India’s M&A Deals continue to Rise despite Market Corrections in Odisha
India has been experiencing a surge in mergers and acquisitions (M&A) deals despite market corrections. The landscape in India remains strong, with 554 deals worth $17.75 billion announced in the first two months of CY2025, compared to 528 deals worth $12.51 billion in the same period last year. Private equity firms and strategic buyers are actively seizing lucrative opportunities in the current market environment.
Manish Mehta, the Managing Director and Co-CIO at Samara Capital, argues that short-term market gyrations do not significantly impact M&A deals due to their long-term nature. However, sustained market weakness could make some sellers hesitant. Private equity funds and sellers facing time pressures are expected to continue driving deal activity. Mehta views bear markets as excellent opportunities for buyers who can overlook short-term uncertainties.
Gopal Jain, Managing Partner at Gaja Capital, believes that market corrections are opening new avenues for deal-making opportunities. With public markets declining by 16% from their December 2024 peak, traditional M&A activity is softening, while private equity buyouts are gaining momentum. Additionally, the enforcement of the Insolvency and Bankruptcy Code (IBC) and generational succession challenges are contributing to the 30% representation of private equity buyouts in deal values exceeding $50 billion over four years.
Despite broader market corrections, certain sectors like IT services, data engineering, analytics, machine learning, and generative AI continue to attract significant investor interest. Valuations remain a challenge, particularly for venture-backed firms, favoring bootstrapped companies as buyers pivot towards IT services and AI acquisitions.
Singapore’s sovereign wealth fund, GIC, is strategically positioning itself for long-term gains during market downturns. Pankaj Sood, Head of Direct Investments, India & Africa at GIC, notes that the fund’s portfolio remains resilient across market conditions, offering investment opportunities at more attractive valuations during public market declines.
In conclusion, India’s M&A landscape appears robust despite broader market corrections, presenting promising opportunities for both buyers and sellers. The market dynamics suggest a continued growth trajectory in deal activities, driven by private equity firms, strategic buyers, and evolving sector-specific investment trends.
