Latest news with #ShanthiVijetha
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Business Standard
09-07-2025
- Business
- Business Standard
India Inc sees 48% drop in Q2 deal value amid global uncertainty: GT Bharat
In the second quarter of 2025, Indian corporations navigated a cautious mergers and acquisitions landscape, as global economic uncertainties cast a long shadow over dealmaking sentiment. The quarter saw a total of 582 transactions — including initial public offerings (IPOs) and qualified institutional placements (QIPs) — worth $17 billion. Excluding public market activity, the number stood at 554 deals valued at $12.8 billion, a report by Grant Thornton Bharat said. While deal volumes rose 23 per cent year-on-year compared to Q2 2024, there was a 13 per cent decline in the number of deals and a steep 48 per cent drop in total deal value compared to Q1 2025. Analysts attribute this fall to global instability, including the Iran-Israel conflict, the ongoing Russia-Ukraine war, US policy uncertainty, and elevated gold prices — all of which contributed to investor caution, the report stated. Despite the muted performance, experts believe India's strong macroeconomic fundamentals and high-growth sectors will likely revive deal momentum in the second half of 2025. Shanthi Vijetha, partner, growth at Grant Thornton Bharat, said, 'The second quarter of 2025 was marked by a cautious investment environment influenced by global uncertainties. Despite the slowdown, the sustained momentum in private equity investments, the emergence of new unicorns, and a promising uptick in public market activity towards the quarter-end are encouraging indicators.' M&A activity hits new lows Mergers and acquisitions (M&A) activity in Q2 2025 remained subdued, with only 197 deals worth $5.4 billion — making it the lowest quarterly M&A value since Q2 2023. This marked an 81 per cent decline in domestic deal values from the previous quarter, driven by the absence of multiple billion-dollar deals. The only major M&A this quarter was Sumitomo Mitsui Banking Corporation's $1.57 billion investment in YES Bank. Zaggle makes consolidation moves Cross-border activity also slowed, with outbound M&A dropping 25 per cent in volume and 74 per cent in value. Inbound deals held steady, reflecting selective foreign interest. The banking sector led the charge, contributing nearly half the total M&A value through three key deals. Among standout performers, Zaggle Prepaid Ocean Services made aggressive acquisitions across IT, banking, and media sectors, signaling a bold consolidation strategy despite overall market softness. Private equity shows stability Private equity (PE) deals remained relatively stable with 357 transactions worth $7.4 billion — the second-highest quarterly volume since Q4 2022. However, deal values dipped due to fewer large-ticket investments compared to Q1. There were 18 deals valued above $100 million, totalling $4.6 billion, down from 21 such deals worth $6.1 billion in the previous quarter, the report said. The largest PE deal was Warburg Pincus and Abu Dhabi Investment Authority's $862 million investment in IDFC FIRST Bank. Public market activity sees modest recovery The IPO market remained slow for the third straight quarter, with 12 IPOs raising $1.9 billion — down 25 per cent in volume and 26 per cent in value from Q1 2025. However, June showed signs of revival with strong listings from Leela Hotels ($407 million), Ather Energy ($343 million), and Aegis Vopak Terminals ($326 million). QIP activity held firm, with 16 issuances raising $2.2 billion, nearly matching the previous quarter's tally. The banking sector dominated here too, with six banks raising $1.1 billion, indicating continued institutional interest. Sectoral highlights of Q2CY25 Banking and financial services: Topped deal values at $4.5 billion across 73 deals, with six high-value transactions Infrastructure: Second-highest in deal value ($1.2 billion), supported by large PE inflows into road and urban projects
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Business Standard
09-07-2025
- Business
- Business Standard
Q2 2025 sees sharp drop in M&A and IPO activity, But PE remains resilient
