IPOs Drive PE-VC Exits While M&A Activity Gains Strong Momentum

More than two-thirds of private equity and venture capital exits from Indian businesses in 2024 were due to initial public offerings (IPOs), according to a recent analysis, as high public market values discouraged secondary deals and significant mergers and acquisitions (M&As).

However, it is anticipated that exit activity will level out across IPOs, secondaries, and M&As over the course of the next six to twelve months, with private investment market pathways regaining favor in the face of public market corrections and increasing liquidity pressure.

Public investment market has upped the bar for the fundamentals of modern companies considering initial public offerings (IPOs), according to investors and industry experts. With many  companies raising $18.6 billion through public listings last year, India saw its biggest IPO process cycle to date, surpassing the 2021 record.

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IPOs accounted for 68% of the $22.7 billion in PE-VC exits in 2024, a notable rise from 2023's 60%. good domestic liquidity, good corporate earnings, and an increase in PE and VC-backed companies becoming IPO-ready all contributed to this positive atmosphere.

“The IPO market in India has been choppy in the first half of the year,” said Klaas Oskam, CEO of DC Advisory India, an investment banking firm.

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In the first five months of 2025, $2.5 billion was totalled through strategic M&A deals in PE/VC exits , and already surpassed was the full-year figure for 2024, and 38% of total exit value was accounted for.