India saw 501 deals valued at $21.4 billion in the April-June period -- highest quarterly volumes since Q2 2022 -- as an anticipated policy clarity from the upcoming budget and political stability is expected to boost investor confidence and drive deal activity in the next six months, a report showed on Friday.

Mergers and acquisitions (M&A) and private equity (PE) deals together stood at 467, valued at $14.9 billion which is a 9 per cent increase in volumes, according to the Grant Thornton Bharat Dealtracker.

This surge was largely due to four high-value deals by the Adani Group in the industrial materials and ports sectors, which accounted for 52 per cent of the total M&A values for the quarter.

The second quarter of FY25 featured one billion-dollar deal and 30 high-value deals (over $100 million), marking a 58 per cent increase in high-value deals compared to the previous quarter, which had only 19 high-value deals including three billion-dollar deals.

"The quarter witnessed robust private equity activity and large domestic deals. Despite a decline in cross-border deals due to geopolitical uncertainties, domestic investment remained strong," said Shanthi Vijetha, Partner, Growth, Grant Thornton Bharat.

Traditional sectors like pharma and manufacturing also saw strong deal flows, collectively contributing nearly half of the deal values.

"With the government entering its third term after the recent elections, the industry anticipates policy continuity, which should positively drive the deal activity," Vijetha added.

Indian corporates are increasingly investing domestically, reflecting strong confidence in the local investment climate.

M&A activity in Q2 2024 saw 132 deals worth $6.2 billion, marking a slight increase in volumes.

In Q2 2024, the PE landscape saw significant growth, recording 335 deals totaling $8.7 billion, marking a 9 per cent increase in volume and a notable 55 per cent increase in value since Q1 2024.

There were 20 qualified institutional placements (QIPs) at $2.3 billion, showing an increase in both values and volumes over the previous quarter, with volumes marking the second highest since Q4 2017, the report mentioned.

As for IPOs, there were 14 IPOs worth $4.2 billion in Q2 2024, representing the highest quarterly IPO size since Q2 2022.

Retail and consumer sector emerged as a dominant force in deal activity despite a 7 per cent decrease in volumes, showcasing an 18 per cent increase in values over Q1 2024.

--IANS