Private equity investments to revive in India in second half of 2025 — Report
Private equity (PE) activity in India is expected to revive in the second half of 2025 as market valuations stabilise and exit opportunities improve
- NEW DELHI — Private equity (PE) activity in India is expected to revive in the
second half of 2025 as market valuations stabilise and exit opportunities
improve, according to a report on Wednesday.
-
- India recorded 179 deals valued at $4.5 billion in May.
Excluding IPOs and QIPs, the market saw 175 transactions worth $4.2 billion,
reflecting a 17 per cent drop in volumes and a marginal 4 per cent decline in
values compared to April, according to the report by Grant Thornton Bharat.
-
- Additionally, the uptick in outbound M&A signals
growing corporate confidence in global expansion and strategic diversification.
-
- "May marked a slowdown in overall deal activity due
to muted private equity sentiment. The emergence of two unicorns and an uptick
in Corporate India's outbound deals indicate a promising deal outlook,” said
Shanthi Vijetha, Partner, Growth at Grant Thornton Bharat.
-
- “Expect deal momentum to build in the second half in the
backdrop of a rejuvenated IPO market,” she mentioned.
-
- The Mergers and Acquisitions (M&A) activity in
May remained steady, with 68 deals valued at $2.4 billion, marking a 75 per
cent increase in deal value compared to April, despite a marginal 1 per cent
dip in volumes.
-
- Notably, outbound M&A activity saw a sharp rise,
with 15 deals closed versus just two in April, signalling renewed confidence
among Indian corporates to pursue cross-border growth and integration after
nearly a decade.
-
- The private equity sector saw a silver lining with the
emergence of two unicorns -- Drools Pet Foods and JSW One Platforms --
reflecting selective investor optimism.
-
- Capital markets remained subdued in May, with only two
IPOs raising $0.3 billion -- consistent with the previous month's tepid
activity.
-
- Banking and Financial Services continued to dominate deal
values, contributing 42 per cent of the total for the month, led by Sumitomo
Mitsui's $1.6 billion investment in YES Bank.
