M&A activity in India increased from $79 billion last year to $109 billion in CY24, reflecting strong investor confidence. After a brief slowdown last year, Indian groups are once again driving significant activity across sectors, focusing on diversification and strategic expansion, said V Jaishankar, Managing Director, V Jaishankar, their deal in CY24. Contributions nearly doubled to $48 billion from $26 billion last year. Kotak Investment Bank
The bank also said that CY24 saw the highest ever fund raising in the history of Indian equity capital markets at $74 billion and the momentum is expected to continue this year with a $35 billion IPO pipeline. Companies continue to consider IPOs as a source of funding capex with 40 percent of primary funds coming from IPOs. According to the investment bank, fundraising activity in India is particularly broad-based, spanning all sectors, unlike global capital markets such as the US, which are often driven by a few major industries such as technology, healthcare, or financial services. dominate
It also highlighted how the domestic capital pool is stabilizing volatility from FII flows. Domestic investors contributed a total of $62 billion, of which 50% came from SIPs, compared to $0.4 billion from FIIs in CY24, according to a bank report. Demat accounts increased to 18 crores by October 2024, mainly from non-traditional states like Bihar, Uttar Pradesh, Madhya Pradesh etc. India’s equity capital market saw a strong performance across all major sectors with small mid-cap and large-caps outperforming the market. Cap companies. IPOs in CY24 gave a strong return of 32.8 per cent on an average.
Another trend the bank observed is MNCs preferring India as a listing location, listing their Indian subsidiaries or shifting their corporate office to India or consolidating their global business under an Indian entity to list. are Decline in sales in CY24. Hyundai’s success prompted several MNC groups to consider unlocking value through India IPOs. Hence, multinational companies are looking at the Indian public markets as a viable monetization route.
The $3.3 billion Hyundai Motor India IPO was India’s largest ever IPO. Hyundai shares made their debut on Indian stock exchanges in October last year and the stock was listed on the BSE at Rs 1,931, a 1.5 percent discount to the issue price of Rs 1,960 per share. Hyundai stock is currently trading at Rs 1,787 on the BSE.
