New Delhi, November 14
India's deal landscape showcased resilience in October 2024, recording 204 transactions valued at USD 11.7 billion, according to the Grant Thornton Bharat Dealtracker.
Despite a 6 per cent decline in deal volume, the country saw a 2 per cent increase in transaction value from September, driven by robust merger and acquisition (M&A) activity and stable private equity (PE) investments.
The surge in capital market activity, particularly through IPOs and QIPs, further strengthened India's position as a key destination for investors, especially in technology, healthcare, and renewable energy sectors.
Shanthi Vijetha, Partner, Growth at Grant Thornton Bharat, commented on the trends, saying, "Key sectors like Retail, Pharma, and IT are attracting significant interest, and we remain optimistic about the long-term outlook for deal-making in India.' India's M&A sector saw a mix of developments, with October recording 79 transactions, a 5 per cent decline in volume from the previous month, but an impressive 75 per cent increase in value to USD 3.5 billion.
The rise in M&A value was propelled by two major transactions: Ambuja Cement's USD 976 million acquisition of a 47 per cent stake in Orient Cement, and the USD 964 million merger of SeQuent Scientific with Viyash Life Sciences.
These two deals alone accounted for 55 per cent of the month's M&A value. Excluding these high-value deals, the month saw a 21 per cent dip in deal values.
Domestic consolidations dominated the M&A landscape, capturing 75 per cent of transaction volumes and 90 per cent of total value, reflecting continued confidence among Indian companies to strengthen market positions through local partnerships. In contrast, cross-border activity remained subdued, with volumes stable but values down by 70 per cent, impacted by global geopolitical uncertainties.
India's PE activity in October showed a 7 per cent decline in volume, totalling 104 deals valued at USD 1.4 billion. This marked a significant 51 per cent drop in value from September, largely due to a decrease in high-value transactions and a dominance of small-ticket deals under USD 10 million.
Despite these shifts, the Retail, Pharma, and IT sectors attracted strong investor interest, collectively making up over half of the month's PE deal volume.
India's IPO and QIP markets saw vibrant activity, with seven IPOs raising USD 4 billion and 14 QIPs generating USD 2.7 billion in October.
A major highlight was Hyundai Motor's USD 3.4 billion IPO, the largest Indian listing for an automaker since Maruti, underscoring India's appeal for significant public offerings. QIP values hit a four-year monthly high, reflecting high investor confidence in Indian equities.