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According to Grant Thornton Bharat's Dealtracker for January 2024, India Inc. 142 deals at USD 6.1 billion, marking a 15% increase in volumes and a 21% increase in values compared to December 2023. Uptrend in the deal activity was on back of a positive trend witnessed in private equity (PE) activity and presence of two billion-dollar investments totalling USD 3.6 billion. The deal of the month was Data Investment Trust's acquisition of ATC India Tower Corporation, a telecom infrastructure company, accounting for nearly 41% of the total deal value at USD 2.5 billion. Factors such as slowing US inflation, favourable Indian macroeconomic conditions, potential foreign inflows, and expectations of policy continuity continue to influence dealmaking.
Shanthi Vijetha, Partner, Growth at Grant Thornton Bharat, commented on the annual deal activity, saying "In the dawn of 2024, India's dealmaking landscape reflects a promising surge, marked by a robust PE activity. The spotlight shines on transactions like Data Investment Trust's acquisition of ATC India Tower Corporation and Highways Infrastructure Trust’s strategic move in acquiring 12 highway assets from PNC Infratech Ltd. While technology sectors, spearheaded by startups and e-commerce, continue to drive PE momentum, the emergence of Krutrim SI Designs as India's first unicorn sets an early milestone. Amidst subdued M&A activity and anticipation surrounding budget 2024 and Lok Sabha elections, the market awaits potential policy shifts and political developments. The prevailing positive sentiment suggests a buoyant outlook for dealmaking in 2024, signalling optimism and strategic evolution in the investment landscape.”
Mergers and Acquisitions (M&A) landscape: The Indian M&A space recorded 41 M&A deals at USD 1.4 billion, reflecting an 8% increase in deal volume but a significant 64% decline in values compared to December 2023. M&A activity witnessed marginal increase volumes while marked the lowest monthly values since October 2023, due to the of absence of big-ticket transactions. Domestic M&A continued constituted 68% of the deal volumes, reflecting confidence in the long-term potential of the Indian economy. However, cross border deal activity saw a decline in deal values of 90% since November 2023. The top M&A deal was Tata Consumer Products Ltd’s. acquisition of a 100% stake in Capital Foods Pvt Ltd.
Private Equity (PE) landscape: The PE space witnessed 101 PE deals at USD 4.7 billion, indicating a 17% increase in volumes and a remarkable 298% rise in values compared to 2023. The biggest deal was Data Investment Trust’s investment of USD 2.5 billion in ATC India Tower Corporation Pvt Ltd. The technology sectors including start-ups and e-commerce continued to dominate the PE deal activity. PE deals drove the month’s overall activity contributing to 77% values and 71% volumes. Fueling India’s raise in AI, Krutrim, SI Designs emerged as the first AI start-up to join the unicorn club raising USD 50 million from Matrix Partners India.
In recent market trends, start-ups have dominated deal volumes, reaching a high of 69 deals worth USD 253 million, driven by segments such as retail, fintech, enterprise applications, and health tech, contributing to 64% of start-up volumes. Energy and natural resources experienced growth with six deals totaling USD 227 billion, mainly fueled by cleantech and power generation initiatives. Conversely, the pharma, healthcare, and biotech sector saw a decline in both deal volumes and values. Hospitality, leisure, media, and entertainment sectors witnessed outbound interest, reflecting the country's efforts to expand into new markets.
The press release was issued on 15th February, 2024.