New Delhi
In the April-June quarter, India witnessed 501 deals amounting to $21.4 billion, marking the highest quarterly volumes since Q2 2022. Anticipation of policy clarity from the upcoming budget and sustained political stability is expected to further boost investor confidence and drive deal activity over the next six months, as per the latest Grant Thornton Bharat Dealtracker report released on Friday.
According to the report, mergers and acquisitions (M&A) and private equity (PE) deals totaled 467, valued at $14.9 billion, reflecting a 9% increase in volumes. This surge was largely driven by four significant transactions by the Adani Group in the industrial materials and ports sectors, which accounted for 52% of the total M&A values for the quarter.
The second quarter of FY25 featured one billion-dollar deal and 30 high-value deals (over $100 million), indicating a 58% rise in high-value deals compared to the previous quarter, which saw 19 such deals including three billion-dollar transactions.
Shanthi Vijetha, Partner, Growth, Grant Thornton Bharat, highlighted robust private equity activity and strong domestic investments despite a decline in cross-border deals due to geopolitical uncertainties. Traditional sectors like pharma and manufacturing contributed significantly to the deal values, collectively accounting for nearly half of the total.
With the government entering its third term post recent elections, there is an expectation of policy continuity, which should positively impact deal activity, added Vijetha. Indian corporates are increasingly showing confidence in the local investment climate, evident in their rising domestic investments.
