India Leads Asia-Pacific in PE Deal Volumes

India’s healthcare private equity and IPO market growth reflect its strong investment potential, positioning the country as a key player in global markets.

India is emerging as a leader in the Asia-Pacific region for private equity (PE) deal volumes, showcasing its strong economic growth, flourishing startup ecosystem, and increasingly favorable investment climate. With a large, youthful population, rapidly expanding digital infrastructure and a growing middle class, India presents many opportunities for private equity firms seeking high returns. In recent years, India has attracted significant PE investments across various sectors, including technology, healthcare, and consumer goods, positioning itself as a key hub for private equity activity in the Asia-Pacific region. North America remained the dominant market, representing 65 percent of global deal value, followed by Europe with 22 percent and Asia-Pacific with 12 percent.

Over time, India has built a reputation for offering favorable returns, which has attracted multiple PE funds. This confidence is reinforced by successful exits from companies through IPOs, strategic acquisitions, and sponsor-to-sponsor deals. The country’s healthcare spending is expected to reach $320 billion by 2028, supporting the sector’s continued growth.

Private equity activity in India includes notable transactions such as Morgan Stanley’s minority stake acquisition in the Hyderabad Institute of Oncology, Blackstone’s buy-and-build strategy with Care Hospitals, and Advent’s investment in Apollo Hospital Enterprise’s digital health platform, Apollo 24|7. In the pharmaceutical services sector, PE investors focus on contract development and manufacturing organizations (CDMOs), contract manufacturing organizations (CMOs), and generic pharmaceutical manufacturers, capitalizing on India’s strong market potential.

The year 2024 also marked a record for India’s IPO market, with over 200 companies raising a total of $11.2 billion, more than double the previous year’s total of $5.5 billion. This growth can be attributed to increasing retail participation, a surge in domestic inflows, and foreign portfolio investors (FPIs) remaining active in the market despite some being net sellers. India’s IPO market has become a significant player in the global capital market landscape.

India dominated the Asia-Pacific IPO market in 2024, accounting for 214 IPOs. The country’s surge in IPO activity was driven by small and medium-sized enterprises (SMEs) tapping into the market, as well as government initiatives supporting infrastructure and core sector development. While India excelled, other countries like Japan and Malaysia also saw growth in their IPO markets, with Japan’s IPO value growing by 275.1 percent and Malaysia witnessing a 145.9 percent increase. In contrast, China experienced declining IPO numbers due to tightening regulations, with 64 IPOs raising just over $5.2 billion.

The tech and communication industries led the APAC IPO landscape in 2024, with 118 IPOs raising $3.8 billion. The financial services sector contributed significantly to 60 IPOs, generating $2.6 billion. Some of the largest IPOs in the region included Lineage Inc. and Tokyo Metro, with issue sizes of $4.4 billion and $3.2 billion, respectively.

As the country’s healthcare sector expands and new IPO opportunities emerge, India is poised for sustained growth in the coming years. However, the outlook for 2025 will be influenced by global economic conditions and regional policies, highlighting the need for strategic adaptability in navigating the growing market trends.

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