Indian dealmaking activity soared in the second quarter of 2024, according to Grant Thornton Bharat Dealtracker. The quarter saw a record-breaking 501 deals valued at US$ 21.4 billion, the highest since the second quarter of 2022.
Mergers & Acquisitions (M&A) and Private Equity (PE) deals totalled 467, valued at US$ 14.9 billion, a 9% increase in volumes but a 28% decrease in values compared to the previous quarter, due to the absence of mega-mergers like the Reliance-Disney deal in the first quarter of 2024.
High-value deals (over US$ 100 million) rose significantly, with 30 transactions compared to 19 in the first quarter of 2024. Traditional sectors like pharmaceuticals and manufacturing showed strong activity, contributing nearly half the total deal values.
M&A saw 132 deals worth US$ 6.2 billion, with domestic deals leading growth, showing a 29% rise in volumes and a 2.5-fold increase in values. Cross-border M&A deals declined, with volumes down 24% and values plummeting by 85%.
The quarter deal was Ambuja Cement’s US$ 1.3 billion acquisition of Penna Cements, boosting Adani Cement’s market share by 2% in India and 8% in South India. PE investment grew significantly in the second quarter of 2024, with 335 deals valued at US$ 8.7 billion, a 9% increase in volume, and a 55% increase in value since the first quarter of 2024.
This quarter marked the highest volumes since the second quarter of 2022 and the second highest values, with 21 high-value deals (greater US$ 100 million) accounting for 68% of the total PE values.
PE transactions dominated the deal landscape, comprising 72% of the total deal volume and 59% of the total values. Small-ticket transactions (under US$ 7 million) dominated deal volumes with a 53% share but contributed only 4% to the total values.
The rise in high-value deals indicates a shift in investor strategy towards companies with proven business models. Notable investments included Zepto (US$ 665 million), Lenskart (US$ 200 million), and Apollo Health and Meesho (US$ 275 million each).
The Qualified Institutional Placements (QIP) and Initial Public Offerings (IPO) landscape also grew, with 20 QIPs totalling US$ 2.3 billion and 14 IPOs totalling US$ 4.2 billion, despite a 42% decline in the number of IPOs compared to the previous quarter, indicating a trend towards fewer but larger IPOs.
