2024 was a groundbreaking year for corporate India, marked by significant developments such as landmark mergers, record-breaking IPOs, impactful regulatory actions, and numerous policy reforms. The key events of 2024 were nothing short of transformative for corporate India. Among the highlights were the significant merger of Air India and Vistara, marking a new era in Indian aviation. We also witnessed record-breaking IPOs from Hyundai India and Ola Electric, showcasing the growing confidence in India’s market potential.

The first quarter of 2024 set a promising tone with robust economic growth and heightened investor activity, creating a wave of optimism. However, the second and third quarters painted a more complex picture. While there were standout IPOs that grabbed attention, the period was also marked by slowed demand and consumption. Additionally, corporate controversies added to the mixed sentiments, creating a sense of uncertainty. Here are the ground breaking incidents that rocked the corporate world.

Mega Mergers

Air India-Vistara & Viacom18-Disney+ Hotstar
2024 witnessed two massive mergers that redefined their respective industries.

Under the visionary leadership of the Tata Group, Air India and Vistara joined forces to create a single, full-service airline, significantly consolidating the Indian aviation sector. The skies now feature just two major players. The Tata Group had previously acquired the struggling Air India from the government in January 2022, marking the beginning of a transformative era.

Air India-Vistara Merger
According to NDTV Profit, this merger represents a major shift in the Indian aviation landscape, as the newly integrated airline now operates over 5,600 weekly flights and connects more than 90 destinations. It came on the heels of another strategic merger in October 2024, when Tata Group’s low-cost airline, Air India Express, combined with AIX Connect, previously known as Air Asia India. The report suggests that Singapore Airlines will hold a 25.1% stake in the enlarged Air India. Singapore Airlines’ contribution includes its 49% stake in Vistara and a cash infusion of Rs 2,058.5 crore. Additionally, Singapore Airlines will assume responsibility for its share of any pre-merger funding from Tata Group, along with costs up to Rs 5,020 crore, to maintain its stake.

Viacom18-Disney+ Hotstar
In the entertainment world, the collaboration between Viacom18 and Disney+ Hotstar has led to the creation of one of India’s largest content-streaming giants, valued at over Rs 70,000 crore. This powerful merger blends Disney’s global franchise dominance with Viacom18’s, and particularly Jio’s, local expertise, significantly expanding and enriching the streaming landscape in India.

All-Time High IPOs

Hyundai India, Tata Technologies, and Ola Electric
India’s IPO market thrived in 2024, cementing its status as a global economic powerhouse and emerging as the world leader for the first time. According to Economic Times, With a surge in listings, the country outpaced the United States, achieving nearly double the IPO volume, and surpassed Europe by listing more than two-and-a-half times the number of IPOs, which as per reports is a massive 327.

Bajaj Housing Finance

Various report suggests that Rs 6,560 crore IPO attracted a record-breaking Rs 3.2 lakh crore in bids, resulting in an excess demand of 63.61 times.

Hyundai India

Hyundai India’s IPO, the largest in the auto sector in recent years, garnered significant global investor interest. The company’s ambitious plans to expand its electric vehicle (EV) lineup fueled the high demand. However, its debut on D-Street fell short of expectations.

Ola Electric

Ola Electric’s IPO was a major highlight in the financial world, drawing significant attention and enthusiasm from investors. This excitement was driven by Ola Electric’s leadership in revolutionizing India’s electric vehicle (EV) sector. The company’s strong listing not only reinforced global confidence in India’s ambitions for electric mobility but also rewarded shareholders with impressive returns.

Regulatory Upheaval

Paytm Ban and Stringent Measures on NBFCs
The fintech sector encountered significant challenges this year.

The ban on select services of Paytm by the Reserve Bank of India (RBI) shook the market. The RBI has stated that the action against One97 Communications, the parent company of Paytm, is due to “non-compliance and ongoing material supervisory concerns within the bank.” In 2024, concerns over money laundering and financial irregularities involving transactions worth hundreds of crores between Paytm and its banking arm prompted the Reserve Bank of India (RBI) to take decisive action. The RBI’s intervention was a significant move to address these issues and ensure the integrity of India’s financial system. Starting from February 29, Paytm Payments Bank wasn’t be able to accept new users. Paytm Payments Bank Ltd (PPBL) is an associate company of PAYTM and had over 100 million KYC customers. It was a major hit for the company.

In addition, the Reserve Bank of India (RBI) introduced stricter regulations for Non-Banking Financial Companies (NBFCs) to enhance transparency and protect consumers. Under the leadership of Governor Shaktikanta Das, the RBI exercised its powers under Section 45L(1)(b) of the Reserve Bank of India Act, 1934, to take stringent action against four NBFCs, including NBFC-MFIs. This decisive move underscored the RBI’s commitment to maintaining integrity and trust within the financial system.

Apart from these, In October 2024, the Reserve Bank of India (RBI) took a firm stand by directing Asirvad Micro Finance Limited, Arohan Financial Services Limited, DMI Finance Private Limited, and Navi Finserv Limited to halt the sanction and disbursement of loans.

While these new guidelines posed significant challenges for non-banking financial players, Governor Shaktikanta Das emphasized their necessity. He pointed out that some NBFCs had been aggressively pursuing growth without proper administrative oversight, which could lead to financial instability.

RBI Governor Shaktikanta Das’s strong regulatory actions reflect the RBI’s commitment to maintaining a secure and transparent financial environment, ensuring that rapid growth does not come at the expense of sound management and consumer protection.

Landmark policy reform

Abolition of Angel Tax

In 2024, the Indian startup scene was buzzing with innovation and ambition. To keep this momentum going, the government introduced various incentives. However, one term that often sparked heated discussions was the “Angel Tax.” Despite its name, Angel Tax is not a tax break. Instead, it’s a provision under Section 56(2)(viib) of the Income Tax Act, 1961. It treats the investments startups receive from external investors as “income from other sources,” which means these investments are taxed at a hefty rate of 30%.

This tax has been a topic of much debate, as it posed a significant burden on fledgling startups trying to get off the ground. Nonetheless, it’s part of the government’s efforts to regulate and ensure transparency in the financial dealings of startups.

A significant win for startups and investors in 2024 was the abolition of the Angel Tax. With this reform, the government removed a significant barrier to foreign capital, enhancing the attractiveness of India’s startup ecosystem to global venture capitalists and angel investors. This change is set to further fuel innovation and growth within the thriving startup community.