Synopsis
In February, India’s deal activity surged by 14%, reaching a three-year high in volume, with 226 M&A and PE transactions worth $7.2 billion. Domestic demand proved resilient despite global economic challenges, as highlighted by Grant Thornton Bharat.Key Takeaways
- India's deal activity rose by 14% in February.
- A total of 233 deals were recorded, valued at $9.1 billion.
- Domestic transactions accounted for 68% of volumes and 78% of values.
- ONGC NTPC Green acquired Ayana for $2.3 billion.
- Private equity deals increased to 141, with values rising to $2.4 billion.
New Delhi, March 13 (NationPress) In a show of resilience amid economic challenges, India’s deal activity experienced a remarkable 14% growth in February, achieving a three-year peak in volume, as detailed in a recent report released on Thursday.
The month recorded 226 mergers and acquisitions (M&A) and private equity (PE) transactions worth $7.2 billion, marking a substantial 67% increase in volume and a 5.4 times surge in value compared to February 2024, according to data compiled by Grant Thornton Bharat.
Overall, India's deal environment showcased a significant uptick in February, culminating in 233 total deals valued at $9.1 billion, which includes initial public offerings (IPOs) and qualified institutional placements (QIPs).
Despite global economic headwinds, such as diminishing foreign investments in Indian public markets and impending trade tariffs, India's deal arena exhibited remarkable strength, fueled by strong domestic demand.
“The Indian deal environment continued its robust momentum from January into February, achieving the highest monthly deal volumes in three years,” stated Shanthi Vijetha, Partner, Growth at Grant Thornton Bharat.
Both M&A and PE transactions have been on an upward trajectory in recent months and are expected to maintain this trend, bolstered by the proposals within the Union Budget 2025, particularly in crucial sectors like manufacturing, energy, infrastructure, and banking.
In February, India's M&A sector reached a record high with 85 deals, representing a 23% increase compared to January.
Domestic transactions remained the primary focus, constituting 68% of volumes and 78% of values.
The standout deal of the month involved ONGC NTPC Green Pvt Ltd acquiring a 100% stake in Ayana Renewable Power Pvt Ltd for $2.3 billion.
The private equity sector also saw significant growth in February, with 141 deals, which is a 9% rise from January, and values escalating 16% to $2.4 billion, up from $2.1 billion in the preceding month.
This marks the highest monthly deal volume since May 2022 and the fourth consecutive month of increasing deal volumes and values since November 2024, as highlighted in the report.
