Retail and Pharma Lead the Charge in July's Deal Values: Grant Thornton Report The retail and consumer sector drove the month's volumes, while the pharma sector led in terms of values and also contributed the second-highest volumes.
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According to the Grant Thornton Bharat Annual Dealtracker 2024, retail and consumer sectors took the lead in terms of deal volumes, experiencing a 37 per cent decline in values in comparison with the previous month. The report identifies shifter investor interest and prevalent low-value deals to be the reason for the stagnation in volumes.
The consumer services segment is reported to take the lead in terms of deal volumes contributing to a 22 per cent share. Pharma, healthcare, and biotech sectors led in terms of values for July, resulting in a second-largest share in deal volumes with 22 transactions totaling US$ 1.7 billion. The report said that this was primarily driven by the significant Mankind Pharma's complete acquisition of Bharat Serums and Vaccines from Advent International, valued at US$ 1.64 billion.
Shanthi Vijetha, Partner Grant Thornton Bharat LLP said that India Inc. witnessed 195 deals totaling US$ 8.4 billion, reflecting a modest 16 per cent increase in volumes and that the consistent month on-month volume growth since April 2024 suggests growing investor confidence and domestic resilience, especially around the election period.
"The M&A activity witnessed a 50 per cent surge in volumes with 75 deals worth US$ 3.2 billion, marking the highest monthly volumes, driven by domestic deals that contributed to 73 per cent of the M&A volumes and an impressive 94 per cent of values.
"Notably, Mankind Pharma's acquisition of Bharat Serums and Vaccines worth US$ 1.64 billion contributed to 52 per cent of the M&A values, while there was a 31 per cent share in the overall month's values," said Shanthi.
The Mankind single-handedly occupied 94 per cent of the total sector value, showcasing Mankind Pharma as the market leader in the country's women's health and fertility drug market.
The BFSI (Banking, Financial Services, and Insurance) and Energy and Natural Resources sectors were major contributors in terms of deal values, together representing 24 per cent of the total. These sectors accounted for US$ 1.3 billion across 24 deals. When looking at deal volume, the Retail and Consumer sector led, while the Pharma sector dominated in terms of deal value and also ranked second in deal volume.
Within the BFSI sector, the fintech, banking, and NBFC segments remained particularly active, accounting for 71 per cent of the total deal volume. On the value front, banking, NBFCs, financial services, and asset management dominated, contributing a significant 95 per cent share, amounting to US$ 633 million.
Vishal Agarwal, Partner Grant Thornton Bharat LLP, said that sectors such as IT & ITES and pharma, healthcare, and biotech showed moderate deal values but significant deal volumes, indicating widespread interest in these areas.
"Deal activity is at its lowest since the start of the year and values also witnessed a declining trend since May 2024. While interest and dry powder exist, it seems investors are still in a wait-and-watch mode until valuations ease up and earnings show that promises are being delivered. Also, there needs to be some sign of a cooling capital market, which could make private unlisted deals more attractive again," added Vishal.
