India-involvement announced M&A activity fell to a four-year low in deal value in 2024 at $ 80.5 billion, down 11.4 per cent from a year ago as more deals were done in small-to-mid market sizes, latest data from LSEG Deals Intelligence showed.

However, in 2024, deal making activity involving India witnessed the busiest year on record with number of announced deals witnessing at least 2,756 transactions, up 3.3 per cent from a year ago. The deal count has risen steadily each year from 2020 to 2024.

Target India M&A activity in 2024 reached $ 71.5 billion, down 13.6 per cent compared to the previous year, making it the lowest annual total since 2020. 

Domestic M&A grew 14.4%

Domestic M&A grew 14.4 per cent year-on-year(y-oy) by deal count which totalled $41.9 billion, a 27.5 per cent decline from the last year. 

Elaine Tan, Senior Manager at LSEG Deals Intelligence, said 2024 has seen a strong focus on domestic deals, along with an increase in strategic cross-border deals exceeding $ 1 billion.

She highlighted that majority of the deal making activity involving India targeted the industrials sector which totalled $10.9 billion, down 22.8 percent compared to 2023 and accounted for 13.5 per cent market share. Healthcare totalled $9.8 billion, up 51.5 per cent from 2023, capturing 12.2 per cent market share. Financials rounded out the top three sectors with 11.7 per cent market share, as the deal value totalled $9.44 billion, down 69 per cent from a year ago.  

Telecommunications and High Technology (TMT) market share accounted for 22.9 per cent of the deal value so far this year, amounting to $18.5 billion, up 40 per cent from last year. These sectors continue to experience high growth potential to support digital growth, technology solutions, and connectivity needs.

Inbound M&A grew 18.7 percent from a year ago and totalled $29.6 billion. Outbound M&A activity reached $8.3 billion, up 30.3 percent yo-y. US was the most active nation doing cross-border deals with India – both as target for outbound and acquiror for inbound activity.

Meanwhile, private equity-backed M&A in India amounted to $11.3 billion, down 9 percent from a year ago, making it the lowest annual total since 2017, according to LSEG Deals Intelligence. 

IPO MARKET SIZZLES 

In 2024, Indian IPOs raised a record-breaking $20.5 billion, surpassing previous highs, led by major listings from Hyundai Motor India ($3.3 billion) and Swiggy Ltd ($1.3 billion). Number of IPOs also increased 40 percent from a year ago – the busiest year since the IPO frenzy during the mid-90s. 

Tan highlighted that 2024 has been a stellar year for India’s equity capital markets and IPO activity driven by enhanced regulations, strong investor confidence, and favorable market conditions. Total Equity Capital Markets (ECM) proceeds more than doubled and reached an impressive $72.3 billion, marking the highest-ever annual total since records began in 1980.

 In 2024, India has established itself as a dominant player in the global IPO markets, with IPO listings in Indian exchanges accounting for 18 percent of the Global IPO proceeds, second to the United States (28 percent market share), Tan added.

“IPO listings in China, which took the lead in 2023, fell to third place with 7 per cent market share. With a robust IPO in the pipeline, the momentum is expected to continue in 2025”, she added.

Additionally, follow-on offerings hit an all-time high in 2024 in both total proceeds and the number of issues, as companies capitalized on strong market conditions by offloading stakes through block trades, LSEG Deals Intelligence showed.