India Inc Registers Record Deal Volume at USD 21.4 Billion in Q2 2024

India Inc recorded 501 deals worth USD 21.4 billion in Q2 2024, as per Grant Thornton Bharat Dealtracker. This quarter saw the highest deal volumes in two years, though values dropped due to the lack of major M&A transactions.

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Increase in High-Value Deals

The quarter included one billion-dollar deal and 30 high-value deals over USD 100 million. This marks a 58 per cent rise in high-value deals compared to the previous quarter. Indian companies are showing strong confidence in the local investment climate by increasingly investing domestically, according to Grant Thornton.

Despite a decline in cross-border deals due to geopolitical instability, traditional sectors like pharma and manufacturing saw robust deal flows. These sectors collectively contributed nearly half of the deal values, noted Shanthi Vijetha, Partner, Growth at Grant Thornton Bharat.

Domestic Investment Trends

Merger and acquisition (M&A) and private equity (PE) deals together amounted to 467, valued at USD 14.9 billion. This reflects a 9 per cent increase in volumes but a 28 per cent decrease in value, mainly due to the previous quarter's USD 8.5 billion Reliance-Disney mega-merger.

Political stability is expected to boost investor confidence and drive deal activity in the next six months. This is anticipated following recent election results and expected policy clarity from the upcoming budget, according to Grant Thornton.

Private Equity Activity

The quarter witnessed robust private equity activity and large domestic deals. "Despite a decline in cross-border deals due to geopolitical uncertainties, domestic investment remained strong," said Shanthi Vijetha.

The industry anticipates policy continuity, which should positively drive deal activity. Traditional sectors grew in volumes over the previous quarter despite declining cross-border deals.

The just-ended quarter featured significant domestic investments reflecting strong confidence among Indian corporates in the local investment climate.

This trend of increasing domestic investments is expected to continue, driven by political stability and anticipated policy clarity.