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According to the Grant Thornton Bharat Dealtracker, excluding IPOs and QIPs, August 2024 deal activity witnessed a significant surge, with a total of 179 deals, amounting to USD 8.7 billion, marking a 63% increase in value compared to July. While overall volumes saw a modest 3% rise, M&A transactions dominated the landscape, accounting for 71% of the total value, largely driven by Bharti Enterprises' USD 4 billion acquisition of a 25% stake in British Telecom Group, the second-largest deal of the year. Private Equity (PE) deals contributed to 68% of the total volume, with 7 high-value deals (over USD 100 million) collectively worth USD 1.7 billion, surpassing the previous month's values with 7 deals worth USD 1.4 billion. This robust deal activity underscores a vibrant market, with investors demonstrating confidence in India's growth story across various sectors. Notably, Ather Energy and Rapido achieved unicorn status, underscoring investor confidence and growing demand in the electric vehicle (EV) and mobility segments.
Shanthi Vijetha, Partner, Growth at Grant Thornton Bharat, commented on the deal activity: “India Inc continues to witness surge in deal activity in the background of the ongoing global economic uncertainties. BFSI, IT&ITES, retail and consumer, and electric vehicle sectors are leading the charge with M&A deals and PE investments. India’s ability to attract capital and foster innovation across critical industries has been demonstrated well. We expect this strong in interest to continue, with themes like digitisation, cleantech, mobility, aerospace and defense remaining in the spotlight in the immediate future."
Mergers and Acquisitions (M&A) landscape: M&A deal activity in August saw a notable uptick in value, reaching USD 6.2 billion, despite a 24% drop in volume to 57 deals. This marked the second-highest monthly volumes and values for the year. While domestic consolidations declined by 35% in volume and 37% in value, cross-border activity bucked the trend, increasing by 5% in volume, driven primarily by a mega deal in the telecom sector. The standout transaction was Bharti Enterprises Ltd's acquisition of a minority stake in British Telecom Group Plc for USD 4 billion, which accounted for a significant 64% of the overall M&A values for the month. This large deal contributed to the 96% surge in values from USD 3.2 billion in July to USD 6.2 billion in August.
Private Equity (PE) landscape: PE activity experienced a significant uptick in August, with 122 deals worth USD 2.5 billion, marking the second-highest monthly deal volumes in the past 18 months. This represents a 24% increase in volume and a 15% rise in value compared to July. The top deal was CVC Capital Partners' investment in Aavas Financiers Ltd for approximately USD 410 million.
IPO & QIP Landscape: The month witnessed robust fundraising activity, with a total of 19 deals raising USD 3.4 billion, marking the second-highest IPO and QIP activity in a year. This includes 8 IPOs collectively raising USD 1.8 billion, led by Ola Electric's USD 740 million IPO, the largest in the automotive sector, and 2 IPOs in Retail and Consumer raising USD 525 million. Overall, 11 QIPs raised USD 1.6 billion, with the Energy and natural resources sector seeing 3 QIPs raising USD 1.1 billion, continuing the billion-dollar trend. This significant fundraising activity demonstrates strong investor appetite, a vibrant capital market, and confidence among companies, setting a positive tone for future fundraising activities.