Resilient Indian Deal Landscape: A Surge in Value Despite Volume Decline

In October 2024, India's deal landscape displayed resilience with 204 transactions worth USD 11.7 billion, driven by strong M&A activity and steady PE investments, despite a dip in deal volume. Robust IPOs and QIPs invigorated capital markets, further solidifying India as an attractive investment destination.

India's financial activities in October 2024 signaled strength, with 204 transactions totaling USD 11.7 billion, according to the Grant Thornton Bharat Dealtracker. Although there was a 6% decrease in deal volume, the transaction value rose by 2% from September, powered by robust mergers and acquisitions and stable private equity investments.

Capital markets witnessed a surge, particularly in IPOs and QIPs, strengthening India's allure for investors, notably in technology, healthcare, and renewable energy sectors. Shanthi Vijetha, Partner, Growth at Grant Thornton Bharat, noted significant interest in sectors like Retail, Pharma, and IT, emphasizing optimism for India's deal-making future. M&A activities varied, with 79 transactions, marking a 5% drop in volume but a notable 75% rise in value to USD 3.5 billion.

This increase in M&A value was driven by major deals, including Ambuja Cement's USD 976 million acquisition in Orient Cement and SeQuent Scientific's USD 964 million merger with Viyash Life Sciences, which together constituted 55% of the M&A value in October. Despite these high-value deals, the month's overall deal values dropped by 21% when excluding them.

Domestic consolidations were prevalent in the M&A scene, responsible for 75% of transaction volumes and 90% of total value, showcasing Indian companies' resolve to secure market positions through local alliances. However, cross-border activity remained low, with stable volumes but a 70% reduction in values due to global geopolitical challenges. October's PE scene saw 104 deals worth USD 1.4 billion, a 7% fall in volume and a 51% decline in value from September, driven by fewer high-value transactions and an increase in smaller deals under USD 10 million.

Despite these dynamics, strong interest remained for Retail, Pharma, and IT, representing over half the PE deal volume. The IPO and QIP markets were lively with seven IPOs raising USD 4 billion and 14 QIPs generating USD 2.7 billion. Standout events included Hyundai Motor's USD 3.4 billion IPO, the largest automaker listing in India since Maruti, highlighting India's appeal for major public offerings. QIP values reached a four-year monthly peak, reflecting robust investor confidence in Indian stocks. (ANI)

(With inputs from agencies.)