India’s deal street is having a moment. Big-ticket block deals, rising private equity interest, and a steady pipeline of IPOs are all keeping investment bankers busy — and it’s not slowing down anytime soon. Promoters are selling large stakes in companies while private equity firms are stepping in with both minority and control deals. According to bankers, what’s changed is that companies now have more options — from public listings to strategic sales and secondary deals — and they’re using them all. Rahul Mody, Managing Director and Co-Head of Investment Banking at Ambit, attributes the surge in deal activity to four drivers. First, a temporary correction in valuations earlier this year, triggered by global tariff concerns and geopolitical tensions—helped bridge the expectation gap between buyers and sellers. "While markets have since rebounded, the correction made it easier for both parties to agree on pricing, which is often the most difficult part of closing a deal," Mody explained. Second, a growing appetite among India’s large conglomerates for strategic acquisitions. "If you look at recent deals—JSW-Akzo Nobel, Bajaj’s acquisition of Allianz’s stake, Mahindra’s activity, or Torrent Pharma’s buyout of JB Pharma—there’s clearly a surge in corporate-led M&A." Third, private equity has remained highly active, not just in investing but also in exits. "We’re seeing PE firms using IPOs, block deals, and M&A routes for monetisation," Mody noted. Importantly, it’s not just traditional PE players—real estate funds, sovereign wealth funds, pension funds, and infrastructure investors are also engaging in both control and minority deals. Lastly, the attractive monetisation environment for both Indian promoters and foreign strategic investors. "Despite some corrections, valuations remain strong, creating an ideal window for strategic exits and secondary sales." Adding to this momentum is India’s favourable foreign capital landscape. FDI inflows rose 14% to $81 billion in financial year 2025, with Maharashtra and Karnataka accounting for over half of the total. Government sources also note increasing interest from countries such as Saudi Arabia and the UAE. While Indian promoters have traditionally been cautious about ceding control, a growing professional mindset and openness to strategic partnerships are driving more deal-making avenues. Bhavesh Shah, MD and Head of Investment Banking at Equirus, said M&A activity was around $25 billion over the past couple of years and has increased to about $30 billion in 2024. He noted that companies now have many more options—they can go for a public listing, sell their stake through block deals, or choose M&A. This range of choices is shaping the current trend.

India’s deal street is buzzing as promoters cash out and private equity steps in

India's investment banking sector is experiencing a surge in deal activity, driven by promoters selling stakes, private equity involvement, and corporate M&A. Factors include valuation corrections, strategic acquisitions, and favorable foreign capital inflows. Industry experts highlight increased M&A activity, with deals reaching $30 billion in 2024.