Mumbai: After a sluggish start in 2023, Indian M&A activity surged by 31 per cent during the the first quarter of 2024 to $19 billion compared to the same period last year. In contrast to the previous year, here
only a single deal exceeding US$1 billion was announced in Q1, the first quarter of 2024 witnessed the announcement of three such deals said LSEG Deals Intelligence report. Notable among these were the US$3 billion merger between Walt Disney and Reliance Industries Limited’s Indian media assets, as well as the US$2.5 billion merger between Data Infrastructure Trust and ATC India.
Target India M&A activity reached US$18.1 billion, up 48.5 per cent from a year ago. Domestic M&A activity totaled $8.3 billion, a 6.5 per cent increase from the same period in 2023. Inbound M&A also grew 122.3 per cent from a year ago and totaled S$9.8 billion. Outbound M&A activity witnessed a slow start and reached $570.3 million, down 73.5 per cent year-on-year, the lowest first quarter total since 2015. United States was the most active nation doing cross-border deals with India – both as target for outbound and acquiror for inbound activity.
Majority of the deal making activity involving India targeted the Media & Entertainment sector which totaled US$3.8 billion, a significant increase in value from the comparative period last year ($116.8 million), which accounted for 20 per cent market share. Industrials totaled $3.3 billion, up 11 per cent from the first quarter of 2023, capturing 17.6 per cent market share. Telecommunications rounded out the top three with 17.1 per cent market share. Private equity-backed M&A in India amounted to $1.2 billion, down 64.9 per cent from a year ago, and the lowest first quarter total since 2014.
“Aside from the uptick in deal activity in Q1 2024, several factors could potentially sustain India’s M&A momentum for the remainder of the year, particularly post-elections. These factors include improved boardroom confidence propelled by a thriving Indian equity market, potential interest rate cuts, and diminishing inflationary pressures. Additionally, domestic consolidations, acquisitions aligned with sustainability themes, enhancing technical capabilities and deployment of private equity dry powder are expected to bolster dealmaking in India,” said Elaine Tan, Senior Manager, LSEG Deals Intelligence.
India investment banking activities earned US$247.2 million in estimated fees during the first quarter of 2024, a 27 per cent decline compared to last year. Equity capital markets underwriting fees reached US$123.4 million, up 134 per cent from a year ago, the highest first quarter total since records began in 2000. Debt capital markets underwriting fees totaled US$63.5 million, down 17 per cent from a year ago. Completed M&A advisory fees declined 53 per cent year-on-year and totaled US$44.0 million. Jefferies took the top position for overall investment banking fee ranking in India with a total of US$20.3 million, accounting for 8.2 per cent wallet share of India’s investment banking fee pool.
