Mazars in India’s latest report: India’s M&A activity soars in Q1 2024 with 197 deals totalling US$9.4bn

The M&A landscape in India displayed remarkable growth and momentum in the first quarter of 2024, as revealed in Mazars in India’s latest M&A Deal Tracker Report. This comprehensive report delves into key trends and impactful transactions that shaped India’s dealscape during this period. Notably, Q1 2024 witnessed a substantial surge in M&A activity, with 197 deals amounting to US$9.4bn, marking the highest volume since Q2 of 2022. This surge represents a remarkable 168% increase in deal value from Q1 2023, with domestic deals taking the lead at 72%.

Akhil Puri, Partner, Financial Advisory, Mazars in India, “Despite global challenges, India’s M&A activity in Q1 2024 continued its upward trend, buoyed by macroeconomic stability and positive sentiments. The Interim Union Budget 2024 emphasised stability, fiscal consolidation, and growth initiatives. M&A surged to US$9.4bn, a 168% increase in deal value from Q1 2023, with domestic deals dominating at 72%. Key drivers include firms prioritising M&A for expansion and supply chain integration, especially in sectors like technology and renewable energy. India’s appeal to foreign investors, strategic alliances, and FDI liberalisation are expected to sustain M&A growth in 2024.”

Quarter-wise M&A activity:

India witnessed a significant uptick in M&A activity in Q1 2024, with 197 deals totalling US$9.4bn, marking the highest volume since Q2 of 2022. This represents a substantial growth of 26.3% in deal volume and a remarkable 168.2% increase in overall deal value compared to the same period last year. Noteworthy transactions included 17 deals valued over US$100m, including three deals exceeding US$1bn. The most prominent deal was the acquisition of ATC Telecom Infrastructure by Brookfield Asset Management-sponsored Data Infrastructure Trust for approximately US$2.0bn, highlighting the strength of major transactions in India’s M&A landscape.

Domestic M&A trend:

Domestic transactions dominated the M&A scene, representing 71.6% of the overall deals and witnessing the fastest growth in Q1 2024. Domestic deals grew by 22.6% to 141 deals, with an overall value reaching US$6.0bn, up from US$1.8bn in Q1 2023.

Inbound M&A trend:

Inbound M&A activity showed mixed results, with deal volume remaining stable but deal value experiencing a multi-fold increase, reaching US$2.0bn. Major inbound deals included IndusInd International Holdings’ acquisition of bankrupt Reliance Capital and Cube Highways and Infrastructure’s acquisition of Chenani Nashri Tunnelway.

Outbound M&A trend:

Outbound deals saw a decline in deal value, contracting by 58.1% to US$645.3m, although deal volume grew by 5.9% to 18 deals. Notable outbound deals included Sun Pharmaceutical’s acquisition of Taro Pharmaceutical and Kiran Vyapar’s acquisition of Peepul Tree Capital.

M&A sector and transaction size trends:

Across sectors, there was overall growth in deal volume, with sectors like consumer discretionary, information technology, and industrials leading the activity. In terms of value, industrials, financials, and telecommunication services were most active.

Transaction sizes showed an increase across categories, with three mega deals (US$1bn and above) recorded during the period.

Top 5 transactions:

The top 5 transactions during Q1 2024, including three mega deals, accounted for approximately 59% of the overall transaction value. Notable deals included ATC Telecom Infrastructure’s acquisition and Highways Infrastructure Trust’s acquisition of road projects.

The Q1 2024 M&A deal tracker report by Mazars in India offers valuable insights into India’s dynamic M&A landscape, highlighting robust growth and a positive outlook. This resilience and adaptability in the market amid global challenges are evident, with key sectors like technology, manufacturing, healthcare, and renewable energy driving M&A activity. India’s attractiveness for investors and businesses seeking growth opportunities is further emphasised by favorable policy measures and strategic initiatives. The momentum in Q1 sets a promising tone for the year ahead, reflecting confidence in India’s economic prospects and its status as a thriving hub for strategic mergers and acquisitions.