Deals galore: India's biggest PE and M&A deals in the third quarter of 2024

M&A volumes reached a record high, witnessing 214 deals valuing $11.4 billion, majorly dominated by domestic deals, with 154 deals worth $5.7 billion.

The third quarter of 2024 witnessed a notable surge in deal activity, with 618 deals valued at $29.6 billion, shows data analysed by consulting firm Grant Thornton India. This marked the highest quarterly deal volumes since the first quarter of 2022, driven by increased M&A activity, sustained PE deal activity, record QIP deals and a robust IPO market. 

M&A volumes reached a record high, witnessing 214 deals valuing $11.4 billion, majorly dominated by domestic deals, with 154 deals worth USD 5.7 billion. Crossborder activity, both inbound and outbound, witnessed a rise in volumes by 67% compared to the previous quarter, noted Grant Thornton.

 

M&A values were driven by two billion-dollar transactions totalling $5.6 billion and 17 high-value deals (over 100 million) worth $ 4 billion, accounting for nearly 84% of the total M&A values. PE activity remained robust, with 337 deals valued at $7.6 billion. The quarter witnessed three companies achieving unicorn status - Rapido, Ather Energy and Moneyview - with their respective fundraises, giving a big boost to the automotive and finance sectors. 

Exits remain in focus for PE funds as many portfolio companies are preparing for IPO exits.

Q3 2024 witnessed the highest IPO volumes in 2024, with three of the biggest IPO listings (> 500mn) for the year, which were oversubscribed and listed with positive gains. On the other hand, QIP activity reached an all-time high, making it a preferred choice of fundraising for listed companies. 

"Q3 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," said Vishal Agarwal, Partner at Grant Thornton Bharat.

M&A Landscape for BFSI sector

1. M&A activity saw stable growth in Q3 2024, with 18 deals valued at USD 1.4 billion, representing a 20% increase in volume and 58% increase in value from Q2 2024.

2. Domestic deals dominated the landscape, accounting for 89% of total volume and 97% of total value, with an average deal size of USD 83 million.

3. The fintech sector contributed significantly, accounting for 50% of deal volumes, while banking, NBFC, financial services, and asset management sectors together accounted for 91% of total

values.

4. The top M&A deal was Omkara Asset Reconstruction Pvt Ltd's acquisition of stressed assets of IDFC Bank for USD 741 million, representing 54% of Q3 M&A deal values.

5. Outbound consolidations which saw muted activity since the start of the year, witnessed one deal in the fin tech segment expanding reach in the MENA Region.

PE/VC Landscape

1. Deal activity in Q3 2024 saw 46 deals valued at $1.9 billion, with volumes declining 6% from Q2, but values growing 19% to reach the highest quarterly level this year.

2. Six big-ticket deals (> USD 100 million) drove this growth, valued at $1.4 billion, primarily in the banking and NBFC segment, surpassing Q2's three deals worth $836 million.

3. PE activity recorded its second-highest volumes and values since Q3 2022

4. The average deal size increased, reflecting rising interest in substantial investments, with growthstage funding (beyond Series B) in fintech companies reaching its peak in Q3 2024 over the past two years.

5. Fintech companies attracted significant investments, with established firms drawing increased attention from investors, highlighting maturing industry trends.

6. The top PE deal was CVC Capital Partners' investment of a 27% stake in Aavas Financiers Ltd for an estimated $410 million.

7. Overall, Q3 2024 PE/VC activity demonstrates a shift towards quality over quantity, with investors favoring larger, more established companies.

IPO & QIP Landscape

1. Q3 2024 saw 2 IPOs worth $884 million, surpassing Q2's $692 million from 3 issues.

2. Bajaj Finance's USD 790 million IPO stood out, experiencing significant gains upon listing due to strong retail investor participation.

3. Q3 recorded 6 QIPs worth $692 million, marking the second-highest quarterly volumes in five years and the highest quarterly deal values for 2024.

Top M&A deals of the quarter constitute 65% of the deal values

Top PE deals of the quarter constitute 26% of the deal values