India-involvement announced M&A activity totalled $56.8 billion in the first nine months of 2024, a 20 percent decline from a year ago, latest data from LSEG Deals Intelligence showed. 

This is the lowest first nine-month (January-September) total since 2017. This is also the third consecutive year of decline in the first nine months from 2022 to 2024.

The number of India-involvement deals in January-September this year was down 5 percent at 2,001 (2,103).

Of the total M&A activity, Private equity-backed M&A in India amounted to $8.4 billion, down 18 per cent from a year ago, and the lowest first nine months total since 2017.

Elaine Tan, Senior Manager at LSEG Deals Intelligence, highlighted that Indian-involvement deals targeting Technology, Media & Entertainment, and Telecommunications (TMT) accounted for 30 per cent of the deal value so far this year, amounting to $16.8 billion, almost double the amount announced during the same period last year.

The TMT sectors experience high growth potential particularly in areas such as software, cloud computing, advanced telecom / digital services and telecom infrastructure to support digital growth, technology solutions and connectivity needs, she added.

 “Diverse sectors, from infrastructure, renewable energy, healthcare and fast-moving consumer goods are hotbeds for deal making activity involving India driven by the growing middle class and consumer spending, reflecting the growing nature of the Indian economy”, Tan added.

Meanwhile, Target India M&A activity in January-September 2024 reached $ 51.1 billion, down 23 percent compared to last year. 

Domestic M&A activity totalled $29.0 billion, down 41 percent from the same period last year. Inbound M&A grew 27 per cent from a year ago and totalled $22.1 billion. Outbound M&A activity reached $ 5.2 billion, up 5 per cent year-on-year. 

According to LSEG Deals Intelligence, the United States was the most active nation in cross-border deals with India, both as a target for outbound and an acquirer for inbound activity.

Most deal-making activity involving India targeted the Financials sector, which totalled $7.7 billion, down 73 per cent in value from the comparative period last year and accounted for 13.5 per cent market share. Industrials totalled $7.6 billion, down 19 per cent from the first nine months of 2023, capturing a 13.4 per cent market share. 

High Technology, which saw the greatest number of deals, rounded out the top three sectors with 12.9 percent market share, as deal value totalled $7.3 billion, up 22 percent from a year ago.

High Technology, which saw the greatest number of deals, rounded out the top three sectors with 12.9 percent market share, as deal value totalled $7.3 billion, up 22 per cent from a year ago.

 IPO markets sizzle 

Initial Public Offerings (IPOs) from Indian companies raised $9.2 billion, making it the highest first nine-month total since 2021. Number of IPOs jumped 63 per cent year-on-year. 

Both issuers and investors are capitalizing on the favorable market conditions and strong secondary markets, raising capital via additional share sales and new listings in India’s equity capital markets, Tan said.

“The flurry of activity is expected to continue with a robust pipeline of IPOs lining up such as Swiggy Ltd and Hyundai Motors and LG Electronics reportedly planning to list their Indian units”, Tan added.

India’s equity capital markets hit an all-time high, surpassing the annual record set in 2020 by proceeds.  This was driven by a record number of block trades which raised $23 billion during the first nine months of 2024, up 78 per cent compared to the same period last year, and exceeding any past annual figures, latest LSEG Deals Intelligence data showed. 

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