India’s deal-making landscape remained resilient in October 2024, with 204 transactions amounting to USD 11.7 billion, despite a 6% decline in deal volume compared to the previous month. The deal value, however, saw a 2% increase from September, driven by robust merger and acquisition (M&A) activity and steady private equity (PE) investments, along with a surge in capital market activities, particularly IPOs and Qualified Institutional Placements (QIPs).
Strong M&A Activity and Sectoral Trends
October saw 79 M&A transactions, with a notable 5% decline in volume from the previous month but a 75% surge in value, totaling USD 3.5 billion. Two major transactions, Ambuja Cement’s acquisition of a 47% stake in Orient Cement for USD 976 million and the USD 964 million merger between SeQuent Scientific and Viyash Life Sciences, contributed significantly to this rise, accounting for 55% of the total M&A value.
While domestic M&As dominated the landscape, comprising 75% of the transaction volumes and 90% of the value, cross-border M&As saw a dip, with volumes stable but values dropping by 70%. Geopolitical uncertainties were cited as a factor in this decline.
Private Equity Investments and Capital Market Activity
Private equity activity also showed a decline, with 104 deals valued at USD 1.4 billion, a 7% drop in volume and a 51% decline in value from September. Smaller deals under USD 10 million were the dominant trend, though sectors like Retail, Pharma, and IT remained highly attractive to investors, collectively contributing to over 50% of the month’s PE deal volume.
The IPO and QIP markets displayed strong performance, with seven IPOs raising USD 4 billion and 14 QIPs generating USD 2.7 billion. Notably, Hyundai Motor’s USD 3.4 billion IPO became the largest listing by an automaker in India since Maruti, highlighting India’s growing appeal for major public offerings. The QIP market hit a four-year high in terms of value, reflecting significant investor confidence in Indian equities.
Key sectors such as Retail, Pharma, and IT attracted considerable interest, with these industries continuing to draw investor attention due to their growth potential. Shanthi Vijetha, Partner at Grant Thornton Bharat, commented on the outlook, stating, “Retail, Pharma, and IT are attracting significant interest, and we remain optimistic about the long-term deal-making prospects in India.”
Despite the fluctuating deal values, India’s dynamic deal-making ecosystem, fueled by strong M&A activity, private equity interest, and capital market performance, underscores the nation’s continued attractiveness to global investors.
