INDIA Law and Practice Contributed by: Anand Lakra, Shivpriya Nanda, Zain Pandit and Ami Shah, JSA Advocates & Solicitors
1. Trends 1.1 M&A Market
was introduced in late 2024 to simplify the pro - cess and remove regulatory roadblocks. Despite macroeconomic headwinds, regulatory foresight and investor optimism is likely to fuel another 12 months of growth in India. 1.2 Key Trends Sector-Specific Consolidation Several of the “marquee” deals of 2024 had a strong undercurrent of consolidation. While most deals in 2023 were led by mid-market buyers, 2024 saw India’s largest conglomerates (across sectors) taking the lead and contributing signifi - cantly to the increase in deal value. The most notable consolidation driven deals of 2024 were: • the Reliance-Disney merger, valued at USD8.5 billion, creating the largest media and entertainment company in India; • Ambuja Cement’s acquisition of Penna Cements for USD1.25 billion, which has fur - ther strengthened the Adani Group’s position in the sector; and • Mankind Pharma’s acquisition of Bharat Serums and Vaccines Limited for USD1.642 billion, which expanded its product portfolio in critical care and reproductive health. Sector-Focussed Investments by PE and VC Firms In 2024, PE/VC activity was concentrated around five to six sectors, with infrastructure, financial services, real estate, e-commerce, technology and life sciences collectively accounting for 80% of total PE/VC investments by value and 66% by deal volume. Infrastructure led with USD12.1 billion in invest - ment, slightly down from USD13 billion in 2023, accounting for 22% of overall investments dur - ing the year. Financial services recorded USD9
A significant rise in deal value and volume has led to 2024 being viewed as another year of resurgence for M&A activity in India. Total deal value in the first nine months of 2024 stood at USD69.2 billion, which is a 13.8% increase when compared to the same period in 2023. In terms of deal volume, there were 2,301 trans - actions between January and September 2024, compared to 1,855 transactions in the first nine months of 2023. Consequently, India’s foreign investment inflow rose to USD88 billion in 2024 (a 10% increase from 2023), with the M&A market contributing significantly to the inflow. (Source: Business Standard) Domestic deal making and outbound investment have contributed significantly to the growth of the market, when compared to previous years. 2024 saw sector-specific consolidation by Indian conglomerates and also the acquisition of over - seas assets. Several “marquee” deals (see 1.2 Key Trends ) also contributed to the continued resurgence of M&A activity. “Second sourcing” and a general diversification of supply chains has bolstered India’s ambi - tions of being a preferred hub for manufacturing across sectors. Factors like government policies promoting domestic manufacturing, growing demand for auto components and EVs, and a positive investment climate have also contrib - uted to a rise in deal-making. On the technol - ogy front, AI, blockchain and cryptocurrency are expected to contribute significantly to M&A activity in India. Recognising the interest shown by foreign-dom - iciled but India-focused start-ups in “reverse” flipping their holding back to India, a regulation
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