India Records Highest Deal Activity in February, Totals $7.2 Billion

India experienced a record high of deal activity in February with 226 mergers and acquisitions (M&A) and private equity (PE) deals worth $7.2 billion—the biggest monthly deal volume over the last three years, as per Grant Thornton Bharat's Dealtracker report.

"This represents a 67% growth in deal volumes and a 5.4 times increase in values over February 2024, while there is a 14% growth over the previous month," the report pointed out.

M&A Deals Fuel Expansion
February saw 85 M&A deals worth $4.8 billion, of which domestic transactions comprised 68% of deal volume and 78% of value. Inbound deal values dipped drastically as outbound deals increased.

"Despite international economic uncertainty, including softening foreign investments in Indian public markets and impending trade tariffs, the Indian deal environment remained steadfast, fueled by strong domestic demand," the report said.

Important M&A deals:

ONGC-NTPC Green bought Ayana Renewable Power for $2.3 billion.
Praana Group bought Owens Corning's glass reinforcement business for $755 million, accounting for 89% of the manufacturing sector's aggregate deal value.
Torrent Group made an $872 million buyout of Irelia Sports (Gujarat Titans), propelling the media and entertainment sector's deal activity.
Players like Zen Technologies and Nitco Ltd. were major contributors to volume growth, each making four acquisitions in February.

Private Equity Experiences Record Volumes
February also witnessed 141 private equity transactions worth $2.4 billion—the largest PE volume since May 2022, and month-on-month growth since November 2024.

Key PE deals:

Cube Highways invested $487 million in two highway projects (Quazigund Expressway & Athaang Jammu Udhampur Highway).
Multiples Alternate Asset Management invested $200 million in Qburst Technologies (IT & ITES).
Early-stage deals (Seed to Series A) held sway in the PE space, comprising close to 50% of overall deal volumes.

Sector-Wise Trends

Volume Growth: Retail & Consumer, IT & ITES, Banking & Financial Services, and Pharma, Healthcare & Biotech contributed 60% of overall deals.
Value Growth: Energy & Natural Resources, Media & Entertainment, Manufacturing, and Infrastructure Management comprised 66% of aggregate deal value.

Looking Ahead
The Union Budget 2025 will continue to boost deal activity through tax relief for MSMEs and startups, higher capital expenditure outlays, and sector-driven initiatives. Manufacturing, energy & natural resources, infrastructure, and banking & financial services are likely to gain the most.

"With India's deal environment changing, it will be interesting to note how these trends pan out over the next few months," the report concluded.