India's deal-making activity soars to 3-year high of $27.5 bn in Q1 2025

The number of announced deals also rose by 13.6% year-over-year, making this the busiest quarter since the first quarter of 2023

India's deal-making activity surged to a three-year high in the first quarter of 2025, with a total value of $27.5 billion, according to data analysed by LSEG Deals Intelligence. This marked a significant 29.6% year-over-year increase in deal value compared to the same period last year. The number of announced deals also rose by 13.6%, making Q1 2025 the busiest quarter for mergers and acquisitions (M&A) since the first quarter of 2023. This growth was primarily driven by robust domestic deal activity and a notable increase in private equity-backed acquisitions.

 

India's equity capital markets witnessed a sharp decline in activity during the first quarter of 2025, following a record-breaking start in 2024. Indian issuers raised US$6.5 billion in equity proceeds, down 59% compared to the same period last year. 

 

IPO activity contributed $2.3 billion, a 7% decrease year-on-year, yet remained elevated compared to historical levels. 

 

Follow-on offerings saw a steeper decline, down 69%, raising only US$4.2 billion. 

 

Block trades, which had surged to record levels last year, saw an 85% reduction in proceeds in the first quarter of 2025, further highlighting the slowdown. 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% of global IPO proceeds during the first quarter of 2025, trailing behind the United States (33.5%) and Japan (12.4%), underscoring the nation’s resilience and appeal to investors given its potential to regain momentum as.

 

Domestic M&A deals saw an impressive 145.4% year-over-year increase, reaching $21.6 billion—marking the highest first-quarter total since 2018. However, inbound M&A activity experienced a sharp decline, falling to a nine-year low of $3.7 billion, down 67.8% from the previous year. Conversely, outbound M&A saw significant growth, rising more than three-fold to $2.1 billion.

 

Investment Banking Fees:

Total investment banking fees: $253.3 million, an 8% decline from Q1 2024.

 

ECM underwriting fees: $57.2 million, a 58% decrease, the lowest since Q1 2023.

 

DCM underwriting fees: $68.5 million, a 5% decline.

 

Syndicated lending fees: $26.1 million, an 11% growth from last year.

 

Completed M&A advisory fees: $101.5 million, a 142% increase year-on-year.

 

Top investment banking firm: Jefferies, earning $48.9 million (19.3% of the fee pool).

 

M&A Activity:

Total M&A deal value: $27.5 billion, up 29.6% from Q1 2024, the highest first-quarter total since 2022.

 

Target India M&A: $25.3 billion, up 24.4% from last year.

 

Domestic M&A: $21.6 billion, a 145.4% increase year-on-year (highest first-quarter total since 2018).

 

Inbound M&A: $3.7 billion, down 67.8% year-on-year (9-year low).

 

Outbound M&A: $2.1 billion, more than a three-fold increase.

 

Top sectors for M&A deals:

 

Energy & Power: $7.3 billion, up 15x, 26.7% market share.

 

Financials: $5.2 billion, up 36%, 18.8% market share.

 

Media & Entertainment: $4.5 billion, up 15.5%, 16.4% market share.

 

Private equity-backed M&A: $5.3 billion, a 227.6% increase from last year.

 

Equity Capital Markets (ECM):

Total ECM proceeds: $6.5 billion, a 59.3% decline year-on-year.

 

IPO proceeds: $2.3 billion, down 6.9% from Q1 2024.

 

Follow-on offering proceeds: $4.2 billion, down 68.8%, the lowest first-quarter total since 2022.

 

Sector contributions to ECM:

 

Industrials: $1.07 billion, 16.4% market share, a 71.3% decline.

 

High Technology: $1.06 billion, 16.2% market share, down 35.5%.

 

Telecommunications: $1.01 billion, 15.5% market share, down 23.9%.

 

Top ECM underwriter: Jefferies with $1.4 billion in proceeds (21% market share).

 

Bonds:

Total bond offerings: $28.8 billion, a 13.8% increase from Q1 2024, the highest since 2019.

 

Top bond sectors:

 

Financials: $20.5 billion, 71.1% market share, a 1.4% increase.

 

Government & Agencies: $2.97 billion, 10.3% market share, up 214.3%.

 

Energy & Power: $2.3 billion, 8.1% market share, up 10.5%.

 

Top bond underwriter: HDFC Bank with $3.4 billion in proceeds (11.8% market share).