India Inc saw record 195 deals worth $8.4 billion in July: Report

New Delhi: Showcasing robust investor confidence, India Inc saw impressive 195 deals worth $8.4 billion in the month of July, a 16 per cent jump in volumes, a report said on Tuesday.

Private equity (PE) deal activity continued to lead the volumes for the month, contributing to 57 per cent of the overall volumes while mergers and acquisitions (M&A) activity led the values with a 59 per cent contribution, according to ‘Grant Thornton Bharat Dealtracker’.

“India Inc’s remarkable surge in deal activity reflects growing investor confidence. The highest monthly M&A volumes, driven by significant domestic deals, and the resurgence in cross-border activity highlight India’s position as a pivotal growth market,” said Shanthi Vijetha, Partner, Growth at Grant Thornton Bharat.

Coupled with the government’s growth-centric initiatives in the Union Budget 2024, India continues to be at the epicentre of global investment opportunities, Vijetha added.

The PE landscape recorded 98 deals worth $2.2 billion, reflecting a 0.5 per cent increase in value. Despite lower overall volumes, the average deal size rose to $22 million, driven by seven high-value transactions worth $1.4 billion.

The energy and natural resources sector, along with banking and financial services, captured 46 per cent of the total PE investment values.

The M&A landscape experienced significant growth with 75 deals valued at $3.2 billion, marking a 50 per cent surge in volume and achieving the highest monthly volumes to date, the report mentioned.

This increase was driven predominantly by domestic deals, which accounted for 73 per cent of the total volumes and an impressive 94 per cent of the values.

The Indian market saw five IPOs raising $0.6 billion and a record 17 QIPs raising $2.4 billion in July.

The 17 QIP issues highlighted favourable conditions for listed companies, while the five IPOs underscored strong investor confidence and interest in new market entrants, said the report.

The standout transaction was Mankind Pharma’s acquisition of Bharat Serums and Vaccines for $1.64 billion, representing 52 per cent of the total M&A values and 31 per cent of the overall monthly values.

The manufacturing sector led in deal volumes, followed by pharma, retail, and IT, while the pharma sector dominated in terms of deal values, the report mentioned.