Merger and acquisition (M&A) activity in the infrastructure sector is being driven by the expanding footprint of private equity (PE) platforms, infrastructure investment trusts (InvITs) and strategic acquisitions by companies. Sovereign wealth funds, international pension funds and, more recently, domestic pension funds are also emerging as key investors in InvITs. Infrastructure continues to be one of the key sectors attracting investor interest, with large-ticket transactions still taking place despite the broader slowdown in PE and venture capital (VC) activity. VC investors have primarily remained focused on energy transition-linked businesses, particularly within the electric vehicle (EV) and renewable energy ecosystem.
In 2025-26 so far, infrastructure deals have been driven primarily by the energy and road sectors, alongside a steady flow of smaller transactions in the EV and logistics infrastructure segments. Further, infrastructure remains central to India’s capital recycling agenda, with InvITs increasingly being used to monetise operational assets. The centre plans to raise the asset monetisation target under the National Monetisation Pipeline to around Rs 11 trillion for FY 2026-30 from the previous estimate of Rs 10 trillion. This enhanced target reflects a stronger emphasis on recycling operational infrastructure assets such as roads, ports and transmission networks through leasing models, which will help generate upfront non-tax revenue.
Infrastructure remains a key focus for private capital
In recent months, PE and VC investment activity has moderated. According to industry reports, total VC/PE funding stood at $26.7 billion in the first half of 2025 (H1 2025), as against $32.4 billion in H1 2024 and $23.8 billion in H2 2024. Despite this slowdown, infrastructure continues to rank among the top sectors attracting investor interest. During H1 2025, the infrastructure sector secured $5.8 billion in investments across 29 deals. However, this still represents a 21 per cent decline from the $7.4 billion secured across 57 deals recorded in H1 2024.
Some of the key sectors that have attracted significant PE interest are energy, particularly renewables, and transport such as roads. The logistics sector has also gained growing investor interest. During calendar year 2025, several notable transactions have taken place. In August 2025, Neo Infrastructure Income Opportunities Fund (NIIOF), a primary infrastructure fund of the Neo Group, acquired SolarArise from ThomasLloyd Energy Impact Trust for $160 million. In January 2025, Blueleaf Energy, a green energy platform owned by Macquarie, invested $400 million in Jakson Green for the development of a 1 GW solar energy portfolio. Further, in March 2024, TPG Rise acquired a 100 per cent stake in Siemens Gamesa’s onshore wind turbine generator manufacturing business in India and Sri Lanka for $819 million.
Beyond equity investments, private credit and structured financing have also gained traction. In October 2025, Blueleaf Energy and British International Investment (BII) entered into an agreement under which Blueleaf Energy secured a $75 million financing facility from BII. Earlier, in April 2025, one of the largest private credit deals in the renewable energy space was concluded, with Greenko raising an $800 million private credit loan from Clifford Capital and BlackRock.
Within the transport sector, roads have emerged as a frontrunner. In June 2025, Cube Highways acquired two road assets in Jammu and Kashmir from the National Investment and Infrastructure Fund (NIIF) for $484 million. Earlier, in March 2025, NIIOF acquired two road assets from CDS Infra Projects for Rs 15 billion. Furthermore, PE players have remained key investors and sponsors of InvITs, driving overall M&A activity, particularly in the power and road sectors. Meanwhile, in July 2025, TVS Industrial and Logistics Parks raised $152 million from both global and domestic institutional investors.
The infrastructure sector also offers stable exit opportunities to PE and VC investors. In H1 2025, the sector accounted for the highest share of exits by value, totalling $4.3 billion across six deals. This represents more than a fourfold increase from the $803 million across six exits in H1 2024. Key transactions during the period included the exit of NIIF, BII and Eversource Capital from Ayana Renewable Power through a $2.3 billion sale to ONGC NTPC Green Limited. Further, in June 2025, GEF Capital divested around a 6 per cent stake in Premier Energies for $307 million.
