12 Biggest Mergers & Acquisitions In India (2024)

Mergers and acquisitions (M&A) are the catalysts that redefine the business landscape, ushering in a new era of growth, innovation, and competition. India, with its rapidly evolving economy, has witnessed numerous M&A deals that have left an indelible mark on the corporate world. From behemoths to telecom titans, from e-commerce giants to retail moguls, these M&A deals have not only changed the face of Indian businesses but have also mirrored the nation’s trajectory on the global stage.  In this article, let’s delve into the12 biggest mergers and acquisitions in India that have played a pivotal role in shaping India’s corporate trajectory.

Terminologies

Mergers and Acquisitions are strategic business activities involving the combination of two or more companies. 

Merger: A merger occurs when two or more companies agree to combine and form a new entity. In most mergers, the original companies cease to exist, and a new one is created. 

Acquisition: An acquisition, also known as a takeover, happens when one company purchases another. The acquired company often becomes a subsidiary of the acquiring company, maintaining its legal and operational independence. 

A Quick Overview of the Mergers and Acquisitions in India, 2023

We have ranked them based on the amount of the deal. Some of the deals’ amounts are undisclosed but hold great significance in the market.

1. Government of India acquired the largest share in Vodafone

In February 2023, Vodafone-Idea (Vi) announced that the government will be holding 33.4% of shares in the loss-making company. After converting the net present value (NPV) of the interests on the deferred spectrum payments and seeing the gross revenue related dues, the government will become the single largest shareholder in the company. Amount to around Rs. 16,133 crores. 

With the post allotment shares to the government, the combined stake will be around 50%, as compared to Vi’s co-founders. That is, UK’ Vodafone Ple that holds 31.7%, while the other co-founder Aditya Birla group holds 18.2% of the shares. The shares have been allotted to the government as a result of the conversion of interest dues arising from deferment of adjusted gross revenue and spectrum auction payments.

2. Axis Bank acquired Citibank’s India Retail Business

Axis bank in March 2023, announced that they have completed the acquisition of Citibank’s consumer business and non banking financial company consumer business. For the acquisition the bank paid for the deal around Rs. 11,603 crores. Citibank started its consumer banking business in 1985. Axis bank also mentioned that the payment required to Citibank’s consumer business is based on the closing position of the Citibank’s previous assets, the assets under management and the liabilities.

Citibank, officially known as Citibank N.A, is a globally recognized financial institution and a subsidiary of Citigroup Inc. Axis bank is a publicly traded company listed on the Bombay Stock Exchange and the National Stock Exchange of India.

3. Brookfield Asset Management 

In May, 2023, Brookfield Asset Management announced that it had bought a 51% controlling stake in Rostrum Realty Pvt. Ltd.  Rostrum Realty is a real estate joint venture company, primarily engaged in real estate and property development. The remaining share in the company is held by Sunil Mittal of Bharti Enterprises. Rostrum Realty estate development owns four commercial properties in – Delhi, Gurugram and Ludhiana.

It was previously owned by Bharti Realty, a part of Bharti Enterprises. Brookfield asset also has an operating hand – Brookfield properties that will from now manage the property work. That includes properties like Worldmark Aerocity in Delhi, Pavilion Mall in Ludhiana, and Worldmark 65 and Airtel Centre in Gurugram. The acquisition happened around INR 50 Billion.

4. Paytm acquired a stake in Alibaba 

Through a block deal, China’s Alibaba sold 3.1% in Indian digital payment company Paytm. For a total of around $125 million in 2023. Alibaba, which as of September last year held a 6.26% of share in the company. Sold it at Rs. 536.95. Paytm the company formally known as One97 communications. The company got listed in 2021, after an IPO (Initial Public Offer) of $2.5 billion. Paytm closed 2022 with a 60% loss. Although this year the company stock has risen up about 9%.

Paytm and Alibaba have had a significant business relationship, with Alibaba being one of the early investors in Paytm. Alibaba’s financial firm, Ant Financial, invested in Paytm back in 2015, acquiring a significant stake in the Indian digital payment and e-commerce company.

5. Adani Group Acquired Stake in NDTV Group

The billionaire Gautam Adani now owns the majority of stake in the news channel – NDTV (New Delhi Television Ltd.). Earlier in 2022, they announced that they hold 27.26% stake in NDTV group for around Rs. 600 crores. But in the year 2023, Adani group announced that they acquired additional shares about 1.76 crores of NDTV for Rs. 602 crores, from its co-founders Radhika Roy and Prannoy Roy.

Adani group acquired additional shares of 1.76 crores through its indirect subsidiary RRPR holdings. Initially RRPR was a promoter owned company, which Adani acquired in August 2022 through its AMG network. Adani owns 64.71% stake in the company by the transfer of shares. With the latest transfer of shares by the co-founders (promoters) to the Adani group, the group now holds majority of the stake in the NDTV Group.

