Small is big for PEs, companies as M&As rise to $45.4 billion in H1

Health care, retail emerge favourites as big-ticket transactions remain subdued

India’s mergers & acquisitions (M&As) market recorded deals worth $45.44 billion in the first half of 2025, up nearly 3.3 per cent from a year ago, even as ultra large-ticket transactions remained subdued. 

During the first half, the 7.1 per cent rise in deal count to 1,614 signals continuing appetite among domestic conglomerates and private equity (PE) funds for mid-sized and smaller assets. 

The healthcare, infrastructure, and financial services sectors emerged as key drivers. 

This comes even as overall value trailed the post-pandemic highs of 2022, when first half (H1) deal making had peaked to over $135 billion.  

During the first half of this year, the largest deal was New Mountain Capital’s $2 billion acquisition of Access Healthcare Services, a Chennai-based revenue cycle management firm. It underscores the growing attractiveness of healthcare outsourcing, driven by US demand and India’s tech-enabled service base. 

Temasek's acquisition of 10 per cent stake in Haldiram Foods from its promoters for $1 billion was another marquee transaction during the first half. 

In infrastructure, Adani Ports & SEZ, a listed entity, acquired Abbot Point Port Holdings for $1.97 billion from the promoter entities, continuing its expansion into overseas port assets. 

The move is seen as part of Adani Group’s broader strategy to consolidate its logistics footprint across Asia-Pacific. 

Among the conglomerates, Hindalco Industries, the metals flagship of the Aditya Birla Group, announced the acquisition of 100 per cent equity in US-based AluChem Companies, Inc. for an enterprise value of $125 million. 

Bajaj Holdings & Investment Ltd also struck a major transaction, buying out Allianz SE’s stake in Bajaj Allianz General Insurance for $1.2 billion, highlighting the increasing consolidation in India’s fast-evolving insurance sector. 

The Akzo Nobel India deal by JSW Paints announced last week is another big-ticket M&A deal. 

Torrent's ₹19,500 crore deal to buy a majority stake in JB Chemicals was another marquee deal. 

PE firms remained active but cautious. While the number of PE-backed transactions held steady, the average deal size declined. 

Sectors like consumer tech and edtech, once hotbeds of PE activity, saw muted interest due to valuation resets and funding winter. 

While deal value shrank year-on-year, investment bankers say the deal pipeline remains robust, especially in renewable energy, digital infrastructure, and industrials. “There’s significant dry powder waiting to be deployed from our Asia funds,” said a head of a global PE fund. He added, “We expect a second-half bounce as clarity emerges on policy and rate transmission direction post the recent cuts.” 

Among the major PEs, Blackstone Inc announced that it would double its exposure to $100 billion in India. Brookfield said it will increase its investment in India to $100 billion in the next five years. 

Promising second half 

In the second half, one of the most closely watched deals will be Reliance Industries’ bid to acquire Castrol India Ltd.

The deal could significantly boost the oil-to-chemicals giant’s downstream portfolio. 

British energy major BP Plc, which owns a majority stake in Castrol India, has invited expressions of interest (EoIs), and Reliance is understood to be one of the bidders. 

The Centre is also likely to seek financial offers for IDBI Bank by September, said media reports.