India’s Deal Activity Hits Three-Year High In February

India’s deal market saw a strong surge in February, defying global economic challenges. The country recorded 226 mergers and acquisitions (M&A) and private equity (PE) deals worth $7.2 billion, marking a 67% rise in volumes and a 5.4-fold increase in value compared to February 2024, according to a report by Grant Thornton Bharat.

Including initial public offerings (IPOs) and qualified institutional placements (QIPs), the total deal count for the month reached 233, with a combined value of $9.1 billion. This marks the highest monthly deal volume in three years, continuing the strong momentum from January.

M&A and PE Deals on the Rise

India’s M&A market saw a record 85 deals in February, a 23% increase from January. Domestic transactions dominated, accounting for 68% of the total volume and 78% of the deal value.

The biggest deal of the month was ONGC NTPC Green Pvt Ltd’s acquisition of Ayana Renewable Power Pvt Ltd for $2.3 billion.

Meanwhile, private equity activity also picked up pace, with 141 PE deals recorded in February, up from 129 in January. The total PE deal value rose to $2.4 billion, a 16% increase from the previous month. This was the highest PE deal volume recorded since May 2022 and marked four consecutive months of rising deal activity.

Factors Driving Growth

Despite concerns over slowing foreign investments and potential trade tariffs, India’s deal market remained resilient, driven by strong domestic demand. Key sectors such as manufacturing, energy, infrastructure, and banking benefited from policy support, including measures introduced in the Union Budget 2025.

With deal activity continuing its upward trend, India’s M&A and PE landscape is expected to remain strong in the coming months.