$7.2B: India records highest-ever financial deal activity in February
What's the story
India witnessed an unprecedented spike in deal activity last month with 226 mergers and acquisitions (M&A) and private equity deals worth $7.2 billion.
This is the highest monthly deal volume in the last three years, according to Grant Thornton Bharat's Dealtracker report.
The report noted a whopping 67% rise in volumes and a 5.4-fold increase in values over February 2024.
M&A spotlight
M&A deals dominate February's deal activity
February witnessed the announcement of 85 M&A deals worth $4.8 billion.
Domestic transactions made up a whopping 68% of M&A volumes and a staggering 78% of total values.
Despite global economic uncertainties, like falling foreign investments in Indian public markets and possible trade tariffs, the Indian deal landscape remained resilient, driven by robust domestic demand.
Major deals
Key players and significant transactions in February
Zen Technologies and Nitco Ltd were the top acquirers, acquiring four companies each, which contributed to the volume growth.
Key transactions included ONGC-NTPC Green's $2.3 billion acquisition of Ayana Renewable Power and Praana Group's $755 million purchase of Owens Corning's glass reinforcement business.
The media and entertainment sector also witnessed a surge in sports and gaming deals, led by Torrent Group's $872 million purchase of Irelia Sports (Gujarat Titans).
PE surge
Private equity deals reach highest volume since May 2022
Private equity (PE) deals also hit their highest volume since May 2022, with 141 transactions worth $2.4 billion.
Early-stage investments (Seed to Series A) led the pack, making up for almost half of total PE volumes.
Notable PE deals included Cube Highways's $487 million investment in two road projects and Multiples Alternate Asset Management's $200 million spending in Qburst Technologies (IT & ITES).
Sector analysis
Sector-wise contribution to deal activity
The IT & ITES, retail and consumer, banking and financial services, and pharma, healthcare and biotech sectors drove volume growth. These sectors contributed 60% of the overall volumes.
Meanwhile, traditional sectors such as energy and natural resources, media and entertainment, manufacturing and infrastructure management led value growth with 66% of total values.