Dealmaking in India delivered a breakout year in 2025, with total deal value nearly doubling to $157.9 billion – up 91 per cent from 2024 and marking a three-year high -while the number of announced deals edged past last year’s all-time high by 0.7 per cent, according to a report released on Friday.
The surge was driven by large domestic spin-offs, share buybacks, consolidation across core industries, and sustained cross-border interest. Industrials, Energy and Power, Financials, and High Technology together accounted for 70.5 per cent of the total deal value, with each sector posting strong year-on-year growth, data shared by LSEG (London Stock Exchange Group) showed.
“With a robust IPO pipeline for 2026, strong domestic liquidity, sustained investor demand, and supportive regulatory reforms, India is poised to remain one of the most attractive markets for equity issuance in the year ahead,” said Elaine Tan, Senior Manager, Deals Intelligence at LSEG.
Sector-wise, Industrials recorded the sharpest rise, jumping 221 per cent to $35.4 billion. Energy and Power deal value rose 190 per cent to $28.9 billion, Financials climbed 152 per cent to $27.0 billion, and High Technology more than doubled to $19.9 billion.
Current deal activity points to several key themes, including pure-play spin-offs, continued interest in financial services, accelerating energy-transition investments, and AI-driven technology consolidation. These trends are expected to support strong mergers and acquisitions momentum going into 2026, Tan noted.
India’s equity capital markets also remained among the most active globally. IPO activity delivered one of its strongest years on record in 2025, with issuers raising $21.8 billion – up 6.5 per cent year-on-year and the highest annual total since records began in the 1980s.
The number of IPOs increased 9 per cent from the previous year, making 2025 the busiest year since the mid-1990s IPO boom. The surge was supported by several large listings, including Tata Capital ($1.75 billion), HDB Financial ($1.46 billion), and LG Electronics India ($1.3 billion).
With a 15 per cent share of global IPO proceeds, Indian exchanges ranked as the world’s second-largest IPO venue in 2025, behind the United States, the report said.
Although follow-on offerings declined 32 per cent from last year’s block-driven peak, they still delivered the second-strongest annual total since records began in 1980. This was led by State Bank of India’s $2.9 billion equity raise through a qualified institutional placement (QIP).
Investment banking activities in India generated an estimated $1.47 billion in fees in 2025, up 8 per cent from the previous year and the highest annual total since records began in 2000. Morgan Stanley topped the overall investment banking fee rankings in India, earning $110 million and accounting for a 7.5 per cent share of the country’s fee pool, the report added.
(IANS)
