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The Indian tech sector saw 83 deals valued at $761 million in the third quarter (Q3) this year, marking the highest volumes since Q2 2023, a report showed on Friday. 

The deal activity grew 5 per cent in volume and 31 per cent in value from the previous quarter, with 79 mergers and acquisitions and private equity (PE) deals worth $635 million in the July-September period, according to Grant Thornton Bharat’s dealtracker.

The deal activity reflects a shift towards more strategic investments rather than large-scale acquisitions. However, the quarter witnessed 12 deals valued at and over $20 million.

Private equity (PE) dominated deal values, accounting for 82 per cent of the total, driven by three high-value deals over $100 million that contributed $358 million.

India saw a 58 per cent volume growth compared to Q3 last year, but a 53 per cent value decline, with no big-ticket M&A transactions since Q3 2023.

The July-September quarter saw two initial public offerings (IPOs) totalling $59 million, rebounding from the previous quarter. QIP activity remained steady with 2 deals valued at $67 million.

Mergers and acquisitions activity rebounded after a significant drop in Q1 2024, marking the highest deal volumes since Q2 2023. The deal volumes grew by 44 per cent to 26 deals in Q3 2024, up from 18 in the previous quarter.

Deal values surged by 205 per cent to $116 million, up from $38 million in Q2.

The report mentioned that compared to Q3 2023, volumes increased by 53 per cent, while values decreased by 89 per cent due to the absence of big-ticket deals.

“Domestic M&A activity reached its quarterly highest since Q1 2022, showcasing robust activity within the sector. Outbound activity reached its highest quarterly volumes in three years, with outbound deals making up 62 per cent of total M&A deal values,” the report noted.

Small-ticket transactions (less than $5 million) dominated, accounting for 74 per cent of deal activity, showing a preference for smaller, strategic investments.