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This edition of the Dealtracker provides a comprehensive overview of Indian deal activity in Q1 2024, highlighting trends in both M&A and PE investments. The report offers valuable insights into investor confidence and sector performances. It also forecasts an optimistic outlook for 2024 with its strong deal pipeline aligned with the Government’s focus areas.
Revival in deals with major mergers: In Q1 2024, there were promising early signs of a rebound in deal activity, with 427 deals amounting to USD 20.4 billion. This marked the highest overall deal activity since Q3 2022 driven by increase in PE deal activity. The surge in deal values was primarily driven by the mega merger of Reliance and Disney, valued at USD 8.5 billion, which constituted 42% of the total values in Q1 2024. Excluding this deal, overall values recorded a 16% decline compared to Q4 2023.
Focus on strategic and smaller value deals: Similarly, barring the mega deal, M&A activity experienced a significant decline of 57% in values compared to Q4 2023, with the average deal size reducing from USD 62 million to USD 32 million, mainly influenced by non-disclosure of deal values (50% deals) and a notable 25% of deals valued between USD 10 million and USD 90 million reflecting small ticket deals.
Surge in PE activity and emerging unicorns: PE activity registered an uptick recording the highest quarterly deal volumes in the last six quarters and the second-highest deal values since Q2 2023, with the quarter witnessing two billion dollar deals and eight high value deals (≥ 100 mn) contributing to 70% of the total PE values. India minted two unicorns, Krutrim SI Designs and Perfios, in the first quarter of the year. Traditional sectors, such as telecom and infrastructure, contributed with high value deals, joining retail and media to dominate deal values, while Retail, IT, and Banking led the volumes.
