India's Deal-Making Activity Rises by 29.6% to $27.5 Billion in Q1 2025

Synopsis

India's deal-making activity soared in Q1 2025 to $27.5 billion, reflecting a 29.6% year-on-year increase. The rise, driven by private equity acquisitions and strong domestic activity, marks a three-year high and showcases the country's economic resilience amid global uncertainties.

Key Takeaways

Q1 2025 deal-making reached $27.5 billion.
Year-over-year increase of 29.6%.
Energy and power sector dominated with 32% of deals.
Renewable energy M&A totaled $4.9 billion.
Indian IPOs accounted for 8.8% of global proceeds.

New Delhi, April 2 (NationPress) India experienced a significant surge in deal-making during the first quarter of 2025 (January-March) -- achieving a remarkable three-year peak valued at $27.5 billion, reflecting a substantial 29.6 percent increase compared to the same quarter last year, according to a report released on Wednesday.

The total number of announced deals also increased by 13.6 percent year-over-year, marking this as the most active quarter since the first quarter of 2023, as per insights from LSEG.

“This expansion was fueled by strong domestic deal activity and a spike in private equity-driven acquisitions. The energy and power sector comprised 32 percent of India’s domestic deals by value,” commented Elaine Tan, Senior Manager at LSEG Deals Intelligence.

Notably, three of the top five transactions this year were focused on the renewable energy sector, with Indian renewable energy mergers and acquisitions totaling $4.9 billion thus far.

India’s M&A endeavors observed growth across various sectors, including energy and power, financials, healthcare, technology, materials, and media and entertainment. This diversity illustrates India’s economic resilience, even amid global challenges, solidifying its status as a vibrant and appealing market for investors, Tan added.

Increased market fluctuations, along with geopolitical and economic uncertainties, dampened confidence and led to a decline in activity at the beginning of the year.

Despite these hurdles, India remained a key player in the global IPO landscape.

Indian exchanges constituted 8.8 percent of global IPO proceeds during the first quarter of 2025, trailing the United States (33.5 percent) and Japan (12.4 percent), emphasizing the nation’s resilience and attractiveness to investors as it shows potential for a rebound as conditions stabilize, stated the report.

Primary bond offerings from Indian issuers garnered $28.8 billion in the first quarter of 2025, marking a 13.8 percent increase compared to the same period last year – the highest first-quarter total since 2019.

Indian issuers from the financial sector captured 71.1 percent of the market share, raising $20.5 billion in proceeds, up 1.4 percent compared to the same quarter last year. HDFC Bank topped the rankings for India-issued bonds underwriting, with proceeds of $3.4 billion, accounting for 11.8 percent of the market share, the report highlighted.