2024: A Transformative Year for Corporate India
The year 2024 will be remembered as a groundbreaking period for corporate India, characterized by significant developments that reshaped various industries. From landmark mergers to record-breaking IPOs, impactful regulatory actions, and crucial policy reforms, the events of this year have set the stage for a new era in the Indian corporate landscape.
Mega Mergers
Air India-Vistara Merger
One of the most notable events in 2024 was the merger between Air India and Vistara, a move that marked a significant consolidation in the Indian aviation sector. Under the visionary leadership of the Tata Group, this merger aimed to create a single, full-service airline that now operates over 5,600 weekly flights and connects more than 90 destinations. This strategic alliance not only enhances operational efficiency but also positions the newly formed entity as a formidable competitor against other major players in the aviation industry.
The merger was a continuation of Tata Group’s transformative journey with Air India, which it acquired from the government in January 2022. Following this, in October 2024, Tata Group’s low-cost airline, Air India Express, merged with AIX Connect (formerly known as Air Asia India), further solidifying Tata’s dominance in the aviation market. Notably, Singapore Airlines retained a 25.1% stake in the enlarged Air India, contributing both capital and expertise to ensure the airline’s success.
Viacom18-Disney+ Hotstar Merger
In the entertainment sector, the merger between Viacom18 and Disney+ Hotstar created one of India’s largest content-streaming giants, valued at over Rs 70,000 crore. This powerful collaboration combined Disney’s global franchise strength with Viacom18’s local expertise, particularly through its partnership with Jio. The merger significantly enriched the streaming landscape in India, offering consumers an expansive array of content and enhancing competition in the digital entertainment space.
All-Time High IPOs
A Surge in IPO Activity
2024 was a landmark year for Initial Public Offerings (IPOs) in India, with the country emerging as a global leader in IPO volume for the first time. According to reports, India achieved nearly double the IPO volume of the United States and listed more than two-and-a-half times the number of IPOs compared to Europe, totaling an impressive 327 listings.
Hyundai India
Hyundai India’s IPO was particularly noteworthy, being the largest in the auto sector in recent years. The company’s ambitious plans to expand its electric vehicle (EV) lineup attracted significant global investor interest. However, despite the high expectations, its debut on the stock market fell short of initial projections, highlighting the volatility and unpredictability of the market.
Ola Electric
Ola Electric’s IPO was another highlight, drawing considerable attention and enthusiasm from investors. As a leader in India’s electric vehicle sector, Ola Electric’s strong market performance reinforced global confidence in India’s ambitions for electric mobility. The company’s successful listing not only rewarded shareholders with impressive returns but also underscored the growing importance of sustainable transportation solutions in the Indian market.
Regulatory Upheaval
Challenges in the Fintech Sector
The fintech sector faced significant challenges in 2024, particularly with the Reserve Bank of India’s (RBI) ban on select services of Paytm. The RBI’s action against One97 Communications, Paytm’s parent company, stemmed from concerns over non-compliance and ongoing supervisory issues. The ban, which prevented Paytm Payments Bank from accepting new users, was a major setback for the company, which had over 100 million KYC customers.
In addition to the Paytm situation, the RBI introduced stricter regulations for Non-Banking Financial Companies (NBFCs) to enhance transparency and protect consumers. Under the leadership of Governor Shaktikanta Das, the RBI took decisive action against several NBFCs, emphasizing the need for sound management and consumer protection in the rapidly evolving financial landscape.
Landmark Policy Reform
Abolition of Angel Tax
One of the most significant policy reforms in 2024 was the abolition of the controversial Angel Tax, a provision that had burdened startups with a hefty tax on investments received from external investors. This tax, which treated such investments as "income from other sources," had been a major hurdle for fledgling startups seeking to attract foreign capital.
The removal of the Angel Tax is expected to enhance the attractiveness of India’s startup ecosystem to global venture capitalists and angel investors, fostering innovation and growth within the sector. This reform reflects the government’s commitment to supporting the startup community and ensuring a conducive environment for entrepreneurial ventures.
Conclusion
The events of 2024 have undeniably transformed corporate India, setting the stage for a more competitive and dynamic business environment. The significant mergers, record-breaking IPOs, regulatory changes, and policy reforms have not only reshaped industries but also instilled a renewed sense of optimism among investors and entrepreneurs alike. As India continues to evolve as a global economic powerhouse, the developments of this year will serve as a foundation for future growth and innovation.