India Inc Sets Record with 195 Deals Worth $8.4 Billion in July, Report Reveals

Indian companies concluded 195 transactions worth $8.4 billion in July, a 16% rise in transaction volumes, driven by a high level of investor confidence, a report said on Tuesday. Of the total, 57% were private equity transactions, while in value terms, mergers and acquisition made up 59%, according to a report by 'Grant Thornton Bharat Dealtracker'.

"The strong growth in deal activity reflects growing investor confidence. Record volumes of M&As, driven by significant domestic transactions and a resurgence in cross-border deals, have proved India's strategic position as one of the key growth markets," Shanthi Vijetha, Partner, Growth at Grant Thornton Bharat, said.

Vijetha added that growth-oriented steps announced in the Union Budget 2024 also reflect India's central position in global investment.

The PE sector had 98 deals worth $2.2 billion, reflecting a marginal 0.5 percent gain in value. While volumes overall declined, the average deal size came in at $22 million as seven large transactions worth $1.4 billion boosted this metric.

The energy and natural resources sector accounted for 46% of the total PE investment values alongside banking and financial services.

The M&A space saw strong growth, too, to 75 deals worth $3.2 billion; this represented a 50% growth in volume, which were the highest-ever monthly figures. This has been largely driven by domestic deals accounting for 73% of the volume and quite a substantive 94% of the total value.

July also saw five IPOs mobilising $0.6 billion, along with 17 QIPs, a record by numbers, which mobilized $2.4 billion in the Indian market.

While QIP issues have reflected the congenial conditions for the listed companies, the IPOs have reflected the strong investor confidence and interest for new entrants, the report mentioned.

Notable among the transactions was the deal by Mankind Pharma for acquiring Bharat Serums and Vaccins for USD 1.64 billion, reflecting 52% of the M&A values and 31% of the total deal values during the month.

In terms of volume, manufacturing emerged at the top, followed by pharma, retail, and IT, while in terms of deal value, pharma topped, the report concluded.