India Records Highest Monthly Deal Volume in Three Years in February 2025:

India witnessed an extraordinary spike in deal activity in February 2025, recording 226 merger and acquisition (M&A) and private equity (PE) deals worth USD 7.2 billion. This represents a 67% increase in volume and a 5.4-fold rise in value compared to February 2024, as per Grant Thornton Bharat’s Dealtracker report.

The number of M&A deals reached 85 transactions totaling USD 4.8 billion, with domestic deals making up 68% of the volume and 78% of the total value. While outbound deals surged, inbound deal values saw a sharp decline. Despite global uncertainties such as foreign investment slowdowns and trade tariff concerns, India’s deal landscape remained resilient, primarily driven by strong domestic demand.

Major M&A Deals and Key Players

Zen Technologies and Nitco Ltd played a key role in the deal volume surge, each acquiring four companies. Among the most significant M&A deals were:

ONGC-NTPC Green’s USD 2.3 billion acquisition of Ayana Renewable Power
The Praana Group’s USD 755 million acquisition of Owens Corning’s glass reinforcement business, contributing to 89% of the manufacturing sector’s total deal value
Torrent Group’s USD 872 million acquisition of Irelia Sports (Gujarat Titans), boosting investments in the media and entertainment sector, particularly in sports and gaming

Private Equity Hits Highest Volume Since May 2022

Private equity (PE) deals accounted for 141 transactions worth USD 2.4 billion, marking the highest PE deal volume since May 2022. The sector has maintained consistent month-on-month growth since November 2024, with early-stage investments (Seed to Series A) comprising nearly 50% of the total PE volume.

Notable PE transactions included:

Cube Highways' USD 487 million investment in two road projects (Quazigund Expressway & Athaang Jammu Udhampur Highway)
Multiples Alternate Asset Management’s USD 200 million investment in Qburst Technologies (IT & ITES)

Diverging Trends in M&A and PE Deals

The M&A market demonstrated mixed trends, with volume increasing over the past four months while deal values declined since December 2024. Domestic transactions continued to dominate, representing 68% of total deals and 78% of the deal value. Cross-border activity, however, saw outbound deals increase significantly, whereas inbound deal values declined.

In contrast, private equity transactions witnessed a consistent rise in both volume and value since November 2024. Early-stage funding was a major contributor, making up nearly half of all PE transactions.

Sectors Driving Growth in Indian Deal Activity

The retail and consumer, IT & ITES, banking and financial services, pharma, healthcare, and biotech sectors were key contributors to volume growth, accounting for 60% of the total deals.

Meanwhile, energy and natural resources, media and entertainment, manufacturing, and infrastructure management were the primary drivers of value growth, contributing 66% of the total deal value.

Impact of Union Budget 2025 on Future Deals

The Union Budget 2025 is expected to further stimulate deal activity through:

Tax incentives for start-ups and MSMEs
Increased capital expenditure allocations
Sector-specific policy initiatives

These measures are likely to drive investments in manufacturing, energy and natural resources, infrastructure management, and banking and financial services.