6. Kotak Mahindra and Sonata Finance

Kotak Mahindra in February 2023, announced that they had acquired Sonata Finance Private Limited in Rs. 537 crore all cash deal. After it Sonata Finance will function as a whole subsidiary of the bank after receiving its regulatories. Kotak officials said that the Sonata Finance Pvt. Ltd. will be providing them with the platform that’ll help them to cater to economically weaker sections and undeserved households in a more efficient commercial manner. Also help them to become a key significant player in the financial inclusion sector. 

Sonata offers microfinance loans, which are typically small-ticket loans provided to low-income individuals and small business owners, often without collateral. Sonata finance focuses on rural and semi-urban areas, where access to traditional banking service is limited, and there is a significant unmet demand for financial inclusion.

7. Central Depository Services acquired Bombay Stock Exchange

In June, 2023, Bombay Stock Exchange (BSE) through open transactions sold its 4.5% stake to Central Depository Services Ltd. (CDSL) for 468 crores. Reportedly the shares were disposed of at an average value of Rs. 985.98 each. Making the total transaction value to Rs. 467.7 crores.  In February this year, BSE too sold 2.5% stake in CDSL through an offer for sale route. 

BSE provides an interactive and friendly platform for efficient, effective and transparent markets for trading in equity, derivatives, mutual funds, policies, currencies, and debt instruments. Bombay Stock Exchange SME platform is considered to be India’s largest SME platform, where there are 250 companies listed and continue to grow.

8. IDFC First Bank Merger with IDFC Ltd

In July, 2023, the board of directors of both IDFC first bank and IDFC Ltd. announced their merger. The share exchange ratio between both should be equal to 155 equity of value Rs.10 of IDFC bank for every 100 shares of IDFC Ltd. this merger resulted after HDFC Ltd got merged with HDFC Bank for around $40 million in a deal.

As a result of the merger the value of per share of the bank would increase by 4.9%. This merger will help simplify the structures of these banks making the process streamline of regulatory compliance.

9. Canara Bank sells stake

Canara bank in March 2023, declared that they had sold their stake in Russian Joint Venture Commercial Indo Bank LLC (CIBL) to their other venture partner SBI (State Bank of India) for around Rs. 121 crore. Commercial Indo Bank LLC, started in 2003, is a joint venture between SBI and Canara Bank. Canara bank offers a wide range of banking and financial services, including retail and corporate banking, agricultural banking, etc. Catering to the diverse needs of customers across the country and contributing significantly to the nation’s economic growth. 

10. LIC Stake in BATA

Life Insurance Company (LIC) acquired Footwear Retail company, Bata India Pvt. Ltd. for 108 crore. In March 2023,  LIC through open market transactions bought additional shares of 6.88 lakhs equity. This helped the Bata company to be in the limelight in the entire footwear sector. Also making their stake prices rise from 4.47% to over 5%. There are other shareholders in the Bata circle, HDFC Life insurance company and ICICI Prudential Insurance company also held 2.21% and 1.19% in Bata India as reported in December last year.  In 2022, LIC was listed on the stock exchanges list under the state run insurer launched India’s biggest initial public offering (IPO).

LIC is involved in various corporate social responsibility (CSR) activities, including initiatives related to education, healthcare, and community development. 

11. BharatPe stakes in NBFC Trillion Loans

BharatPe acquires 51% share in Mumbai-based non financing company (NBFC), Trillion loans in 2023. The details of the finances of their deal were not disclosed by either of the two companies. Trillions loans is said to be an easy and user-friendly lending platform.

Although after being acquired by BharatPe, trillion loans will still function as an independent entity and will continue to make new connections with other companies in order to enter other sectors too. BharatPe’s technological and product capabilities will help Trillion loans to launch its new digital lending products.  Both operate as a small business segment.

Note: We have a detailed article on BharatPe’s shareholders breakdown and BharatPe’s financials. Check them out for more information.

12. Future Generali and JM Financial

Future Generali India in July 2023, declared their partnership with JM Financial services to expand its services and presence across the market. This partnership will be beneficial for both as it’ll help them to capitalize their strengths, capabilities, and distribution.

That’ll empower individuals, families, and businesses to secure and make their financial future strong. Through this distribution Future Generali will gain access to JM financial various distribution channels, its 725 business affiliates, 52 branches, and active financial distributors. 

Conclusion

These mergers and acquisitions have left an indelible mark on India’s corporate landscape. They signify not only the ambition of Indian companies but also the global interest in the country’s dynamic markets. As India continues to evolve as a business powerhouse, we can expect more strategic moves and exciting developments in the world of mergers and acquisitions. They’re a testament to India’s potential as a hub for strategic investments and a dynamic marketplace.