At $19 billion, India Inc sees highest quarterly deal volumes in 2 years

India Inc saw 551 deals worth $19 billion in the July-September period, clocking highest quarterly deal volumes in two years, a report showed on Monday.

The three-month period (Q3 2024) also saw 25 initial public offerings (IPOs) valued at $4.1 billion, according to Grant Thornton Bharat Dealtracker.

There were 214 mergers and acquisitions valued at $11.4 billion, a 57 per cent increase in volume and 65 per cent in value from Q2 2024, which is a testament to India's resilience and growing confidence.

“India's deal-making environment has been on the upward trend in volumes since Q1 2023, with Q3 2024 marking its highest, reflecting domestic market resilience, driven by domestic and cross-border transactions and breeding confidence among investors,” said Shanthi Vijetha, Partner, Growth at Grant Thornton Bharat.

Additionally, the record qualified institutional placement (QIP) activity and heightened IPO listing indicates the upbeat in the Indian capital market.

"We expect this momentum to continue, fuelled by investments in digital transformation, sustainability, and other key sectors," Vijetha added.

Notably, cross-border activity reached a 10-year high, with 35 outbound deals worth $5.3 billion, led by Bharti Enterprises' $4 billion acquisition of a 25 per cent stake in a British telecom group.

Domestic activity also saw a remarkable 54 per cent volume increase and 24 per cent value increase, achieving an all-time high in quarterly volumes, the report noted.

The private equity (PE) landscape saw 337 deals valued at $7.6 billion, marking the highest deal volumes since Q3 2022.

The quarter saw significant activity from high-value deals, with 23 transactions exceeding $100 million, totalling $4.9 billion and accounting for 65 per cent of overall deal values.Early-stage funding also saw notable traction, with seed, pre-seed, and angel stages securing $273 million across 80 deals.Sector-wise, the telecom sector led in deal values with $4 billion from just two deals. 

Retail sector led deal volumes with 112 deals worth $1.8 billion, said the report.