M&As in India Hit New Highs: Key Deals of Q2 2024

India’s dealmaking activity reached new heights in Q2 2024, with 501 deals valued at $21.4 billion—the highest quarterly volume since Q2 2022, according to Grant Thornton Bharat Dealtracker. Mergers & Acquisitions (M&A) and Private Equity (PE) deals collectively stood at 467, valued at $14.9 billion, marking a 9% increase in volume but a 28% decrease in value compared to Q1 2024, due to the absence of mega-mergers like the Reliance-Disney deal.

Key Highlights:

1. Surge in High-Value Deals: The quarter saw 30 high-value transactions, a 58% increase from Q1 2024. Indian companies showed strong confidence in the domestic market, driving significant investment.
2. Sector Leaders: Traditional sectors like pharmaceuticals and manufacturing were key contributors, accounting for nearly half of the total deal values.
3. Domestic Deals Dominate: M&A saw 132 deals worth $6.2 billion, driven by four high-value deals from the Adani Group in the industrial materials and ports sectors, which made up 52% of the total M&A value.
4. Cross-Border Decline: Cross-border deals saw a decline, with a 24% drop in volume and an 85% reduction in value compared to Q1 2024.
5. Deal of the Quarter: Ambuja Cement’s $1.3 billion acquisition of Penna Cements was the standout deal, boosting Adani Cement’s market share by 2% across India.
6. Sector-Specific Investments: Notable investments included those in EVs, industrial materials, pharma & biotech, energy & renewables, and defense.

PE Landscape: Private Equity saw 335 deals worth $8.7 billion, with a 9% increase in volume and a 55% jump in value. High-value deals (≥ USD 100 million) dominated, reflecting a shift towards investments in companies with proven business models. Notable investments included Zepto ($665 million) and Lenskart ($200 million).

QIP & IPO Trends: Q2 2024 recorded 20 QIPs totaling $2.3 billion and 14 IPOs valued at $4.2 billion, marking the highest quarterly IPO size since Q2 2022.

Sector Trends:

• Retail & Consumer: Topped overall volumes but saw a marginal 7% decline in volumes.
• Pharma, Healthcare & Biotech: Led values with $3.8 billion across 53 deals, driven by ten high-value transactions.
• Manufacturing: Saw a significant rise with values increasing ninefold to $3.5 billion, mainly due to Adani Group’s high-value deals.

Conclusion: M&A and PE activity in India are on an upward trajectory, fueled by domestic confidence and strategic sector investments, signaling a robust deal landscape ahead.

Source: Business Standard