Domestic deals push up M&A by 168 percent to $9.4 billion in Q1

In percentage terms, the overall domestic deals jumped 22 percent over the same period in 2023.
Image used for representational purposes only.
Image used for representational purposes only.

MUMBAI: The deal street remained super busy in the first quarter of the year closing as many as 168 percent more transactions worth $9.4 billion across 197 transactions, says an industry report.

According to a deals report by Mazars, bulk of the volume and value came in from domestic activities, which led the growth both in terms of value — $6 billion and volume at 141 transactions as against $1.8 billion in the year ago period.

In percentage terms the overall domestic deals jumped 22 percent over the same period in 2023.

Overall, in volume terms the deals grew more than 26 percent on year.

According to the report both in value and volume terms these numbers are the highest since since Q2 of 2022. And this represents a full 168% increase in deal value from Q1 of 2023, with domestic deals taking the lead at 72%, Akhil Puri, a partner at Mazars said, adding this growth is in spite of the lingering global challenges.

Key drivers include companies prioritising M&As for expansion and supply chain integration, especially in sectors like technology and renewable energy, he said adding that he expects the momentum to continue after the elections.

Major deals include 17 deals valued over $100 million, each including three deals exceeding $1billion. The most prominent deal was the acquisition of ATC Telecom Infrastructure by Brookfield Asset Management-sponsored Data Infrastructure Trust for around $2 billion.

Inbound activity showed mixed results, with deal volume remaining stable but deal value increasing to $2 billion, led by IndusInd International Holdings' acquisition of bankrupt Reliance Capital; and Cube Highways acquisition of the Chenani Nashri Tunnelway.

On the other hand, outbound deals contracted by 58.1% to $645.3 million despite a 6 percent uptick in volume to 18, led by Sun Pharmaceutical's acquisition of Taro Pharmaceutical and Kiran Vyapar's acquisition of Peepul Tree Capital.

Mazars is an audit, tax, and advisory services firm, providing comprehensive solutions to businesses across various industries.

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