India’s M&A Deal Value Drops 48% in Second Quarter

Mergers and acquisitions, as well as private equity deals, saw a significant decline in value during the April-June quarter, dropping by 48% to USD 17 billion compared to the previous quarter. The decrease in volume terms was also notable, with 582 deals recorded, marking a 13% drop from the first quarter of the year.

The slowdown in India’s M&A and private equity landscape in 2025 was primarily due to global uncertainties and a cautious investment climate, according to Grant Thornton Bharat. Various factors such as geopolitical tensions, policy uncertainties, and surging gold prices all contributed to dampening investor sentiment.

During the second quarter of 2025, a total of 582 transactions, including IPOs and QIPs, were reported, amounting to USD 17 billion. This marked the lowest quarterly deal value since the second quarter of 2023. Excluding public market activity, 554 deals were recorded, with a combined value of USD 12.8 billion.

Despite the decline, private equity investments showed sustained momentum, leading to the emergence of new unicorns and a promising uptick in public market activity towards the end of the quarter. Sectors such as banking and infrastructure saw steady activity, signaling continued investor confidence in India’s long-term growth prospects.

M&A activity in the market mirrored the overall trend, with 197 deals worth USD 5.4 billion – the lowest since the second quarter of 2023. Only one billion-dollar deal(Sumitomo Mitsui Banking Corporation’s USD 1.57 billion investment in YES Bank) was recorded in comparison to four in the first quarter of 2025.

Private equity activity, while lower than the previous quarter, still saw the second-highest deal volume since the fourth quarter of 2022, with 357 deals totaling USD 7.5 billion. On the other hand, public market fundraising remained subdued, with IPO activity declining for the third consecutive quarter.

During the second quarter of the year, there were 12 IPOs raising a total of USD 1.9 billion, representing a 25% decrease in volume and a 26% drop in value compared to the previous quarter. Despite this, June showed signs of recovery, with the second-highest monthly IPO numbers and values for the year, led by major listings such as Leela Hotels (USD 407 million), Ather Energy (USD 343 million), and Aegis Vopak Terminals (USD 326 million).

On the QIP front, activity remained stable, with 16 issuances totaling USD 2.2 billion, almost mirroring the previous quarter’s performance.