India experiences unprecedented surge in deal activity with $7.2 billion transactions in February.
India experienced unprecedented levels of deal activity in February, with 226 M&A and private equity deals totaling $7.2 billion, marking the highest monthly deal volume in the last three years, as per the latest Dealtracker report by Grant Thornton Bharat. This surge represented a 67% increase in volumes and a significant 5.4-fold increase in values compared to February 2024, with a notable 14% increase from the previous month.
Throughout February, there were 85 merger and acquisition deals worth $4.8 billion, with domestic deals making up 68% of M&A volumes and 78% of total values. While outbound deals saw a surge, inbound deal values experienced a sharp decline. Despite facing global economic uncertainties such as declining foreign investments in Indian public markets and looming trade tariffs, the Indian dealscape showcased resilience, fueled by robust domestic demand.
Zen Technologies and Nitco emerged as key acquirers in February, acquiring four companies each and significantly contributing to the volume growth, according to the report. Notable deals during the period included ONGC-NTPC Green’s $2.3 billion acquisition of Ayana Renewable Power.
One of the notable transactions during this time included The Praana Group’s $755 million acquisition of Owens Corning’s glass reinforcement business, accounting for 89% of the manufacturing sector’s total value. Moreover, the media and entertainment segment recorded a sharp uptick in sports and gaming deals, such as Torrent Group’s $872 million acquisition of Irelia Sports (Gujarat Titans).
In the private equity sector, a total of 141 transactions amounting to $2.4 billion were recorded, making it the highest PE volume since May 2022, with continuous month-on-month growth since November 2024. Early-stage investments, ranging from Seed to Series A, dominated the scene, constituting almost half of the total PE volumes.
The M&A space witnessed varying trends in February, with volumes steadily increasing over the past four months, while values continued to decline since December 2024. It was a record-breaking month with domestic deals remaining dominant, accounting for 68% of volumes and 78% of values. Cross-border activity showed a mixed picture, with outbound deals seeing a significant increase in both volumes and values, while inbound deal values plummeted.
The PE space, on the other hand, witnessed a rise in both deal volumes and values month-on-month since November 2024. Early-stage fundings up to Series A gained significant traction, making up nearly half of the total PE deal volumes. Sectors like retail and consumer, IT & ITES, banking and financial services, as well as pharma, healthcare, and biotech played a pivotal role in volume growth. Conversely, traditional sectors including energy and natural resources, media and entertainment, manufacturing, and infrastructure management led in value growth, constituting 66% of the total values.
The report highlighted that the Union Budget 2025 proposals, including tax incentives for start-ups and MSMEs, increased capital expenditure allocations, and sector-specific initiatives, are expected to drive further deal activity, particularly in manufacturing, energy and natural resources, infrastructure management, and banking and financial services. The evolving landscape of Indian deals promises interesting developments in the months ahead.
