Tech drives India's M&A market in the first half of 2024: Top 10 deals decoded

In the first half of 2024, India's mergers and acquisitions (M&A) landscape exhibited a mixed performance. The total value of announced M&A deals involving India reached US$ 446.9 million (Rs. 37.3 billion), showing a 4.4% YoY increase. However, deals declined significantly by 18.4%, particularly affecting the mid-market segment with a 19% drop in activity. Despite this decline in volume, the period saw notable transactions exceeding US$1 billion each, including the high-profile mergers of Walt Disney with Reliance Industries' media assets and Data Infrastructure Trust with ATC India.

Domestic M&A transactions amounted to US$ 206.1 billion (Rs. 17.2 billion), down 8.8% from the previous year, indicating subdued consolidation within India. In contrast, inbound M&A activity surged to US$ 206.1 billion (Rs. 17.2 billion), marking a substantial 32.4% increase year-on-year, driven by heightened foreign investor interest, notably from the United States. Meanwhile, outbound M&A from India totalled US$ 32.3 million (Rs. 2.7 billion), down 29.0% YoY, suggesting a cautious approach by Indian firms towards overseas acquisitions.

The Technology, Media & Entertainment, and Telecommunications (TMT) sector emerged as a key focus, accounting for US$ 167.7 million (Rs. 14 billion) in M&A activity. This sector's robust performance, more than doubling compared to the previous year, underscores India's strong economic fundamentals and government initiatives promoting digitalization. Overall, while the M&A landscape in India saw a decline in deal volume, the substantial increase in deal value and notable transactions highlight ongoing investor confidence and strategic shifts in the market.

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