EV and logistics firms continue to attract VC interest. Several notable transactions have taken place in recent months. In November 2025, 3EV Industries raised Rs 1.2 billion in a Series A funding round from investors including Mahanagar Gas, Equentis Angel Fund and the Thackersey Group, along with other participants. Earlier, in October 2025, EKA Mobility raised Rs 57.5 billion ($56.8 million) in a Series A funding round from the India-Japan Fund managed by NIIF. During the same month, SnapE Cabs raised $2.5 million in a bridge round led by Inflection Point Ventures. In September 2025, Vertelo, Macquarie Asset Management’s fleet electrification platform raised Rs 35.42 billion ($405 million).
In the logistics sector, key transactions included Porter raising $200 million in its Series F funding round in May 2025. The round was led by Kedaara Capital and Wellington Management, with participation from existing investor Vitruvian Partners. Earlier, in February 2025, Emiza Supply Chain raised Rs 1 billion in its Series C round through a mix of primary infusion and secondary transactions led by Evolvence India and Mirabilis Investment Trust.
InvITs at the centre of asset recycling
InvITs, as an asset monetisation tool, are helping bridge the infrastructure financing gap while enabling asset recycling by private players, allowing them to re-deploy capital into new projects. For investors, InvITs offer a lucrative investment opportunity and are increasingly attracting some of the largest pools of capital, including pension funds, multilateral agencies and private equity firms. Over the years, InvITs have raised Rs 1.8 trillion in equity and Rs 2.03 trillion through debt. As of November 2025, there are 27 registered InvITs across nine sectors, with total assets under management (AUM) of approximately Rs 7 trillion. Roads account for the largest share of AUM at around 40 per cent, followed by fibre, telecom and warehousing.
InvITs have emerged as one of the major acquirers of operational assets in the road sector. In 2024 alone, these trusts accounted for over Rs 190 billion, or 50 per cent of the total asset deal value in the sector. More recently, InvITs have shown increasing interest in accessing public markets, with six InvITs already publicly listed. Trusts that have expressed intent to go public include Cube Highways Trust, Vertis Infrastructure Trust, Citius TransNet Investment Trust and the NHAI public InvIT. Backed by a successful market debut, rising investor confidence and a maturing ecosystem, industry experts estimate that the AUM of road sector InvITs will grow by 37 per cent, from Rs 2.4 trillion in March 2025 to Rs 3.27 trillion by March 2026. Some recent stake acquisitions involving InvITs highlight continued institutional investor interest.
In September 2025, institutional investors acquired around a 17 per cent stake in Vertis Infrastructure Trust for Rs 24.68 billion. Earlier, in June 2025, Kotak Mahindra Bank, LTI Mindtree and Larsen & Toubro acquired a 2 per cent stake in Cube Highways Trust for Rs 3.3 billion.
Acquisition activity
M&A activity sustained its momentum during the first nine months of 2025, with the total deal value reaching $37 billion, broadly in line with the levels recorded during the corresponding period of 2024. Several key transactions were concentrated in the energy sector. In October 2025, Premier Energies acquired a 51 per cent stake in Transcon for Rs 5 billion. Earlier, in September 2025, Serentica Renewables acquired Statkraft’s solar business in India for an enterprise value of $220 million-$250 million. During the same month, Sembcorp signed an agreement to acquire ReNew Sun Bright for a total consideration of SGD $246 million.
The cement and building materials sector also witnessed notable deal activity. In August 2025, JSW Paints acquired a 74.76 per cent stake in Akzo Nobel India for Rs 89.86 billion. Earlier, in July 2025, Supreme Industries acquired the piping business of Wavin Industries for Rs 3.1 billion. In the logistics space, a key transaction involved Delhivery, which announced the acquisition of a 99.87 per cent stake in Ecom Express for Rs 13.69 billion in August 2025.
To sum
Rising investor interest in long-term infrastructure asset ownership is expected to promote capital recycling through platforms focused on generating stable cash flows, reflecting the deeper institutionalisation of the sector. Corporate-led acquisitions, in particular, underscore a clear focus on consolidation and expansion across sectors such as cement, building materials and logistics. Companies are leveraging M&As to strengthen core portfolios, enhance vertical integration, improve service offerings and secure long-term growth. Going forward, an expanding asset monetisation pipeline is expected to continue driving deal activity.
Bhavya Bhandari
