India M&A And Private Equity Deals Plunge Amid Global Uncertainty: Report

India’s M&A and private equity deals dropped 48% YoY to $17 billion in Q2 2025, hit by global geopolitical tensions and investor caution, as per a recent financial report.

The decline is attributed to ongoing geopolitical tensions, including the Iran-Israel conflict

Source : ABPLIVE AI

New Delhi, Jul 9 (PTI) Merger & acquisition and private equity deals declined sharply by 48 per cent in value terms to USD 17 billion in April-June compared to the previous quarter due to mounting global uncertainties and a cautious investment climate, according to consultancy firm Grant Thornton Bharat.

In volume terms, mergers and acquisitions (M&A) and PE deals dropped by 13 per cent to 582 in the second quarter of 2025 compared to the first quarter.

India’s M&A and private equity landscape experienced a significant slowdown in April-June 2025, with deal volumes and values both taking a hit due to mounting global uncertainties and a cautious investment climate, GTBharat said.

A total of 582 transactions (including IPOs and QIPs) amounting to USD 17 billion were reported during the June quarter. This marks the lowest quarterly deal value since Q2 2023. After excluding public market activity, 554 deals were recorded, with a combined value of USD 12.8 billion.

The decline is attributed to ongoing geopolitical tensions, including the Iran-Israel conflict, policy uncertainties surrounding the Trump presidency, the Russia-Ukraine war, and surging gold prices, which collectively dampened investor sentiment.

Despite the slowdown, the sustained momentum in private equity investments, the emergence of new unicorns, and a promising uptick in public market activity towards the quarter-end are encouraging indicators. The quarter witnessed steady activity in sectors like banking and infrastructure signaling continued investor confidence in India’s long-term growth story," Shanthi Vijetha, Partner, Growth, Grant Thornton Bharat.

M&A activity mirrored the overall market trend, with 197 deals worth USD 5.4 billion -- the lowest since Q2 2023. Only one billion-dollar deal was recorded(Sumitomo Mitsui Banking Corporation’s USD 1.57 billion investment in YES Bank), compared to four in Q1 2025.

PE activity, while declining from the previous quarter, still saw the second-highest deal volume since Q4 2022, with 357 deals totalling USD 7.5 billion.

Public market fundraising remained subdued in Q2 2025, as IPO activity declined for the third consecutive quarter. There were 12 IPOs raising a total of USD 1.9 billion, a 25 per cent decrease in volume and a 26 per cent drop in value compared to the previous quarter.

However, June showed signs of recovery, posting the second-highest monthly IPO numbers and values for the year, led by major listings like Leela Hotels (USD 407 million), Ather Energy (USD 343 million), and Aegis Vopak Terminals (USD 326 million).

On the QIP front, activity remained stable with 16 issuances totalling USD 2.2 billion, nearly mirroring the previous quarter.  

(This report has been published as part of the auto generated syndicate wire feed. Apart from the headline no editing has been done in the copy by ABP Live.)