India’s Mergers, Acquisitions, and IPO Landscape in 2024: A Year of Transformation
As we approach the end of 2024, India’s mergers and acquisitions (M&A) and initial public offerings (IPOs) have played a pivotal role in reshaping the business landscape. Despite a decline in overall M&A activity, the IPO market has experienced a remarkable surge, reflecting optimism and growth in India’s corporate sector. This article delves into the key trends, significant deals, and IPOs that have defined 2024.
M&A in 2024: Key Trends and Deals
In the first nine months of 2024, India witnessed M&A activity totaling $56.8 billion, marking a 20% decline from the previous year. According to data from LSEG Deals Intelligence, the number of M&A deals decreased slightly by 5%, with 2,001 deals compared to 2,103 in 2023. However, certain sectors have experienced robust deal-making, particularly in technology, media, entertainment (TMT), and telecommunications, which accounted for 30% of the total deal value at $16.8 billion.
M&A Activity in the TMT Sector
High-growth sectors such as software, cloud computing, and digital services have seen strong M&A activity. The telecommunications sector, in particular, continues to attract significant investments as companies focus on expanding their digital infrastructure. This trend underscores the increasing importance of technology in driving business growth and innovation.
Inbound M&A Growth
Foreign investments in India remained strong, with inbound M&A growing by 27% year-on-year, totaling $22.1 billion. This surge was largely driven by interest from U.S. companies looking to acquire assets in high-growth Indian sectors, highlighting India’s attractiveness as a destination for foreign investment.
Notable Mergers and Acquisitions
Several high-profile mergers and acquisitions have made headlines in 2024, showcasing strategic consolidation and expansion across various industries.
Reliance Media and Disney India Merger
One of the most notable media deals this year was Reliance’s $8.5 billion merger with Disney India. This strategic move allows Reliance to consolidate its media assets and expand its reach, blending Disney’s premium content with Reliance’s extensive distribution channels. While this merger could set the stage for a dominant media entity, it is expected to attract regulatory scrutiny due to its size.
Air India and Vistara Merger
The Tata Group’s ambitious vision for Air India has progressed with the merger of Air India and Vistara. This deal not only strengthens Tata’s foothold in the Indian aviation sector but also marks a significant step in consolidating India’s air travel industry, positioning it for future growth.
Tesla’s Partnership with Tata Motors
In a groundbreaking move, Tesla acquired a 20% stake in Tata Motors’ electric vehicle (EV) division. This deal signifies a major step forward in India’s EV revolution, aligning Tata Motors with global EV leaders and propelling India into a new era of electric mobility.
Serene Productions Stake in Dharma Productions
Adar Poonawalla’s Serene Entertainment acquired a 50% stake in Dharma Productions for Rs 1,000 crore. In this arrangement, Karan Johar will retain the remaining 50% ownership and continue as Executive Chairman, indicating a strategic partnership in the entertainment sector.
India’s IPO Market: A Robust Surge in 2024
2024 has been a banner year for IPOs, with Indian companies raising $9.2 billion in the first nine months, the highest total since 2021. This represents a 63% increase in the number of IPOs compared to the previous year. The robust secondary market and favorable economic conditions have spurred both issuers and investors to capitalize on available opportunities.
Highlighted IPOs of 2024
Several IPOs have captured public and investor interest this year:
Hyundai Motor India
Hyundai’s much-anticipated IPO marked the company’s push to capture a larger share of India’s burgeoning automotive market. The listing underscores the increasing appetite for automotive stocks, particularly in the electric vehicle segment.
Swiggy IPO
Swiggy’s IPO was one of the most anticipated tech offerings, raising billions and reflecting growing investor interest in Indian tech and e-commerce giants, especially those providing essential services like food delivery.
NTPC Green
As part of its clean energy initiative, NTPC launched its Green subsidiary IPO, raising significant funds to expand its renewable energy portfolio. This trend highlights the increasing traction of sustainability-focused companies in India’s equity markets.
Ola Electric IPO
Ola Electric’s IPO was highly awaited in the Indian electric vehicle market. As the EV sector grows rapidly, this IPO positions Ola as a leader in the space, bringing in much-needed capital for production and infrastructure expansion.
Bajaj Housing Finance
Bajaj Housing Finance made headlines with its IPO, capitalizing on the growing demand for affordable housing finance in India. The successful listing marks a significant step in the financial services sector.
Bharti Hexacom
Bharti Hexacom’s $511 million IPO launched in April attracted bids worth over $8 billion, reflecting strong investor interest in the telecom sector and the growing digital subscriber base in India.
Aadhar Housing Finance
In the financial services sector, Aadhar Housing Finance’s IPO raised $358 million, catering to the increasing demand for home loans from India’s rapidly expanding middle class.
Other Notable IPOs
Byju’s IPO
After years of anticipation, Byju’s, the ed-tech giant, went public in 2024 with a highly awaited IPO valued at $23 billion. This move is seen as a test of investor confidence in the ed-tech sector amidst changing market conditions.
Paytm’s Parent One97 Communications
One97 Communications, the parent company of Paytm, made its second attempt at a public listing in 2024 after its initial struggles in 2021. This strategic move aims to reignite growth in a shifting market landscape.
Nykaa’s Follow-Up IPO
Nykaa’s follow-up public offering has been a standout in the consumer tech space, paving the way for similar startups to tap into public markets.
Zomato’s Follow-Up Offering
Zomato has entered the market with a follow-up offering, marking a key moment for the food delivery and e-commerce space as it expands its business model.
What 2025 Holds for M&A and IPOs in India
Despite the slight decline in M&A activity in 2024, the outlook remains strong, particularly in high-growth sectors like technology, telecommunications, and green energy. The total value of IPOs in India is expected to remain robust, with more major listings on the horizon, including plans from LG Electronics to list its Indian unit.
In conclusion, 2024 has been a year of strategic consolidation and expansion in both M&A and IPO markets. While M&A deals have seen a slight dip, the IPO market has flourished, and the outlook for 2025 appears even more promising as companies continue to capitalize on India’s growing economic landscape. The trends observed this year indicate a dynamic and evolving business environment, setting the stage for future growth and innovation.