The Indian BFSI sector witnessed a significant surge in deal activity in the third quarter of CY24, with 64 transactions valued at USD 3.2 billion. According to a report by Grant Thornton, the sector saw stable growth in mergers and acquisitions (M&A) and private equity (PE) deals, driven primarily by the sale of stressed assets and strategic investments in fintech and housing finance companies.
The quarter’s deal activity was marked by increased interest from global private equity firms and strategic investors, highlighting the sector’s growth potential and attractiveness to investors.
ETBFSI gives its readers a list of the top 5 M&A deals and top 5 PE deals in the BFSI sector as per data based on a report by Grant Thornton.
Top 5 M&A Deals:
1. Omkara Asset Reconstruction Pvt Ltd – IDFC Bank
Omkara Asset Reconstruction Pvt Ltd acquired stressed assets of IDFC Bank worth USD 741 million, representing 54 per cent of Q3 M&A deal values. The acquisition comprised non-performing assets.
2. Blacksoil Capital Pvt Ltd – Caspian Impact Investments
Alternative credit provider BlackSoil Capital merged with impact investment lender Caspian Impact Investments through a share swap. Haitong Securities India Pvt. Ltd advised BlackSoil Capital, while BOB Capital Markets Ltd advised Caspian Debt.
3. JM Financial Products Ltd – JM Financial Credit Solutions Ltd
JM Financial Products Ltd acquired a 42.99 per cent stake in JM Financial Credit Solutions Limited for Rs 1,282 crore. Post-transaction, JM Financial’s stake in JMFCSL increased from 46.68 per cent to 89.67 per cent.
4. JM Financial Credit Solutions Ltd – JMFARC
JM Financial Credit Solutions Ltd acquired a 71.79 per cent stake in JMFARC from JM Financial for Rs 856 crore.
5. JP Morgan – Navi Finserv
Navi Finserv closed a USD 38 million personal loans securitization deal with JP Morgan to expand its personal loans business, capitalizing on India’s growing digital lending market.
Top 5 Private Equity Deals
1. CVC Capital Partners – Aavas Financiers Ltd
CVC Capital Partners emerged as the successful bidder for Aavas Financiers, valuing the company at Rs 13,019.67 crore. CVC’s winning bid offered Rs 1,635 per share, potentially acquiring a controlling 52.47 per cent stake.
2. Mitsubishi UFG Financial Group – DMI Finance
Mitsubishi UFG Financial Group infused Rs 2,798 crore (USD 334 million) into digital lending company DMI Finance, valuing it at USD 3 billion. MUFG became DMI’s second-largest shareholder.
3. BPEA EQT – IndoStar Home Finance
IndoStar Capital Finance Limited sold its subsidiary IndoStar Home Finance Private Limited to Witkopeend BV, an Amsterdam-based affiliate of BPEA EQT Mid-Market Growth Partnership, for Rs 1,750 crore on a fully diluted basis.
4. TA Associates – Vastu Housing Finance
TA Associates made an undisclosed growth investment in Multiples PE-backed Vastu Housing Finance Corp. Ltd. Vastu Housing Finance had previously secured USD 30 million from Faering Capital.
5. Ontario Teachers’ Pension Plan – Kogta Financial (India) Ltd
Kogta Financial raised USD 148 million in a Series E investment led by Ontario Teachers’ Pension Plan. The funds will be used to expand product offerings and regional presence, providing partial exits to existing institutional investors Morgan Stanley and Creador.
