The third quarter of 2024 showcased a remarkable surge in deal activity in India’s financial markets, with 618 transactions valued at US$ 29.6 billion, as reported by Grant Thornton India. This quarter's performance represents the highest quarterly deal volume since the first quarter of 2022, driven by a combination of mergers and acquisitions (M&A), sustained private equity (PE) deals, and a thriving Initial Public Offering (IPO) market.

M&A Activity Reaches New Heights

M&A activity reached record levels in Q3 2024, with 214 deals valued at US$ 11.4 billion. This strong performance was predominantly driven by domestic transactions, which accounted for 154 deals worth US$ 5.7 billion. Notably, there was a 67% increase in cross-border M&A activity compared to the previous quarter. The M&A value was significantly enhanced by two billion-dollar transactions totalling US$ 5.6 billion and 17 high-value deals exceeding US$ 100 million, which together contributed nearly 84% of total M&A values.

Robust Private Equity Sector

The private equity sector remained robust during this quarter, recording 337 deals valued at US$ 7.6 billion. The rise of three new unicorns—Rapido, Ather Energy, and Moneyview—during this period highlighted the continued strength and attractiveness of the automotive and finance sectors in attracting investment.

Record IPO Volumes and QIP Transactions

In addition to the M&A and PE activities, the third quarter of 2024 also marked a significant milestone for the IPO market, with the highest volumes of the year. This quarter saw 3 substantial IPO listings exceeding US$ 500 million, all of which were oversubscribed and listed with positive gains. Furthermore, Qualified Institutional Placement (QIP) activity reached an all-time high, reinforcing its status as the preferred fundraising method for listed companies.

Trends and Insights

Vishal Agarwal, Partner at Grant Thornton Bharat, noted, "The third quarter deal-making activity demonstrated a rising trend over the last two years, with higher volumes and values. While stability prevails, M&A deals showcased consolidation through internal reorganizations and portfolio sales. Private equity investors remain cautious, yet credit-based lending businesses continue to attract capital."

In terms of stability, M&A activity showed steady growth in Q3 2024, with 18 deals valued at US$ 1.4 billion, representing a 20% increase in volume and a 58% increase in value from the previous quarter. Domestic transactions dominated the M&A landscape, accounting for 89% of total volume and 97% of total value, with an average deal size of US$ 83 million. The fintech sector emerged as a significant contributor to this growth, comprising 50% of deal volumes.

Conclusion

The data from Q3 2024 illustrates a robust recovery and growth trajectory in India’s financial markets, characterized by heightened deal activity across M&A, private equity, and IPOs. As companies increasingly seek to consolidate and innovate, the outlook for the remainder of the year remains optimistic. For continuous updates and insights into the evolving landscape of India's financial markets, explore more at Top News Headlines. Stay informed about investment opportunities with a free Demat account from Choice Broking FinX, and join the Finance Saathi Telegram Channel for real-time news and analysis.