In the first quarter of 2024, the Indian market witnessed a sharp rise in deal activity. According to recent reports, private investment and company mergers led to 469 deals worth $24.5 billion. This marks the highest quarterly volume and value of contracts since the second quarter of CY22. The standout event was the massive $8.5-billion Reliance and Disney merger. This surge shows that the market is strong, driven by robust private equity (PE) activity and a strong rebound in the primary market. Let’s explore the key highlights of the recent mergers and acquisitions in India.
Highlights | Recent M&A Deals in India
- Q1 of 2024 saw a record-high of 469 business deals worth $24.5 billion.
- The Reliance-Disney $8.5-billion merger was a standout deal of the quarter.
- M&A deal volume decreased by 16%, but deal value surged by 38%.
- The media & entertainment sector dominated M&A activity, driven by major transactions.
- Private Equity deals increased by 51%, with telecom and infrastructure sectors leading in value.
Experts express optimism for 2024, citing upcoming events such as elections, a strong pipeline of deals, and increased private capital attention.
Recent M&A Deals Witness Shift in Volume and Value
Despite a 16 percent drop in M&A deal volume from 143 in Q4CY23 to 120 in Q1CY24, there was a notable 38 percent jump in deal value to $12.3 billion.
Recent Recent Mergers and Acquisitions in India: Q1CY2024
| Acquirer | Target | Deal Value (USD Million) |
| Viacom18 Media | Star India Pvt Ltd – Disney Star | 8,500 |
| Sumitomo Mitsui Financial Group, Inc | SMFG India Credit Company | 700 |
| Tata Consumer Products | Capital Foods | 614 |
| Reliance Industries | Viacom18 Media | 516 |
| Tata Consumer Products | Organic India | 229 |
In Q1CY2024, major M&A deals highlighted significant consolidation and strategic expansion. The focus was on sectors like media, finance, and consumer products. Notable transactions included Viacom18’s acquisition of Star India for $8.5 billion.
These recent M&A deals reflect robust industry convergence and market positioning efforts.
Domestic mergers and acquisitions volumes have declined over the past year. However, it is noteworthy that cross-border activity surged to its second-highest quarterly level in five years.
Media and Entertainment Sector Leads in M&A Value
The media and entertainment sector led in M&A value. It accounted for 74 percent of total mergers and acquisitions deals activity, with 14 transactions worth $9.1 billion.
The idea of this merger seems primarily driven by the Reliance and Disney merger. Conversely, the IT sector led in volumes with 19 transactions, although values remained relatively low at $270 million.
PE Activity Shows Strong Volume and Value Growth
PE deals experienced a 10 percent increase in volumes and a significant 51 percent jump in values from Q4CY23.
TOP PE DEALS OF Q1CY24
| Investor Details | Investee Details | Deal Value (USD Million) |
| Data Investment Trust | ATC India Tower Corporation | 2,500 |
| Highways Infrastructure Trust | PNC Infratech Limited – 12 highway assets | 1,090 |
| GQG Partners | Bharti Airtel | 710 |
| Canada Pension Plan Investment Board and Ontario teachers pension plan | NHAI InvIT- National Highways Infra Trust | 438 |
| Advent International and Multiples Private Equity | Svatantra Microfin | 233 |
- The top PE activity deals of Q1CY24 highlight significant investments in key sectors. Notably, Data Investment Trust’s acquisition of ATC India Tower Corporation for $2.5 billion signifies interest in telecom infrastructure.
- Additionally, GQG Partners’ $710 million investment in Bharti Airtel underlines growing confidence in India’s telecom sector.
Sectors such as telecom, infrastructure, retail, and media dominated deal values. However, retail, IT, and banking led in terms of volumes.
High-Value PE Deals Drive Market Dynamics
Q1CY24 witnessed the emergence of $2-billion deals and eight high-value transactions, comprising 70 percent of the total PE deal values. Notably, India welcomed two new unicorns, including OLA founder Bhavish Aggarwal’s Krutrim SI Designs, which raised $50 million, and SaaS-based B2B fintech firm Perfios, which raised $80 million.
Conclusion
The first quarter of 2024 was positive, with significant investments and mergers happening. The market responded positively to these activities, showing renewed confidence and potential opportunities in different areas.
Looking ahead, the outlook is positive, with continued interest from private investors.
Source- moneycontrol.com
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