Posted on May 10, 2025 by MergerDomo
Understanding M&A in Today's Market: Trends and Observations (India Specific)
The M&A Market in India: What Investors Need to Know
The M&A market in India is rapidly evolving, as a result of various economic,
geopolitical and industry changes. Whether one is an experienced investor,
or first-time investor, possessing knowledge on current trends underway within
the realm of mergers and acquisitions can determine whether the investors will
undertake an M&A worth their while or not.
M&A Trends in India
• Activity in the market for July 2023 to June 2024 – M&A deal value
increased from $25.24 billion in July 2023 to $36.14 billion in July 2024 (with
manufacturing and the old economy represented by 18 deals worth approximately
$12.50 billion, followed by Pharmaceuticals/Health care by 15 transactions worth
$6 billion). This depicted a 43.2% growth of the manufacturing led M&A deal
value from the year 2023 to 2024 as well as 1.74 % increase in the
number of deals.
• The Dominance of Private Equity - Private equity (PE) remains at the
forefront of M&A in India, with 40% of the M&A transactions described
as cap table driven transactions. M&A in India is currently mostly driven
by investor capital providing growth equity hoping to identify a high growth,
tech company; investor capital focused on consumer facing businesses; and
investor capital seeking out high growth potential start-ups in and around
digital transformation, among other areas.
Sector-Specific Opportunities
• Technology: The technology-driven M&A deals are
still strong, with Artificial Intelligence, Fintech, and cloud computing
forming the center of these deals. Reliance Industries’ deal of INR 13,000
crore for acquiring Zee Entertainment is one of the typical M&A examples
currently happening in rapidly growing media and digital space in India.
• Healthcare: With consumers becoming increasingly
demanding and seeking quality healthcare service delivery, M&As in the
biotech and pharmaceutical industry are on the rise. The recently revealed deal
of Aditya Birla Health Insurance to acquire Niva Bupa for INR 5,000 crore
depicts inclination of investors towards this sector.
• Renewable Energy: Currently, India is shifting its focus to cleaner energy and as such the renewable energy sector is experiencing rapid M&A activities. Adani Green Energy Limited and Renew Power are two such corporations, part of the government’s clean energy drive through acquisitions.
Investment Sentiment & Strategic Shifts
1. Investor Mindset: Analysts are focusing on those companies which provide growth prospects and those those occupy industries with digital and strong green energy sectors.
2. Strategic M&A: More and more, companies turn to possible ways of the innovations and digitalization of the business, use AI opportunities and go to the new markets. This poses perfect chances for investors to move to the next level.
Looking at M&A opportunities in India: Are You Ready
for a Dive?
With these emerging trends and given the detailed segments
by sector, you can manage the M&A in India with ease. Be sure to check out
other entries in our M&A Playbook Series, and feel free to find profitable
investments right now.
