India Inc's Q2 2024: Record Deal Volumes Amid Value Decline

India Inc recorded 501 deals valued at USD 21.4 billion in Q2 2024. Despite high quarterly volumes, values declined due to a lack of big-ticket transactions. The merger and acquisition and private equity deals stood at 467, valued at USD 14.9 billion, reflecting a volume increase but value decrease.

India Inc recorded an impressive total of 501 deals worth USD 21.4 billion in Q2 2024, according to a recent Grant Thornton Bharat Dealtracker report.

The consultancy firm noted that the quarter saw the highest deal volumes in two years, though the absence of significant M&A transactions led to a decline in overall value.

Combined M&A and private equity (PE) deals amounted to 467, with a total valuation of USD 14.9 billion. While volumes grew by 9 per cent, values fell by 28 per cent due to the previous quarter's impact from the massive USD 8.5 billion Reliance-Disney merger.

Notably, the quarter included a one-billion-dollar deal and 30 high-value deals exceeding USD 100 million, marking a 58 per cent rise in such transactions compared to the previous period. Grant Thornton remarked that the surge in domestic investments highlights Indian corporates' confidence in the local investment environment.

Geopolitical instability led to fewer cross-border deals, but traditional sectors like pharma and manufacturing saw robust activity. The firm anticipates that recent political developments and expected policy clarity from the upcoming budget will boost investor confidence and drive increased deal activity in the next six months.

Shanthi Vijetha, Partner for Growth at Grant Thornton Bharat, emphasized the strong private equity activity and significant domestic deals observed during the quarter. She added that despite geopolitical challenges affecting cross-border transactions, domestic investment remained vibrant, with traditional sectors contributing significantly to deal values.

Vijetha projected that policy stability would positively influence deal activities moving forward.

(Disclaimer: With inputs from agencies.)