New Delhi, April 2 India saw a robust deal-making activity in the first quarter of 2025 (January-March period) -- reaching a three-year high worth $27.5 billion which is a notable 29.6 per cent increase in value compared to the same quarter last year, a report showed on Wednesday.
The number of announced deals also rose by 13.6 per cent year-over-year, making this the busiest quarter since the first quarter of 2023, according to a report by LSEG.
“This growth was driven by robust domestic deal activity, and a surge in private equity-backed acquisitions. Energy and Power accounted for 32 per cent of India’s domestic deals by value,” said Elaine Tan, Senior Manager at LSEG Deals Intelligence.
Significantly, three of the top five deals this year were in the renewable energy sector, with Indian renewable energy M&A totaling $4.9 billion to date.
India’s M&A activity witnessed growth across diverse sectors, including energy and power, financials, healthcare, technology, materials, and media and entertainment. This sectoral breadth underscores India's economic resilience, even amid global uncertainties, reinforcing its position as a dynamic and attractive market for investors, Tan added.
Increased market volatility, geopolitical and economic uncertainties dampened confidence, leading to reduced activity at the start of the year.
Despite these challenges, India continued to be a dominant player in the global IPO markets.
Indian exchanges accounted for 8.8 per cent of global IPO proceeds during the first quarter of 2025, trailing behind the United States (33.5 per cent) and Japan (12.4 per cent), underscoring the nation’s resilience and appeal to investors given its potential to regain momentum as conditions stabilise, said the report.
Primary bond offerings from India-domiciled issuers raised $28.8 billion in the first quarter of 2025, a 13.8 per cent increase compared to the same period last year – the highest first quarter total since 2019.
Indian issuers from the financials sector captured 71.1 per cent market share and raised $20.5 billion in proceeds, up 1.4 per cent compared to the first quarter of last year. HDFC Bank leads the ranking for India-issued bonds underwriting, with related proceeds of $3.4 billion and accounted for 11.8 per cent market share, the report noted.
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