Q2 2024 IPO Size Hits Record $4.2 Billion in Two Years: Grant Thornton Bharat Dealtracker Report

The size of initial public offerings (IPOs) in the April-June quarter of 2024 reached $4.2 billion, marking the highest growth since Q2 2022, according to the Grant Thornton Bharat Dealtracker report. This increase happened despite a 42% drop in the number of IPOs compared to the previous quarter, indicating a trend toward fewer but larger IPOs. In total, 14 public issues were launched.

Rise in Qualified Institutional Placements (QIPs)

There were 20 qualified institutional placements (QIPs) in Q2 2024, totaling $2.3 billion. This represents an increase in both volume and value compared to the previous quarter, with the volume being the second highest since Q4 2017.

Sector Performance

• Retail and Consumer: This sector led in deal activity, with an 18% increase in values despite a 7% drop in volumes compared to Q1 2024.
• IT & ITes: Experienced a 9% rise in volumes but saw a decline in average deal value. Tech startups led in both volume (47%) and value (36%).
• Pharma, Healthcare, and Biotech: Reached $3.8 billion in value, driven by large deals and significant private equity investments, making up 68% of volumes and 65% of values.
• Manufacturing: Saw a 28% rise in volumes and a dramatic ninefold increase in values, boosted by premium deals in industrial materials led by the Adani group.

Other Sectors

Professional services and aviation sectors gained traction, while agriculture, transport, logistics, and real estate also saw increases. Conversely, infrastructure, education, hospitality, leisure, and media sectors experienced declines in deal numbers during Q2 2024.

Overall Deal Activity

India recorded 501 deals valued at $21.4 billion in the April-June quarter. This quarter had the highest number of deals since Q2 2022, though the total value declined due to a lack of large M&A transactions.

M&A and PE Deals

M&A and private equity deals together totaled 467, with a combined value of $14.9 billion. This reflected a 9% increase in volumes but a 28% decrease in values compared to the previous quarter. The decrease was mainly due to the previous quarter’s $8.5 billion Reliance-Disney mega-merger.

High-Value Deals

The quarter saw one billion-dollar deal and 30 high-value deals worth over $100 million each, marking a 58% increase in high-value deals compared to the previous quarter, which had only 19 high-value deals, including three billion-dollar deals.