India Sees Record Surge in Deal Activity with ₹59,000 Crore in M&A and PE Deals in February

New Delhi (The Uttam Hindu): India experienced a record surge in deal activity in February, with 226 mergers and acquisitions (M&A) and private equity (PE) deals totaling ₹59,800 crore, according to the Dealtracker report by Grant Thornton Bharat. This marks the highest monthly deal volume in the past three years.

The report highlighted a 67% increase in deal volumes and a 5.4-fold rise in deal values compared to February 2024. There was also a 14% increase in deal activity compared to January 2025.

Out of the total deals, 85 M&A transactions worth ₹39,800 crore were announced. Domestic deals dominated, making up 68% of M&A volumes and 78% of total deal values. While outbound deals surged, inbound deal values saw a sharp decline.

Despite global economic uncertainties such as reduced foreign investment in Indian public markets and rising trade tariffs, India’s deal landscape showed resilience, mainly due to strong domestic demand.

Key acquirers like Zen Technologies and Nitco Ltd each acquired four companies, contributing significantly to the volume growth. Notable deals included ONGC-NTPC Green’s ₹18,800 crore acquisition of Ayana Renewable Power, and The Praana Group’s ₹62,000 crore purchase of Owens Corning’s glass reinforcement business, which accounted for 89% of the manufacturing sector’s total value.

The media and entertainment sector also experienced significant growth, especially in sports and gaming. A major deal in this space was Torrent Group’s ₹71,400 crore acquisition of Irelia Sports, which owns the Gujarat Titans franchise.

Private equity transactions reached 141 deals worth ₹19,600 crore, marking the highest PE volume since May 2022. The growth trend in PE deals has continued since November 2024, with early-stage investments (Seed to Series A) dominating the PE space, making up nearly 50% of total PE volumes. Key PE transactions included Cube Highways’ ₹40,200 crore investment in two road projects and Multiples Alternate Asset Management’s ₹16,000 crore investment in Qburst Technologies.

In the M&A space, while deal volumes steadily increased over the past four months, deal values have been declining since December 2024. February 2025 saw a record volume of M&A deals, with domestic transactions forming the bulk of the activity.

Cross-border deal activity showed mixed results: outbound deals surged both in volume and value, while inbound deal values fell significantly.

The report also noted that sectors like retail and consumer, IT & ITES, banking and financial services, and pharma, healthcare, and biotech were key drivers of volume growth, accounting for 60% of the total deal volume. Traditional sectors such as energy, natural resources, media and entertainment, manufacturing, and infrastructure management contributed to value growth, accounting for 66% of total values.

Looking forward, the proposals in the Union Budget 2025, including tax incentives for startups and MSMEs, increased capital expenditure, and sector-specific initiatives, are expected to further boost deal activity, particularly in manufacturing, energy and natural resources, infrastructure, and banking and financial services.

As India’s deal landscape continues to evolve, the coming months will likely see further developments in these trends, according to the report.