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Private Equity Deals Surge

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Remarkable Growth

Private equity deals in India have experienced a surge in activity during January-March 2024, reaching their highest level since April-June 2023. According to Grant Thornton’s report, there have been 307 deals totaling $8.1 billion in this quarter, making it the best quarter in terms of deal volumes in 18 months.

Shift in Investment Trends

This uptick in private equity deals signifies a significant shift in investment trends within the PE landscape, as highlighted by Grant Thornton’s Q1 Deal Tracker. Vishal Agarwal, Partner and Private Equity Group & Deals Tax Advisory Leader, notes that the data from Q1 2024 indicates a decisive move towards deploying accumulated dry powder, emphasizing a renewed commitment to nurturing growth across pivotal sectors.

Growth Momentum

Since Q4 of 2024, PE deals have seen a 10% increase in volumes and a remarkable 51% increase in values. Notably, the country has witnessed the emergence of two unicorns, Krutrim SI Designs and Perfios, in the first quarter of the year.

Sectoral Interest

The report indicates a robust pivot in strategy, with heightened interest across sectors such as consumer goods, financial services (especially insurance and technology), telecom, and infrastructure.

Big Deals Resurgence

The quarter has also seen a resurgence in big deals, with two billion-dollar deals and eight deals valued at or over $100 million. The largest deal of the quarter was Data Investment Trust’s investment of $2.5 billion in ATC India Tower Corporation.

M&A Deals and Market Resilience

M&A Landscape

While the number of M&A deals witnessed a slight decrease, values surged by 38% to $12.3 billion, primarily driven by the Reliance-Disney merger. This merger also propelled outbound deals, experiencing a ninefold surge.

Cross-Border Activity

Despite a decline in domestic M&A volumes, cross-border activity surged to its second-highest quarterly level in five years, showcasing market resilience amid changing dynamics.

IPOs and Capital Raising

In Q1 of 2024, 24 initial public offers amounted to $2 billion, spread across various sectors. Similarly, companies raised $2 billion through 18 issuances, reflecting diverse investor interest across sectors and continued opportunities for capital raising.