-By ArdorComm News Network
October 29, 2024
India’s mergers and acquisitions (M&A) market rebounded strongly in 2024, with transactions rising by 13.8% to reach $69.2 billion in the first nine months, up from $60.8 billion in the same period in 2023. A total of 2,301 deals were executed between January and September, marking a notable increase over the 1,855 deals recorded during the same time last year, as per Bloomberg data.
Leading this surge was Bharti Airtel’s acquisition of a stake in the British telecom giant BT Group for $4.08 billion, marking the largest M&A transaction in India so far this year. Other major deals included a family settlement within the Godrej Group and Gujarat Gas’s $3 billion acquisition of Gujarat State Petronet.
Bhavin Shah, Partner and Leader (Private Equity and Deals) at PwC India, attributes this uptick to India’s attractive growth potential and market resilience compared to developed regions such as North America and Europe. “High GDP growth and a strong stock market in India have driven valuations upward, appealing to both domestic and foreign investors,” he noted.
Interest rate fluctuations and inflation have also influenced M&A activities, as shifting financing terms and equity stakes impact transaction structures and valuations. Additionally, variations in cross-border real exchange rates have shaped global dealmaking patterns.
Vishal Agarwal, Partner at Grant Thornton Bharat, observed that investors are increasingly turning to the Middle East as it focuses on capital attraction, while Western investors appear cautious toward China. Meanwhile, India remains appealing, particularly for early-stage deals and full buyouts.
Private equity has played a significant role in India’s M&A landscape, with PE funds involved in transactions totaling $24.2 billion so far, reflecting an 8.9% rise over the previous year. Investors are also increasingly eyeing IPOs for growth-stage deals, viewing them as more cost-effective than private equity funding.
This sustained interest in the Indian market underscores its stability and potential as a global investment hub amid shifting economic dynamics.
Source: Business Standard