India's corporate dealmaking momentum slowed significantly in Q2 2025, as geopolitical volatility and policy uncertainty created a risk-averse environment for both domestic and foreign investors. According to Grant Thornton Bharat, India Inc recorded 582 transactions (including IPOs and QIPs) valued at USD 17 billion, a sharp 48% decline in deal value from the previous quarter. Excluding public market activity, deal volume stood at 554 transactions worth USD 12.8 billion, reflecting a 13% QoQ drop in volume, even as year-on-year volumes rose 23% compared to Q2 2024—a sign of underlying resilience. 'The second quarter of 2025 was marked by a cautious investment environment influenced by global uncertainties,' said Shanthi Vijetha, Partner – Growth at Grant Thornton Bharat. 'However, the emergence of new unicorns and a late-quarter recovery in public markets offer optimism going forward.' The Mergers & Acquisitions (M&A) segment witnessed a steep fall, with just 197 deals worth USD 5.4 billion—the lowest quarterly M&A value since Q2 2023. The absence of billion-dollar domestic deals was a key reason, with total domestic deal value plummeting by 81% QoQ. The only billion-dollar M&A this quarter was Sumitomo Mitsui Banking Corporation's USD 1.57 billion stake in YES Bank, which accounted for a large share of total deal value. Zaggle Prepaid Ocean Services made headlines with a bold domestic acquisition spree across IT, banking, and media, reflecting a differentiated consolidation strategy amid overall softness. Outbound deals dropped 25% in volume and 74% in value Inbound deals, however, held steady, signaling selective confidence from foreign investors in Indian assets One standout domestic player, Zaggle Prepaid Ocean Services, made a string of acquisitions across IT, banking, and media, bucking the cautious trend with a bold consolidation strategy. Private Equity Holds Firm Despite Value Drop Private Equity (PE) deals continued to demonstrate resilience, with 357 transactions totalling USD 7.4 billion—the second-highest quarterly volume since Q4 2022. However, values dipped due to fewer mega-deals compared to Q1. 18 PE deals were above USD 100 million, totalling USD 4.6 billion, down from 21 deals worth USD 6.1 billion last quarter The largest PE deal was Warburg Pincus and ADIA's USD 862 million investment in IDFC FIRST Bank Investor appetite remained strong in niche consumer and tech segments: Mythik Entertainment raised USD 15 million, marking a notable play in media-tech Citykart Retail secured USD 68 million in Series B funding, showing continued faith in value retail Public Markets Cautiously Reopen IPOs and QIPs remained subdued but stable: 12 IPOs raised USD 1.9 billion, down 25% in volume and 26% in value QoQ June offered hope, with listings from Leela Hotels (USD 407M), Ather Energy (USD 343M), and Aegis Vopak Terminals (USD 326M) pushing monthly totals to their second-highest in 2025 Qualified Institutional Placements (QIPs) held ground, with 16 issuances worth USD 2.2 billion, led by the banking sector which raised USD 1.1 billion across six deals Sectoral Trends: Banking Shines, Retail and IT Slide Retail & Consumer led in volume (21% of total activity) but deal values fell 78% Banking and Financial Services dominated in value—USD 4.5 billion across 73 deals, the highest since Q3 2022 Infrastructure followed, with USD 1.2 billion from 10 deals, driven by large PE bets in roads and urban development IT & ITeS posted 58 deals, but saw a 35% drop in volume and 57% dip in value Manufacturing hit a record high in deal volume, aided by policy support, even as values dipped 24% Despite the Q2 slump, analysts remain cautiously optimistic for the second half of 2025, as geopolitical pressures (Iran-Israel, Russia-Ukraine, US policy uncertainty) are expected to ease and India's macroeconomic fundamentals continue to attract long-term capital. 'Strong domestic consumption, policy momentum, and digital transformation are long-term positives. Once global volatility abates, we expect a solid rebound in deal activity,' Vijetha added.
Hans India
11-06-2025
- Business
- Hans India
Private equity investments to revive in India in second half of 2025: Report
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. The Retail and Consumer sector maintained strong deal momentum, driven by early-stage VC activity and large-ticket investments in fashion retail segments like Citykart's $68 million raise, the report said.
