At $24.5 billion, India witnesses resurgence in deals in Q1: Report

With 469 deals worth $24.5 billion, the first quarter of this year saw an unprecedented surge in dealmaking in the country (both in volume and value terms), a report showed on Monday.

The resurgence was driven by factors like robust private equity (PE) activity, a notable rebound in initial public offerings (IPOs), and a series of high-value transactions, according to the ‘Grant Thornton Bharat Dealtracker.’

The mega-merger between Reliance and Disney, valued at $8.5 billion, was the deal of the quarter (January-March period).

“The uptick in PE activity, highlighted by the emergence of two unicorns and high-value deals across traditional sectors, provides hope for continued growth and investment opportunities,” said Shanthi Vijetha, Partner, Growth, Grant Thornton Bharat.

With upcoming events such as the elections, coupled with a strong pipeline of deals and increased attention from private capital, the outlook for 2024 remains optimistic, Vijetha added.

The PE landscape saw 307 deals totalling $8.1 billion, a 10 per cent increase in volumes and a 51 per cent increase in values from the last quarter.

The top deal of the quarter was Data Investment Trust’s investment of $2.5 billion in ATC India Tower Corporation.

The quarter saw the emergence of two billion-dollar deals and eight high-value deals, collectively contributing to 70 per cent of the total PE deal values, the report added.

India also saw the birth of two unicorns — Krutrim SI Designs and Perfios.

“Traditional sectors like telecom and infrastructure, alongside retail and media, dominated deal values, while retail, IT, and banking led in terms of volumes,” the report noted.