India's Q1 Deal Resurgence: A $24.5 Billion Surge, Revealed in Report

The initial quarter of this year witnessed an extraordinary surge in deal-making activity within the nation, both in terms of volume and value, as revealed by a report released on Monday, showcasing 469 deals amounting to $24.5 billion.

This resurgence in deal activity can be attributed to several factors including robust private equity (PE) operations, a notable resurgence in initial public offerings (IPOs), and a string of high-value transactions, as outlined by the 'Grant Thornton Bharat Dealtracker.'

Undoubtedly, the most significant deal of the quarter (January-March period) was the mega-merger between Reliance and Disney, valued at a staggering $8.5 billion.

Shanthi Vijetha, Partner at Grant Thornton Bharat, emphasized, "The increase in PE activity, marked by the emergence of two unicorns and substantial deals spanning traditional sectors, offers promise for sustained growth and investment prospects."

Looking ahead, with forthcoming events such as elections, combined with a robust pipeline of deals and heightened interest from private capital, the outlook for 2024 appears optimistic, Vijetha added.

In terms of PE activity, the landscape witnessed 307 deals amounting to $8.1 billion, reflecting a 10 percent surge in volume and a remarkable 51 percent increase in value compared to the previous quarter.

The highlight deal of the quarter was Data Investment Trust's injection of $2.5 billion into ATC India Tower Corporation.

Moreover, the quarter saw the emergence of two billion-dollar deals and eight high-value transactions, collectively contributing to 70 percent of the total PE deal values, according to the report.

India also welcomed the inception of two unicorns — Krutrim SI Designs and Perfios.

The report observed that traditional sectors like telecom and infrastructure, alongside retail and media, dominated deal values, while retail, IT, and banking led in terms of volumes.