Nomura India expects $35-40 billion in deals in the coming 12-16 months

Nomura India expects initial public offering (IPO) and block deal activity to remain strong in 2025. Amit Thawani, Managing Director and Head of Investment Banking at Nomura India expects deal activity of $35-40 billion over the next 12-16 months.“From a deal street perspective, despite all the volatility and talk around volatility impacting markets, Indian retail not spanning out etc. we have had large IPOs, which have actually happened, whether it’s Hexaware Technologies, whether it’s Dr Agarwal’s or some of the others, and the pipeline, in terms of IPO activity, looks pretty strong.”

Deal momentum usually revives with block trades, which has started happening, he added.

According to Nomura, the IPO pipeline for 2025 remains robust, with over 60 DRHPs filed. The industrial sector has the highest number of filings, followed by financials, technology, and healthcare.Read Here | Hexaware Technologies: India’s largest IT services IPO hits the bourses, shares list at a premium of 5%Thawani said, “There are bank led, NBFC IPOs, there are tier-one, largecap financial sector IPOs, which are in the coming. There are number of large private equity, healthcare services related IPOs and these are not sectors which are overly cyclical. These are largely defensive sectors, and they will find receptivity in the market. So watch out for healthcare services space, and large financial space.”

India’s M&A activity in 2024 stands at $89 billion. Upcoming acquisition opportunities, such as Haier Appliances India and Akzo Nobel, are seeing significant interest from Indian buyers.

Nomura highlighted key themes driving market activity. The first revolves around clean energy-related sectors, encompassing both infrastructure ownership businesses and companies linked to this ecosystem. This trend is supported by factors such as the China Plus One strategy and supply chain advantages benefiting India, particularly in export-driven segments.

Notably, this area had been relatively absent from the market for some time. However, the landscape began to shift with Waaree Energies’ entry last year, and Nomura anticipates a continued flow of offerings in this space.

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