New Delhi, Apr 16 (PTI) The first three months of the calendar year (Q1 2025) saw 669 deals worth USD 29 billion, marking the highest quarterly volumes since Q1 2022 and the highest values since Q3 2022, according to the Grant Thornton Bharat Dealtracker.
M&A and PE transactions kept the deal counters buzzing.
Excluding IPO and QIP transactions, 636 deals worth USD 24.4 billion were recorded, a 28 per cent growth in volumes and a 34 per cent increase in values compared to Q4 2024, it said.
Year-on-year, deal volumes surged 43 per cent, while values rose 17 per cent, signalling sustained investor confidence and a robust appetite for strategic investments.
The quarter saw six billion-dollar deals, accounting for 41 per cent of the total deal values, reinforcing the momentum in large-scale transactions.
"As India's investment landscape continues to evolve, Q1 2025 sets the tone for a strong year ahead, driven by economic reforms, sector-focused policies, and increasing investor interest across key industries," said the release.
Shanthi Vijetha, Partner, Growth at Grant Thornton Bharat, noted that Q1 2025 started strong with 636 transactions valued at USD 24.4 billion.
"This was driven by all-time high M&A activity with 228 deals (USD 15.8 billion) dominated by domestic transactions coupled with record inbound activity. PE activity has been witnessing quarter on quarter increase with return of billion dollar deals in this quarter," she said.
This momentum is expected to continue through 2025 as investors are strategically channelling funds into high-growth sectors like retail, banking, renewable energy, and e-mobility, she said.
Citing the mergers and acquisitions (M&A) activity, the report noted that Q1 2025 saw 228 deals valued at USD 15.8 billion, marking an all-time high in deal volumes.
Domestic M&A continued to dominate, accounting for 72 per cent of total deal volumes and 62 per cent of deal values, driven by three billion-dollar acquisitions that pitched in 41 per cent of the total M&A values.
Cross-border activity also witnessed a significant surge, particularly in the inbound space, reaching an all-time high with 27 deals worth USD 2.7 billion, it said, adding that this indicates growing investor confidence in domestic markets.
The surge in cross-border values was led by Wilmar International's USD 1.4 billion acquisition of Adani Wilmar's Staples business.
"Q1 also saw major consolidation moves, with companies like Adani Group, Coforge Limited, Zen Technologies, and Nitco Limited actively expanding through multiple acquisitions. The top deal was Bajaj Group's USD 2.7 billion acquisition of a 26 per cent stake in Bajaj Allianz General and Life Insurance," it said.
Top five M&A deals contributed to 56 per cent of the M&A deal values.
On private equity (PE) deals, it said Q1 experienced a robust resurgence, recording 408 deals totalling USD 8.6 billion; highest deal volume since Q3 2022. This represents a 36 per cent increase in deal volumes and a substantial 66 per cent rise in investment values compared to the previous quarter, elevating the average deal size from USD 17.4 million to USD 21.1 million.
Early-stage funding continued to dominate PE space, accounting for 44 per cent of the total deal volumes.
"Notably, the quarter featured two billion-dollar deals, including Temasek's USD 1 billion investment for a 10 per cent stake in Haldiram Bhujiawala Ltd, and 18 high-value deals (each exceeding USD 100 million) collectively worth USD 3.9 billion. Active investors like 100X VC and the IIM Kashipur-led Startup India Seed Fund Scheme significantly contributed to this surge, investing in 20 and 27 companies, respectively, together comprising nearly 12 per cent of the quarter's PE deal volumes," it said.
This heightened activity highlights a strong capital deployment trend, reflecting investor confidence in India's domestic resilience.
In sharp contrast, the initial public offering (IPO) & qualified institution placements (QIP) space witnessed a significant downturn in Q1, reflecting weak public market sentiment.
"IPO activity dropped by 41 per cent in volumes and 77 per cent in values, with 16 IPOs raising USD 2.6 billion, marking the second lowest quarterly volumes in last seven quarters," it said. PTI MBI TRB
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