India experienced a record-breaking surge in deal-making activity in February, marking the highest monthly transaction volume in the past three years. According to the Dealtracker report by Grant Thornton Bharat, the month saw 226 mergers, acquisitions (M&A), and private equity (PE) deals, amounting to USD 7.2 billion.
This represented a 67% increase in deal volume and a 5.4-fold surge in transaction value compared to February 2024. The figures also reflected a 14% rise over the previous month. A total of 85 M&A deals worth USD 4.8 billion were announced, with domestic transactions dominating, accounting for 68% of the deal volume and 78% of the total value. While outbound deals saw a sharp increase, inbound investments declined significantly.
Despite global economic uncertainties, including reduced foreign investments in Indian public markets and the threat of trade tariffs, India’s deal environment remained strong, supported by robust domestic demand. Zen Technologies and Nitco Ltd played a significant role in driving transaction volume, each completing four acquisitions.
Major transactions included ONGC-NTPC Green’s USD 2.3 billion acquisition of Ayana Renewable Power, reinforcing the renewable energy sector’s momentum. The Praana Group’s USD 755 million purchase of Owens Corning’s glass reinforcement business contributed 89% of the manufacturing sector’s total transaction value. The media and entertainment industry also saw significant activity, with Torrent Group’s USD 872 million acquisition of Irelia Sports (owners of Gujarat Titans) highlighting the growing investment interest in sports and gaming.
Private equity activity remained strong, with 141 transactions totaling USD 2.4 billion, marking the highest PE deal volume since May 2022. Investment momentum has steadily increased since November 2024, with early-stage funding (Seed to Series A) accounting for nearly 50% of total PE volumes. Key transactions included Cube Highways’ USD 487 million investment in road infrastructure projects such as the Quazigund Expressway and Athaang Jammu Udhampur Highway, alongside Multiples Alternate Asset Management’s USD 200 million investment in IT services firm Qburst Technologies.
The M&A sector exhibited contrasting trends, with volumes steadily rising over the past four months, even as total deal value declined since December 2024. February’s record-breaking volume reinforced domestic deals as a dominant theme, while cross-border activity showed a mixed outlook—outbound deals increased significantly, while inbound investments continued to decline.
Retail and consumer businesses, IT & IT-enabled services, banking and financial services, and the pharmaceutical, healthcare, and biotech industries played a crucial role in driving transaction volumes, collectively accounting for 60% of overall activity. Meanwhile, traditional sectors such as energy, natural resources, media, manufacturing, and infrastructure management led in terms of deal value, contributing 66% of total transaction worth.
Looking ahead, the Union Budget 2025 is expected to further stimulate deal-making activity. Key policy measures—including tax incentives for startups and MSMEs, increased capital expenditure, and sector-specific growth initiatives—are likely to boost investment in manufacturing, energy, infrastructure, and financial services.
As the Indian deal market continues to evolve, the coming months will be crucial in determining whether these trends sustain their momentum and drive further growth across key sectors.
