Mergers and acquisitions (M&A) and Initial Public Offerings (IPOs) are significant events in the business world, signaling growth and strategic moves by companies. According to data from Kotak Investment Banking, the M&A activity in India witnessed a substantial increase of 38% in 2024, with transactions amounting to $109 billion. Large conglomerates played a major role in driving these transactions, with domestic corporates leading the way by doubling their deals to $48 billion.
The sectors leading the M&A activity were Technology, Media, and Telecommunications (TMT), consumer, and healthcare, with deals worth $55 billion. This surge in activity signifies a positive outlook for the Indian market.
On the other hand, IPOs saw a resurgence in 2024, with an average return of 33% for investors. The primary market momentum is expected to continue in 2025, with a pipeline worth $35 billion. Funds raised in 2024, including IPOs, follow-ons, and selldowns, reached a record high of $74 billion. This influx of capital underscores the confidence investors have in the Indian market.
One notable trend in the M&A space is the involvement of Indian conglomerates like the Adani group, Reliance, and Tatas in driving activity across various sectors. International companies divesting their stakes in Indian businesses also contributed to the M&A landscape, creating opportunities for Indian corporates to acquire key assets.
In the IPO arena, about 50 companies are expected to go public in 2025, including Tata Capital, Zepto, and Pepperfry. Foreign investors continue to be robust participants in the primary market, accounting for a significant share in IPOs and QIPs. The success of IPOs is evident from 71 out of 90 listings ending with a premium.
Sell-downs remain a dominant theme in fundraising, with MNCs like BAT Plc, Vodafone Plc, and Singtel monetizing their holdings in Indian subsidiaries. The rising valuations have also led to an increase in share swap deals and buyout transactions by global private equity firms.
Overall, the M&A and IPO landscape in India shows promising signs of growth and investor confidence. The strategic moves by companies and the influx of capital bode well for the future of the Indian market.
