India Inc sees 63 pc surge in deal value at $8.7 billion in August: Report

NEW DELHI: India Inc saw a huge 63 per cent increase in deal value for the month of August at $8.7 billion amid geopolitical challenges, as telecom, energy and EV sectors shined, a report showed on Monday.

Excluding IPOs and Qualified institutional placements (QIPs), the month saw a total of 179 deals. Overall volumes saw a modest 3 per cent rise and mergers and acquisitions (M&A) transactions dominated the landscape, accounting for 71 per cent of the total value, according to the Grant Thornton Bharat Dealtracker.

Private Equity (PE) deals contributed to 68 per cent of the total volume, with seven high-value deals ($ 100 million) collectively worth $1.7 billion, surpassing the previous month's values with seven deals worth $1.4 billion.

This robust deal activity underscores a vibrant market, with investors demonstrating confidence in India's growth story across various sectors. India Inc continues to witness surge in deal activity in the background of the ongoing global economic uncertainties.

“India’s ability to attract capital and foster innovation across critical industries has been demonstrated well. We expect this strong in interest to continue, with themes like digitisation, cleantech, mobility, aerospace and defense remaining in the spotlight in the immediate future,” said Shanthi Vijetha, Partner, Growth at Grant Thornton Bharat.

Telecom led M&A values, largely driven by Bharti Enterprises’ $4 billion acquisition of a 25 per cent stake in British Telecom Group, the second-largest deal of the year.

The BFSI sector recorded the second-highest deal values and third-highest volumes with 29 deals worth $1.8 billion, driven by higher interest rates and strategic acquisitions, with Fintech leading in volumes.

The energy and renewables sector saw robust deal activity via five deals worth $518 million, highlighting India’s push towards energy transition and sustainability.

The retail and consumer segment saw 33 deals worth $458 million, with consumer services, e-commerce, and personal care driving activity despite a slight decrease in values, said the report.

The month witnessed robust fundraising activity, with a total of 19 deals securing $3.4 billion, marking the second-highest IPO and QIP activity in a year. This includes eight IPOs, collectively raising $1.8 billion.