Driven by record M&A volumes, India deal activity hit $15.9 bn in August

M&A deals in India during the month were led by Schneider Electric and Tata Motors' cross-border acquisitions, pushing M&A volumes to record, while PE activity moderated in value

India recorded $15.9 billion worth of transactions in August, led by two major cross-border acquisitions, according to Grant Thornton Bharat’s latest Dealtracker report. The activity marked a three per cent rise in volumes but a marginal three per cent decline in value compared to July.

 

Excluding capital-market deals, mergers & acquisitions (M&A) and private equity (PE) transactions totalled $13.2 billion across 212 deals, up seven per cent in volume and 46 per cent in value from the previous month.

 

“August witnessed significant deal activity — record M&A volumes, landmark cross-border transactions, and a strong IPO market reaffirm India’s position as a resilient and attractive investment destination,” said Shanthi Vijetha, partner, growth, Grant Thornton Bharat.

 

Schneider, TaMo led record M&A volumes

 

M&A activity touched a record 89 deals, worth $11.4 billion — the highest monthly value since June 2022. Nearly 90 per cent of this came from two transactions: Schneider Electric’s $6.35 billion purchase of a 35 per cent stake in Schneider Electric India, and Tata Motors’ $3.78 billion acquisition of Italy’s Iveco SPA. Domestic deals accounted for 79 per cent of volumes, while cross-border deals contributed 95 per cent of value.

 

PE steady despite lower value

 

Private equity deals extended their growth streak since June, with 123 transactions worth $1.8 billion. Though values dropped 10 per cent month-on-month, volumes held steady as investors preferred smaller bets.

 

Retail and consumer sectors led in number of deals, while banking and financial services topped in value at $528 million. Large-ticket investments included 360 One Asset’s $279 million infusion into Brookfield Properties’ Bluegrass Business Park and Rising Sun Holdings’ $174 million investment in Poonawalla Fincorp.

 

Manufacturing tops sectoral values

 

Among sectors, manufacturing led values, driven by Schneider Electric’s acquisition, followed by automotive, boosted by Tata Motors’ outbound deal — the largest ever in the sector. Information technology (IT) and IT-enabled services (ITeS) ranked third with transactions such as Wipro’s $375 million purchase of Harman DTS and Infosys’ $151 million investment in Versent.

 

Banking and financial services saw volumes more than double from July, while activity in pharmaceuticals, health care and real estate moderated.