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The value of M&A deals involving Indian firms surged 26 per cent to $5.6 billion in the first quarter this year, Grant Thornton said on Thursday.
The value of mergers & acquisitions (M&As) was $4.4 billion in the January-march quarter of 2014.
Private Equity investment in Q1, 2015 witnessed a year- on-year jump of 30 per cent to $2.6 billion.
In terms of volumes, PE investments surged by 67 per cent to 219.
The overall deal activity in the country for Q1 2015 was $ 8.2 billion (350 deals), against $6.4 billion (257 deals) in the year ago period.
The number of M&A deals was 131 in the first quarter this year as against 126 transactions in the year-ago period, according to the latest issue of Grant Thornton Deal Tracker.
The transactions in this space were largely driven by inbound activity, the report said.
"We ended the year 2014 on a high note, with a new government at the centre promising to be business friendly and renewing the optimism among business leaders," Grant Thornton India Partner India Leadership Team Harish HV said.
"This was also reflected in a significant pickup in deal momentum picking up post the Lok Sabha Elections. We continue to see this momentum in 2015," Harish added.
As per the report, IT&ITeS and Pharma/Healthcare sector drove both M&A and PE deal activity.
E-Commerce continued to garner multi-million dollar investments coupled with big ticket consolidations amongst players, it noted.
In M&A space, IT&ITES sector continued to be a major attraction with 37 per cent of the deal values. Notable strategic deals during the quarter were Harman International Industries-Symphony Teleca Corporation ($ 780 million), Alibaba Group - One97 Communications Ltd ($ 575 million).
Key PE investments during the quarter were TPG Capital's investment into Manipal Health Enterprises ($ 150 million), and Equis Funds Group's investment in Assetz Property ($ 116 million).
"Given the strong Q1 activity and a positive macro environment, we expect an exciting year of deals and more importantly, healthier and encouraging corporate environment," Grant Thornton India Partner Prashant Mehra said.