April-June of the fiscal year turned into a heavy deal activity for India, though it has witnessed 501 transactions worth USD 21.4 billion, thereby closing the highest quarterly volumes since Q2 2022. According to a recent report by Grant Thornton Bharat Dealtracker, this momentum is likely to continue in the next six months amid clarity in policy expected from the upcoming budget and the political stability that has instilled confidence among investors.
On the other hand, M&As combined with PE deals came up to 467 transactions valued at $14.9 billion, marking a 9% rise in transaction volumes. This increase was largely driven by four big-ticket transactions by the Adani Group in the industrial materials and ports sectors, which contributed 52% of the total M&A values for the quarter.
Q2, FY25 came with a billion-dollar deal and 30 high-value transactions above $100 million each, which represents a substantial 58 percent increase over the past quarter that saw 19 of these, including three billion-dollar deals.
Shanthi Vijetha, Partner, Growth at Grant Thornton Bharat, said that the trend remained strong on account of high private equity activity besides massive deals within the domestic markets, as cross-border transactions had come down due to geopolitical uncertainties. This was firmly supported by sector-wise strong deal flows across traditional verticals such as pharmaceuticals and manufacturing, accounting for almost 50% of the total deal values.
"With the government now entering its third term following recent elections, there is an anticipation of continuity in the policy framework that would further stimulate deal-making," added Vijetha.
This investment confidence was reflected in domestic investment by Indian corporates. M&A activity recorded 132 deals worth $6.2 billion, indicating a modest rise in transaction volumes in Q2 2024.
In a large part, the PE landscape also outgrown: 335 deals worth USD 8.7 bln. This represents a volume increase of 9 percent and a value increase of 55 percent over Q1, 2024 alone.
It also said there were 20 qualified institutional placements worth USD2.3 bln, representing an increase both in volume and value compared to the previous quarter, with transaction volumes at their second highest since Q4 2017.
On the IPO front, Q2 2024 saw 14 IPOs for $4.2 billion—the best quarterly IPO performance since Q2 2022. Deal values in the retail and consumer sector increased by 18%, while transaction volumes decreased by 7% compared with Q1 2024—firmly placing the industry at center stage in dealmaking activities.
Read also | India on way to become a developed nation by 2047, says NK Singh
Read also | India Secures 3rd Place in Global Fintech Funding for First Half of 2024
