India's total M&A deal value soars 200% YoY to $6.9 bn in Q2CY24: Report

Domestic transactions increased by 37.6 percent, making 117 deals, up from 85 in Q2 2023 with overall value of domestic transactions rising 154.2 percent, reaching $5 billion, up from $2 billion in Q2 2023

Mergers and acquisitions in India continued to grow in the second quarter of 2024, recording fourth straight three-month period of growth with 174 transactions and deals worth $6.9 billion, a new report said on July 25.

“This represents a significant two-fold increase in overall deal value and a substantial 46.2 percent growth in deal volume compared to Q2 2023,” the report said

Domestic segment accounted for 72.4 percent of the overall deal value, emerging as the largest category within the M&A landscape, as revealed in Forvis Mazars in India's latest M&A Deal Tracker Report, adding that it was the only category to experience growth in deal volume during this period.

Akhil Puri, partner, Financial Advisory, Forvis Mazars in India, said, “M&A activity in Q2 2024 saw a remarkable surge, with deal value and volume both experiencing substantial increases, rising from $2.3 billion in Q2 2023 to $6.9 billion in Q2 2024, an impressive 200 percent growth. This robust performance highlights the resilience of the Indian market amidst global uncertainties.”

Domestic transactions increased by 37.6 percent, making 117 deals, up from 85 in Q2 2023 with overall value of domestic transactions rising 154.2 percent, reaching $5 billion, up from $2 billion in Q2 2023.

“Despite a reduction in cross-border transactions due to geopolitical challenges, domestic investments have shown remarkable strength, continuing to lead the M&A landscape and representing approximately 72 percent of the total deal value across various sectors. This resilience underscores the attractiveness of the Indian market and its potential for sustained growth,” said Puri.

Key highlights:

-Domestic category emerged as the largest within the M&A landscape. The overall value of domestic transactions saw a massive 154.2 percent increase, reaching $5 billion, up from $2. billion in Q2 2023

- The Inbound M&A category exhibited mixed results in Q2 2024. Inbound transactions slipped 15.4 percent to 11 deals, which was the lowest in the last four years. The overall deal value for the category increased by 185.6 percent, reaching &$313.8m, compared to $109.9 m in Q2 2023.

-Overall transaction value expanded by 422.2 percent to touch $1.2 billion in the outbound M&A segment. The total number of outbound transactions decreased by 33.3 percent to 14 deals, down from 21 deals in Q2 2023

-All categories saw a significant increase in activity during Q2 2024 compared to Q2 2023. $0m to $5m category was the most active in terms of volume in the last four years, and the fastest growing, with a 244.4 percent increase compared to Q2 2023.

-The $100 million to $1 billion and $25 million to $100 million categories saw 133.3 percent and 62.5 percent growth, respectively

-In terms of deal value, the $100 million to $1 billion category grew by 243.2 percent ($2.8 billion), and the $0 million to $5 million and $25 million to $100 million categories saw substantial growth of 177.9 percent and 44.7 percent, respectively.