Anushruti Singh
As we approach the end of 2024, India’s mergers, acquisitions (M&A), and initial public offerings (IPOs) have played a critical role in reshaping the business landscape. Despite a decline in overall M&A activity, the IPO market has seen a remarkable surge, reflecting optimism and growth in India’s corporate sector. Let’s have a look at some of the trends and most significant deals and IPOs that have defined 2024.
M&A in 2024: Key trends and deals
India saw significant M&A activity this year, though total India-involvement announced M&A activity in the first nine months of 2024 reached $56.8 billion, marking a 20 per cent decline from the previous year.
According to the latest data from LSEG Deals Intelligence, the number of M&A deals decreased slightly by 5 per cent, with 2,001 deals compared to 2,103 in 2023. Despite this decline, certain sectors have experienced robust deal-making, particularly in technology, media, entertainment (TMT), and telecommunications, which accounted for 30 per cent of deal value at $16.8 billion.
M&A Activity in the TMT Sector: High-growth sectors like 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.
Inbound M&A Growth: Foreign investments in India remained strong. Inbound M&A grew 27 per cent year-on-year, totaling $22.1 billion, driven largely by interest from U.S. companies looking to acquire assets in high-growth Indian sectors.
Mergers and acquisitions: Consolidation and expansion
Reliance Media and Disney India Merger
Reliance’s $8.5 billion merger with Disney India is one of the most notable media deals this year. This move will allow Reliance to consolidate its media assets and expand its reach, blending Disney’s premium content with Reliance’s distribution channels. While this merger could set the stage for a dominant media entity, it is expected to attract regulatory scrutiny given its size.
Air India and Vistara Merger
Tata Group’s ambitious vision for Air India has seen further progress with the merger of Air India and Vistara in 2024. This deal not only strengthens Tata’s foothold in the Indian aviation sector but also marks a major step in consolidating India’s air travel industry.
Tesla’s Partnership with Tata Motors
In a groundbreaking move, Tesla acquired a 20 per cent stake in Tata Motors’ electric vehicle (EV) division. This deal marks a significant 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 has acquired a 50 per cent stake in Dharma Productions for Rs 1,000 crore. In this deal, Johar will retain the remaining 50 per cent ownership and continue to remain Executive Chairman.
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 of the year, the highest total since 2021, according to LSEG Deals Intelligence.
This represents a 63 per cent 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 capitalise on the opportunities available. Here is a small list of the most talked about IPOs of 2024.
Hyundai Motor India: Hyundai’s much-anticipated IPO in 2024 was a standout, marking the company’s push to capture a larger share of India’s burgeoning automotive market. The listing also underscores the increasing appetite for automotive stocks in India, with electric vehicle manufacturers like Ola Electric following suit.
Swiggy IPO: Another major IPO launch was Swiggy’s offering, which raised billions, making it one of the most anticipated tech IPOs in India. Swiggy’s IPO reflects the growing investor interest in Indian tech and e-commerce giants, particularly those offering essential services like food delivery.
NTPC Green: As part of its push into clean energy, NTPC launched its Green subsidiary IPO, raising significant funds to further expand its renewable energy portfolio. This is part of a broader trend where energy and sustainability-focused companies are gaining traction in India’s equity markets.
Ola Electric IPO: The IPO of Ola Electric was one of the most eagerly awaited in the Indian electric vehicle market. As India’s EV sector grows rapidly, this IPO helps position Ola as a leader in the electric vehicle space, bringing in much-needed capital to expand its production and infrastructure.
Bajaj Housing Finance: Bajaj Housing Finance also made headlines with its IPO in 2024, capitalising 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 was another key event. It attracted bids worth over $8 billion, reflecting the strong investor interest in the telecom sector. This IPO is part of a broader trend where telecommunications companies are tapping into India’s growing digital subscriber base.
Aadhar Housing Finance: In the financial services sector, Aadhar Housing Finance’s IPO in May raised $358 million, catering to the increasing demand for home loans and financial services from India’s rapidly expanding middle class.
Beside these, below is a list of some of the high-profile enterprises that drew the most public and investor interest.
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, Byju’s had previously made acquisitions like Aakash Educational Services, strengthening its position in the competitive education space. The IPO 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 IPO struggle in 2021. With a shift in market dynamics, Paytm’s latest offerings have been seen as a strategic attempt to reignite growth.
Nykaa’s Follow-Up IPO
Nykaa’s follow-up public offering in 2024 has been another standout in the consumer tech space. As India’s leading beauty and personal care e-commerce platform, Nykaa’s successful IPO has paved the way for similar startups to tap into the public markets.
Zomato’s Follow-Up Offering
Zomato, after the successful IPO in 2021, has once again entered the market with a follow-up offering. With its expanding business model, including the Blinkit merger, the IPO has been a key marker for the food delivery and e-commerce space.
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.
