumes.

The private equity (PE) landscape also saw robust activity, with 337 deals valued at US$ 7.6 billion, the highest deal volumes since the third quarter of 2022. The retail and consumer sectors continued to dominate PE activity. At the same time, banking and financial services and energy and natural resources contributed significantly to the quarter's values. High-value transactions accounted for a substantial share, capturing 56% of the total PE investment market. Notable deals included Brookfield Global Transition Fund's US$ 550 million investment in Leap Green Energy. The IPO and Qualified Institutional Placement (QIP) landscape witnessed significant activity, with 25 IPO listings valued at US$ 4.1 billion, marking the highest volumes and the second-highest values in the last year. QIP activity reached unprecedented levels, with 42 deals worth US$ 6.5 billion, reflecting strong institutional investor confidence. Key sectors driving this growth included telecom, banking & financial services, and retail, indicating broad-based market interest and robust economic growth.

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